Published: May, 2017
The global electrical submersible pumps market is extremely consolidated as is dominated by four players accounting for a combined share of more than 86.0% in 2013, finds Transparency Market Research (TMR) in a new report. Other prominent companies operating in the market are: GE Oil & Gas, Baker Hughes Incorporated, Borets Service Company, LLC, and Schlumberger Limited. TMR notes that these leading companies are making substantial investment in bringing technological innovations and actively adopting product differentiation in order to gain a competitive edge over others. Several top players are actively considering acquisitions of smaller companies and regional players to consolidate their market shares. This is anticipated to intensify competition in the forthcoming years, observes TMR.
A number of electrical submersible pumps manufacturers are resorting to vertical integration of their operations to augment their process efficiencies and a moderate degree of forward integration is possible over the forecast period. The estimated revenue of the electrical submersible pumps market was a whopping US$12.06 bn in 2016 and is expected to surge to US$16.75 bn by the end of the forecast period. The global market is anticipated to expand at 5.29% CAGR during 2014-2022.
Offshore ESP Installations to Surge in Coming Years
The major application segments of the global electrical submersible pumps market are offshore and onshore. Of these, the onshore electrical submersible pumps installation segment occupied the dominant share of the market in 2016. However, along the forecast period, the segment is anticipated to gradually lose its market share due to the growing prominence of offshore ESP installations attributed to a number of new offshore oilfield discoveries in various regions. The market offshore segment will reach a revenue of US$5.48 bn in 2022.
Geographically, the global market is segmented into North America, Asia Pacific, Europe, the Middle East & Africa, and South and Central America. Of these, Europe held the major share in the global electrical submersible pumps market in 2016. The regional market is expected to reach a revenue of US$10.74 bn in 2022. The stellar demand for ESP installations is due to the rapidly expanding offshore sector in Kazakhstan and a declining oil production in the North Sea.
Rising Deep-water and Ultra deep-water Projects to Open up Lucrative Avenues
The growing demand for oil worldwide and exploration of newer onshore as well as onshore reserves are key factors propelling the global electrical submersible pumps market. Constantly declining oil reserves has led to the advent of new drilling and production methods. The surging adoption of the steam assisted gravity drainage (SAGD) has significantly improved production rate, thereby boosting the electrical submersible pumps market. The soaring production of oil and gas from several unconventional resources in North America, such as from shale oil producing fields, is expected to fuel the market growth. Leading players in the exploration and production (E&P) sector are increasingly investing in greenfield projects, which is expected to bolster the demand for electrical submersible pumps installations.
However, declining spending on offshore exploration activities due to recent cut in oil prices has led many E&P companies to reduce their investment negatively impacting the market to an extent. Furthermore, several oil companies has reduced the number of drilling rigs to bring down the operational cost of oil production, which is likely to impede the ESP market. Nevertheless, the increasing prospect of utilization of deepwater and ultra-deepwater oilfields, especially in Africa, is expected to create abundant opportunities for market players. Spiraling investment in the development of deepwater hydrocarbon reserves is expected to offset the cost-cutting measures in the coming years.
The study presented here is based on a report by Transparency Market Research (TMR), titled “Electrical Submersible Pumps (ESPs) Market (Application – Onshore and Offshore) - Global Industry Analysis, Size, Share, Growth Trends, and Forecast 2014-2022”.
The electrical submersible pumps market is segmented based on:
- North America
- Rest of North America
- Asia Pacific
- Rest of Asia Pacific
- Rest of Europe
- The Middle East & Africa
- Saudi Arabia
- United Arab Emirates
- Rest of the Middle East & Africa
- South & Central America
- Rest of South & Central America
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