Industrial pump manufacturers have been riding a crest with the increased pace of exploration and production activity brought on by the low cost of oil and gas extraction in the Gulf Cooperation Council (GCC) region. The relatively reduced exploration and production costs, coupled with the high price of oil, have attracted investments in capital-intensive projects (heavy oil and sour gas). However, once the sheen of this industry wears off, frenetic industrialization is expected to shore up the margins of the industrial pump manufacturers.
New analysis from Frost & Sullivan (industrialautomation.frost.com), Industrial Pumps Market in the GCC Region, finds that the market earned revenues of around $940 million in 2010 and estimates this to reach approximately $1500.0 million in 2017.
"The industries that are most likely to step into the shoes of the oil and gas sector are power generation, desalination and water and wastewater treatment," says Frost & Sullivan Industrial Automation Analyst. "The growing demand from non-oil and gas industries will not only increase the overall market revenues but also moderately reduce pump manufacturers' dependence on any one industry."
Considering a growing number of project orders are won by engineering, procurement and construction (EPC) contractors with regional presence in the GCC countries, pump suppliers prefer to deal directly with EPC contractors as separate accounts, rather than with a particular GCC country.
"As individual markets, centrifugal pumps are expected to witness steady growth even as competitive pricing increases its impact on the profit margins of the numerous competitors," notes the Analyst. "Meanwhile, the positive displacement (PD) pumps market is expected to grow by 7.6 per cent between 2011 and 2017, despite its limited applications, once pump suppliers ramp up their marketing efforts and American Petroleum Institute (API) requirements for certain applications are relaxed."
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Industrial Pumps Market in the GCC Region is part of the Industrial Automation & Process Control Growth Partnership Services program, which also includes research in the following markets: The Middle East Desalination Pumps Market and the Middle East Industrial Valves & Actuators Market, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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