Market Trends of NA Centrifugal Pumps Industry
This section covers the major market trends shaping the North America Centrifugal Pumps Market according to our research experts:
Oil & Gas Industry is Expected to Hold a Significant Market Share
- Many nations rely on oil and gas for economic and strategic reasons. Countries such as the United States keep large reserves of crude oil for future use. The measurement of these oil and gas reserves is an indicator for investors; changes in oil stock levels reflect trends in production and consumption.
- Moreover, centrifugal pumps are used in the oil and gas industry to pump oil and petroleum products, liquefied gases, and other fluids during operations. The surge in oil and gas infrastructure development in the studied region is expected to boost the centrifugal pump market during the forecast period significantly. For instance, in November 2021, Southern ITS International Inc. announced the launch of Pure Oil & Gas, Inc., a Wyoming corporation, as a wholly owned subsidiary to add to their growing family of energy solutions and products.
- Furthermore, in December 2021, ConocoPhillips began production at its GMT-2 oil project in Alaska's National Petroleum Reserve. At its peak, the project is anticipated to produce 30,000 b/d. The project's development costs totaled USD 1.4 million. As a result of the mentioned factors, the upstream segment is expected to grow significantly during the forecast period.
- Staring at oil & gas contracts in North America by segment, the upstream segment contributed the most in contracts awarded, with 63 in December 2021, followed by midstream and downstream, with ten and three arrangements, respectively.
- For instance, in February 2022, BP PLC announced opening the Herschel Expansion project in the Gulf of Mexico. Herschel is the first of four significant projects to be completed globally in 2022. Phase 1 of the project entails developing a new subsea production system. At its peak, the first well is expected to increase platform annual gross production by an estimated 10,600 barrels of oil equivalent per day.
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Canada is Expected to Register Significant Growth
- One of the key industries for centrifugal pumps is the chemical industry. Centrifugal pumps are widely used in this industry because they handle a wide range of liquids, slurries, and solids at high efficiencies and low costs. Over the next five years, demand will be driven by the growing trend of process re-engineering, allowing Canadian companies to offer new products or produce them more efficiently than before by lowering unit production costs through process optimization.
- Furthermore, in January 2022, the Canadian Association of Petroleum Producers (CAPP) forecasted a 22% increase in natural gas and oil investment. Capital investment in the sector is expected to increase from USD 6.0 billion to USD 32.8 billion, up from a total investment of USD 26.9 billion in 2021.
- Further, the Canadian market is supported by well-developed oil & gas, food & beverage industries, and significant government investments. Because of the country's extensive oil and gas operations, it is one of the key importers of centrifugal pumps. The Canadian petroleum industry contributes significantly to the North American economy. Also, Canada has the world's third-largest oil reserves and the fourth-largest oil producer and exporter.
- Moreover, in October 2021, Imperial Oil Ltd. joined an Alberta lithium extraction pilot project, lending its energy expertise in the quest to recover the critical mineral from a once-prolific oil formation. It has invested USD 6.35 million in E3 Lithium Ltd. warrants, giving it access to plans to pump what the companies hope will be lithium-rich brine from the aquifer beneath the sprawling Leduc formation.
- Additionally, the demand in the country is also witnessing an increase due to the rising construction investments. For instance, according to Statistics Canada, the investment in building construction (including residential and non-residential sectors) increased by 1.9% to USD 18.4 billion in December 2021.
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