Electric submersible pump (ESP) Market to Suffer Slight Decline in 2021, Efforts

Posted by aliena on January 13th, 2021

The global Electric submersible pump (ESP) market is estimated to generate nearly US$ 82 Mn in 2020, expanding steadily to reach a valuation of US$ 13 Bn by the end of the forecast period.

A sizeable demand pull from key end-use industries and well-established markets is poised to generate a steady growth curve during the assessment period. Over time, Electric submersible pump (ESP) have found extensive applications for industrial de-watering. This has catapulted the demand for continuous-duty motors, having cycles exceeding 20 minutes.

The need to access potable water for municipal purposes has also accelerated Electric submersible pump (ESP) demand. By 2025, it is predicted that nearly a quarter of the global population will experience water scarcity, mostly attributed to injudicious usage. Therefore, water management systems incorporating Industry 4.0 have become important to ensure zero wastage. Technologies such as artificial intelligence, big data analytics and the internet of things are being incorporated into Electric submersible pump (ESP) to track domestic and commercial water usage.

The coronavirus pandemic has dented short-term growth prospects for the market. As countries reel under the economic downturn induced by the closure of business operations, end-use industries have experienced significant downsizing of their operations. Consequently, there has been a decline in cash inflow, reducing the demand for Electric submersible pump (ESP). However, vendors are exploiting this hiatus to strengthen their existing portfolios by incorporating technological and mechanical advancements and develop better quality pumps.

"As the global outreach of Electric submersible pump (ESP) deepens over time, market players are increasingly resorting to online marketing in order to broaden their customer base. Additionally, vendors are rolling out several incentives in the form of price reduction and after-sales service, heightening growth prospects for the future," infers an FMI analyst.

Key Takeaways from FMI's Electric submersible pump (ESP) Market Study

• Electric submersible pump (ESP) market shall expand at a 5% CAGR during the 2020-2030 forecast period
• Industrial sector shall account for 3/4^th of new Electric submersible pump (ESP) demand by 2030
• US, Japan and China collectively account for 30% of Electric submersible pump (ESP) sales, attributed to heavy industrialization in these countries
• Smart Electric submersible pump (ESP) providing real-time data and predictive maintenance are gaining immense traction
• Borewell Electric submersible pump (ESP) shall remain highly preferred, capturing 50% of the revenue share
• Emphasis on wastewater treatment and sustainable sewage infrastructure renders Asia-Pacific a lucrative market for submersible pump manufacturers

Electric submersible pump (ESP) Market- Key Trends

• Submersible water pumps equipped with sensors and visualization tools are becoming mainstream. These pumps enable engineers to maintain better records of the water systems. This helps reduce wastage, enhances system efficiency and improves quality
• The oil & gas industry is increasingly adopting Electric submersible pump (ESP) as they are highly effective in extracting liquids from wells with low bottomhole pressure. The industry is leveraging IoT to increase operational output.
• Heavy usage of corrosive chemicals in the paper pulping and wastewater management segments may not bode well for the pumps used, increasing chances of wear and tear and increase maintenance costs.
• Operations beyond the Best Efficiency Point (BEP) range of 30% can cause significant damage to the pump due to cavitation, thus limiting their uptake in industrial sectors.