9:22 AM Distributed Buoyancy Modules Market Size to reach an estimated value of US$ 91.6 million in 2025. |
| Buoyancy is an upward thrust exerted by fluid opposing the weight of the immersed object. This upward thrust is equal to the weight of the water displaced by the immersed object. Buoyancy products are objects fabricated to apply these solutions. Distributed buoyancy modules are discrete buoyancy clamped to umbilical, risers, or pipelines to hold them in specific geometric configurations with an aim to prevent overutilization of the system. Distributed buoyancy modules are attached to the equipment through clamps, which makes it easy and quick to install. Distributed buoyancy modules are widely used in SURF application in offshore oil & gas production and offshore wind farm cables.
In 2014, when oil price began plummeting, offshore exploration activity hobnailed in parallel, falling nearly 40% before finding its bottom in 2016-2017. It led to an approximate plunge of 60% in offshore exploration expenditure during 2014-2017, mainly factored by the reduced cashflow, growth of US shale gas production, and reduction in offshore acreage awarded. But then came 2018, the year of transition of the global offshore oil & gas industry with an increase in the well count since the start of the downturn. In 2019, an increase of 8%-10% was witnessed in the number of offshore exploration wells drilled compared to 2018. The oil & gas industry stakeholders were predicting the year 2020 as another remarkable year for exploration as about 45 countries were expected to launch more than 50 lease rounds out of which 60% were in offshore areas. But the outbreak of the COVID-19 in China then the rapid spread across the world flipped the table entirely with the gloomy market conditions. The prices of crude oil declined from $60 per barrel at the start of the year to $20 per barrel in the month of April in the wake of the steep fall in crude oil demand followed by the collapse of the three-year-old pact between Russia and Saudi Arabia. Further, the discount on oil prices by Saudi Arabia and the increase in crude oil production by Russia and Saudi Arabia worsened the industry conditions. As per Rystad Energy, there will be a plunge of almost 60% in newly licensed offshore oil & gas exploration acreage this year. Similarly, the firm is also expecting a massive decline of about 68% in 2020 from 2019 in oil & gas project sanctioning. In 2019, the offshore oil & gas project sanctioned was about US$ 104 billion, which may fall to US$ 39 billion and US$ 31 billion assuming the oil price scenario of US$ 40 per barrel and US$ 30, respectively. The demand for distributed buoyancy modules is largely dependent on the health of the offshore oil & gas investments. It is anticipated that the market for distributed buoyancy modules will plummet in 2020, mainly because of nose-diving offshore oil & gas investments across regions. However, the rate of decline will not be that huge as major distributed buoyancy module suppliers have piled many contracts, which may help them to survive in this breath-taking market environment. However, they have been expecting a steep decline in the year 2021. The market is estimated to rebound from 2022 onwards, reaching ultimately to the estimated value of US$ 91.6 million in 2025. Click here to get a Free Sample of the report (with additional insights) Or Read the summary of the report here Distributed Buoyancy Modules Market Insights: By Application Type: Based on the application type, the market is segmented into riser systems, flowlines, umbilical, wind farm cables, and others. Riser system is expected to remain the largest segment of the market during the forecast period. Continuous efforts of oil & gas companies to obtain maximum efficiency, reduce break-even cost for offshore oil & gas production, and increase deepwater and ultra-deepwater oil & gas production are driving the demand for distributed buoyancy modules in riser systems. Wind farm cable is estimated to be the fastest-growing application of the market during the same period. High focus on the development of renewable energy of the leading economies with increased attention towards offshore wind energy is primarily driving the demand for distributed buoyancy modules in the segment. Reduction in the production cost of offshore wind turbines with the development of more efficient, larger turbines and government initiatives to boost renewable energy are attracting companies to invest in offshore wind energy, which, in turn, is propelling the demand for distributed buoyancy modules for wind farm cable applications. By Material Type: Based on the material type, the market is segmented into synthetic foam, polyurethane foam, and others. Synthetic foam is expected to remain the dominant material during the forecast period. Distributed buoyancy modules are mostly used for deepwater and ultra-deepwater applications. High buoyancy per volume and extremely low water absorption properties make synthetic foam the first preference for ultra-deepwater and deepwater applications. Polyurethane foam is estimated to be the fastest-growing material type during the same period. Most of the offshore wind farms operate in shallow water and uses polyurethane-foam based distributed buoyancy modules for cable applications. Rapidly increasing offshore wind installations are generating a huge demand for polyurethane-based distributed buoyancy modules. Despite severely hit European oil & gas industry because of the COVID-19 pandemic, it seems that the European region will remain efficacious in maintaining its lead in the distributed buoyancy modules market in the coming five years, credit goes to the flourishing offshore wind energy in the key countries, such as the UK. It is anticipated that the demand for DBMs may stall for the short-term in the region with the expected recovery from 2022 onwards. Scheduled new offshore wind turbine installations and increasing activities in deepwater and ultra-deepwater oil fields in the North Sea will contribute towards a healthy demand generation of distributed buoyancy modules in the region in the long run. By Region: North America is expected to be the fastest-growing market for distributed buoyancy modules during the forecast period. Offshore wind production in the USA is expected to commence from 2022 as production cost has been reduced by using more efficient and bigger turbines. As per GWEC, around 5.8 GW of offshore wind energy installations are expected to be installed by 2024 in North America, which will generate a healthy demand for distributed buoyancy modules in the region. Also, the USA is the largest producer of crude oil in the world, which further aids the demand for these modules in the region. Click below to run through the detailed ToC of the report Features of the Report This report offers high-quality insights and is the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools. Based on the research, a proper report is crafted with the following key features:
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