The global floating production storage and offloading (FPSO) market was valued at around US$ 25 Bn in 2017 and is anticipated to expand at a CAGR of around 12% from 2018 to 2026, said a new report.

Based on type, the global FPSO market can be divided into converted, new-build, and redeployed, said a new report by Transparency Market Research (TMR) on FPSO market.

In terms of value, the converted segment dominated the global FPSO market in 2017. Low capital requirement and faster deployment of converted FPSOs as compared to new-build FPSOs are likely to drive the segment during the forecast period.

FPSO is a converted tanker or a purpose built vessel that can be multi-hull production semi-submersible, cylindrical shaped production spar/ mono hull, or ship shaped. In FPSOs, hydrocarbon processing facilities are installed that process well stream fluids into oil, LPG, and LNG.

Based on operator, the global FPSO market can be categorized into small independent, large independent, leased operator, major & national oil companies. The small independent segment accounted more than 40% share of the FPSO market in 2017, and the trend is expected to continue during the forecast period.

Based on application, the FPSO market can be classified into shallow water, deep water, and ultra-deep water. Shallow water is described as FPSOs deployed at a water depth of up to 499 meters from the sea level. Deepwater is between 500 meters and 1,499 meters. Ultra-deep water is 1,500 meters and above from the sea level.

New regulations on the prevention of oil pollution from oil tankers when carrying heavy grade oil (HGO) are currently in place. According to the regulations, single hull tankers are banned from carrying heavy grade oil if the capacity of the tanker is more than 5,000 tons DWT. Thus, single-hull oil tankers can carry HGO of capacity between 600 tons DWT and 5,000 tons DWT.

Double- hull tankers can be used for HGO cargo with capacity of more than 5000 tons DWT. Currently, offshore oil and gas exploration activities are on the rise, which increases the capacity of FPSOs. Thus, the double-hull segment is expected to account for a major market share during the forecast period.

The towed segment dominates the FPSO market. Towed FPSOs are widely used because the shape of FPSOs may not be such that they can support easy propulsion and navigation. The towed segment accounted for more than 75% market share in 2017.

In terms of region, the global FPSO market can be divided into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Rise in demand for FPSOs is attributed to increasing investment in offshore exploration of oil and gas in deep water and ultra-deep water areas in regions primarily including Africa and Latin America. Major offshore fields located on Brazilian coasts include Santos, Campos, and Espirito Santo basins among others. Brazil accounted for more than 50 FPSOs in 2017.