Global FPSO Market Grows Steadily at a CAGR of 8.53%

Introduction

An FPSO (Floating Production, Storage, and Offloading unit) is a type of offshore vessel used by the oil and gas industry to process and store hydrocarbons extracted from subsea wells. It combines production, storage, and offloading capabilities on a single floating platform. FPSOs are especially useful in deepwater and remote offshore locations where building pipelines is not practical. They can stay in position for years, process the crude oil or gas onboard, store it, and then offload it to shuttle tankers for transport.

Market Dynamics

Rising deepwater and ultra-deepwater exploration drives the global market

A major driver of growth in the global FPSO market is the rising investment in deepwater and ultra-deepwater exploration, as traditional oil and gas reserves continue to decline. Offshore oil and gas companies are increasingly turning to FPSOs as a flexible and cost-effective solution for production in challenging environments.

• For example, in April 2025, ExxonMobil’s consortium will deploy its fourth FPSO, One Guyana, in the Stabroek Block. Built by SBM Offshore, this vessel is designed to produce up to 250,000 barrels per day, increasing the region’s output capacity to approximately 940,000 barrels per day by late 2025.

Such large-scale offshore projects underscore the growing reliance on FPSOs to access previously untapped reserves in deepwater regions, solidifying their crucial role in the global energy industry’s future.

Private-public partnerships and international collaborations create tremendous opportunities

A significant opportunity within the global FPSO market lies in the increasing prevalence of private-public partnerships and international collaborations. These alliances are essential for bridging funding gaps, sharing technological expertise, and mitigating project risks—key factors for the success of capital-intensive offshore projects.

• For example, in April 2023, Yinson Production secured a $230 million term loan facility from Global Infrastructure Partners (GIP) for the FPSO Maria Quitéria, to be deployed at Petrobras' Jubarte field. This investment marked GIP's first involvement in an FPSO project, highlighting the growing attraction of the sector to global infrastructure investors and the critical role of international financial partnerships in advancing offshore energy projects.

Such collaborations not only accelerate project timelines but also foster innovation, contributing to the sustainable growth of the FPSO market on a global scale.

Regional Analysis

South America remains the dominant region in the global FPSO market, driven by the rich offshore oil reserves in countries like Brazil. The pre-salt fields of Brazil have significantly increased demand for FPSOs, as the country’s oil industry shifts towards deepwater and ultra-deepwater exploration. Moreover, Petrobras, Brazil's national oil company, has been a key player, leading FPSO projects in the region. Brazil’s strategic focus on expanding its offshore oil capabilities positions it as the top player in the FPSO market, making South America a vital hub for FPSO production and deployment.

Key Highlights

• The global FPSO market size was valued at USD 15.38 billion in 2024 and is estimated to grow from USD 16.69 billion in 2025 to reach USD 32.12 billion by 2033, growing at a CAGR of 8.53% during the forecast period (2025–2033).
• By storage capacity, the market is segmented into Less than 1 MMBBLs, 1-2 MMBBLs, and more than 2 MMBBLs. The more than 2 MMBBLssegment owns the highest market share.
• By water depth, the global FPSO market is segmented into shallow water, deepwater, and ultra-deepwater. The ultra-deepwater segment dominates the global market.
• By hull type, the global FPSO market is segmented into single-hull and double-hull. The double-hull segment dominates the global market.
• By ownership, the global FPSO market is segmented into contractor-owned and operator-owned. The contractor-owned segment owns the highest market share.
• South America is the highest shareholder in the global market.

Competitive Players

The key players in the global FPSO market are Chevron, Petronas, Aker Solutions ASA, Bluewater Energy Services B.V., Bumi Armada Berhad, BW Offshore, and others.

Recent Developments

• In February 2025, Petrobras commenced production from the FPSO Almirante Tamandaré (Búzios 7), in the Búzios field, located in the pre-salt layer of the Santos Basin. This high-capacity unit has the potential to produce up to 225,000 barrels of oil per day and process 12 million cubic meters of gas daily. It is connected to 15 wells through subsea infrastructure, including oil producers, water and gas injectors, and a convertible well..

Segmentation

1. By Storage Capacity
   1. Less than 1 MMBBLs
   2. 1-2 MMBBLs
   3. More than 2 MMBBLs
2. By Water Depth
   1. Shallow Water
   2. Deepwater
   3. Ultra-Deepwater
3. By Hull Type
   1. Single Hull
   2. Double Hull
4. By Ownership
   1. Contractor Owned
   2. Operator Owned