Global Market of Cable for Submersible Pump Will be Valued at USD 4.4 Billion in 2023
Cables for submersible pump are dedicated supporting cables for electric submersible pump unit. They are laid in oil wells. The lower end is connected to leading cable, while the upper end links with ground control cabinet. According to the latest research report released by TMR, in 2014, the global market of cables for submersible pump was valued at USD 3 billion. It is expected that the figure will increase to USD 4.4 billion by 2023. During that period, the annual compound growth rate will reach 4.7%.
The report indicates that as oil wells are deeper, the demand for cables for submersible pump is also increasing. In addition, increase in demand for submersible pump will boost the market of cable for submersible pump in next few years. However, recently sharp decline in oil price has resulted in reduction of offshore exploration and oil output, restraining increase in demand in global market of cable for submersible pump, to some extent. Meanwhile, the rise of shale gas industry is challenging the reduction in demand for submersible pump and the market of cable for submersible pump.
Based on application environment, cable for submersible pump can be used both at sea and on land. Cables for submersible pump for marine use and for land use vary from environment of oilfields. In general, cable for submersible pump for marine use is much more expensive. Moreover, for offshore oilfields, cables for submersible pump are required to be installed with additional protection accessories which are not required at land oilfield. As a result, it is easier and cheaper to lay cables for submersible pump on land. In 2014, cables for submersible pump for land use accounted for 69.88% of the total market value.
Technically, the market of cable for submersible pump consists of polypropylene, EPDM and others. EPDM holds the largest market share. In 2014, it accounted for 57.27%.
From a regional perspective, among five regions such as North America, Europe, Asia-Pacific, the Middle East & Africa, South America and Central America, Europe has the greatest demand and took up 60% of the market share in 2014. It is expected that by 2023, Europe will remain its leading position with the increase of mature oilfields in following countries, including the UK, Kazakhstan, Russia and Norway. North America will be next only to Europe. This is mainly because the demand for cable for submersible pump will enjoy sustained growth due to the rapid increase of shale gas production in the United States and the increase of oil sand in Canada.
Besides, as the number of offshore oil wells in such regions as South China Sea, Australia and Malaysia increases continuously, Asia-Pacific market of cable for submersible pump will usher in rapid development. Offshore oilfield exploration in Africa and South America will lift the regional market demand. Furthermore, the global growth of oil sand production will create more development opportunities for the market of cable for submersible pump.
From the perspective of enterprise, following enterprises will become global leading providers of cable for submersible pump, such as Kerite, Hitachi Metals, Borets, GE Oil & Gas, Prysmian Group and Weatherford International.