Sales of industrial pumps will reach $58.5 billion in 2019 according to the latest forecasts in Pumps World Market published by the McIlvaine Company.
The new forecast includes pumps to transport liquids in the oil and gas industry. This is a $10.5 billion market and has previously been treated separately and not included in the total industrial forecasts. The centrifugal segment in oil and gas transfer is over $6 billion. When included, the 2019 centrifugal pump forecast rises from $35 billion to $41 billion.
Electric submersible pumps comprise more than 50 percent of the centrifugal segment in oil and gas. This segment is dominated by a few large companies. Reciprocating pumps are also widely used in oil and gas. The acquisition of Lufkin by GE has created a market leader.
The fall in oil prices has been taken into account in the 2019 forecast. McIlvaine concludes that oil demand will rise even faster with lower oil prices. Pump demand is proportional to oil quantities and not oil revenues. The need for older wells to install artificial lift pumps just to maintain existing production levels is another positive factor.
Lower oil prices could negatively impact pump sales in 2015 as there is a cutback on drilling projects. However, the OPEC countries need the higher prices in order to pay for government programs. So increased demand plus the longer term needs of OPEC countries will lead to higher oil prices over the coming years.
Picture: McIlvaine Company
Source: McIlvaine Company