Transparency Market Research has published a new report "Electrical Submersible Pumps (ESPs) Market - Global Industry Analysis, Size, Share, Growth Trends, and Forecast 2014 - 2022" to its report store.
Albany, NY -- (SBWIRE) -- 08/18/2016 -- According to TMR, the global ESP market stood at US$10.65 bn in 2013. Rising at a CAGR of 5.29% between 2014 and 2022, the market is expected to reach US$16.75 bn by the end of 2022.
By application, the installation of ESPs is expected to increase in the onshore segment. This segment held around 76.16% of the global market in 2013. Regionally Europe emerged as the largest consumer of ESPs in 2013 accounting for a share of 59.77%.
A large number of prominent enterprises with strong brands currently represent the majority in the global electrical submersible pumps (ESPs) market. This provides the market with a highly competitive vendor landscape. According to Transparency Market Research (TMR), the top four companies operating in the market, comprising Schlumberger Limited, Borets Company, LLC, Baker Hughes Incorporated, and GE Oil & Gas, held over 86% of the global ESP market in 2013.
Get free research PDF for more Professional and Technical insights : http://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=6625
In order to gain a competitive advantage, a majority of these companies are looking to acquire smaller enterprises and regional players. Besides mergers and acquisitions, TMR also finds these companies to invest in technological innovations and product differentiation to gain a stronghold in the market. Spurred by the aforementioned factors the level of competition prevailing in the market will shift from medium to high during the forecast period from 2014 to 2022.
Increasing Emphasis on Unconventional Resources to Boost ESP Deployment
Globally, the demand for oil has been rising at a positive rate. In order to pace up with the increasing demand, oil industries are currently engaged in exploring newer reserves and drilling deeper into the existing ones. Depleting oil reserves have also compelled producers to use novel technologies that will enable them drill deeper into oil wells. This has led to the higher adoption of the steam assisted gravity drainage (SAGD) method, which is subsequently fuelling the installation of ESPs. These machines have proven highly beneficial in overall SAGD process.
Maturing oil wells, depleting oil reserves, and declining oil reservoirs are the primary factors encouraging the adoption of electrical submersible pumps across the oil and gas industry. "Rising explorations and production (E&P) across non-conventional resources in North America will considerably fuel demand for ESPs," said a lead TMR analyst. "The growth in hydrocarbon recovery from these unconventional resources and the increasing E&P activities in the shale gas sector will also fuel demand for the equipment," he added.
The market is also expected to gain from the increasing investment in brown field and green field projects by the major companies engaged in E&P.
Persistent Decline in Oil Prices to Negatively Impact Market's Growth
The persistent decline in oil prices witnessed over the last few years has resulted in a cutback of offshore explorations. Such unfavorable trends are limiting the scope for ESP market's expansion. Furthermore, electrical submersible pumps have limited scope for deployment in shale gas fields. This also has an adverse impact on the market's overall growth trajectory. According to TMR, more than 750,000 shale gas wells use sucker rod pumps, while the remaining deploy down-hole pumping methods, thus creating meager or no demand for ESPs.
Increasing Oil Sands Production to Fuel ESP Installations in Forthcoming Years
Nevertheless, the increasing production of oil sands around the world will boost sales prospects for ESP producers. Numerous oil sand projects are scheduled to commence across the Middle East and Africa. The demand for ESPs is therefore expected to increase in the forthcoming years thus creating lucrative prospects for ESP manufacturers.
Decline in oil prices to limit ESP market's scope for expansion
Onshore segment accounted for 73.10% of ESP installations around the world in 2013
Holding over 59.77% of the global market, Europe emerged as largest consumer of ESPs in 2013
The report segments the global ESP market as:
ESPs Market: By Application
About Transparency Market Research
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company's exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR's experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
TMR's data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.