Electrical Submersible Pump Cables Market: Snapshot
Demands for electrical submersible pump (ESP) cables ride on the back of the growing uptake of the artificial lift technology in pumping production fluids from wellbores. Numerous characteristics of ESPs, such as safety, cost-effectiveness, and outstanding subsurface controls, drive the sales of ESP cables in oil production facilities around the world. Over the past years, use of ESP cables progressed on account of growing deployment of ESPs as high-volume pumps in offshore oil and gas explorations, particularly because the overall system is environmentally friendly. The ESP cables market has garnered revenue gains from the efforts of energy companies to go for deep oil wells for hydrocarbon explorations in harsh environments, both onshore and offshore.
The global ESP cables market is projected to garner a CAGR of 4.70% during the period from 2015 to 2023, to reach revenue worth of US$4.5 bn by 2023-end. Its valuation was pegged at US$3.0 bn in 2014.
The report segments the electrical submersible pump cables market on the basis of three parameters: technology, application, and region.
Uptake in Onshore Oilfield Explorations Still Massive
The two key application areas in the ESP cables market are the onshore and the offshore. Of the two, the former held the major share—nearly 70%–in 2017. The status quo is unlikely to change in coming few years.
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The demands are fueled by the ease of deployment in onshore oilfields. Onshore sites also need less upfront capital than offshore, reinforcing the application of ESP cables in the former type of oil and gas exploration. However, decline in oil prices has hit the profitability of the segment in recent years. Also, however, shale oil and gas explorations will catalyze technology advancements in ESP cables. Moreover, oil sands projects have taken off in a big way in developed countries of North America.
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Players Shifting Sight to Asia Pacific and Middle East and Africa
Shifting attention of oil and gas companies to new shale gas reserves will open new avenues in developing markets.
The various regional market are Europe, Central and South America, North America, Asia Pacific, and the Middle East and Africa. Of these, Europe accounted for a massive share of the global ESP cables market in 2014. This was trailed by the North America.
The Europe ESP cables market will see the trend of demands maturing in coming years, as the growth will be lackluster in the U.K., Norway, Russia, and Kazakhstan. Meanwhile, North America will witness substantial demands, especially coming from the U.S. and Canada. Growing spending of oil and gas companies in oil sand projects in these countries and growing numbers of shale oil explorations in the U.S. present large lucrative opportunities for market players.
By 2023-end, Asia Pacific is expected to emerge as the most attractive regional market. The demands for ESP cables will come mainly from China, Australia, and Malaysia. Growing numbers of offshore oil explorations have propelled the uptake. Rise in South China Sea energy exploration activities in recent years has spurred prospective demand for ESP cables.
On the other hand, the highest growth rate year-over-year is expected to come from the Middle East and Africa. During the assessment period 2015 to 2023, the regional market is expected to clock a CAGR of 8.70%. Overall, the radar of hydrocarbon exploration companies will shift stridently toward Central and South America.