Market Trends of MEA Positive Displacement Pumps Industry
This section covers the major market trends shaping the MEA Positive Displacement Pumps Market according to our research experts:
Oil & Gas Segment is Expected to Witness Significant Growth
- Within the oil & gas industry, positive displacement pumps are installed in all exploration, extraction, refinement, and distribution areas. The global oil and gas sector remains unpredictable with instabilities in crude oil prices. This instability has been directly impacting the demand for pumps from the industry and also due to the depressed upstream investments in the current scenario of low crude oil prices.
- Moreover, in the oil and gas industry, vapor recovery is recovering the stock tank hydrocarbon vapors either in upstream production or downstream refining, where the vapors are normally vented to the atmosphere. Vapor recovery can be achieved by pulling the centrifugal force and, thus, compressing vapors from the stock tanks. Vapors can be recovered, liquefied, and reused using Vane positive displacement pumps.
- According to the Organization of the Petroleum Exporting Countries (OPEC), Saudi Arabia possesses around 17% of the world's proven petroleum reserves. The oil and gas industry contributed approximately 50% to the gross domestic product (GDP) and about 70% of export earnings. The significant presence of the oil & gas industry in the country has contributed to the market's growth in the region.
- Further, field gas boosting increases the low-pressure gas from the wellhead to the high-pressure pipeline. The wellhead has reasonably low positive pressure and is commonly below the atmospheric pressure. Thus, a positive displacement pump is required to extract the gas and boost it to the PSI above atmospheric pressure. The gas is then usually delivered to a gas processing plant by a high-pressure compressor through a pipeline.
- The increasing need for water and wastewater management during gas and oil extraction from shale has fueled the demand for positive displacement pumps. However, efficient pumps have emerged as environmental concerns threaten the positive displacement pump market growth. Though it is becoming harder to produce oil and gas, several technological innovations and effective centrifugal and displacement systems, have made production cost-effective under increasingly challenging conditions.
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Africa is Expected to Hold a Significant Market Share
- The current refining capacity in Nigeria stands at 344 thousand barrels per day. However, an oil refinery is being constructed in the Nigerian commercial city of Lagos, with an investment of USD 9 billion. With an annual refining capacity of around 10.4 million tons of gasoline, this new refinery was expected to double Nigeria's refining capacity. The project was anticipated to be completed by the beginning of 2021 (delayed due to COVID-19). With the future investment in the new refineries, the market is anticipated to witness significant demand in this sector.
- Further, countries such as Egypt also focus on developing 40 solar parks of around 50 MW to meet its 2 GW renewables target, with clean energy accounting for 20% of the country's energy mix. The country's first utility-scale solar plant, credited to the government-sponsored feed-in tariff, may generate power for up to 15,000 homes. Semiconductors are finding increasing applications in renewable energy solutions. Hence, all the above developments across Egypt are expected to create opportunities for the market studied over the forecast period.
- In September 2020, Verder announced the latest expansion of its pump range with the innovative iDura, showcased at the recent Electra Mining Connect Week. The new iDura range offers the convenience of plug-and-play, ready-to-use features of the existing Verderflex Dura hose displacement pumps (ranges 5 to 35), complete with a fully wired single- or three-phase Verder IP66 inverter and integral hose burst sensor.
- Also, using energy-efficient pumps is increasingly influenced by commercial and legislative requirements for preserving the environment. These requirements may spur the use of positive displacement pumps. For instance, government policies and regulations on safety and health concerns in African regions encouraged the use of positive displacement pumps.
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