Floating Production Storage and Offloading Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Converted, New-Build, Redeployed), By Propulsion (Self-Propelled, Towed), By Hull Type (Single Hull, Double Hull), By Application (Shallow Water, Deepwater, Ultra-Deep Water), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.78 Billion
CAGR (2026-2031)	6.16%
Fastest Growing Segment	New-Build
Largest Market	North America
Market Size (2031)	USD 3.98 Billion

Market Overview

The Global Floating Production Storage and Offloading Market will grow from USD 2.78 Billion in 2025 to USD 3.98 Billion by 2031 at a 6.16% CAGR. Floating Production Storage and Offloading (FPSO) units are specialized offshore vessels equipped to process, store, and offload hydrocarbons, serving as a critical solution for developing deepwater and ultra-deepwater fields where pipeline infrastructure is technically or economically impractical. The global market is primarily supported by the depletion of shallow-water reserves, necessitating a strategic shift toward deeper offshore environments, and the economic advantage of vessel mobility which allows for redeployment to marginal fields. According to the International Energy Agency (IEA), in 2025, non-OPEC+ oil supply was forecast to increase by 1.7 million barrels per day, driven significantly by offshore production growth in the Americas, reinforcing the structural demand for floating production systems.

However, the market faces a significant impediment in the form of acute supply chain constraints within the global shipbuilding sector. The limited availability of dry docks capable of handling complex hull fabrication and integration, particularly in major Asian manufacturing hubs, has resulted in severe production bottlenecks and extended project delivery timelines. This capacity saturation is further exacerbated by intense competition for construction slots from high-demand LNG carriers, leading to escalated capital costs that threaten to delay final investment decisions and constrain the pace of fleet expansion.

Key Market Drivers

The expansion of deepwater and ultra-deepwater exploration activities stands as the foremost catalyst propelling the global market. As onshore and shallow-water basins mature, major energy corporations are increasingly directing capital toward deeper reserves, particularly in the "Golden Triangle" of Latin America, West Africa, and the Gulf of Mexico. This shift necessitates the deployment of high-capacity units capable of operating in harsh environments and processing complex pre-salt fluids, driving a surge in shipyard order books for specialized hull fabrication. A prime example of this aggressive expansion is observed in Brazil's pre-salt developments, which demand robust floating production systems to manage vast reserves. According to OGV Energy, June 2024, in the 'FPSO eating up the miles to Brazil while Petrobras brings production start date forward' article, Petrobras plans to start up 14 FPSOs from 2024 to 2028 as part of a strategic roadmap to boost decarbonized production.

Simultaneously, the market is driven by the growing commercial viability of remote oil fields, where FPSOs offer a superior alternative to fixed infrastructure. By eliminating the need for extensive subsea pipeline networks, these vessels enable the economic development of frontier regions lacking existing export facilities. This operational flexibility is critical for projects in emerging basins like Guyana, where rapid production ramp-up is prioritized over establishing permanent subsea transport grids. According to the Society of Petroleum Engineers, April 15, 2024, in the 'ExxonMobil Approves Sixth FPSO for Guyana, Aiming for 1.3 Million B/D' article, the $12.7 billion Whiptail project was sanctioned to utilize the Jaguar FPSO, adding substantial capacity to the region's output. This trend is underpinned by a broader recovery in sector spending; according to the International Energy Forum, in 2024, annual upstream capital expenditures were expected to rise by $26 billion to surpass $600 billion, reinforcing the financial commitment to offshore energy security.

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Key Market Challenges

The Global Floating Production Storage and Offloading (FPSO) Market is currently facing a substantial hurdle due to acute supply chain constraints and limited shipbuilding capacity. As the industry demands more complex deepwater units, the scarcity of suitable dry docks in major Asian manufacturing hubs has created a severe bottleneck. This capacity saturation is intensified by the high demand for LNG carriers, which competes for the same limited fabrication slots. Consequently, this logistical gridlock results in significant cost escalation and extended delivery timelines, directly impeding the ability of operators to execute new projects efficiently.

These challenges translate into a measurable slowdown in project sanctions, as operators are forced to delay commitments amidst rising capital requirements and scheduling uncertainty. The difficulty in securing construction slots prevents the market from converting planned developments into active fleet expansion at the required pace. According to the Energy Industries Council (EIC), in 2024, the Final Investment Decision (FID) rate for upstream oil and gas projects was reported at 33.7%, indicating that a large majority of potential developments are stalling before the execution phase. This restricted throughput of sanctioned projects limits the market's growth potential despite the underlying demand for offshore resources.

Key Market Trends

The integration of low-emission power generation systems, particularly Combined Cycle Gas Turbines (CCGT) and all-electric configurations, represents a critical technical evolution in the sector. Driven by stringent environmental regulations and corporate net-zero targets, operators are replacing traditional open-cycle turbines with advanced systems that utilize waste heat recovery or closed-loop electrification to maximize energy efficiency. This transition allows companies to maintain high production outputs while significantly lowering the carbon intensity per barrel, a metric that is becoming essential for regulatory approval in mature basins. According to Seatrium, May 2024, in the 'Seatrium Secures Major Contracts from Petrobras' press release, the P-84 and P-85 vessels were designed with all-electric concepts and other technologies to reduce greenhouse gas emissions intensity by 30%, illustrating the growing mandate for greener offshore assets.

Simultaneously, the adoption of standardized hull designs is reshaping procurement strategies to mitigate construction risks and accelerate time-to-market. By fabricating generic, multi-purpose hulls on speculation before specific field contracts are awarded, contractors can decouple the hull construction phase from topside engineering, effectively neutralizing the impact of shipyard volatility. This modular philosophy enables a plug-and-play approach that standardizes interfaces and equipment, allowing for repetitive manufacturing gains and predictable delivery schedules. According to SBM Offshore, February 2024, in the 'Full-Year 2023 Earnings' report, the effectiveness of this build-strategy was evidenced as the company confirmed the order of its eighth Fast4Ward multi-purpose floater hull, reinforcing the industry's strong shift toward replicable technical solutions.

Segmental Insights

The New-Build segment stands as the fastest-growing category in the Global Floating Production Storage and Offloading market, driven by the expansion of exploration activities into deepwater and ultra-deepwater regions. Operators increasingly prioritize purpose-built hulls to withstand harsh environmental conditions and ensure extended operational lifespans, which converted vessels often cannot guarantee. Additionally, the industry move towards standardized hull designs allows for improved cost management and predictable project delivery schedules. This trend reflects a strategic focus on reliability and safety compliance for long-term offshore energy production.

Regional Insights

North America stands as the leading region in the Global Floating Production Storage and Offloading Market, largely driven by the robust offshore oil and gas sector in the Gulf of Mexico. Trusted market analysis indicates that the region's dominance is sustained by significant investments in deepwater and ultra-deepwater fields, which necessitate flexible production solutions over traditional fixed platforms. Furthermore, North America benefits from a mature energy infrastructure and a stable regulatory environment that encourages capital-intensive offshore projects. This combination of advanced exploration activities and favorable industrial policies cements the region's position at the forefront of the global market.

Recent Developments

• In October 2025, MODEC, Inc. secured a full engineering, procurement, construction, and installation contract from ExxonMobil Guyana Limited for the Hammerhead floating production, storage, and offloading vessel. This agreement followed the completion of front-end engineering and design activities initiated under a limited notice to proceed earlier in the year. The vessel was designed to possess an initial production capacity of 150,000 barrels of oil per day and was scheduled for deployment in the Stabroek Block. The company also finalized an agreement to provide operations and maintenance services for the unit for a ten-year duration starting from first oil.
• In October 2024, Wood entered into an agreement with Petrobras to deliver conceptual studies aimed at optimizing performance and reducing emissions for future floating production storage and offloading vessels. The collaboration focused on developing designs for the next decade that would minimize human exposure to risk and enhance operational reliability. A key component of the research involved evaluating concepts for electrifying platforms via external power sources or onshore systems to eliminate onboard power generation. This initiative was part of a broader strategy to address the primary sources of greenhouse gas emissions in traditional offshore hydrocarbon extraction.
• In May 2024, Seatrium Limited secured contracts valued at approximately S$11 billion from Petróleo Brasileiro S.A. for the supply of two newbuild floating production storage and offloading vessels, the P-84 and P-85. These platforms were designated for deployment in the Atapu and Sépia fields located in the Santos Basin offshore Brazil. The vessels were designed with high production capacities of 225,000 barrels of oil per day each and incorporated advanced technologies to prioritize sustainability. Key features included zero routine flaring and venting, alongside variable speed drives, aiming to achieve a significant reduction in greenhouse gas emissions intensity.
• In May 2024, Saipem was awarded three major contracts totaling $3.7 billion by a subsidiary of TotalEnergies for the Kaminho deepwater project offshore Angola. The scope of work encompassed the engineering, procurement, construction, transportation, and commissioning of a floating production storage and offloading vessel, which involved the conversion of a Very Large Crude Carrier. Additionally, the agreement included a contract for the operation and maintenance of the unit for a firm period of 12 years, as well as a package for the engineering and installation of subsea umbilicals, risers, and flowlines to connect the production network.

Key Market Players

• SBM Offshore Amsterdam B.V.
• TechnipFMC plc
• Saipem S.p.A.
• Exxon Mobil Corporation
• Shell plc
• MODEC, Inc.
• Bumi Armada Berhad
• BW Offshore Group
• Yinson Holdings Berhad
• CNOOC Limited

By Type	By Propulsion	By Hull Type	By Application	By Region
Converted New-Build Redeployed	Self-Propelled Towed	Single Hull Double Hull	Shallow Water Deepwater Ultra-Deep Water	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Floating Production Storage and Offloading Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Floating Production Storage and Offloading Market, By Type:

• Converted
• New-Build
• Redeployed

• Floating Production Storage and Offloading Market, By Propulsion:

• Self-Propelled
• Towed

• Floating Production Storage and Offloading Market, By Hull Type:

• Single Hull
• Double Hull

• Floating Production Storage and Offloading Market, By Application:

• Shallow Water
• Deepwater
• Ultra-Deep Water

• Floating Production Storage and Offloading Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE