Electric Submersible Pump Market Analysis

Electric Submersible Pump Market Analysis

The oil & gas electric submersible pump market is expected to observe 8% growth between 2032. Ongoing investments toward well recovery coupled with the incessant need of artificial lift systems across conventional and unconventional fields will supplement the industry growth. Over 90% of the producing wells employ some form of artificial lift technology to bring the hydrocarbons to the surface when the natural pressure of the well declines and is no longer fit to produce at economic rates.
 

Continuous government provision to control snowballing oil prices and the support from key industry players in the oil & gas sector through increasing production and investments will have a sway the electric submersible pump market outlook. For example, in February 2022, Chevron announced to raise its shale production in the Permian basin by 10%, thereby adding 60,000 barrels per day. Similarly, Exxon stated that it has increased its production volume by 25% in 2022, raising its overall output by 100,000 barrels per day.
 

Ongoing investments and replacement of old oil & gas infrastructures will further propel product demand in the sector. Support from local bodies together with continuing promotions has offered lucrative business opportunities to the pump manufacturers. Furthermore, respective governments are working to achieve a common goal of the circular economy along with significant funding by private investors will complement the adoption of these units.
 

Single stage electric submersible pump market will witness 9.3% growth rate till 2032. The multistage pumps are equipped with two or more impellers where the pump head may reach to more than 125 meters. The liquid lifting capacity can be adjusted by increasing or decreasing the number of stages. The units are primarily deployed across the oil & gas fields for lifting hydrocarbons to the surface, commercial & industrial water extraction, mine dewatering, drainage, and large water treatment plants.
 

The pumps are costlier than the single-stage units, where the cost surges with the addition of each stage to the pump system. The increasing deployment of water treatments facilities along with the growing demand for artificial lift technologies will stimulate the product demand. In addition, the pump demand is set to grow with increasing focus toward rainwater harvesting. In addition, respective state and central governments are taking active measures to restore the groundwater level and discourage the digging of borewells.
 

The Asia Pacific electric submersible pump market progression is predominantly driven by a large population base that has escalated the product deployment in the agriculture, wastewater treatment, and building services. Ongoing commercial expansion have presented a favorable outlook to the industry with the development of new water supply and treatment facilities. Stringent government norms pertaining to the discharge of untreated sludge and industry effluents into the water bodies have augmented the business landscape.
 

The primary growth of the region is driven by India and China with a population of over 1.45 billion and 1.4 billion respectively, as of 2022. The need for reliable sewage management plants along with substantial government funding to enhance the public infrastructure will complement the industry scenario. Moreover, the increasing agricultural demand along with the need for reliable irrigation techniques have further boosted the ESP sales.
 

Agricultural-driven economies, such as India, are primarily dependent on the monsoon rains for irrigation. However, the espousal of pump systems has enabled the farmers to irrigate their lands throughout the year as per their requirements. Shortage of drinking water and adequate water supply is another concern in the developing countries. Extensive development of high-rise buildings along with the increasing demand across commercial establishments including hospitals, hotels, the food & beverage industry will accelerate the electric submersible pump market development.