Market Trends of Latin America Centrifugal Pumps Industry
This section covers the major market trends shaping the Latin America Centrifugal Pumps Market according to our research experts:
Oil and Gas Segment to Dominate the Market
- Centrifugal pumps are used in the oil and gas sector to pump oil and petroleum products, liquefied gases, and other fluids during operations. The surge in the development of oil and gas infrastructure is expected to provide a huge thrust to the centrifugal pump market in latin america during the forecast period.
- The Latin American region continues to advance toward the usage of lower sulfur gasoline within the respective countries of Chile, Suriname, Brazil, Uruguay, Argentina, Guyana, Mexico, Bolivia, Colombia, and Paraguay. Argentina, for example, has been distributing and commercializing Ultra Grado 3 gasoline with a maximum sulfur content of 10 ppm beginning January 2020. According to IMO 2020 International (Maritime Organization) regulation implemented in January 2020, the increasing demand for low sulfur fuel will likely force major refiners to upgrade the existing infrastructure to produce low sulfur fuels. With refineries expecting renovation, the need for centrifugal pumps will likely increase over the next few years.
- According to BP Statistics, as of 2021, crude oil consumption reached 6488 thousand barrels per day in Latin America. The increasing demand for crude oil is expected to drive the demand for centrifugal pumps across Latin America.
- Moreover, in September 2020, Rystad Energy's Annual Summit, Offshore activity in Latin America, is projected to resume in 2021, with over 3 million barrels per day of peak production sanctioned in Brazil and Guyana alone by 2025. More than 80% of this capacity has a breakeven price of less than USD 45 per barrel and is expected to be sanctioned regardless of market conditions. Over the next three years, around 30 offshore oil projects will be launched and permitted across the continent, with national oil firms operating these projects. This means that investments in coming oil projects will enhance sales of centrifugal pumps in this region. This is expected to drive growth for centrifugal pump in Latin America.
- Owing to the above points, the oil and gas segment is expected to dominate the centrifugal pumps market during the forecast period in latin america.
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Multi Stage Centrifugal Pump Segment to have Significant Share in the Market
- The impeller of a centrifugal pump is pressurizes and transports the liquid. Multistage pumps have considerably superior pressure ranges and flow rates since they contain many impellers.
- Within a multistage centrifugal pump, each impeller acts like a single-stage pump within a chain of pumps. The benefits of multistage centrifugal pumps derive from their chain-like construction.
- As the liquid moves from one impeller to the other, its pressure boosts while the flow rate remains constant. By relying on multiple impellers to spread the pressure-building load of the pump, multistage centrifugal pumps can generate tremendous power and higher pressure with smaller motors, therefore using less energy.
- Multistage centrifugal pumps are used in various industrial applications because of their increased efficiency and ability to pump fluids at higher pressures. For example, Multistage centrifugal pumps are used in firefighting to pressurize water to help extinguish fires.
- High-capacity multi-stage centrifugal pumps are commonly employed when huge amounts of high-pressure fluids are needed. This includes heating water for SAGD installations in the oilsands, industrial condensate systems, refineries, pipelines, and reverse osmosis water desalination. For instance, the crude oil refinery capacity was grown 86% from 2010 to 2021 in Latin America which is expected to drive investments in multi-stage centrifugal pumps in Latin America.
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