Market Trends of Oil & Gas Industry Turbomachinery Industry
This section covers the major market trends shaping the Oil & Gas Industry Turbomachinery Market according to our research experts:
Downstream Sector to Dominate the Market
- Downstream sector have dominated the oil & gas industry turbomachinery market in recent years, and is expected to do the same in forecast period.
- Increasing refined products demands in emerging markets, such as India, China, Brazil, and Mexico, are expected to drive the oil & gas turbomachinery market in downstream sector. Moreover, global demand for natural gas is expected to rise because natural gas is more environment-friendly compared to other fossil fuels, such as oil, and there is a global trend toward consumption of cleaner fuel, owing to concerns about air pollution and global warming. Hence, the share of the gas in total global energy consumption is expected to grow.
- Beside this, the growing population, urbanization, and industrialization in the developing countries have resulted in increasing demand for refined and petrochemical products. As a result, the focus of turbomachinery suppliers has shifted toward countries like China and India.
- India's investment in refining and petrochemicals industry is expected to pave a way for the diaphragm pump market in India. Refining capacity of India grew to 22495.43 TMT in March 2019, an increase of 6.51% from March 2018. Refining capacity of China is also on the rise, with a recent contract for 1 MTA ethylene and refinery expansion project of Sinochem Quanzhou Petrochemical.
- Therefore, the aforementioned factors are expected to drive the market in forecast period, similar to the trend witnessed in recent years.
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North America to Dominate the Market
- The North American upstream industry is expected to grow at a faster rate due to the positive outlook in the United States and Canada.
- The US crude oil production doubled between 2010 and 2018, with approximately 70% of that growth coming from the Gulf Coast region. The United States Gulf Coast crude oil production grew from 5.2 million bpd in 2014 to 7.1 million bpd in 2018, driven by production in the Permian Basin in western Texas and Southeastern New Mexico.
- Moreover, Canada presents tremendous growth opportunity for the oil & gas turbomachinery market, as the major oil reserves, like oil sand, are open to private companies and are not controlled by national oil companies. Hence, growth in the United States and private sector investments in Canada are expected to drive the upstream oil & gas turbomachinery market in North America, during the forecast priod.
- Therefore, with recent stability in oil & gas industry the investment in upstream, midstream, and downstream sectors are expected to grow in the region, leading to a growth in oil & gas industry turbomachinery market.
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