Niche Applications Crucial to Accelerate Revenues in Subsea Equipment Market, Finds Frost & Sullivan

MOUNTAIN VIEW, Calif., Sept. 30, 2014 /PRNewswire/ -- Escalating energy requirements and declining reserves in existing wells are lending momentum to subsea exploration, fuelling the adoption of subsea equipment globally. As attractive returns and higher recovery rates position subsea exploration to challenge the near-shore and onshore industry, demand for subsea equipment will continue to grow.

Subsea exploration is on the rise across the world as emerging applications gain momentum.

New analysis from Frost & Sullivan, Analysis of the Global Subsea Equipment Market, finds that the market earned revenues of $23.13 billion in 2013 and estimates this to reach $35.84 billion in 2018. The golden triangle -- Brazil, West Africa and the Gulf of Mexico -- will remain high-potential regions for market expansion during the forecast period.

For complimentary access to more information on this research, please visit: http://bit.ly/1B87MaE.

"Technological advancements that have led to higher production and safer, cleaner processes encourage energy companies to move further offshore, thus widening the scope of the global subsea equipment market," said Frost & Sullivan Energy and Environmental Industry Analyst Rajalingam Chinnasamy. "As the subsea factory of the future is expected to include a complete production system on the seafloor, the prospect for equipment vendors is secure."

While development in the deep-water platform is strong, the industry is unable to maintain similar growth in terms of resource availability. The shortage of skilled labor to execute projects and crew subsea vessels and equipment will slow uptake.

In addition, high costs associated with deployment of a safe subsea project will curb equipment sales in the short and medium terms. Manufactures are also reluctant to invest in extensive R&D, which is crucial to produce solutions for use in hostile deep water environments.

"Mergers, acquisitions and partnerships will help subsea equipment suppliers leverage expertise across the board and penetrate the market successfully," observed Chinnasamy. "Major participants must especially partner with or acquire hardware suppliers and software providers to widen their product and service portfolios."

As deep water drilling and production increases, identifying niche areas will help vendors sustain profits and carve a space for themselves in the global subsea equipment market.

Analysis of the Global Subsea Equipment Market is part of the Energy & Power (http://www.energy.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: oil and gas outlook, shale services market, shale gas opportunities and oil field services market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

• The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
• The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion 

Join Us:           Join our community 

Subscribe:       Newsletter on "the next big thing" 

Register:         Gain access to visionary innovation

Analysis of the Global Subsea Equipment Market
NDB3-14

Contact:
Ariel Brown
Corporate Communications -- North America
P: +1 (210) 247.2481
F: +1 (210) 348.1003
E: ariel.brown@frost.com

http://www.frost.com

Twitter: @Frost_Sullivan 
Facebook: Frost & Sullivan
Join our Forum on LinkedIn: The Future of Water & Wastewater Management

Photo - http://photos.prnasia.com/prnh/20140930/8521405665