Electric Submersible Pump Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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The Electric Submersible Pump Manufacturing industry got sucked under for a bit during the recession, but managed to make its way back out, maintaining positive revenue growth since 2011. For these reasons, industry research firm IBISWorld has added a report on the Electric Submersible Pump Manufacturing industry to its growing industry report collection.

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The near-universal need for oil has made it easy for the industry to maintain revenue and profit levels

The Electric Submersible Pump Manufacturing industry benefits from near-constant demand for oil and gas. Electric submersible pumps (ESPs) are a type of downhole devices used on drilling rigs to provide artificial lift for subterranean liquids like oil and water. According to industry leader Schlumberger, only about 5.0% of the world's nearly one million producing oil and gas wells flow naturally, so nearly all of the world's oil and gas production relies on artificial lift devices like ESPs. “This near-universal need has been a boon to the industry, supporting annualized revenue gains of 4.6% during the five years to 2013, even as recession-related dips threatened to turn growth negative” says IBISWorld industry analyst Josh McBee.

The ESPs included in this industry largely serve one downstream market: oil and gas extraction. In turn, that downstream market moves largely in line with global prices for crude oil, with a lag of a few years arising from long lead times associated with surveying, rig construction and exploration. According to McBee the industry exhibits a medium level of globalization and has operated at a trade deficit for the past decade, although exports have exhibited strong growth during the past five years. Meanwhile, high steel prices have allowed cheaper imports to grow as a share of domestic demand during 2010 and 2011, but cost-cutting initiatives taken by manufacturers have since lowered product prices and renewed purchases of US ESPs in domestic markets. Through 2013, revenue is expected to increase 7.2% and total an estimated $2.5 billion. Technological innovation will lead the way for this industry's success during the coming five years. ESPs usually exist as part of a larger system of retrieval, monitoring and other devices, and growing sophistication regarding installation techniques and real-time data feeds are increasing the value of an already crucial component for downstream drillers. At the same time, the base potential for ESP sales is projected to grow in line with increased US rig counts, as rising crude prices spur ongoing production efforts.

Concentration in the Electric Submersible Pump Manufacturing industry is considered high. In 2013, the top-four companies are expected to account for an estimated 78.2% of total industry revenue. The industry's leading companies have been around for several decades, growing and changing with the needs of downstream oil and gas production. Their worldwide operations and economies of scale enable them to reach emerging markets faster than their smaller competitors and also mass produce goods for less money through economies of scale. Concentration is expected to remain stable during the five years to 2013, as the number of industry companies is expected to return to its prerecession level of 80. For more information, visit IBISWorld’s Electric Submersible Pump Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures electric submersible pumps (ESPs) for oil and gas well drilling. Firms also provide monitoring systems, equipment engineering and other services that complement ESP systems.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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