The global umbilical market was valued at USD 2 Billion in 2021 and is projected to exhibit a compound annual growth rate (CAGR) of 25% from 2022 to 2032. As of 2022, a valuation of USD 2.5 Billion has been anticipated for the industry. By 2032, it is expected to reach USD 23.28 Billion.
The rapid escalation in the energy consumption rate has fostered the discovery and production of offshore oil & gas wells, which could become a prominent driver for market growth. According to the USA BOEM (Bureau of Ocean Energy Management), the country’s overall federal offshore production reached around 641 million barrels of oil and 882 billion cubic feet of gas in the financial year 2020. This accounted for close to 15% of the overall domestic outcome.
| Report Attribute | Details |
|---|---|
| Estimated Base Year Value (2021) | USD 2 Billion |
| Expected Market Value (2022) | USD 2.5 Billion |
| Anticipated Forecast Value (2032) | USD 23.28 Billion |
| Projected Growth Rate (2022 to 2032) | 25% CAGR |
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The COVID-19 outbreak has had a significant impact on the oil & gas sector. Many countries are highly dependent on oil exports from countries like Russia, and Gulf nations.
However, the pandemic disrupted the global supply chain, creating an energy crisis across the world that resulted in increased prices. Stringent lockdowns caused nationwide shutdowns of subsea production facilities, impacting production volumes, which may have created roadblocks for the industry.
According to an impact analysis from Rystad Energy, the demand for umbilical lines is expected to decline by nearly 32% in 2020, as a result of the devastating impact of the COVID-19 crisis on global energy investments. Furthermore, as the disruptions from the pandemic continue to recede and oil & gas activities improve, the industry could be headed toward gradual recovery in the forthcoming years.
The global demand for Umbilical is projected to increase at a CAGR of 25% during the forecast period between 2022 and 2032, reaching a total of USD 23.28 Billion in 2032, according to a report from Future Market Insights (FMI). From 2017 to 2021, sales witnessed significant growth, registering a CAGR of 20%.
Exploration of New Offshore Reserves with Substantial Output Capacities pushing Growth of the Market
The discovery of new reserves coupled with the abundance of unexplored hydrocarbon resources across ultra-deep, deep, and shallow offshore locations has resulted in new exploration & production (E&P) activities, thus proliferating the demand for the umbilical market.
For instance, in April 2022, oil & gas major ExxonMobil announced the launch of three new offshore reserves in Guyana with an overall recoverable volume equivalent to 11 billion oil barrels.
Furthermore, new oil and gas exploration projects have been launched to meet the world's rising demand for oil and gas. As a result, there is now a greater need for monitoring oil and gas facilities and leak detection systems. A cutting-edge processing facility for natural gas has been built on various new properties.
It is anticipated that such oil and gas exploration and production operations will increase the demand for umbilicals in the upcoming years.
Principal Consultant
Decreasing Prices of Crude Oil Hindering Growth
There has been a drop in crude oil prices at a global level. 2020 saw an 8.4 billion barrel decline in proven crude oil reserves and a 560 million barrel decline in proven lease condensate reserves. The proved reserves of USA crude oil and lease condensate decreased by 19 percent, from 47.2 billion barrels to 38.2 billion barrels at the end of 2020, according to the USA impact assessment study from January 2022. The shrinking crude oil reserves are hampering the total market expansion.
Increased Exploration Initiatives to Drive the Adoption of Umbilical
The growth in the region is owed to increased investments in fresh crude oil discoveries and a promising outlook for developing unconventional sources. In addition to this, the business environment will improve by emphasizing digitization and automation of drilling operations, and crude oil production rates will rise. An Increasing number of firms are investing more money in exploration and production initiatives.
Increasing Investments are Spurring Demand for Umbilical
The Europe umbilical market size is anticipated to register commendable growth from 2022 to 2032, due to a rise in offshore activities in the North Sea. Surging explorations of new reserves in addition to supportive administrative regulations by different national governments will further stimulate regional industry growth.
For instance, in January 2022, Norway’s Ministry of Petroleum and Energy announced the extension of its APA 2021 (Award in Pre-Defined Areas 2021) program to improve the discovery activities across the national continental shelf and exhibit 53 new production licenses to 28 companies.
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Key players in the Umbilical market are TechnipFMC plc, Vallourec, Oceaneering International, Inc., Aker Solutions, John Wood Group, Plc, Saipem, McDermott, Schlumberger Limited, NOV, Inc., Prysmian Group, Subsea 7, HALLIBURTON, Baker Hughes Company, and Nexans.
| Report Attribute | Details |
|---|---|
| Market Value in 2022 | USD 2.5 Billion |
| Market Value in 2032 | USD 23.28 Billion |
| Growth Rate | CAGR of 25% from 2022 to 2032 |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in USD Billion and CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
Depth, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Russia, China, Japan, India, South Korea, Australia, South Africa, Saudi Arabia, United Arab Emirates(UAE), Israel |
| Key Companies Profiled | TechnipFMC Plc.; Vallourec; Oceaneering International, Inc.; Aker Solutions; John Wood Group Plc.; Saipem; McDermott; Schlumberger Limited; NOV, Inc.; Prysmian Group; HALLIBURTON |
| Customization | Available Upon Request |
FMI projects the global Umbilical market to expand at a 25% value CAGR by 2032.
The global Umbilical market is estimated at a market value of USD 2.5 Billion.
The global Umbilical market is expected to garner a market value of USD 23.28 Billion.
FMI has projected North America to be one of the key regions for the Umbilical market.
TechnipFMC plc, Vallourec, Oceaneering International, Inc., Aker Solutions, John Wood Group, Plc, Saipem, McDermott, Schlumberger Limited, NOV, Inc., Prysmian Group, Subsea 7, HALLIBURTON, Baker Hughes Company, and Nexans.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Depth 5.1. Shallow 5.2. Deep 5.3. Ultra-Deep 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 6.1. North America 6.2. Latin America 6.3. Europe 6.4. Asia Pacific 6.5. Middle East and Africa (MEA) 7. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 8. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 9. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. MEA Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Key Countries Market Analysis 13. Market Structure Analysis 14. Competition Analysis 14.1. TechnipFMC plc 14.2. Vallourec 14.3. Oceaneering International, Inc. 14.4. Aker Solutions 14.5. John Wood Group, Plc 14.6. Saipem 14.7. McDermott 14.8. Schlumberger Limited 14.9. NOV, Inc. 14.10. Prysmian Group 14.11. Halliburton 15. Assumptions & Acronyms Used 16. Research Methodology
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Umbilical Market
