Subsea Thermal Insulation Market Size was valued at USD 270.02 Million in 2023. The Subsea Thermal Insulation market industry is projected to grow from USD 286.41 Million in 2024 to USD 458.91 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 6.07% during the forecast period (2024 - 2032). The increasing number of subsea projects ly, increasing usage of subsea thermal insulation materials for different coating equipment and field joints, and demand for better thermal insulation in oil and gas offshore exploration are positively boosting the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The oil demand had increased in 2021 as worldwide COVID-19 lockdowns eased, pushing oil prices higher and resulting in demands for more exploration. In 2022, Russia’s invasion of Ukraine and increasing tensions between China and the U.S. pushed countries to focus more on domestic production.
According to U.S. Energy Information Administration (EIA) Annual Energy Outlook 2022 (AEO2022) Reference case, U.S. energy consumption will increase through 2050, primarily driven by economic and population growth.
The EIA also expects gasoline, petroleum, and other liquids to be the future primary fuels consumed in the U.S. transportation sector. Motor gasoline meets light commercial and hybrid vehicles, while diesel consumption demand is expected to increase from the traveling of medium to heavy-duty freight trucks. Due to this increased demand, the U.S. will focus on the domestic production of fuels requiring more offshore exploration.
Figure 1: Gas Production in U.S.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
According to data from U.S. EIA, due to COVID, there was a sudden fall in 2020, but in 2021 again, gas production capacity showed an increment of 4% in gas production. This growth shows that from negative growth, the market condition had improved a lot, and there is a tremendous increase in offshore exploration in the U.S. This increasing offshore growth in 2021 has given a pathway to the market growth positively. Apart from the U.S., Norway is one of the most increasing markets for a subset of this industry. In 2023, Norway’s Ministry of Petroleum and Energy awarded 47 new offshore oil and gas exploration licenses to 25 oil companies. Of all these permits, Equinor received the most significant number of production licenses, which included eight licenses as a partner and 18 licenses as an operator. This exploration growth in the European region creates new avenues for the market growth of subsea thermal insulation.
Based on material type, the Subsea Thermal Insulation market segmentation includes Polyurethane, Polypropylene, Epoxy, Silicone Rubber, Aerogel, Synthetic Rubber, Thermoplastic, and others. The polyurethane segment held the largest revenue share of 41,2% in 2021 and is expected to remain dominant through the forecast period. Growing demand for cost-effective and better insulation material with the lowest thermal conductivity (K Value) and efficient heat transfer coefficient (U-value) is expected to drive polyurethane as the primary material. According to our research, the K-value range for polyurethane is 0.12 to 0.16, while the polypropylene range is slightly higher and is between 0.20-0.25 K-value. While rubber has a K-value range of 0.13 to 0.26, and epoxy ranges from 0.14 to 0.17.
Polypropylene insulation is the second-largest segment, with a revenue share of 32.5% in 2021. Widely usage of polypropylene-based insulation for covering pipes, coupled with its relative durability and low-cost property, has given an advantage to polypropylene insulation in subsea pipelines.
Figure 2: Subsea Thermal Insulation Market, by Material Type, 2021 & 2030 (USD Billion)
Besides insulation, flexible subsea pipe manufacturers use polypropylene tapes to increase thermal performance and enhance the pipe's flow rate. As subsea pipeline temperature gradually drops below hydrate appearance temperature (HAT) and wax appearance temperature (WAT), it causes the pipe to clog. Therefore, these tapes are generally wrapped around the pipes throughout to decrease the possibility of hydrate and wax formations. As a result, the growing use of polypropylene insulation for flexible deep-sea piping systems is expected to increase the growth of polypropylene insulation.
During the forecast period, epoxy, followed by silicon rubber, is expected to grow significantly. The major growth factor for these two materials is superior adhesion property and corrosion resistance. Increasing usage of this material in subsea applications, including manifolds, jumpers, t-joints, and other subsea components, is expected to increase the demand.
September 2021: The Bayou Companies launched its new division ODYSEA, a business unit focus on advancing flow assurance and thermal insulation solutions for subsea infrastructure.
June 2021: Vipo AS, a polymer solutions firm focused on the oil and gas sector, relaunched under new ownership and changed its name from Trelleborg Offshore Norway AS. With this rebranding, Vipo refocus on creating a more balanced portfolio by developing new sectors while focusing more on innovation, collaboration, and performance.
Based on application, the Subsea Thermal Insulation market segmentation includes Pipe in Pipe, Pipe Cover, equipment, Field Joints, and others. The oil and gas pipeline segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Reliable mechanical strength, insulation performance, and stability required on seabed pipelines are some factors driving the demand for subsea thermal insulation systems.
Advancements in technologies such as the usage of machine learning based on various parameters such as wave strength, corrosion history, etc., and electrical trace heating combined with computational fluid dynamics (CFD), are presently used to predict the system performance accurately and ensure a free flow of fluid or gas. Furthermore, these materials insulation in pipes is made from corrosion-resistant materials and is expected to augment the operational life and performance of the pipe-in-pipe system.
The pipe cover segment is the second largest application area for these thermal insulation systems. The market is expected to grow at a CAGR of 6.12% through the forecast period. Increasing the usage of insulation systems for wet pipeline systems is a cost-effective option compared to the pipe-in-pipe segment, even though pipe-in-pipe remains dominant during the forecast period. The increasing use of polypropylene and polyurethane insulation materials for coating drilling and pumping station pipelines is expected to drive the segment over the forecast period..
By Region, the study segments the market into North America, Europe, Asia-Pacific, and the Rest of the World. The North America Subsea Thermal Insulation market accounted for USD 77 Million in 2021 and is expected to exhibit a 3.97% CAGR during the study period. This demand is attributed to the growing demand in oil and gas exploration and construction under subsea for transport and industrial sectors. As discussed above, in 2021, there was a growth of 4% in offshore exploration. As per U.S. EPA, this will further increase explorations, which is expected to drive the market for subsea thermal insulation due to the increased demand for pipelines. The exploration of offshore oilfields in the Gulf of Mexico in 2021 is the primary reason driving the material demand and will remain the primary factor in the future. In addition, the U.S. plans to explore Baffin Bay and is expected to push the demand in the coming years.
Further, the major countries studied are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: SUBSEA THERMAL INSULATION MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Subsea Thermal Insulation market accounts for the second-largest market share due to increased NORDIC and Arctic development. In 2023, Norway has assigned 47 offshore explorations of oil and gas, which is a driving factor for insulation companies. In addition, increasing oil prices in Europe due to the Russia-Ukraine issue also drives government attention towards producing oil locally, driving the market for insulation in this region.
Asia Pacific will be the third-largest regional subsea thermal insulation materials market in 2021. In this region, countries such as Vietnam, China, Malaysia, India, and Indonesia are expected to drive the demand for subsea thermal insulation materials over the forecast period. In October 2022, China explored its first large deep-water deep-level gas field with more than 50 billion cubic meters (bcm) reserves in the sea present southeast of Hainan Province. This exploration shows the growth of exploration by China and creates a better opportunity for the market in the future too.
Middle East and Africa are anticipated to grow at a CAGR of 6.27% in revenue terms through the forecast period. Increasing spending on developing and exploring offshore oilfields in Saudi Arabia, Nigeria, and Angola is expected to be a significant factor driving the demand for subsea thermal insulation materials in the Middle East and Africa. Due to their well-developed offshore oil industry, Nigeria, Angola, and Saudi Arabia are the top most countries in this region that are doing offshore exploration.
Major market players are spending a lot of money on R&D to increase their material lines, which will help the Subsea Thermal Insulation market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new material launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Subsea Thermal Insulation industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the Subsea Thermal Insulation industry to benefit clients and expand the Subsea Thermal Insulation market sector is to build up alliance and do collaborations with the companies who have these contracts of explorations. In recent years, Subsea Thermal Insulation had shown a tremendous boost due to stringent political and economic relations. The subsea thermal insulation market is partially fragmented, with the presence of a big players having nearly 40% share in 2021. The major companies in the market are Advanced Insulation, BASF SE, Cabot Corporation, Dow, and Shawcor, among others.
November 2022: 20,000-psi, subsea production system is developed and is in the process of manufacturing and factory-testing for installation in the Gulf of Mexico.
Subsea Thermal Insulation Material Outlook
Subsea Thermal Insulation Application Outlook
Subsea Thermal Insulation Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 270.02 Million |
| Market Size 2024 | USD 286.41 Million |
| Market Size 2032 | USD 458.91 Million |
| Compound Annual Growth Rate (CAGR) | 6.07% (2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2020 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Material Type, Application Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Advanced Insulation Plc, AF, Armacell, Aspen Aerogels, Inc., Balmoral Group, BASF SE, Benarx, Cabot Corporation, Shawcor Ltd., TechnipFMC plc, The Bayou Companies, and Trelleborg |
| Key Market Opportunities | Government Initiations towards future growth and local development |
| Key Market Dynamics | Increasing number of subsea projects across globe Increasing usage of subsea thermal insulation materials for coating different equipment and field joints Demand for better thermal insulation in oil and gas offshore exploration |
Subsea Thermal Insulation Market Highlights:
Frequently Asked Questions (FAQ) :
Subsea Thermal Insulation size was USD 270.02 Million in 2023
Subsea Thermal Insulation is projected to reach USD 458.91 Million in 2032
Subsea Thermal Insulation expected to growth at a CAGR of 6.07% during forecast period
North America
Advanced Insulation Plc, AF, Armacell, Aspen Aerogels, Inc., Balmoral Group, BASF SE, Benarx, Cabot Corporation, Shawcor Ltd., TechnipFMC plc, The Bayou Companies, and Trelleborg
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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