3 major trends driving electric submersible pump market in 2019 and beyond
Publisher : Fractovia | Published Date : 2019-09-16Request Sample
Driven by the expansion of building infrastructure paired with favorable policies towards advancement of water supply and distribution technologies, electric submersible pump market will witness remarkable gains in the ensuing years. The electric submersible pumps are extensively deployed in applications such as large-scale irrigation projects, industrial water supply, as well as across commercial and residential high-rise buildings, further validating massive revenue prospects for the industry.
The increasing use of borewells for ground water extraction primarily driven by depletion of water resources is further set to positively impact electric submersible pump market trends. Rising construction activities across sewage and wastewater treatment plants will facilitate the deployment of submersible sewage and slurry pumps across municipal facilities thereby impacting global industry demand over the coming years.
Enumerated below are the top three factors influencing electric submersible pump market outlook over the forecast timeframe.
Increasing deployment across irrigation projects driven by global food demand
Agriculture is one of the fastest-growing sectors in the world, estimated to feed over 9.7 billion people by 2050, according to the World Bank group. The growth is mainly driven by rapidly budding population around the world and the subsequent rise in demand from the food & beverage industry.
The agricultural landscape is rapidly evolving, and farmers cannot rely on the technologies and practices of the past. Understanding past practices, current issues of water and energy, and advances in pump technology will contribute to designing pumping systems that are suitable for modern agricultural systems.
Development of efficient irrigation requires taking into account proper use of water and sustainable energy consumption. Use of electric submersible pumps for irrigations facilitates effective supply and distribution of water and reduces energy consumption up to a great extent.
The World Bank also reports that agriculture constitutes 70% of water used worldwide. Adoption and deployment of these pumps in large-scale irrigation projects is slated to influence electric submersible pump market size in the coming years.
Growing adoption of EOR methods and artificial lift technologies across the oil & gas segment
Enhanced oil recovery (EOR) techniques are rapidly gaining popularity owing to depleting worldwide resources of crude oil. New giant oil fields have become harder to locate, creating greater demand for deployment EOR techniques as well as artificial lift technologies to optimize extraction processes.
Researchers suggest that nearly 60-70% of the oil cannot be obtained using traditional techniques. EOR methods significantly expand global oil reserves once oil prices are high enough to make these methods cost effective. Growing oil & gas activities worldwide is set to boost electric submersible industry demand from this segment.
According to analysts, there are around 2 million oil wells in operation around the world today and almost 1 million of these use some kind of artificial lift technology.
Based on statistical data provided by the International Energy Agency (IEA), there are currently over 375 operational EOR projects worldwide, extracting just around 2 million barrels a day (mb/d) of oil.
Budding population and the subsequent rise in infrastructure development activities in the APAC
The Asia-Pacific (APAC) region is home to 60% of the global population, which equals close to 4.3 billion individuals, and includes two of the world’s most populated economies, India and China. Rapidly budding population in the region has fueled urbanization and sizable migration flows within and outside the APAC.
In the past decade, countries in the APAC region have built more infrastructure than any other developing region. Substantial investments towards the region’s architectural development in recent years have helped meet the ever-increasing infrastructural needs of people.
The Asian Development Bank (ADB) has estimated that developing economies in the APAC region need to spend approximately $1.7 trillion per year on average on infrastructure development from 2016 to 2030 to maintain its growth momentum and respond to climate change.
Water is needed to sustain both industry and people. The abovementioned facts and figures indicate surging demand for electric submersible pumps in the future for both industrial, commercial and residential applications, thus ensuring prosperous growth for the industry over the forecast period. As per a report by Global Market Insights, Inc., electric submersible pump market share is projected to surpass USD 17 billion by 2025.
