Albany,NY, November 14, 2017 (Newswire.com) - In order to bolster their positions in the global market for static and rotating equipment (oil and gas), manufacturers are seen banking upon lean management schemes to control costs and thereby tackle the pricing pressure on account of a production glut. Far-sighted, astute manufacturers are also seriously mulling over bring down the amount spent on exploration and production activities.
Key companies operating in the global static and rotating equipment (oil and gas) market are pushing ahead with aggressive brand identification strategies through product differentiation and focus on bettering the quality of products. Some of the key players operating in the market are Siemens AG, FMC Technologies, Inc., Sulzer Limited, Alfa Laval AB, and Metso Oyj.
As per a report by Transparency Market Research (TMR), the global market for static and rotating equipment (oil and gas) will expand at a tepid 3.7% CAGR during the period between 2014 and 2022. Rising at this rate, the market which was valued at US$26.5B in 2013, is predicted to attain a value of US$35.8B by 2022.
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Product-wise, the global static and rotating equipment (oil and gas) market is segmented into oil and gas static equipment and oil and gas rotating equipment. Of them, the segment of static oil and gas equipment, held majority share of 53.79% in the market in 2013. It can be further divided into heat exchangers, valves, boilers, air cooled, and shell and tube. Of them, the segment of valves is primarily driving demand within the static equipment segment.
Since the growth in the global static and rotating equipment (oil and gas) market is directly proportional to the development of the oil and gas sector, currently North America is a key geographical region. This is because of the shale gas boom in the U.S.
New Refinery Construction Helping Market
Serving to catalyze demand in the global static and rotating equipment (oil and gas) market is the construction of new refineries and overhauling of the existing ones by leveraging latest technologies. At the forefront of driving demand is the Middle East and Asia Pacific, which have been investing substantial amounts in the refining sector. The swift pace of development of LNG infrastructure in the Middle East and Asia Pacific is also positively impacting the market. Besides, the U.S., China, and Argentina are other key regions contributing considerably to demand owing to the shale gas boom.
Overproduction Resulting in Downward Pressure on Prices Negatively Impacts Demand
Posing a challenge to the global static and rotating equipment (oil and gas) market, on the downside, is the continued pricing pressure confronting manufacturers. This is because of the overproduction of oil which has gotten manufacturers of oil and gas struggling to maintain their minimal margins. “While the upstream sector is anticipated to bear most of the brunt of the macroeconomic factors, the midstream sector is expected to see strong investments, since natural gas still accounts for a predominant place in the global energy mix,” explains the lead analyst of the report.
In order to tackle the challenge, companies operating in the global static and rotating equipment (oil and gas) market are focusing on lean management strategies and also cutting down allocations exploration and production activities. Instead, such companies are focusing on the quality of products and differentiating them through strong brand identification strategies.
Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.
TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.
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Source: Transparency Market Research