Electric Submersible Cables Market - Snapshot

Electric submersible cables, commonly known as electrical submersible pump cables or ESP cables, are specially designed cables that provide power to submersible pumps used for artificial lift of oil and gas resources, offshore drilling rigs, irrigation, mine dewatering, drinking water supply, sewage treatment plants, industries, fountains, seawater filtration plants, swimming pools, and aquariums. In the oil & gas industry, electric submersible cables are especially designed to withstand high temperature and abrasive environment of the downhole well, wherein the electric submersible pump is installed. These cables provide power to electrical submersible pumps from the surface power source for pumping crude oil from the hydrocarbon reservoir to the well surface. The reliability of the undisrupted electrical power supply to an electrical submersible pump system in an oil well depends on the performance of the power feed through the equipment utilized for power transfers such as power cable, pig tail connectors, and motor lead cables. Electric submersible cables can be manufactured in either flat or round cross-section. The choice between the two is typically based on space between production tubing and well casing. Selection of high quality electric submersible cables is of utmost importance, as when electric submersible cables fail, maintenance costs rise and production revenue plummets.

electric submersible cables market

Increase in Demand for Electrical Submersible Pumps Likely to Drive the Market

Demand for electric submersible cables is almost directly proportional to the demand for electrical submersible pumps in various industries. Demand for electric submersible pumps for irrigation purposes is also rising owing to the increase in agriculture activities and decline in water sources. Demand for electrical submersible pumps in the water and wastewater industry is also increasing at a rapid pace. Shift in trend toward artificial lift systems for the production of crude oil in the oil & gas industry is also estimated to boost the demand for electrical submersible pumps. This, in turn, is projected to propel the number of oil wells based on electrical submersible pumps. The overall growth in demand for electrical submersible pumps across end-user industries is likely to drive the demand for electric submersible cables.

With the end of easy oil era the newly discovered oil and gas reservoirs are located at a much greater depth. Maturing oil wells and depleting oil reserves are prompting exploration & production companies to drill deeper. This has lead to an increase in the overall depth of an oil well for extracting these resources. In turn, this has resulted in deeper electrical submersible pump settings, thereby boosting the demand for electric submersible cables that are employed to supply power from the power source to the pump motor.

Limited Deployability in Shale Gas Fields Expected to Restrain Market

The gas lift method has become more prevalent for artificial lift mechanism for shale gas with the advent of shale gas boom, especially in the U.S. Following the footsteps of the U.S., countries across the globe are now evaluating the probability of extracting shale gas resources. However, nearly 80% of oil wells in the U.S. are onshore stripper wells. Most of these onshore wells employ sucker rod pumps for production. Among onshore non-stripper wells, 27% utilize sucker rod pumps, while 52% use gas lifts. The remaining 21% employ electrical submersible pumps and other methods. This indicates the dominance of sucker rod pump and gas lift mechanism as an artificial lift technology in the hydrocarbons sector in the U.S., especially in the shale gas sector. Thus, limited deployability of electrical submersible pumps for shale gas production is anticipated to hamper the electric submersible cables market in the near future.

Production from Oil Sands Offers Lucrative Opportunity for Electric Submersible Cables

The largest oil reserves in the world are primarily concentered in three countries: Saudi Arabia, Venezuela, and Canada (specifically, Alberta). Oil production in Canada is estimated to rise by 800,000 bbl/d by 2020, making the country a prominent source of global oil supply. Introduction of electrical submersible pumps has been a significant technological improvement to the steam-assisted gravity drainage (SAGD) process. Electrical submersible pump systems are an ideal choice for thermal recovery, including SAGD, as they can produce higher flow rates and operate more reliably and economically than other artificial lift methods.

Europe Held Major Share of Around 50% of Global Electric Submersible Cables Market in 2017

Based on region, the electric submersible cables market can be divided into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Europe dominated the global electric submersible cables market in 2016. This can be primarily ascribed to the rise in demand for electrical submersible pumps and electric submersible cables in the oil & gas industry in Russia & CIS countries. The market in Middle East & Africa is anticipated to expand at a significant pace during the forecast period, primarily due to the rise in demand for electrical submersible pumps in the region for extracting oil from maturing and aging production wells. 

Large Number of Players Dominate Global Electric Submersible Cables Market

Key players operating in the global electric submersible cables market are Baker Hughes, Schlumberger Limited, Prysmian Group, Nexans, Siemens AG, Borets, Halliburton, The Kerite Company, Havells, Jainson Cables, V-GUARD INDUSTRIES LTD., Superstar Cables, Southwire Company, LLC, and Alkhoorayef Petroleum.

Electric Submersible Cables Market – Overview

Electric submersible cables are used to provide power from surface power sources to the downhole electrical submersible pumps. These pumps are mainly used in the artificial lift of oil and gas resources, offshore drilling rigs, irrigation, mine dewatering, drinking water supply, sewage treatment plants, industries, fountains, sea water filtration plants, swimming pools, and aquariums. These cables are generally manufactured in flat and round cross-sections, and the selection of the type of cable depends upon the available clearance through which theses cables have to pass. The selection of a quality electric submersible cables is very important, as they can affect the operation and can lead to increase in maintenance costs and downtime of the equipment.

Increase in number of electrical submersible pumps across major end-user industries such as oil & gas, agriculture, water & wastewater, etc. is expected to drive demand for electric submersible cables, as the demand for these cables is directly proportional to demand for electrical submersible pumps. Moreover, increasing depth of oil wells is also projected to drive the market in the near future. However, preference of gas lift method over of electrical submersible pump systems for shale gas production is likely to be a major restraint for the market. The world is moving toward unconventional sources of energy such as shale gas. Limited deployability of electrical submersible pump systems in shale gas is anticipated be a significant restraint for the market.

This report analyzes and forecasts the market for electric submersible cables at the global and regional level. The market has been forecast based on revenue (US$ Mn) from 2018 to 2026, considering 2017 as the base year. The study includes drivers and restraints of the global electric submersible cables market. It also covers impact of these drivers and restraints on demand for electric submersible cables during the forecast period. The report also highlights opportunities in the electric submersible cables market at the global and regional level.

The report includes detailed value chain analysis, which provides a comprehensive view of the global electric submersible cables market. Porter’s Five Forces model for the electric submersible cables market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, where in ESP cable type, insulation, and end-user industry are benchmarked based on their market size, growth rate, and general attractiveness.

The study provides a decisive view of the global electric submersible cables market by segmenting it in terms of ESP cable type, insulation, and end-user industry. In terms of ESP cable type, the electric submersible cable market can be classified into ESP flat power cable and ESP round power cable. Based on insulation, the electric submersible cables market can be categorized into polypropylene and ethylene propylene diene monomer (EPDM). In terms of end-user industry, the market can be segmented into oil & gas, agriculture, mining, construction, and others. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for electric submersible cables in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The report provides the actual market size of electric submersible cables for 2017 and estimated market size for 2018 with forecast for the next eight years. The global market for electric submersible cables has been provided in terms of revenue. Market revenue has been defined in US$ Million. Market numbers have been estimated based on ESP cable type, insulation, and end-user industry of electric submersible cables. Market size have been provided in terms of global, regional, and country level markets.

The report comprises profiles of major companies operating in the global electric submersible cables market. Key players in the electric submersible cables market are Baker Hughes, Schlumberger Limited, Prysmian Group, Nexans, Siemens AG, Borets, Halliburton, The Kerite Company, Havells, Jainson Cables, V-GUARD INDUSTRIES LTD., Superstar Cables, Southwire Company, LLC, and Alkhoorayef Petroleum. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, regional presence, and recent developments.

 

The global electric submersible cables market has been segmented as follows:

Electric Submersible Cables Market, by ESP Cable Type

  • ESP Flat Power Cable
  • ESP Round Power Cable

Electric Submersible Cables Market, by Insulation

  • Polypropylene
  • Ethylene Propylene Diene Monomer (EPDM)

Electric Submersible Cables Market, by End-user Industry

  • Oil & Gas
  • Agriculture
  • Mining
  • Construction
  • Others

Electric Submersible Cables Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • Russia & CIS
    • Norway
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Australia
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Venezuela
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Nigeria
    • Rest of Middle East & Africa

Key Takeaways

  • The ESP flat power cable segment accounts for a prominent share due high demand for the cables from end-user industries
  • Analysis and benchmarking of electric submersible cable pricing across all the regions
  • Recovering crude oil prices and maturing oil wells and depleting oil reservoirs along with increasing demand for electrical submersible pumps are expected to drive the electric submersible cables market in the near future
  • In terms of end-user, the oil & gas industry segment is anticipated to expand at a significant rate during the forecast period
  • EPDM is the major insulation segment for electric submersible cables
  • Europe is anticipated to dominate the market during the forecast period
  • The market in Middle East & Africa is expected to expand at a significant rate during the forecast period among all the regions
.