The global Subsea Manifolds market is expected to witness a market value of US$ 5.01B in 2023 and is expected to accumulate a market value of US$ 9.06B by registering a CAGR of 6.1% in the forecast period 2023 to 2033. The market for Subsea Manifolds market registered a CAGR of 3.2% in the historical period 2018 to 2022. The recovery of crude oil prices across the globe is one of the major factors that is expected to propel the market growth.
The expensive process of the development of an offshore site, as well as the delayed return on investment were the factors that had resulted in the sudden fall in crude oil prices. Now, the price of crude oil has been recovering, which in turn is increasing offshore E&P activities by the oil and gas companies. This is expected to result in the high demand for subsea manifolds, since it acts as a medium between the oil and gas well, and the production line at the subsea surface.
As per Future Market Insights – market research and competitive intelligence provider, the global market value for Subsea Manifolds has been augmented, owing to the factors such as the development of extended reach drilling (ERD) technology.
The ERD technology eliminates the need for expensive offshore drilling sites, and utilizes the onshore drilling techniques, in order to provide a cost advantage. In addition, the ERD drilling technology achieves a very long lateral well for oil as well as gas exploration and production purposes. All these factors are anticipated to boost the market growth over the analysis period.
Further, factors such as increasing deep-water oil and gas exploration and production (E&P) activities, flexible functionalities of subsea manifolds including high-integrity pressure protection system operations, and its ability to work under harsh environments, are expected to escalate the demand for subsea manifolds in the near future.
Additionally, the subsea manifolds have been utilized by the oil & gas operators for the development of offshore hydrocarbon reserves, owing to its technological advancements.
On the regional end, the Asia Pacific subsea manifolds market is expected to account for the highest share during the forecast period, owing to the increasing offshore drilling activities in emerging economies including India and China. Also, the growth witnessed in acreages in shale basins, coupled with the government’s plans to expand the existing production capacity of the shale gas in this region are other factors that are projected to accelerate the regional market growth in the forthcoming years.
Moreover, factors including favorable government support, and increase in exploration and production activities in China are likely to bolster the market growth in APAC. For instance, the Chinese government is encouraging coal bed methane (CBM) exploitation through subsidies.
On the other hand, the subsea manifolds market in North America is expected to hold a significant share, attributed to the growth in technological advancements in subsea manifolds, as well as rising oil and gas drilling activities in the region. In addition, various deepwater projects have been sanctioned in the Gulf of Mexico, by the regional government which in turn are expected to stimulate the regional market growth during the forecast period.
Recent developments in the technology, mergers and acquisitions, and partnerships within the companies involved in the designing of subsea manifolds are expected to create lucrative opportunities for the market growth over the analysis period.
For instance, Neptune Energy and it’s associate joint partner BP and Japex, in July 2019, announced engineering, procurement, construction, and installation (EPCI) contract to TechnipFMC. TechnipFMC, under the scope of the contract, will install the wellheads, Xmas trees, an umbilical, flowlines, a four-slot manifold, a subsea structure, and subsea control system.
Subsequently, Saudi Aramco, in April 2019, awarded an EPCI contract to Subsea 7 and L&T, in order to work at its Zuluf and Berri oil fields. The contract will see the delivery of oil production deck manifolds, and subsea pipelines in the Zuluf field.
Subsea Manifolds: Market Dynamics
Offshore oil & gas exploration has been on rise since the crude oil price slump in 2014-15. Given the existence of a large proportion of undeveloped reservoirs in offshore, major exploration and production (E&P) operators have been investing a heavy part of their exploration budgets towards offshore activities.
This is anticipated to drive the demand for subsea manifolds during the forecast period.A significant rise in final investment decisions (FID) directed towards offshore developments is also anticipated to demand for subsea manifolds.
The oil & gas industry, specifically in the offshore sector, has been witnessing a growing trend of integrated service providers, who can both provide the equipment and install, which significantly reduces the total cost of project for E&P operators.
This trend is set to remain prominent in the subsea manifolds market as well. Instability in crude oil prices and widening crude oil supply-demand gap are anticipated to bottleneck the growth of oil & gas industry as a whole, and in turn is expected to restrain the growth of subsea manifolds market in the coming years.
Subsea manifolds are used in the oil & gas offshore fields development to minimize the use of multiple risers and subsea pipelines, simplify subsea installations and for optimizing subsea fluid flow system. Subsea manifolds are an arrangement of a number of valves and pipelines which are designed to monitor, control and distribute fluid flow.
Subsea manifolds are typically installed within a group of wells on the seabed to either inject gas, water or fluids into the wells or gather the produced oil & gas. Subsea manifolds can be designed on the basis of function they are needed to perform, like choke or kill for well control, squeeze manifold for injecting fluids or cement, and production manifold for controlling produced fluids.
On the basis of types, the subsea manifolds are categorized as template manifold, cluster manifold and pipeline end manifold (PLEM). PLEM is one of the most commonly used subsea manifold systems, which is a simpler version of cluster manifold, which directly connects to a subsea flowline and used to direct fluids to subsea Christmas trees.
Other functions of subsea manifolds include providing an interface between the well and production pipeline, distribution of electrical and hydraulic systems, supporting all pipeline systems, and provide a support platform for remotely operated vehicles (ROV).
Given the complexities in subsea oil & gas production operations, the subsea manifolds play a crucial role in connecting a number of subsea installations to offshore structures and production systems.
Subsea Manifolds Market: Regional Outlook
Production technology advancements in shale gas and hydraulic fracturing has been driving oil & gas production activity in offshore USA and the Gulf of Mexico, which is projected to drive the demand for subsea manifolds significantly in the North America region.
Middle east & Africa is projected to drive the demand for subsea manifolds at a robust pace, given the rising investments in African oil & gas producing countries. Asia Pacific is anticipated to drive the demand at a moderate pace in the global subsea manifold market, as compared to North America and Middle East & Africa regions, during the forecast period.