Market Trends of Pump Industry
Oil and Gas Sector Expected to Witness Significant Market Growth
- The industry trends highlight that the demand for pumps in the oil and gas industry is driven by the need to extract and process hydrocarbons. As global energy demand continues to rise, there is a growing focus on exploration and production activities to meet this demand. Pumps are crucial in various processes such as crude oil extraction, well-stimulation refining, and transportation of oil and gas, thereby driving the growth of the market.
- The shale gas revolution, particularly in the United States, has significantly boosted the demand for pumps. Hydraulic fracturing or fracking requires large volumes of water chemicals and proppants to be pumped into shale formations to extract natural gas at high pressure. This process heavily relies on pumps, driving the demand for high-pressure pumping equipment.
- The industry outlook indicates that the offshore oil and gas activities, including exploration drilling and production, often require specialized pumps due to the challenging operating conditions. Pumps are utilized for seawater intake, water injection, cooling systems, pipeline transport, and other critical processes. The increasing focus on offshore reserves both in established and emerging regions creates a substantial market opportunity for pump manufacturers.
- A statistical review of world energy shows that global oil production increased by 4.2% between 2021 and 2022. In 2022, the total crude oil production globally was 93,848 thousand barrels per day compared to 90,076 thousand barrels per day in 2021, as detailed by key industry information. This data signifies the increasing oil demand and crude oil production globally.
- As the pumps are used in a continuous way in oil and gas operations, they need maintenance, repair services, and sometimes replacements at regular intervals. In June 2023, Celeros Flow Technology made an agreement with ONGC to provide pump maintenance and spares services across a network of crude oil and natural gas assets in India.
- Considering these factors, the oil and gas sector is poised to experience significant growth in the pump market as it continues to be the crucial industry for meeting global energy needs. Therefore, this sector is expected to drive the global market studied during the forecast period.
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Asia-Pacific is Expected to Dominate the Market
- Asia-Pacific is experiencing robust growth in countries such as China, India, and Southeast Asia. Expanding industries such as manufacturing, construction, mining, and power generation require a substantial demand for pumps across various applications, including water supply wastewater management and process industries.
- The region has also emerged as a global manufacturing hub, with countries like China, Japan, South Korea, and India playing a significant role. The manufacturing sector requires pumps for various applications, including fluid handling, chemical processing, and industrial processes. The region’s dominance in manufacturing drives the demand for pumps, further solidifying its position in the market studied.
- Asia-Pacific has a large and rapidly growing population accompanied by a significant increase in urbanization. This demographic shift leads to increased demand for water supply sanitation systems and infrastructure development, all of which require pumps. Asia-Pacific is experiencing significant growth in the oil and gas industry. Countries like China, India, and Indonesia have been increasing their exploration and production activities, requiring pumps for extraction, transportation, and refining processes. The expansion of the oil and gas sector in the region strengthens its dominance.
- Market data from the statistical review of world energy indicates that gas production in Asia-Pacific increased by more than 1% between 2021 and 2022 and more than 3% between 2012 and 2022, signifying the increased oil and gas exploration and production activities in the region.
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