Submersible Pumps Market - Analysis by Type, Drive Type, Head, End-User, and Geography - Growth, Trends and Forecast (2018 - 2023)
A submersible pump assembly is submerged in the fluid that is to be pumped to a greater elevation. It is a device, which is usually of the vertical type, and has a motor attached to the pump body. These submersible pumps offer solutions to both households, as well as industrial sectors. Both the oil and gas and mining industries are expected to witness a high level of investment after years of setback in the past. This is expected to translate into huge demand for submersible pumps in the market. The crude oil price in 2018 is well above USD 60 per barrel and operators with a new standard for operational efficiency, coupled with administrative support, are expected to result in increased activity level in the deep-water and ultra-deep water oil & gas fields.
ESPs are one of the most versatile and adaptable artificial lift methods in oil and gas industry. In 2015, ESPs were deployed in over 200,000 wells worldwide, and its pump rate operation range surpassed the performance of other pump type artificial lift systems, such as rod pumps, progressing cavity pumps, and hydraulic lift. As of 2016, ESPs constitute over 15% of artificial lift units in operation, globally, and are the most valuable type of technology, accounting for 45% of artificial lift expenditure. Although rod/beam pumping is the most widely used method, ESP systems are the fastest growing technology, when it comes to penetration rates in the market.
Adoption of ESPs by Shale Oil and Gas Operators to Drive the Market
After the drop in oil prices in 2014, the drilling activity in shale oil fields declined significantly. The shale oil wells’ production rates decline by 75% after nine months. Despite a decline in drilling activity and shorter lifespan, the shale oil production in the country did not decrease significantly. This higher shale oil production than expected is attributed to increased productivity of the wells. Increase in the well productivity was caused by improved recovery methods, particularly artificial lift method. Electrical Submersible Pumps (ESP) is one of the most common types of artificial lift method for shale oil fields.
Growing Oil & Gas Activity to Drive the Market in North America
The oil & gas production in the two major oil producing regions in the United States, Permian Basin of Texas and Gulf of Mexico, registered a CAGR of about 13.5%, during the 2014-17 period. The US government also announced that it plans to open almost all the US waters for exploration & production activity in the coming years. The offshore industry contributes heavily to the market, due to the requirements of a large number of sophisticated submersible pumps. Canada, with stability in oil prices, is expected to experience increasing investments in the oil & gas industry, allowing private players to explore some of its most prominent oil sand reserves. The growing production from existing fields in the US and supportive government policy to encourage upstream activity in the US and Canada are expected to drive the oil and gas activity, in turn, resulting in increased demand for the submersible pump in the region during the forecast period.
Growing Investments in Mining Industry to Drive the Market in India
In 2016, India was the third-largest producer of coal and crude steel in the world. The country has the fifth-largest coal reserve in the world. India allows 100% foreign direct investment (FDI) in the mining industry. In recent years, the Government of India has introduced policies to encourage mining activities. Owing to supportive government policies, major investments are expected during the forecast period in the mining industry. Vedanta Resources PLC has announced its plan to invest USD 9 billion in India’s mining industry. Growing investments are expected to drive the demand for submersible pumps in the mining industry during the forecast period.
Key Developments in the Market
- April 2018 - KSB Group extended its service network in the United States by taking over the US Company, DUBRIC Industries Inc.
Major Players - Baker Hughes, Schlumberger Limited, Halliburton Co., Weir Group PLC, Sulzer AG, among others.
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- Current and future submersible pumps market outlook in the developed and emerging markets.
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- The segment that is expected to dominate the market.
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