Oil & Gas Hoses Market Report

Market Insights

Oil & Marine hoses are used to load crude oil and other petroleum products from offshore facilities to storage vessels and to unload them back to onshore or offshore facilities. They act as substitutes for sub-sea oil transfer pipelines. Oil & marine hoses are majorly used in the context of oil conveyance from remote places of production, which are not linked to major oil-consuming countries by pipelines. These hoses generally have a length of up to 12 meters (40 feet) and have an internal diameter ranging from 4 to 24 inches. Oil & Marine hoses are of two types: floating and submarine hoses. Floating hoses are the ones that rest on the surface of the water, whereas submarine hoses are used to connect seabed pipelines and floating facilities.

The Uniroyal company, the predecessor of Manuli Rubber Industries S.p.A., has coined the terms Submarine & Floating Hoses in 1959. The demand for oil & marine hoses started to gain momentum in the late 1960s and increased tremendously in the early 1970s particularly in the oil-producing regions of the Persian Gulf, the North Sea, and North Africa; and later its demand spread to other parts of the world. The significant increase in the demand for oil & marine hoses has gained an interest in many tire and rubber manufacturing companies and as a result, many companies started producing oil & marine hoses according to the specific needs of customers. As the demand started widening to other regions, industry players started widening their distribution network covering broader geographical reach.

However, the hefty fine levied to six leading producers of oil & marine hoses in the marine hose cartel in 2009 has led to divestment and closure of some of the industry players including Bridgestone Corporation and Parker ITR S.R.L. The violation disrupted the market's supply chain; however, several companies stick to the market to leverage its growth potential.

The oil & marine hoses market grew continuously over the past five years till 2019 with a continuous rise in global crude oil & gas demand. As per the latest BP statistical outlook, annual oil production was increased by 14.8% from 2009 to 2019 globally. The rise in global oil production contributed majorly to the USA, Canada, and Saudi Arabia. The oil & gas industry participants were expecting the year 2020 as another outstanding year for exploration in offshore areas. But the outbreak of COVID-19 from China and its rapid spread all over the world has entirely flipped the market dynamics.

A sharp decline in the demand for crude oil led to the plunge in crude oil prices in the year 2020 due to the strict lockdown in all the world's major countries, causing huge revenue losses to the industry stakeholders and subsequent decline in the market for oil and marine hoses. As per the IEA Oil outlook, the global oil demand was declined to 91.0 million barrels per day in 2020 from 99.7 million barrels per day in 2019, a decline of around -8.7% in 2020. Similarly, the offshore rigs counts were 271 in 2019, which nose-dove by 57 to 214 rigs counts in 2020. In the pre-COVID scenario, it was anticipated that about 45 countries will launch around 50 lease rounds of exploration out of which 60% would be in offshore areas, but now the petroleum companies are restricting new investments and trying to recover their losses.

Based on results obtained from primary interviews with market stakeholders and industry experts along with the study of recovery trajectories of previous downturns, Stratview Research’s estimates suggest the demand for hoses in the oil & gas industry is anticipated to rebound from 2021 onwards and take three years to reach its pre-COVID level. Also, the market is estimated to grow at a healthy CAGR during 2021-2026, to reach a figure of US$ 242.8 million by 2026.

The long-term growth of the oil & marine hoses market is majorly driven by the expected rise in investments by the leading oil & gas companies for expanding offshore oil & gas production facilities. A projected increase in demand for oil & gas from emerging economies to meet energy requirements is likely to make the surge in oil & gas production including offshore oil & gas production by key countries/subregions such as Brazil, Africa, Western Europe, the Middle East, and China.

Segments' Analysis

Oil & Marine Hoses Market Share by Technology Type

On the basis of media type, the market is segmented as oil, LPG/LNG, water, and chemical. The dominance of oil can be seen in the market as oil is the most consumed energy source out of all the primary energy sources, which turns to around 34% of the global energy consumption. China and the USA are the largest consumers of oil in the world. The Oil segment has also experienced the highest decline in 2020, owing to a huge decline in crude oil demand.

Oil & Marine Hoses Market Share by Carcass Type

Based on the carcass type, the market is segmented into single carcass hoses and double carcass hoses. The double carcass is likely to be the most dominant and faster-growing segment during the forecast period, owing to its anti-pollutant property and stringent action against the spillage of oil in the sea, affecting the flora and fauna of the marine. It has an additional carcass that holds the fluid in case of the primary carcass failure.

Regional Analysis

In terms of region, Europe and North America are the worst-affected regions due to the pandemic in 2020. Latin America is projected to remain the largest market for oil & marine hoses during the forecast period, mainly driven by Brazil with having the largest fleet of FPSOs in the region. More than 90% of Brazil’s oil production is extracted from offshore oil fields. Latin America is rich in oil reserves globally, with around 20% of the global oil reserves are located in the region. Petrobras, YPF S.A., Termap S.A., Oiltanking Argentina S.A., Repsol S.A., Savia Perú, EP Petroecuador are some of the major oil & gas producers in the Latin American region. Petrobras is one of the biggest demand generators for oil & marine hoses in the world.

Asia-Pacific is expected to witness the highest growth during the forecast period. China and South-East Asian countries are the growth engines of the region’s market. These economies are projected to generate immense demand for oil & marine hoses with being the major consumers of oil. Currently, China accounts for almost half of the total oil & gas production in Asia-Pacific.

Market Scope & Segmentation

The oil & marine hoses market is segmented into the following categories.

Oil & Marine Hoses Market Size, Share & Forecast, by Media Type

• Oil (Regional Analysis: North America, Europe, Asia-Pacific, Latin America, and RoW)
• LPG/LNG (Regional Analysis: North America, Europe, Asia-Pacific, Latin America, and RoW)
• Water (Regional Analysis: North America, Europe, Asia-Pacific, Latin America, and RoW)
• Chemical (Regional Analysis: North America, Europe, Asia-Pacific, and Latin America, RoW)

Oil & Marine Hoses Market Size, Share & Forecast, by Carcass Type

• Single Carcass (Regional Analysis: North America, Europe, Asia-Pacific, Latin America, and RoW)
• Double Carcass (Regional Analysis: North America, Europe, Asia-Pacific, Latin America, and RoW)

Oil & Marine Hoses Market Size, Share & Forecast, by Hose Type

• Floating (Regional Analysis: North America, Europe, Asia-Pacific, Latin America, and RoW)
• Submarine (Regional Analysis: North America, Europe, Asia-Pacific, Latin America, and RoW)

Oil & Marine Hoses Market Size, Share & Forecast, By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Western Europe, Eastern Europe, and Central Europe)
• Asia-Pacific (Country Analysis: China, Australia, Malaysia, and Rest of Asia-Pacific)
• Latin America (Country Analysis: Brazil, Venezuela, and Rest of Latin America)
• Rest of the World (Sub-Region Analysis: Africa, the Middle East, and Others)

Key Players

The supply chain of this market comprises raw material suppliers, oil & marine hose manufacturers, installers, distributors, buoy manufacturers, oil refining companies, offshore terminal building contractors, and offshore oil & gas producers. Some of the key players in the market are

• Continental AG
• The Yokohama Rubber Co., Ltd.
• Trelleborg AB 
• Manuli Rubber Industries S.p. A.
• Flexomarine S.A.

Uniroyal had coined the concept of submarine & floating hoses in 1959, which is now a part of Manuli Rubber Industries S.p.A.

Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s oil & marine hoses market realities and future possibilities for the forecast period 2021 to 2026. The report segments and analyzes the market in the most comprehensive manner to provide a panoramic view of the market. The strategic report also analyzes the impact of COVID-19 on the market and provides a detailed overview of the possible market recoveries in the long run. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of low-hanging fruits available as well as formulate growth strategies.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We have conducted more than 15 detailed primary interviews with the market players across the value chain in all five regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, product portfolio, product launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation          

• Current market segmentation of any one of the hose types by media type

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at sales@stratviewresearch.com.