Industry Analysis & Industry Trends
The Electric Submersible Pump Manufacturing industry benefits from near-constant demand for oil and gas, and experienced steady growth in the past five years. However, revenue is expected to briefly decline in 2015 due to low oil prices. The global price of oil has lost nearly half its value since late 2014 due to oversupply, leading drilling firms to curtail production and, in turn, reduce their demand for industry products. Nevertheless, oil prices are expected to rebound in the five years to 2020, and the industry will consequently resume its growth over the period. The largest four companies will continue to control a majority of the market, reaping high profits and investing in ongoing technological innovation.... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Electric Submersible Pump Manufacturing industry is in the mature phase of its lifecycle. IBISWorld expects industry value added (IVA), which measures an industry's contribution to the US economy, to increase an annualized 3.4% in the 10 years to 2021. This closely follows forecast US GDP growth over the period of 2.1% per year on average and reflects a steady contribution of the industry to the economy.
Other factors are indicative of maturity. ESPs are widely accepted in oil and gas markets and, despite rapid technological change, they have long been one of the primary methods of pumping fluid from deep wells. In addition, the industry is small and highly consolidated... purchase to read more