Oil & Gas Electric Submersible Pump Market Size
Oil & Gas Electric Submersible Pump Market size was valued over USD 5.7 billion in 2023 and is set to grow at a rate of over 8% by 2032. The electric submersible pump market growth is primarily contributed to recovering oil prices, rapidly exceeding population, and rising government focus toward magnifying oil & gas exploration.
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ESPs are widely used for artificial lift operations in oil wells. They are deployed in wells that have low reservoir pressure or high water cut, where natural flow is insufficient to bring the oil to the surface. The ESP system consists of a motor, pump, and seal section, which are submerged in the wellbore. The pump helps to lift the fluids, including oil, gas, and water, to the surface, enhancing production rates.
Oil & Gas Electric Submersible Pump Market Report Attributes
| Report Attribute |
Details |
| Base Year |
2023 |
| Oil & Gas Electric Submersible Pump Market Size in 2023 |
USD 5.7 Billion |
| Forecast Period |
2024 to 2032 |
| Forecast Period 2024 to 2032 CAGR |
8% |
| 2032 Value Projection |
USD 11.5 Billion |
| Historical Data for |
2019 to 2023 |
| No. of Pages |
240 |
| Tables, Charts & Figures |
277 |
| Segments covered |
Application, Operation, & Region |
| Growth Drivers |
- Increasing investment toward exploration and production activities
- Depleting rate and maturity of oil fields
|
| Pitfalls & Challenges |
- Substantial availability of other alternatives
|
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ESPs are commonly employed in offshore oil and gas production platforms. These platforms operate in deepwater environments, where the wells are drilled below the seabed. ESPs can handle the high pressures and deliver the necessary flow rates to lift the hydrocarbons from these subsea wells to the production platform.
Increasing trend of subsea boosting along with increasing inclination towards adoption of unconventional resources is anticipated to boost the product deployment over the projected timeframe. In addition, ESPs can also be utilized in water injection wells, where water is injected into the reservoir to maintain pressure and displace hydrocarbons. ESPs help to lift the injection water from the surface and push it into the well for injection purposes.
COVID- 19 Impact
The COVID-19 pandemic dealt a harsh blow to businesses around the world, including those making electric submersible pumps for the oil and gas industry as well as for building services. The oil and gas industry was especially hard-hit, with crude oil prices plummeting to a record low of $12.41 per barrel in April 2020. Since pumps are essential for oil and gas exploration, this sudden drop in demand led to a sharp decline in their use during the first half of 2020. However, once the lockdowns ended and vaccination campaigns gained momentum, the situation began to normalize. With businesses reopening and global trade resuming, the oil and gas industry started to recover, boosting the demand for electric submersible pumps.
Oil & Gas Electric Submersible Pump Market Trends
The increasing adoption of ESPs in the oil and gas sector can be attributed to their ability to enhance production, their compatibility with unconventional resources and deepwater operations, technological advancements, cost efficiency, and environmental considerations. These factors have propelled the industry to embrace ESP technology as a valuable tool for optimizing production and maximizing hydrocarbon recovery.
Imagine a device that's a game-changer for getting liquids out of wells, whether it's oil, gas, or water. These devices are called Electric Submersible Pumps (ESPs), and they're like turbochargers for wells. By pumping harder, they make more oil and gas flow out, giving producers more bang for their buck. Because they're so efficient, ESPs are becoming the go-to choice for squeezing every last drop of oil and gas out of reservoirs. And as we all get more serious about saving energy, companies are developing even better ESPs. For example, one company recently came out with a new submersible pump that's perfect for water-related jobs, like farming and irrigation. And ESP makers are always tweaking their designs to use less energy, which saves money and helps the environment. So, as we keep looking for better ways to get our hands on energy, ESPs are definitely going to play a big role.
Oil & Gas Electric Submersible Pump Market Analysis
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Continuous government provision to control snowballing oil prices along with the support from key industry players in the oil & gas application through increasing production and investments will have a sway the industry outlook. For instance, 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.
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Single stage ESPs is projected to grow at a rate of 8.6% by 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 adoption. 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.
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The ESP market in the Asia Pacific region is affected by the balance between demand and supply of oil and gas. Fluctuations in global oil prices, geopolitical factors, and government policies can influence investment decisions in exploration and production, subsequently impacting the demand for ESP systems.
Oil & Gas Electric Submersible Pump Market Share
The major market players are focusing on strategic partnerships and collaborations, new product launch along with mergers and acquisitions to gain their competitive edge over the others. Leading market players across the oil & gas electric submersible pump market include
- Schlumberger Ltd
- Weatherford
- Baker Hughes
- Flowserve Corporation
- EBARA CORPORATION
- Atlas Copco AB
- WILO SE
- Grundfos Holding A/S
- Gorman-Rupp Pumps
- Crompton Greaves Consumer Electricals Limited
- Sulzer Ltd
- Tsurumi Manufacturing Co.Ltd.
- Novomet
- Halliburton
Oil & Gas Electric Submersible Pump Industry News
- In July 2022, Baker Hughes announced to acquire ‘AccessESP’, “GoRigless ESP System” that is used to alternatively deploy and operate electrical submersible pumps (ESPs) across oil & gas applications. The system enables an electric submersible pump to be deployed & retrieve with traditional and light-duty intervention pump without requiring the well producing tubing to be pulled or without a need for a rig. Adoption of such technology across ESPs will exponentially reduce the downtime and the cost for the workers used in the replacements of ESPs primarily for offshore & remote area applications.
- In May 2022, Ebara Machinery India Pvt Ltd, a subsidiary of Ebara Corporation, had launched an outsources production line at an Indian pumping manufacturer in New Delhi. The inclusion of the new production line will expand the company’s market coverage of standard pumps in India, thereby strengthening its product portfolio in the market. The company has plans to produce 2000 EVMS pumps per year by expanding its standard pumps business in the Indian market.
This Oil & Gas Electric submersible pump market research report includes in-depth coverage of the industry with estimates & forecast in terms ‘USD Million’ from 2019 to 2032, for the following segments
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By Application
By Operation
The above information has been provided for the following regions across the regions.
- North America
- Europe
- Russia
- UK
- Italy
- France
- Germany
- Asia Pacific
- China
- India
- Australia
- Indonesia
- Malaysia
- Middle East & Africa
- Saudi Arabia
- Turkey
- Kuwait
- Latin America
