Published: Apr, 2018
The global electric submersible cables market was valued at around US$ 4.36 Bn in 2017 and is anticipated to expand at a CAGR of over 5% from 2018 to 2026, according to a new report by Transparency Market Research (TMR) titled ‘Electric Submersible Cables Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2017–2026.’ Electric submersible cables or ESP cables or electrical submersible pump cables are cables that are used to provide power to downhole electrical submersible pumps from a surface power source. These cables are used across various end-use industries for supplying power to electrical submersible pumps used for artificial lift applications, irrigation purposes, in sewage treatment plants, or in any other application. However, the electric submersible cables used in oil & gas industry are specially designed as they have to operate in a high temperature and abrasive environment.
Increase in Applications of Electrical Submersible Pumps is Likely to Drive the Market for Electric Submersible Cables
Rise in demand for electrical submersible pumps in the oil & gas industry for artificial lift method, in agriculture industry for irrigation purposes, in the water & wastewater industry for pumping applications, and in other major industries is anticipated to boost the electric submersible cables market, as the demand for these cables is directly proportional to the demand for electrical submersible pumps. Moreover, increasing depth of oil wells and lower electrical submersible pump settings in an oil well are further expected to drive the market and increase demand for electric submersible cables in the oil & gas industry, which is a major end-user industry. However, limited depolyability of electrical submersible pumps for shale gas is likely to restrain the expansion of the market. With a shale gas boom in the U.S., the world is also moving in that direction and is exploring the options of shale gas resources for its energy needs. However, electrical submersible pumps are not preferred for shale gas production, and this is estimated to hamper the electric submersible cables market.
Oil sands present a considerable opportunity for the market. The increasing usage of steam-assisted gravity drainage (SAGD) process for extracting crude oil from oil sands and technological improvement in this process with the introduction of electrical submersible pumps are anticipated to be lucrative opportunities for the electric submersible cables market in the future.
ESP Flat Power Cable and Ethylene Propylene Diene Monomer (EPDM) Segments Expected to Lead the Global Electric Submersible Cables Market during the Forecast Period
The electric submersible cables market can be segmented based on ESP cable type, insulation, and end-user industry. In terms of ESP cable type, the electric submersible cables market can be classified into ESP flat power cable and ESP round power cable. The ESP flat power cable segment was a dominant segment, accounting for over 60% market share in 2017 in terms of value. In terms of insulation, the electric submersible cables market can be divided into polypropylene and ethylene propylene diene monomer (EPDM). The EPDM segment was a prominent segment in 2017, and it is expected to continue its dominance during the forecast period.
Recovery of Global Oil Prices is projected to Fuel the Expansion of the Oil & Gas End-user Industry Segment
Based on end-user industry, the electric submersible cables market can be classified into oil & gas, agriculture, mining, construction, and others. The oil & gas segment dominated the global electric submersible cables market with more than 80% market share in 2017, and the trend is expected to continue during the forecast period. Moreover, the segment is anticipated to expand at a significant pace in the near future, primarily due to the recovery in the global oil prices, which is anticipated to boost the investment in the industry. The others segment followed the lead of the oil & gas segment during the forecast period.
Rise in Demand from Oil & Gas End-user Industry Segment in Middle East & Africa is anticipated to Drive the Electric Submersible Cables Market in the Region
In terms of region, the electric submersible cables market can be divided into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. Europe held a leading share of more than 50% of the global electric submersible cables market in 2017. This can be attributed to Russia & CIS countries, whose oil & gas industry forms a major part of not only the electrical submersible pumps industry but also of the electric submersible cables market. Moreover, the market in Middle East & Africa is expected to expand at a significant pace during the forecast period, primarily due to maturing and aging wells along with the declining reservoir pressures in the oil & gas field of the region. Furthermore, depleting reservoirs are likely to lead to expansion of the market in the region.
Electric Submersible Cables Market Dominated by Few Major Players with Focus on the Oil & Gas Industry
Key players covered in this report 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. The major players present in the market are those that are mainly focusing on providing cables to the oil & gas end-use industry, as the industry forms a major part of the market.
Electric Submersible Cables Market, by ESP Cable Type
- ESP Flat Power Cable
- ESP Round Power Cable
Electric Submersible Cables Market, by Insulation
- Ethylene Propylene Diene Monomer (EPDM)
Electric Submersible Cables Market, by End-user Industry
- Oil & Gas
Electric Submersible Cables Market:, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of Middle East & Africa
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