Market Trends of Global Smart Pumps Industry
This section covers the major market trends shaping the Smart Pumps Market according to our research experts:
The Oil and Gas Segment is Expected to Witness a Significant Market Growth
- Pumps are crucial for the oil and gas industry. They are employed in various ways in this industry, from delivering oil from the ground to a ship, oil refinery, or storage to speed up the fluid flow from one point to another. Each type of pump in a refining system serves a distinct job and is essential for daily operations. Smart pumps offer several benefits for the oil & gas industry, like energy savings, lifetime improvements, and system cost reductions.
- The increasing oil and gas production activities worldwide act as a significant growth factor for the adoption of smart pumps. For instance, according to BP, global oil production amounted to 89.9 million barrels per day in 2021, an increase from 88.5 million barrels per day in 2020. The level of oil production reached an all-time high in 2019, at nearly 95 million barrels.
- In the current market scenario, oil and gas industries face several issues related to business performance, the total cost of operation (TCO), energy efficiency, and safety in upstream and downstream processes. In addition to producing oil and gas, the industry also uses oil and gas in its operations, and efficiency can significantly reduce the industry's impact.
- Smart pumps utilize a combination of Variable Frequency Drives (VFDs), sensors, and Internet of Things capabilities to manage energy flow based on demand in the oil & gas sector.
- The sensors automatically adjust operations through the VFD or collect and share data of utility management systems to analyze demand performance over time. This results in system efficiency by reducing energy usage and reducing the total cost of ownership for the pump system.
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North America is Expected to Hold a Major Market Share
- The United States continues to attract a significant portion of the global power sector investment, showing positive growth in 2020 despite the pandemic. Also, the US is making substantial investments in clean energy, with the investment levels rising to USD 215 billion in 2021, per IEA. The trend is expected to fuel the growth of the smart pump market in the forecasted period.
- Further, in July 2021, the US Senate passed a USD 550 billion clean energy investment bill, which would also include significant contributions toward new clean power projects. As a part of the plan, USD 73 billion would be invested in updated power infrastructure and research in technology like nuclear, carbon capture, and clean hydrogen, accelerating the shift from fossil fuels to clean energy. Moreover, there has been a considerable rise in employment across the energy-efficient sector market in the region, owing to rapid technological advancement in the region.
- Also, in July 2021, the United States Department of Agriculture (USDA) announced an investment of USD 307 million for modernizing rural drinking water and wastewater infrastructure in 34 states and Puerto Rico. The investments would help replace outdated pipes and service lines to safeguard public health and safety in rural communities, improving rural infrastructure for 250,000 residents and businesses. As smart pumps find various applications in water and wastewater treatment plants, such investments create new opportunities for the players in the market.
- Furthermore, various governments in the American region are also promoting the adoption of smart cities and, therefore, the adoption of smart pumps. For instance, Las Vegas is testing three pilot projects, with USD 500 million allocations from the government to find ways to connect the entire city by 2025. The increase in the number of smart city projects undertaken by governments is another factor influencing the demand for the studied market.
- For both established and up-and-coming competitors in the smart pump market in the region, it is anticipated that continued market research and development with improvements in smart pump systems, such as sophisticated process control features and real-time data monitoring, will present better growth potential. As a result, numerous research institutions and commercial entities consistently concentrate on promoting and creating advanced smart pumps. For instance, enhanced process control-based smart pumps provide several procedural advantages, such as device downsizing, real-time monitoring capabilities, and improved analytical efficacy.
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