The global subsea control systems market is expected to reach $6.47 billion industry by 2019, with a projected CAGR of around 8.5%, signifying a high demand for subsea control equipment’s (component’s) in both developed and developing countries.

Subsea control systems are used for the efficient provisioning of the subsea production system. The control systems is directly associated with the subsea tree installations, and it is expected that up to 2,000 deepwater subsea installations are expected globally between the period 2014 and 2019. Deepwater installation activity is leading by regions like Europe, West Africa, and South America.

The increasing activities of oil production, especially in the offshore fields would increase the demand for subsea control systems in future. The oil companies are moving towards deepwater and ultra-deepwater where an effective and robust monitoring is highly necessary to ensure the oil production. As of now, demand for subsea control systems is highly concentrated in Brazil, West Africa, the Gulf of Mexico, and the North Sea. The spending on the subsea production is expected to increase from $45 billion in 2014 to $115 billion by 2019.

Europe: Largest Market for Subsea Control Systems

Europe holds the largest market share of 28.0% in the global subsea control systems market in 2013, and is expected to dominate the market in the next five years as well. Norway and the U.K. are the two major countries in the region which contributes more than 95% of the total European market. In South America, Brazil is the leading subsea nation and holds around 18.6% of the global market for subsea control systems in 2013.

With the increasing focus on offshore drilling in countries like India, Australia, and Malaysia, Asia-Pacific is considered to be the fastest growing market in the next five years. The figure below shows the subsea control systems market share by region in 2013.

Subsea Control Systems Market Share (Value), By Region, 2013

Source: MarketsandMarkets Analysis

Contracts & Agreements: Key Strategy

Leading companies in the subsea control systems market have focused on contracts and agreements as one of the key strategies. The major reasons behind the widespread acceptance of contracts and agreements as a strategy in this market are, it creates a leading diversified subsea control component’s portfolio by adopting the expertise of the renowned companies, and enables market penetration in economies such as the U.S. and Gulf of Mexico. From 2011 to 2014, contracts & agreements have led the market developments, accounting for 70% of the total share.