by The SURF (Subsea Umbilicals, Risers, and Flowlines) market caters to the oil & gas industry by providing subsea production and processing systems to facilitate offshore oil and gas operations. SURF systems comprising umbilicals, risers, and flowlines provide the vital link between the subsea well and the surface production facility or host platform. They are designed to transfer drilling mud, chemicals, hydraulic fluids, as well as hydrocarbons from the subsea wells to the surface. With rising investments in deepwater and ultra-deepwater exploration projects due to depleting shallow gas reserves, the demand for advanced SURF systems capable of resisting harsh environmental conditions in deep-sea is growing substantially.
The Global SURF (Subsea Umbilicals, Risers, and Flowlines) Market is estimated to be valued at US$ 50.08 Bn in 2024 and is expected to exhibit a CAGR of 13.% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the SURF (Subsea Umbilicals, Risers, and Flowlines) are Amazon.com, Inc., MercadoLibre, Inc., eBay, Inc., Otto Group, Wal-Mart Stores, Inc., Snapdeal.com, Alibaba Group Holding Limited, Tesco PLC, and Rakuten, Inc.
The global SURF Market is expected to witness significant growth opportunities due to rising number of deepwater and ultra-deepwater exploration projects across the world. Major opportunities exist in the Gulf of Mexico, Brazil, west coast of Africa and Asia Pacific regions.
Advancements in areas such as subsea manufacturing, installation, and intervention techniques are making deepwater exploration economical. Developments such as rigid pipe-in-pipe risers, steel catenary risers, and increased depth ratings of flexible pipes are extending the operational limits of SURF systems.
Market Drivers
Increasing global energy demand is one of the key drivers for the growth of the SURF market. With focus shifting towards developing untapped oil and gas reserves from mature fields, investments in deepwater and ultra-deepwater exploration projects are increasing substantially. This growing number of offshore projects worldwide will drive the demand for advanced SURF systems over the forecast period.
Current Challenges in the SURF (Subsea Umbilicals, Risers, and Flowlines) Market
SURF market is facing many challenges currently due to the ongoing covid-19 pandemic situation. Some of the key challenges are supply chain disruptions, delays in new offshore projects, shortage of labor and restrictions on international travel. The pandemic has significantly impacted offshore operations and production activities globally. Many offshore projects were postponed or delayed due to lockdowns and restrictions imposed. This has negatively impacted the demand for SURF products and solutions. Labor shortages and restrictions on travel have further aggravated the situation making timely delivery and installations difficult. Rising costs of raw materials is another major issue faced by the industry currently.
SWOT Analysis
Strength: SURF solutions enable efficient production from offshore oil & gas reserves. They help connect subsea wells to platforms.
Weakness: Market heavily depends on volatility in oil prices and investments in new offshore projects. Transportation and installation of large SURF components is complex and costly.
Opportunity: Growing investments in deepwater and ultra-deepwater exploration and production opens up opportunities. Demand will rise from emerging markets in Asia Pacific and Middle East.
Threats: Stringent government regulations around offshore drilling can limit growth. Transition to renewable energy poses a long term threat to the oil industry.
Geographical Regions
The North America region currently accounts for the largest share in the global SURF market in terms of value. Countries like US and Canada have extensive offshore oil & gas reserves in Gulf of Mexico, Alaska and Atlantic regions driving significant demand. However, Asia Pacific region is expected to witness the fastest growth during the forecast period supported by upcoming offshore projects in countries like India, China, Indonesia, Australia and Malaysia. Growing energy requirements from industrialization and urbanization is stimulating exploration and production activities in deepwaters and ultra-deepwaters in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
