Subsea Equipment Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Subsea Production Systems, Subsea Processing Systems), By Component (Subsea Umbilical Riser & Flowlines, Trees, Wellheads, Manifolds, Other), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 64.23 Billion
CAGR (2026-2031)	6.17%
Fastest Growing Segment	Manifolds
Largest Market	North America
Market Size (2031)	USD 91.99 Billion

Market Overview

The Global Subsea Equipment Market will grow from USD 64.23 Billion in 2025 to USD 91.99 Billion by 2031 at a 6.17% CAGR. Subsea equipment encompasses the specialized hardware and control systems, including production trees, manifolds, and umbilicals, utilized for the exploration and extraction of energy resources in underwater environments. The market is fundamentally driven by the escalating global energy demand, which compels operators to explore deeper offshore reserves, and the necessity to maximize recovery rates from mature fields to sustain production levels. These core economic drivers function independently of temporary technological trends and ensure a consistent requirement for robust subsea infrastructure.

Nevertheless, the industry encounters a significant challenge regarding the substantial capital expenditure required for deepwater developments, which often delays project approvals during periods of economic uncertainty. According to the International Energy Agency, in 2024, global upstream oil and gas investment is expected to increase by 7 percent to reach 570 billion US dollars. This data underscores the immense financial scale necessary to support offshore operations and mitigate the risks associated with complex subsea projects.

Key Market Drivers

The surge in deepwater and ultra-deepwater exploration activities acts as a primary catalyst for the market, necessitating the deployment of high-pressure, high-temperature capable hardware. As shallow-water reserves deplete, operators are directing capital toward complex basins, driving the procurement of advanced production trees, manifolds, and risers. This trend is evidenced by the robust order intakes recorded by major service providers. According to TechnipFMC, October 2024, in the 'Third Quarter 2024 Earnings Release', the company reported subsea inbound orders of 2.5 billion USD, reflecting the intense activity in the sector. This influx of capital facilitates the development of integrated systems designed to withstand extreme hydrostatic pressure while optimizing flow rates. Furthermore, the sustained momentum in the sector is visible in the backlogs of key contractors. According to Subsea7, in 2024, the company reported a backlog of 11.3 billion USD, indicating a long-term pipeline of subsea construction and installation projects that ensures steady equipment utilization.

Concurrently, the rapid expansion of offshore wind infrastructure is reshaping the landscape by creating new revenue streams for subsea power cables and substation foundations. The transition toward cleaner energy sources requires extensive underwater cabling networks to transmit electricity from offshore farms to onshore grids, directly boosting the demand for specialized subsea transmission equipment. According to the Global Wind Energy Council, June 2024, in the 'Global Offshore Wind Report 2024', the global industry installed 10.8 GW of new offshore wind capacity in 2023. This growth necessitates the installation of inter-array and export cables, alongside seabed-to-surface connection systems, diversifying the market beyond traditional hydrocarbon applications. Consequently, manufacturers are adapting their production lines to accommodate the unique specifications of renewable energy projects, thereby broadening the overall scope and resilience of the subsea equipment sector.

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Key Market Challenges

The substantial capital expenditure required for deepwater developments constitutes a primary restraint on the global subsea equipment market. These projects demand immense upfront financial resources, rendering them highly sensitive to fluctuations in global energy prices and economic stability. When market conditions become volatile, operators often postpone Final Investment Decisions (FIDs) to preserve liquidity, directly halting the procurement of essential hardware such as production trees and manifolds. This financial barrier effectively limits market participation to well-capitalized entities and creates a cycle of boom and bust in equipment orders, preventing a steady expansion of the sector.

The impact of these financial pressures is particularly evident in established, mature regions where the cost of maximizing recovery is high. According to Offshore Energies UK, in 2024, upstream capital expenditure in the UK Continental Shelf was restricted to approximately 6 billion pounds, reflecting a cautious investment climate despite the need for resource extraction. Such restrained spending patterns demonstrate how the burden of high capital requirements compels operators to limit their financial exposure, directly reducing the volume of new subsea contracts and hampering the overall growth of the market.

Key Market Trends

The implementation of Subsea Carbon Capture and Storage (CCS) solutions is emerging as a critical growth vector, diverging from traditional hydrocarbon extraction. As industries strive to meet decarbonization targets, operators are repurposing offshore reservoirs for permanent CO2 sequestration, creating a specialized market for injection systems and subsea control modules. This shift requires equipment engineered to manage unique flow assurance challenges, such as phase changes and corrosion, distinct from standard oil and gas production. According to SLB, June 2025, in the 'SLB OneSubsea secures EPC contract for Northern Lights CO2 transport and storage project expansion', the company was awarded a contract to deliver two new satellite subsea CO2 injection systems for the project's second phase, confirming the commercial scaling of underwater storage infrastructure.

Simultaneously, the industry is shifting toward the standardization and modularization of subsea hardware to optimize project economics and shorten delivery timelines. Faced with supply chain constraints, operators are moving away from bespoke designs in favor of pre-engineered, configurable solutions that allow for rapid deployment across multiple fields. This approach streamlines manufacturing processes and significantly reduces lifecycle costs by simplifying maintenance and inventory management. This strategic consolidation is evident in major procurement activities within prolific basins. According to Baker Hughes, September 2025, in the 'Baker Hughes to Supply Subsea Tree Systems and Associated Services for Petrobras', the company secured a significant contract to supply up to 50 pre-salt standard subsea tree systems, validating the sector's reliance on standardized equipment architectures to support large-scale offshore developments.

Segmental Insights

The Manifolds segment is currently emerging as the fastest-growing category within the Global Subsea Equipment Market, driven primarily by the industry’s strategic shift toward cost-efficient subsea tiebacks. As operators increasingly prioritize deepwater and ultra-deepwater developments, manifolds act as essential hubs that consolidate flow from multiple wells, significantly reducing the capital expenditure required for extensive pipeline and riser infrastructures. Furthermore, the rising demand for Enhanced Oil Recovery (EOR) relies heavily on these units to manage water and gas injection, ensuring sustained production rates from maturing offshore reserves.

Regional Insights

North America maintains a dominant position in the Global Subsea Equipment Market, primarily driven by extensive offshore oil and gas exploration in the Gulf of Mexico. The region benefits from a mature energy sector where operators heavily invest in deepwater and ultra-deepwater projects to maximize resource recovery. This market leadership is supported by established regulatory frameworks from institutions like the Bureau of Ocean Energy Management, which provide the stability necessary for long-term infrastructure planning. Consequently, the continuous demand for advanced production systems and well-intervention technologies reinforces North America’s status as the central hub for subsea industry development.

Recent Developments

• In February 2025, Baker Hughes launched an all-electric subsea production system during its Annual Meeting in Florence, Italy. This new technology represents the industry's first fully electric topside-to-downhole solution, designed to integrate seamlessly with existing subsea tree designs or retrofit current electro-hydraulic systems. The system aims to significantly reduce capital and operational costs by eliminating hydraulic components, thereby decreasing installation complexity and minimizing the carbon footprint of offshore operations. It is suitable for both shallow and deepwater environments, including subsea carbon capture, utilization, and storage applications, as well as long-offset tieback projects.
• In December 2024, TechnipFMC was awarded a substantial contract by Shell Nigeria Exploration and Production Company Limited for the Bonga North development offshore Nigeria. The contract, valued between $250 million and $500 million, involves the design and manufacture of Subsea 2.0 production systems, including subsea trees, manifolds, jumpers, and control systems. The project will function as a subsea tie-back to the existing Bonga Floating Production Storage and Offloading facility. This award highlights the continued adoption of the company’s configure-to-order subsea technology, which utilizes standardized components to streamline project execution and reduce lead times for deepwater developments.
• In June 2024, Oceaneering International secured two significant contracts from Petroleo Brasileiro S.A. (Petrobras) to supply critical subsea equipment for projects offshore Brazil. The agreements, with an expected aggregate net revenue between $120 million and $183 million, cover the manufacture and delivery of up to 362 kilometers of steel tube and thermoplastic electro-hydraulic umbilicals. Additionally, the scope includes the provision of associated subsea distribution hardware. Manufacturing is scheduled to take place at the company’s facility in Niterói, Brazil, with final delivery expected in the fourth quarter of 2027, reinforcing Oceaneering's position in the resurgent deepwater market.
• In May 2024, SLB OneSubsea and Subsea7 signed a long-term strategic collaboration agreement with Equinor to advance subsea projects in Norway and Canada. The partnership enables the Subsea Integration Alliance to engage early in the project cycle, commencing with joint concept studies for the Wisting field offshore Norway and the Bay du Nord project off the coast of Newfoundland and Labrador. This integrated approach aims to unlock value by facilitating technology innovation and information sharing, thereby improving the economic viability of complex deepwater developments. The agreement provides a framework for the alliance to potentially execute the engineering, procurement, construction, and installation phases upon final investment decisions.

Key Market Players

• Schlumberger Limited
• Halliburton Energy Services, Inc.
• Baker Hughes Company
• TechnipFMC plc
• Subsea 7 S.A.
• Saipem S.p.A.
• Aker Solutions ASA
• Oceaneering International, Inc.
• Kongsberg Gruppen ASA
• Damen Shipyards Group

By Type	By Component	By Region
Subsea Production Systems Subsea Processing Systems	Subsea Umbilical Riser & Flowlines Trees Wellheads Manifolds Other	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Subsea Equipment Market, By Type:

• Subsea Production Systems
• Subsea Processing Systems

• Subsea Equipment Market, By Component:

• Subsea Umbilical Riser & Flowlines
• Trees
• Wellheads
• Manifolds
• Other

• Subsea Equipment 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