LONDON, July 4, 2012 /PRNewswire/ -- The oil and gas industry in Europe has been through economic vagaries in the last 10 years with financing difficulties and low oil prices resulting in several projects being either postponed or abandoned altogether. This, in turn, has affected the uptake of pumps by the industry. Nevertheless, demand for pumps is set to grow steadily as projects gradually start being revived.
New analysis from Frost & Sullivan (http://www.industrialautomation.frost.com), European Pumps Market in the Oil and Gas Industry, finds that the market earned revenues of euro 1,346.78 million in 2010 and estimates this to reach euro 1,483.19 million in 2015. The research covers centrifugal and positive displacement pumps.
Pump reliability, energy efficiency and conservation, and safety have become critical factors due to the oil and gas crisis in Europe.
"The EU policy of using energy efficient motors and drives is expected to boost the demand for pumps in the oil and gas industry," notes Frost & Sullivan Program Manager Ashwin Annareddy. "Pump manufacturers are ready to match the need for innovative and energy efficient products with intelligent pumps that can save massive amounts of energy over their lifetime. Over the medium and long term of the forecast period, more energy efficient products are set to enter the market."
The competitive environment in the European oil and gas industry is dominated by large corporates with API and non-API pump offerings. Low cost pump manufacturers from Asia and Far East have not been able to gain a foothold in the market, due to a conservative end user mindset and a tendency to equate lower prices with inferior products.
"The pumps market in the European oil and gas industry has been very conservative in terms of adopting new pump types and pumping technology," remarks Annareddy. "The majority of the pumps used in the oil and gas industry are API 610 pumps that require extremely high standards of manufacture, machining and safety levels. Strict regulations within the oil and gas industry have resulted in end users being unwilling to risk their investment with pumps manufactured in Asia and the Far East."
Increasing customer satisfaction also poses a significant challenge to pump manufacturers. Customer satisfaction is essential in building long term and profitable relationships leading to customer loyalty and repeat business.
"End users now expect not just a high quality product but, equally, an array of services to go along with it," adds Annareddy. "Market participants will also have to address end user demand for efficient service personnel and timely delivery of products."
European manufacturers need to keep introducing innovative design features while focusing on increased pump and motor efficiencies, higher price-performance ratio and prompt after sales service. With product reliability becoming a critical purchase criterion, market participants will need to undertake continuous research and development and improved design engineering. They will need to develop on site support and offer end users enhanced value.
If you are interested in more information on this study, please send an email with your contact details to Anna Zanchi, Corporate Communications, at firstname.lastname@example.org
European Pumps Market in the Oil and Gas Industry is part of the Industrial Automation & Process Control Growth Partnership Service programme, which also includes research in the following markets: Strategic Analysis of the European Vacuum Pumps Market, Strategic Analysis of the European Positive Displacement Pumps Market, European Pumps Market in the Water and Wastewater Industry and Strategic Analysis of the Pumps Market in the European Pharmaceutical Industry. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
SOURCE Frost & Sullivan