Oil and gas pump market likely to expand and modernize amid uncertainty: Frost & Sullivan
The global oil and gas pumps market is likely to experience marginal growth as the global economic slowdown and political instability impact oil and gas investments. Rising at a compound annual growth rate (CAGR) of 3 percent, the market is estimated to reach $10.43 billion by 2026, up from $8.46 billion in 2019.
"Focus on improving plant efficiency and redefining the conventional maintenance approach is expected to help pump original equipment manufacturers (OEMs) unlock new revenue opportunities with service-based business models," said Kiravani Emani, Industrial Research Analyst at Frost & Sullivan. "Further, smart pumps integrated with Internet of Things (IoT)-based monitoring solutions are likely to strengthen pump OEMs' revenue margins in the long run as oil enterprises look towards curtailing unexpected failure and higher operational cost from assets, including pumps."
Frost & Sullivan's recent analysis, Global Oil and Gas Pumps Market, Forecast to 2026, includes a detailed examination of its revenue forecasts, including market drivers and restraints, key market participants, and growth opportunities. The study covers the geographic markets of North America, Europe, Asia-Pacific (APAC), the Middle East and Africa, and Latin America. APAC is expected to serve as the global hotspot for investments with higher growth opportunities for pump sales during the forecast period. By 2026, the region is estimated to witness growth at a CAGR of 3.6%, followed by the Middle East and Africa at 3.5%.
"The need to cut down OPEX and investment toward plant modernization are expected to boost the sales of smart pumps packaged with real-time monitoring features," noted Emani. "Additionally, in Africa and the Middle East, massive new project investments across upstream, midstream, and downstream are likely to boost pumps in the forecasted period."
Momentary disruption in the global supply chain and deceleration in China's production volume due to COVID-19 and economic slowdown, trade tension, and change in political governance to impede new investments in exploration and production activities are likely to restrain the growth of pump sales. However, modernization of asset infrastructure by oil and gas companies will be key to drive the demand for pumps, presenting growth opportunities for market participants:
- Energy consumption reduction remains a priority for end users, thereby promoting the demand for energy-efficient pumps.
- The shift to service-based business models will help manufacturers unleash new revenue streams in this mature, product-based market.
- The growing requirement to improve compressor performance and durability drives the need for insights on asset condition.
- Curbing OPEX, enhancing production efficiency, and maximizing asset utilization are imperative for end users.
Global Oil and Gas Pumps Market, Forecast to 2026 is the latest addition to Frost & Sullivan's Industrial research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.