North America Submersible Pumps Market - Growth, Trends, and Forecast (2020 - 2025)
The market is segmented by Type (Borewell Submersible Pump, Openwell Submersible Pump, and Non-clog Submersible Pump), Drive Type (Electric, Hydraulic, and Other Drive Types), Head (Below 50 m, Between 50 m to 100 m, and Above 100 m), End-User (Water and Wastewater, Oil and Gas Industry, Mining and Construction Industry, and Other End Users), and Geography (United States, Canada, and Rest of North America)
ABOUT THIS REPORT
Scope of the report
Key Market Trends
TABLE OF CONTENTS
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The market for North America submersible pumps is expected to grow at a CAGR of more than 4.41% during the forecast period of 2020 – 2025. Major factors driving the market are the strict regulations for wastewater treatment across industries, recovery in the oil and gas and mining industry, growth in the construction industry, and a surge in industrial infrastructure. However, this market faces certain challenges, such as high maintenance & operation costs, and volatility in oil & gas prices. These factors, in turn, act as a roadblock to the growth of the market.
The oil and gas industry is expected to dominate the submersible pumps market due to the increasing upstream activities, increasing production from wells, and increasing exploitation of shale reserves, etc.
New technology innovations along with existing infrastructure, and demand for energy efficient pumps can create huge opportunities for the market studied.
The United States is expected to dominate the market over the forecast period, owing to its increasing exploitation of shale reserves along with upcoming oil and gas projects in the coming years.
Scope of the report
The North America submersible pumps market report include:
Borewell Submersible Pump
Openwell Submersible Pump
Non-clog Submersible Pump
Other Drive Types
Below 50 m
Between 50 m to 100 m
Above 100 m
Water and Wastewater
Oil and Gas Industry
Mining and Construction Industry
Other End Users
Rest of North America
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Key Market Trends
Oil and Gas Industry to Dominate the Market
In the oil and gas upstream industry, submersible pumps are used to move spent drilling mud in and out of the reserve pits, maximizing oil and gas production through the artificial lift, and to treat the produced wastewater. The natural gas production have been increased from 961.6 bcm in 2017 to 1053.9 bcm in 2018.
The heavy-duty submersible pump handles a lot of solids efficiently and is used during drilling oil and gas well. As of 2019, more than 90% of producing wells in the world uses an artificial lift to optimize production, after the decline in natural drives.
The demand for submersible pumps has been volatile in the past few years, mainly due to the downturn in the industry. However, the recovery in crude oil prices and the low breakeven prices is expected to drive the production activity during the forecast period.
The oil and gas production market is expected to be driven by the United States, due to the presence of more than a million production wells in the country. It is also considered as one of the largest markets for artificial lift systems.
The increasing exploitation of shale reserves has resulted in increased production of wastewater. The lack of availability of water and government regulation on wastewater treatment are encouraging the industry to treat the produced water. This is expected to create tremendous demand opportunities for submersible pumps that finds application in pumping wastewater from the field.
Canada has the world’s third-largest crude oil reserves, after Venezuela and Saudi Arabia, 98% of which are comprised of oil sands reserves. The submersible progressive cavity pumps (PCP) are considered the best suited type of artificial lift to pump oil with high sand content, and hence, is widely used in the upstream oil and gas industry.
Mexico’s crude oil and natural gas production has been declining since 2008. To address the decline, the government introduced energy reforms ending the 75-year monopoly of PEMEX, a state-owned oil and gas company, in order to attract foreign investment.
Therefore, on account of widespread investments in oil and gas projects, the oil and gas industry are expected to dominate the submersible pumps market in North America region.
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The United States to Dominate the Market
The submersible pump market in the United States is expected to be driven by the growing oil and gas sector, water and wastewater sector, mining, agriculture, and others.
Wastewater treatment facilities in the United States process approximately 34 billion gallons of wastewater every day. Further, in February 2018, the EPA awarded USD 172.3 million to California state for infrastructure development pertaining to safe drinking water and wastewater treatment. Apart from that, USD 1.2 million was granted to the city of Vallejo for sewer upgrades. The growth of water and wastewater treatment infrastructure is expected to benefit the submersible pump market during the forecast period.
Another industry that is positively influencing the demand increase for submersible pumps is the mining industry. The country's metal mine production in 2018 was estimated at USD 25.9 billion, which was 4% less than 2017. Also, iron ore mine production was 49.5 million metric tons in 2018.
The oil and gas industry in the United States is providing a huge impetus to the submersible pump market on account of widespread investments in oil and gas projects in the coming years. It is expected that around USD 76 billion will be spent on 97 upcoming oil and gas projects in the country, between 2018 and 2025, thus, creating widespread opportunities for the submersible pump business.
Further, the crude oil price in 2018 is well above USD 60 per barrel and operators with a new standard for operational efficiency, coupled with administrative support, are expected to result in increased activity level in the deepwater and ultra-deepwater in the Gulf of Mexico, which is a positive market indicator for the submersible pump market during the forecast period.
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The market for North America submersible pumps remains highly fragmented, with the presence of numerous players, including Borets International Ltd, Gorman-Rupp Co, Flowserve Corp, Sulzer AG, and Schlumberger Limited.