Transparency Market Research (TMR) observes that the global electric submersible cables market is highly competitive due to presence of numerous players. Some of the key players operating in the global electric submersible cables market includes Baker Hughes, Prysmian Group, Schlumberger Limited, Nexans, Borets, Siemens AG, Halliburton, The Kerite Company, Jainson Cables, Havells, Superstar Cables, Southwire Company, LLC, V-GUARD INDUSTRIES LTD., and Alkhoorayef Petroleum. These players are increasingly focusing on the development of product and offering advanced technology mainly to the oil & gas industry. The oil & gas industry is the key consumer of electric submersible cables.
TMR projected that the revenue of the electric submersible cables market was valued at US$ 4.36 Bn in 2017 and expected to expand with a CAGR of 5%. On the basis of cable type, ESP flat power cable segment is a leading segmented which accounted for more than 60% market share in 2017 in terms of value. On the basis of end use industry, the market is dominated by the oil & gas industry with more than 80% of market share owing to high demand for oil and the recovery of the oil prices. On the basis of region, Europe accounted for the leading share of more than 50% global market in 2017. The increasing demand from the region and high production from the countries such as Russia and CIS. These regions are major consumers of the submersible pumps and cables.
Increasing Demand for Oil & Gas to Drive Growth
Electrical submersible pumps are increasingly adopted by the agriculture industry and oil & gas industry mainly for lift method and irrigation. These pumps are also used in the water and wastewater treatment plants. Growing adoption of the submersible pumps are boosting demand for submersible cables as they are connected with these kind of pumps. The growth of electric submersible cables market is directly related to the growth of the electrical submersible pumps market.
Demand for oil & gas has increased from past few years which has led to increasing activities in mining manufacturing of oil and gas. The high number of drilling activities have lowered the depth of the oil well and lowered the settings of pumps in to well. The efficiency of these pumps to pull out the material is higher than other kind of pumps which is boosting adoption of the electric submersible pumps. This is key factor fuelling growth of the global electric submersible cables market.
Emerging Shale Gas Industry to Restrain Growth
Despite of these growth opportunities, the limited deplorability of electrical submersible pumps especially in the shale gas pumping is key factor restraining growth of the global electric submersible cables market. Additionally, emerging shale gas industry in the U.S. is limiting adoption of submersible pumps which in turn limiting growth of global electric submersible cables market. Nevertheless, oil sands are creating lucrative opportunities in the global electric submersible cables market.