Global umbilical market to reach $23.28 billion by 2032

(WO)— The global umbilical market size was valued at $2 billion in 2021 and is projected to exhibit a compound annual growth rate (CAGR) of 25% from 2022 to 2032. The expansion of the energy consumption rate has fostered the discovery and production of offshore oil and gas wells, which could become a prominent driver for market growth.

According to the U.S. BOEM (Bureau of Ocean Energy Management), the country's overall federal offshore production reached around 641 million barrels of oil and 882 billion cubic feet of gas in the financial year 2020. This accounted for close to 15% of the overall domestic outcome.

The discovery of new reserves coupled with the abundance of unexplored hydrocarbon resources across ultra-deep, deep, and shallow offshore locations has resulted in new exploration & production (E&P) activities, thus proliferating the demand for the umbilical market.

For instance, in April 2022, oil and gas major ExxonMobil announced the launch of three new offshore reserves in Guyana with an overall recoverable volume equivalent to 11 billion oil barrels.

The Europe umbilical market size is anticipated to register commendable growth from 2022 to 2032, due to a rise in offshore activities in the North Sea. Surging explorations of new reserves in addition to supportive administrative regulations by different national governments will further stimulate regional industry growth.

Key Market Players

Major players are channeling efforts toward expanding their production capacities to strengthen their market share and cater to the growing demand. Market expansion is anticipated to be aided by the growing number of partnerships and collaborations among key players that are looking to increase their presence in the market.

Some of the players in the Umbilical market are TechnipFMC plc, Vallourec, Oceaneering International, Inc., Aker Solutions, John Wood Group, Plc, Saipem, McDermott, Schlumberger Limited, NOV, Inc., Prysmian Group, Subsea 7, Halliburton, Baker Hughes Company, and Nexans.

In June 2022, Aker Solutions announced a collaboration with Vår Energi to provide subsea production solutions and systems over the next five years. The partnership will encompass all operating assets and initiatives across the NCS (Norwegian Continental Shelf) owned by Vår Energi.