by Subsea Umbilicals, Risers and Flowlines (SURF) are key components of subsea infrastructure used to extract oil & gas from offshore reservoirs located deep under sea level. SURF products are used for subsea production and injection systems, subsea processing systems and water injection systems. They enable reliable and efficient transportation of hydrocarbons, chemicals, utilities and control signals from the subsea wellhead to the host facility or another infrastructure on the sea floor. The increasing deepwater and ultra-deepwater exploration and production (E&P) projects across the globe are driving demand for SURF products to access reserves located in deeper waters.
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 2031.
Key Takeaways
Key players operating in the SURF market are Amazon.com, Inc., MercadoLibre, Inc., eBay, Inc., Otto Group, Wal-Mart Stores, Inc., Snapdeal.com, Alibaba Group Holding Limited, Tesco PLC, Alibaba Group Holding Limited, Tesco PLC, Rakuten, Inc., and Flipkart Internet Private Limited. These companies are focusing on new product development and expanding manufacturing capacity to cater to the rising demand.
The growing SURF (Subsea Umbilicals, Risers and Flowlines) Market Demand for oil and gas from the offshore reserves located in deeper waters is fueling the sales of SURF products. Various deepwater and ultra-deepwater E&P projects planned over the forecast period would require extensive subsea infrastructure comprising umbilicals, risers and flowlines.
The key SURF players are expanding their global footprint through mergers and acquisitions to capitalize on opportunities in new geographies. For instance, they are focusing on offshore regions of Asia Pacific and Middle East where many national oil companies are investing heavily in subsea E&P projects.
Market Key Trends
One of the key trends gaining traction in the global SURF market is the increased use of composite and thermoplastic materials to manufacture umbilicals and flowlines. These materials offer strength, flexibility and corrosion resistance required for deepwater applications. Composite and thermoplastic umbilicals and flowlines are nearly 40-50% lighter than their steel counterparts, thus reducing installation and transport costs. Many SURF (Subsea Umbilicals, Risers and Flowlines) Market vendors have developed advanced composite designs tailored for applications in 7,000-10,000 meters of water depth. This trend is expected to further gain momentum as E&P moves into even deeper offshore plays.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of used equipments pose low threat. However, presence of major players and need for technical expertise acts as barrier.
Bargaining power of buyers: Large oil exploration and production companies have high bargaining power due to bulk buying. However, customized and specialized requirements reduces their power.
Bargaining power of suppliers: Major suppliers have control over raw material supply and prices. However, availability of alternative material suppliers balances their power.
Threat of new substitutes: No direct substitutes available as these products are essential for offshore oil exploration. Alternative laying techniques pose low threat.
Competitive rivalry: Intense competition among major players to gain higher market share. Players differ based on integrated solutions, product quality, delivery time and cost.
Geographical Regions
North America accounts for the largest share of the global SURF market in terms of value, driven by deepwater and ultra-deepwater projects in the Gulf of Mexico. Europe is the second largest market concentrated in the North Sea and Mediterranean regions.
Asia Pacific region is expected to be the fastest growing market during the forecast period. This can be attributed to upcoming projects in offshore regions of Southeast Asia and Australia along with capacity additions in China and India.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
