The market for subsea thermal insulation material, in terms of value, is projected to reach around $142.30 million by 2019, witnessing a CAGR of 4.80% between 2014 and 2019, according to MarketsandMarkets report.
An important aspect of designing offshore production systems, particularly in deep water, is providing sufficient thermal insulation. The fluids are produced at high temperatures and equipment must be capable of maintaining the temperature of fluids while submersed in deep water.
The demand for oil is increasing at a rapid rate and to meet this demand the oil & gas industry has developed new and safer methods for exploring and commissioning offshore deep water wells. To meet the rising oil demand, drilling activities have become deeper. To prevent the produced fluid from turning cold, subsea lines (pipes) are insulated to maintain produced liquid at a sufficiently high temperature to enable its flow through the pipes even in the deep waters.
In terms of value, Europe & Russia followed by Middle East & Africa dominated the subsea thermal insulation material market in 2013 and are expected to register a high CAGR by 2019.
High demand for advanced insulation to maintain the thermal integrity of subsea systems and increasing demand for oil from developed as well as developing counties in Middle East & Africa, European, and North American region is leading to high demand of subsea thermal insulation material.
In Asia-Pacific, one third of increase in oil consumption has been from China, which currently uses over 10% of world’s oil. This is projected to generate high demand for subsea thermal insulation material market in Asia-Pacific by 2019.