Oil and gas drives $27 Billion global market (by 2020) for centrifugal pumps

Demand for centrifugal pumps in Americas is dominated by oil and gas industry (expected to exceed $5 billion by 2020)

O&G Centrifugal pump Source: directindustry.com

The global market for centrifugal pumps is growing rapidly and one of the key drivers will be a rejuvenated oil and gas sector, according to a new report from Technavio, which forecasts the industry to grow at a CAGR of over 4 per cent until 2020.

A centrifugal pump is a device that converts the input power into kinetic energy of a liquid.

These pumps are utilized in operations such as circulating coolants or lubricants throughout machines and equipment.

Centrifugal pump are used extensive in industrial applications and and the oil and gas sector. The centrifugal pumps niche accounts for almost 52 per cent of the global pumps market.

“Although the overall global growth is likely to be robust, factors driving this growth will vary from region to region. In emerging economies such as India and China, growth will primarily result from rapid industrialization with rising investments in power generation and water infrastructure sectors whereas, in the oil producing countries of the Middle East, the market will benefit from increasing drilling activities,” said Anju Ajaykumar, lead research analyst at Technavio.

Americas: advances in oil and natural gas production spurs demand for centrifugal pumps

The centrifugal pumps market in the Americas is expected to exceed $5 billionUSD by 2020, growing at a CAGR of over 5 per cent, dominated by the oil and gas industry, according to the Technavio report.

There has been a growing need to renovate and upgrade the existing facilities in this region. Advances in oil and natural gas production technology have boosted oil production in the region, attracting vendors to invest in this industry.

The demand for pumps in North, Central, and South America is expected to witness a rise in 2016 due to the requirements of the mining industry.

The demand for commercial and industrial pumps market will also be driven by other end-user industries such as liquid natural gas (LNG), ethanol, flue gas desulfurization (FGD), and oil production units.

EMEA: largest market for centrifugal pumps

The centrifugal pumps market in Europe, the Middle East and Africa is expected to exceed $11 billionUSD by 2020, growing at a CAGR of over 3 per cent.

According to the World Bank, the most populated areas of MENA (the Middle East and North Africa) include Iran, Iraq, Saudi Arabia, and Egypt. The population in MENA is growing at the rate of 2 per cent per year.

Increase in urban population is expected to boost the construction sector and also the water and wastewater industry to meet the rising demand of the population, as a result of which the centrifugal pumps market is expected to witness a steady growth.