Oil & Gas application segment is expected to incline towards high value-high growth during 2016–2026
The oil & gas industry uses positive displacement pumps for the transfer of crude oil and gas as well as intermediates. Operations such as hydraulic fracturing, drilling, oil and gas well cementing and matrix treatments serve as end-use applications of positive displacement pumps. Both reciprocating as well as rotary pumps are used in this industry where the operating load ranges from moderate to high capacities. The oil & gas segment is estimated to be the major application sector in the global positive displacement pumps market with a revenue share of more than 20% over the forecast period. The segment is anticipated to gain 30 BPS during the forecast period and expand at a CAGR of 4.3% to reach a market valuation in excess of US$ 800 Mn by the end of 2026. The segment is projected to show increasing growth and account for around 25% of the overall incremental opportunity generated from the global positive displacement pumps market.
Long-term tie-ups between key players in the positive displacement pumps market is the popular trend in the oil & gas industry
We have observed two trends associated with the oil & gas industry. Firstly, it has been noted that end users, particularly oil & gas companies are indulging in long-term tie-ups with positive displacement pump companies across the globe. For instance, U.S based Weir Group PLC has entered into a long-term tie-up with Canada based oil & gas company Canyon Services Group after the latter recognised its operating milestone of 1000 hours of pumping time.
The second trend that we have noted is the association of positive displacement pumps companies with EPC and project management consulting firms for large scale oil & gas projects. EPC and project management consulting firms play a vital role in implementing turnkey projects related to energy (oil & gas) and utilities. In this scenario, positive displacement pumps manufacturers form associations with EPC and project management consulting firms to enlist themselves as preferred product vendors for such turnkey projects.
Oil & gas segment is anticipated to witness moderate growth in the North America positive displacement pumps market
The oil & gas application segment is projected to be valued at more than US$ 160 Mn in North America in 2017. In the Western Europe positive displacement pumps market, energy (oil & gas) is likely to remain one of the leading segments by application. Mergers and acquisitions by major companies and development of energy efficient pumps are two important factors that are creating a positive impact on the oil & gas application segment in Western Europe. In Latin America, the oil & gas segment is anticipated to register a CAGR of 4.6% in terms of value between 2016 and 2026. The oil & gas segment is likely to witness a healthy growth in the global positive displacement pumps market during the period of assessment.
With increasing projects in the field of oil & gas in countries such as Colombia, Venezuela etc., pump manufacturers are focussing on meeting customer requirements by offering product variants with technical assistance and value-added services to achieve maximum market presence in the Latin America market. In a similar manner, the oil & gas segment is also showing a positive impact on the positive displacement pumps market in Eastern Europe. The oil & gas sector has been a major driver of revenue in the Eastern European economy, particularly in Russia. The increasing scope of shale and natural gas exploration activities in the country has attracted several international manufacturers to explore business opportunities.
Asia Pacific is a major regional market for reciprocating pumps – one of the sub-segments by product type in the global positive displacement pumps market. The region holds a major market share and is expected to grow at a healthy rate as compared to other regions. In a new report titled “Positive Displacement Pumps Market: Global Industry Analysis and Opportunity Assessment, 2016–2026,” the analysts of Future Market Insights have observed that although other regions such as the Middle East & Africa and Latin America currently hold a low market share, these regions are expected to grow rapidly during the forecast period. North America is likely to be another prominent region in terms of market value share.
Consolidation of business operations along with the expansion of market footprint is the key strategy adopted by market players to strengthen their market presence in target sectors
During the course of our study, we have observed that companies operating in the global positive displacement pumps market are strengthening global partnerships for better synergies in sales and distribution and augmentation of market footprint across various regions. Efforts are also being made to upgrade and expand existing product lines to strengthen market presence in end-use sectors. Companies are devising innovative strategies to provide customised solutions with value-added services to meet customer requirements effectively. Key market players are also exploring new avenues in end use applications to implement product and brand development strategies along with vertical integration for streamlining of operations and are forming strategic alliances with regional manufacturers/distributors for market expansion.
Strategies of key players in the global positive displacement pumps market
Distributors and retailers are the primary participants in the global positive displacement pumps market; in terms of value-added services, EPCs and MRO service providers complete the entire value chain of the positive displacement pumps market. The majority of global players reach out to their customers primarily through distributors in the global positive displacement pumps market value chain. Installation, maintenance and repair agencies coordinate with pump manufacturers for pre-installation, product operation training and after-sales service activities. Pump manufacturers such as Grundfos, KSB AG and Xylem Incorporation follow the strategy of expanding local networks by setting up their own sales and distribution network or by associating with independent distributors. Pump manufacturers also tie up with engineering, procurement, and construction (EPC) companies for commissioning high capacity positive displacement pumps.
Our report covers the following key takeaways that are impacting the overall market for positive displacement pumps
Moderate growth across the manufacturing sector, which in turn is expected to generate substantial demand for positive displacement pumps
Exploration activities in shale gas and LNG are expected to engage the use of positive displacement pumps in North and Latin America
Growth and investments in the water and wastewater treatment sector to drive the demand for positive displacement pumps
Setting up of new facilities to incorporate the use of positive displacement pumps to a fair extent
Global Positive Displacement Pumps Market: Segmentation
By Product Type
Report Structure and Research Methodology
The financial data for privately-held companies has been indicated in the global positive displacement pumps market report. Macroeconomic indicators such as GDP, disposable income, population growth, wholesale and retail trade, merchandise trade, prices, etc. have been considered to arrive at the indicated market numbers. The top-down approach has been used to assess market numbers for each category, while the bottom-up approach has been used to counter-validate the reached market numbers. The report covers executive summary, market definition and taxonomy and a 360o analysis of the global positive displacement pumps market performance. We have covered important metrics such as CAGR, absolute $ opportunity, incremental $ opportunity, Basis Point Share (BPS) and market attractiveness analysis. This report also consists of market dynamics including drivers, restraints, opportunities and trends likely to impact the global positive displacement pumps market. A comprehensive analysis of the competitive landscape of the global positive displacement pumps market is another key feature of this report.