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    Distributed Buoyancy Module Market | Covid-19 Impact Analysis

    Distributed Buoyancy Module Market | Covid-19 Impact Analysis

    Distributed Buoyancy Module Market | Covid-19 Impact Analysis
    Report code - SROG126 Published On : Apr,2020 No. of Pages: 220
    Distributed Buoyancy Modules Market Size, Share, Trend, Forecast, Competitive Analysis, an See more...
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    Impact of COVID-19 on Distributed Buoyancy Module Market

    Covid-19 has impacted the market dynamics, competition, and global...

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    Impact of COVID-19 on Distributed Buoyancy Module Market

    Covid-19 has impacted the market dynamics, competition, and global supply chains. The revenues have gone down in 2020 and may resume an uptrend gradually from 2021. Companies optimizing their operation and strategy will sustain and beat the competition.

    Note: The summary below might not have included insights on covid impact since we have large number of reports.

    Distributed Buoyancy Modules Market: Highlights

    Buoyancy is an upward thrust exerted by fluid opposing the weight of the immersed object. This upward thrust is equal to the weight of the water displaced by the immersed object. Buoyancy products are objects fabricated to apply these solutions. Distributed buoyancy modules are clamped to umbilical, risers, or pipelines to hold them in specific geometric configurations with an aim to prevent overutilization of the system. The modules are attached to the equipment through clamps, which makes them easy and quick to install. They are widely used in SURF application in offshore oil & gas production and offshore wind farm cables.

    In 2014, when oil price began plummeting, offshore exploration activity reduced in parallel, falling nearly 40% before finding its bottom in 2016-2017. It led to an approximate plunge of 60% in offshore exploration expenditure during 2014-2017, mainly due to the reduced cashflow, growth of US shale gas production, and reduction in offshore acreage awarded. But then came 2018, the year of transition of the global offshore oil & gas industry with an increase in the well count since the start of the downturn. In 2019, an increase of 8%-10% was witnessed in the number of offshore exploration wells drilled compared to 2018.

    The oil & gas industry stakeholders were predicting the year 2020 as another remarkable year for exploration with about 45 countries expected to launch more than 50 lease rounds out of which 60% were in offshore areas. But the outbreak of the COVID-19 in China and its rapid spread across the world led to gloomy market conditions.

    The prices of crude oil declined from $60 per barrel at the start of the year to $20 per barrel in the month of April in the wake of the steep fall in crude oil demand followed by the collapse of the three-year-old pact between Russia and Saudi Arabia. Further, the discount on oil prices by Saudi Arabia and the increase in crude oil production by Russia and Saudi Arabia worsened the industry conditions.

    As per Rystad Energy, there will be a plunge of almost 60% in newly licensed offshore oil & gas exploration acreage this year.  Similarly, the firm is also expecting a massive decline of about 68% in 2020 from 2019 in oil & gas project sanctioning. In 2019, the offshore oil & gas project sanctioned was about US$ 104 billion, which may fall to US$ 39 billion and US$ 31 billion assuming the oil price scenario of US$ 40 per barrel and US$ 30, respectively.  

    Distributed Buoyancy Modules Market Forecast

    The demand for distributed buoyancy modules is largely dependent on the health of the offshore oil & gas investments. It is anticipated that the market for distributed buoyancy modules will plummet in 2020, mainly because of nose-diving offshore oil & gas investments across regions. However, the rate of decline will not be huge since the major distributed buoyancy module suppliers have piled many contracts, which may help them to survive in this challenging market environment. However, they have been expecting a steep decline in the year 2021. The market is estimated to rebound from 2022 onwards, reaching an estimated value of US$ 91.6 million in 2025.

    Distributed-Buoyancy-Modules-Market-Forecast

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    Distributed Buoyancy Modules Market Share Analysis

    Market Share by Application Type

    Based on the application type, the market is segmented into riser systems, flowlines, umbilical, wind farm cables, and others. Riser system is expected to remain the largest segment of the market during the forecast period. Continuous efforts of oil & gas companies to obtain maximum efficiency, reduce break-even cost for offshore oil & gas production, and increase deepwater and ultra-deepwater oil & gas production are driving the demand for distributed buoyancy modules in riser systems.

    Wind farm cable is estimated to be the fastest-growing application of the market during the same period. High focus on the development of renewable energy of the leading economies with increased attention towards offshore wind energy is primarily driving the demand for distributed buoyancy modules in the segment. Reduction in the production cost of offshore wind turbines with the development of more efficient, larger turbines and government initiatives to boost renewable energy are attracting companies to invest in offshore wind energy, which, in turn, is propelling the demand for distributed buoyancy modules for wind farm cable applications.

    Market Share by Material Type

    Based on the material type, the market is segmented into synthetic foam, polyurethane foam, and others. Synthetic foam is expected to remain the dominant material during the forecast period. Distributed buoyancy modules are mostly used for deepwater and ultra-deepwater applications. High buoyancy per volume and extremely low water absorption properties make synthetic foam the first preference for ultra-deepwater and deepwater applications.

    Polyurethane foam is estimated to be the fastest-growing material type during the same period. Most of the offshore wind farms operate in shallow water and uses polyurethane-foam based distributed buoyancy modules for cable applications. Rapidly increasing offshore wind installations are generating a huge demand for polyurethane-based distributed buoyancy modules.

    Market Share by Region

    Despite the European oil & gas industry serverly hit by the COVID-19 pandemic, the European region will maintain its leadership in the distributed buoyancy modules market in the coming five years. The credit goes to the flourishing offshore wind energy in the key countries such as the UK. It is anticipated that the demand for DBMs may stall for the short-term in the region with the expected recovery from 2022 onwards. Scheduled new offshore wind turbine installations and increasing activities in deepwater and ultra-deepwater oil fields in the North Sea will contribute towards a healthy demand generation of distributed buoyancy modules in the region in the long run.

    Distributed-Buoyancy-Modules-Market-By-Region

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    North America is expected to be the fastest-growing market for distributed buoyancy modules during the forecast period. Offshore wind production in the USA is expected to commence from 2022 as production cost has been reduced by using more efficient and bigger turbines. As per GWEC, around 5.8 GW of offshore wind energy installations are expected to be installed by 2024 in North America, which will generate a healthy demand for distributed buoyancy modules in the region. Also, the USA is the largest producer of crude oil in the world, which further aids the demand for these modules in the region.

    Key Players

    The supply chain of this market comprises raw material suppliers, distributed buoyancy modules manufacturers, distributors, and end users (such as oil & gas companies, and offshore renewable energy firms). The key players in the distributed buoyancy modules market are Trelleborg AB, Balmoral Offshore Engineering, Matrix Composites & Engineering Limited, Advance Insulation, Fendercare Marine, DeepWater Buoyancy, Inc., Bardot Group, Forum Energy Technologies, Inc., Floatex S.R.L, and ALSEAMER.

    Distributed-Buoyancy-Modules-Market-By-Key-Players

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    Research Methodology

    Our reports offer high-quality insights and are the outcome of 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 book, press release, journals, investor presentation, white papers, patents, and articles, have been leveraged to gather the data. We 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 strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s market realities and future possibilities for the forecast period of 2020 to 2025. After a continuous interest in our subsea buoyancy market report from the industry stakeholders, we have tried to further narrow down our research scope to the distributed buoyancy module market in order to provide the most crystal-clear picture of the market. The report segments and analyzes the market in the most comprehensive manner to provide a panoramic view of the market. 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 as well as the formulation of growth strategies.

    This report provides market intelligence in the most comprehensive way. 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:

    • Market structure: Overview, industry life cycle analysis, supply chain analysis
    • Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis, etc.
    • 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

    Market Segmentation

    The market is segmented into the following categories:

    Distributed Buoyancy Modules Market, By Application Type:

    • Riser Systems (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)
    • Flowlines (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)
    • Umbilical (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)
    • Wind Farm Cables (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)
    • Others (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)

    Distributed Buoyancy Modules Market, By Depth Type:

    • Subsea (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)
    • Subsurface (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)
    • Surface (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)

    Distributed Buoyancy Modules Market, By Material Type:

    • Synthetic Foam (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)
    • Polyurethane Foam (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)
    • Others (Regional Analysis: North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America)

    Distributed Buoyancy Modules Market, By Region:

    • North America (Country Analysis: The USA and Canada)
    • Europe (Country Analysis: Norway, The UK, The Netherlands, Denmark, Russia, and Rest of Europe)
    • Asia-Pacific (Country Analysis: China, Malaysia, Indonesia, Vietnam, and Rest of the Asia-pacific)
    • The Middle East & Africa (Sub-Region Analysis: The Middle East and Africa)
    • Latin America (Country Analysis: Brazil, Mexico, and Rest of Latin America)

    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 [email protected].


    Frequently Asked Questions (FAQs)

    What are Distributed Buoyancy Modules (DBMs)?

    Distributed buoyancy modules are clamped to umbilical, risers, or pipelines to hold them in specific geometric configurations with an aim to prevent overutilization of the system. The modules are attached to the equipment through clamps, which makes them easy and quick to install. They are widely used in SURF application in offshore oil & gas production and offshore wind farm cables.

    What are the key applications of distributed buoyancy modules?

    Riser systems, flowlines, umbilical, and wind farm cables are the major applications of DBMs. Riser system is expected to remain the largest segment of the market during the forecast period.

    Which country/region is expected to remain the largest in distributed buoyancy modules market?

    Europe will maintain its leadership in the distributed buoyancy modules market in the coming five years. The credit goes to the flourishing offshore wind energy in the key countries such as the UK. It is anticipated that the demand for DBMs may stall for the short-term in the region with the expected recovery from 2022 onwards. Scheduled new offshore wind turbine installations and increasing activities in deepwater and ultra-deepwater oil fields in the North Sea will contribute towards a healthy demand generation of distributed buoyancy modules in the region in the long run.

    Who are the key players in distributed buoyancy modules market?

    The key players in the distributed buoyancy modules market are Trelleborg AB, Balmoral Offshore Engineering, Matrix Composites & Engineering Limited, Advance Insulation, Fendercare Marine, DeepWater Buoyancy, Inc., Bardot Group, Forum Energy Technologies, Inc., Floatex S.R.L, and ALSEAMER.

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