Floating Production System Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, By Type (Floating Production, Storage, and Offloading (FPSO), Tension Leg Platforms (TLP), Spar Platform, Others), By Water Depth (Shallow Water, Deepwater, Ultra-Deepwater), By Build (New Build, Conversion), By Region 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 18.13 Billion
CAGR (2026-2031)	11.11%
Fastest Growing Segment	Shallow Water
Largest Market	North America
Market Size (2031)	USD 34.11 Billion

Market Overview

The Global Floating Production System Market will grow from USD 18.13 Billion in 2025 to USD 34.11 Billion by 2031 at a 11.11% CAGR. Floating Production Systems (FPS) encompass a range of offshore assets, including Floating Production Storage and Offloading (FPSO) units and Floating Liquefied Natural Gas (FLNG) vessels, designed to receive, process, and store hydrocarbons directly at the extraction site. The market is primarily supported by the increasing necessity to develop deepwater and ultra-deepwater reserves where installing fixed platforms is technically or economically unfeasible. Furthermore, the commercial viability of marginal fields in remote locations drives demand, as these mobile systems offer a flexible infrastructure solution that can be redeployed once a reservoir is depleted.

Despite these drivers, the sector faces a significant challenge regarding the immense capital expenditure required for new builds and the constraints on global shipyard capacity, which often lead to project delays. According to the International Gas Union, in 2025, the total global operational Floating LNG capacity reached 14.35 million tonnes per annum following the commissioning of new facilities in the Republic of the Congo and Mexico.

Key Market Drivers

Increasing investments in deepwater and ultra-deepwater exploration are fundamentally reshaping the sector as major energy operators seek to replenish reserves in prolific basins like the Santos and Campos. This capital influx is directly translating into high-value contracts for complex Floating Production Storage and Offloading (FPSO) units capable of handling high-pressure, high-temperature environments. The scale of these commitments is evident in recent procurement activities where operators are prioritizing high-capacity assets to maximize recovery rates from pre-salt layers. According to Riviera Maritime Media, September 2024, Petrobras awarded an Engineering, Procurement, and Construction (EPC) contract worth US$8.2 billion to Seatrium for the P-84 and P-85 FPSO units intended for the Atapu and Sépia fields. Such substantial financial outlays underscore the industry's reliance on floating solutions to monetize vast deepwater hydrocarbon resources that are inaccessible via conventional fixed infrastructure.

The commercialization of marginal and stranded offshore reserves is simultaneously accelerating the adoption of versatile assets, particularly Floating Liquefied Natural Gas (FLNG) vessels that allow for rapid project execution. These systems provide a critical economic advantage by eliminating the need for extensive subsea pipelines and onshore processing facilities, thereby unlocking smaller gas fields. This trend toward fast-track monetization is exemplified by recent developments in West Africa. According to Eni, December 2025, the Nguya FLNG unit commenced operations offshore the Republic of the Congo, increasing the project's total liquefaction capacity to 3 million tonnes per annum. The broader financial health of the sector reflects this dual demand for oil and gas floating solutions. According to SBM Offshore, February 2025, the company closed the financial year 2024 with a record directional backlog of US$35.1 billion, highlighting the sustained momentum in global orders.

Download Free Sample Report

Key Market Challenges

The immense capital expenditure required for new builds and the constraints on global shipyard capacity constitute a significant barrier to the expansion of the global floating production system market. High upfront financial requirements make investment decisions highly sensitive to market volatility, often deterring operators from committing to capital-intensive projects. Furthermore, the limited availability of shipyard slots suitable for constructing complex floating units creates severe bottlenecks. This scarcity forces operators to contend with extended lead times and inflated construction costs, which erode project economics and delay the deployment of essential infrastructure. Consequently, the inability to secure timely and cost-effective construction options directly slows the pace of market growth.

The impact of these financial and logistical hurdles is evident in the reduced rate of project sanctions within the industry. Investors remain cautious, leading to a contraction in the number of developments moving forward. According to the International Gas Union, in 2025, only 14.8 million tonnes per annum of new liquefaction capacity reached the final investment decision stage during the prior year, representing the lowest annual approval volume since 2020. This decline in approvals underscores how capital and capacity constraints are effectively stalling the progression of new floating production initiatives.

Key Market Trends

Standardization of Hull and Topside Designs is increasingly being adopted by the industry to mitigate construction delays and optimize project economics. By decoupling hull fabrication from specific field contracts, contractors can initiate construction on speculation, thereby significantly reducing the time-to-market for new assets. This "design one, build many" approach allows for the replication of proven hull forms while retaining flexibility for topside customization, effectively addressing the bottlenecks in global shipyard capacity. According to Splash247, December 2024, in the article 'SBM Offshore orders FPSO hull from Shanghai Waigaoqiao Shipbuilding', SBM Offshore ordered its sixth Fast4Ward hull to meet anticipated demand, demonstrating the commercial viability of this speculative execution model.

Simultaneously, the Electrification of Power Generation Systems is reshaping the operational profile of floating assets as operators strive to meet stringent environmental regulations. This trend involves replacing traditional onboard gas turbines with power-from-shore connections or integrating renewable energy sources, which drastically reduces the carbon intensity of hydrocarbon extraction. Although high implementation costs pose a barrier for some developments, major players are proceeding with these low-carbon solutions for strategic assets to ensure long-term sustainability. According to OE Digital, October 2025, in the article 'Equinor Scraps Offshore Electrification Plans as Costs Mount', Equinor confirmed its decision to proceed with the electrification of the Grane and Balder fields, reinforcing the sector's commitment to decarbonization despite broader economic pressures.

Segmental Insights

Based on analysis from reputable market research, the Shallow Water segment is currently positioned as the fastest-growing category within the Global Floating Production System Market. This accelerated growth is primarily driven by the increasing necessity to exploit marginal fields and smaller reserves where constructing permanent fixed platforms is not improvingly economically viable. Operators are favoring floating solutions, such as FPSOs, in these depths due to their lower upfront capital requirements and operational flexibility compared to traditional infrastructure. Furthermore, the ability to redeploy these assets after field depletion significantly mitigates long-term investment risk, encouraging rapid adoption in mature continental shelf basins.

Regional Insights

North America stands as the leading region in the Global Floating Production System market, driven primarily by extensive deepwater and ultra-deepwater exploration activities in the Gulf of Mexico. The region benefits from established offshore infrastructure and the widespread deployment of versatile floating units to access remote reserves efficiently. This market dominance is further reinforced by a stable regulatory framework, where the Bureau of Ocean Energy Management plays a critical role in facilitating offshore leasing and resource development. Consequently, the combination of clear government policies and sustained investment from major energy corporations ensures North America’s continued leadership in the sector.

Recent Developments

• In April 2025, MODEC was awarded a contract by ExxonMobil Guyana to proceed with the engineering, procurement, and construction of the Hammerhead FPSO. This unit, intended for the Hammerhead project in the Stabroek Block, was designed to produce approximately 150,000 barrels of oil per day and operate at a water depth of 1,025 meters. This award marked the company's second floating production project in Guyana, following the Errea Wittu development. The agreement also established an operations and maintenance enabling framework, solidifying the company's long-term strategic presence in this rapidly expanding sector of the floating production market.
• In February 2025, SBM Offshore successfully achieved first oil with the FPSO Almirante Tamandaré at the Búzios field in the Santos Basin, offshore Brazil. This vessel, operating under a long-term lease and operation contract with Petrobras, marked a critical operational milestone as the largest oil-producing unit in the country. Designed with a daily processing capacity of 225,000 barrels of oil and 12 million cubic meters of gas, the FPSO utilized the company's proprietary Fast4Ward program. The successful startup demonstrated the continued demand for high-capacity floating production systems in ultra-deepwater environments.
• In November 2024, a consortium comprising SBM Offshore and Technip Energies was awarded a significant contract by TotalEnergies for the GranMorgu field development located in Block 58, offshore Suriname. Under this agreement, the partnership was tasked with the construction and installation of an all-electric FPSO vessel utilizing SBM Offshore’s Fast4Ward hull. This project represented the first large-scale deepwater development in Suriname, with an expected production capacity of 220,000 barrels of oil per day. The collaboration focused on delivering a unit designed to eliminate routine flaring, aligning with the operator's stringent environmental objectives for the region.
• In May 2024, Seatrium Limited secured two major contracts valued at approximately S$11 billion ($8.16 billion) from Petrobras for the supply of the P-84 and P-85 floating production, storage, and offloading (FPSO) vessels. These units were designated for deployment in the Atapu and Sépia fields within the Santos Basin, offshore Brazil. The newbuild FPSOs were designed with a high production capacity of 225,000 barrels of oil per day each and featured advanced technologies aimed at reducing greenhouse gas emissions intensity by 30%. This award reinforced the company's position in the high-value segment of the global floating production system market.

Key Market Players

• BW Offshore Limited
• Keppel Offshore and Marine Ltd
• Samsung Heavy Industries Co. Ltd
• SBM Offshore NV
• Bumi Armada Berhad
• Hyundai Heavy Industries Co. Ltd
• Mitsubishi Heavy Industries Ltd
• TechnipFMC PLC
• MODEC Inc.
• Teekay Corporation

By Type	By Water Depth	By Build	By Region
Floating Production Storage and Offloading (FPSO) Tension Leg Platforms (TLP) Spar Platform Others	Shallow Water Deepwater Ultra-Deepwater	New Build Conversion	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Floating Production System Market, By Type:

• Floating Production
• Storage
• and Offloading (FPSO)
• Tension Leg Platforms (TLP)
• Spar Platform
• Others

• Floating Production System Market, By Water Depth:

• Shallow Water
• Deepwater
• Ultra-Deepwater

• Floating Production System Market, By Build:

• New Build
• Conversion

• Floating Production System 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