Market Scenario

US Medium Voltage (MV) inverters market in oil & gas industry was valued at US$ 41,997.1 million in 2022 and is projected to surpass the market valuation of US$ 69,166.2 million by 2031 at a CAGR of 5.7% during the forecast period 2023–2031.

Recent years have seen an increase in investments, with an estimated $250 million being poured into research and development of advanced MV inverters specifically for the oil and gas sector in 2021 alone. This is spurred by technological advancements leading to inverters capable of handling upwards of 40% more voltage levels than their predecessors just five years ago. During this period, the ever-growing global demand for energy has surged by approximately 2.5% annually. The volatility of oil prices, having witnessed a 30% fluctuation within the last year, paired with stricter environmental regulations introduced in over 50 countries, emphasizes the critical importance of MV inverters for efficient energy conversion and optimization in the sector.

We have observed a trend—a shift towards automation. In line with this, our study suggests that, by the end of 2023, approximately 53% of new MV inverters installed in the oil and gas industry are likely to IoT-enabled, pointing to a clear drive for real-time monitoring and predictive maintenance. Given that the integration of renewable energy in the oil and gas industry has increased by a significant 15% in the last two years, the demand for MV inverters, especially those adepts at renewable integration, has simultaneously soared.

Companies in the oil and gas industry are displaying a heightened preference for inverters ensuring upwards of 95% energy efficiency. Moreover, given that by 2023, governmental policies across major oil-producing nations mandated a 20% renewable energy incorporation into national grids, the market saw a 25% increase in investments into advanced MV inverters supporting this integration. By the end of the forecast period, it is expected that the MV inverters market in the oil and gas industry will be worth approximately over $53.41 billion, with a growing emphasis on innovations enhancing energy efficiency and renewable energy integration.  

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Market Dynamics 

Driver: Rising Demand for Energy Efficiency

The surging demand for energy, expected to increase by 50% by 2050, is a key driver in the Medium Voltage (MV) inverters market in the oil and gas industry. Oil and gas companies are under immense pressure to meet this demand and are investing heavily in MV inverters. In 2022 alone, the oil and gas sector invested around $300 million in MV inverters, representing a 12% year-over-year increase. MV inverters are pivotal for efficient energy conversion and distribution, ensuring that energy loss is minimized. The latest MV inverters have up to 98% energy efficiency, compared to older models which typically operated at around 92%. With oil prices experiencing fluctuations of up to 40% within the last two years, enhancing efficiency has become paramount. 

Trend: Growing Integration of Renewable Energy Sources

There is an ongoing trend in the oil and gas industry to integrate renewable energy sources, as governments worldwide push for greener energy alternatives. By 2022, the share of renewables in the global energy mix increased by 15%, and the demand for MV inverters that can handle both conventional and renewable energy sources has grown. In fact, the MV inverters market for renewable integration in the oil and gas sector witnessed a 20% growth in 2022. Advanced MV inverters, which can efficiently integrate renewable energy sources into existing oil and gas infrastructure, accounted for approximately 30% of the total market in 2022, up from 20% in 2019. By 2027, it's expected that nearly 45% of MV inverters in the oil and gas industry will be geared towards renewable energy integration.

Opportunity: Automation and Digital Transformation

Automation and digital transformation present a substantial opportunity in the MV inverters market for the oil and gas industry. With the IoT market projected to reach $1.3 trillion by 2026, oil and gas companies are investing in IoT-enabled MV inverters to capitalize on real-time monitoring, predictive maintenance, and enhanced operational efficiency. In 2022, around 65% of new MV inverters installed in the oil and gas sector were IoT-enabled, representing a 25% increase from 2019. The market for smart MV inverters is projected to grow at a CAGR of 9.7% from 2023 to 2029. With the potential for AI and machine learning integration, these smart inverters are expected to revolutionize the oil and gas industry, enhancing productivity and reducing operational costs. As companies continue to embrace automation and digital transformation, the MV inverters market stands to benefit immensely.

Segmental Analysis 

By Application

In the US Medium Voltage (MV) inverters market within the oil and gas industry, the upstream operations segment has held the highest share, accounting for 65.9% of the market in 2022. This can be attributed to the high dependency on MV inverters in exploration and production activities in the upstream sector. With the increasing demand for energy, there is a continual push to discover and exploit new oil and gas reserves, fueling the growth of the Upstream Operations segment. The segment is projected to keep dominating the market in the coming years, with a CAGR of 4.6%. This sustained growth is likely to be driven by technological advancements in MV inverters that enable higher energy efficiency, improved voltage regulation, and enhanced control in upstream activities. Investments in the exploration of unconventional reserves, such as shale gas, are further expected to bolster this segment's growth.

By Substation

The indoor segment dominates the market by substation in the US MV inverters market for the oil and gas industry. In 2022, this segment held a substantial 71.5% market share. This is mainly because most oil and gas operations, particularly in the upstream sector, require indoor substations to protect the equipment from external factors like weather and environmental conditions. Indoor substations are also preferred due to their compact size and ease of maintenance. The segment is projected to grow at the fastest CAGR of 4.1% during the assessment period. The ongoing investments in refining and processing infrastructure, coupled with the growing demand for energy-efficient and reliable power conversion solutions, are likely to drive the growth of the Indoor substation segment.

By Pump Type

In the US MV inverters market within the oil and gas industry, the centrifugal pumps segment holds the largest share, with over 54.5% of the market in 2022. Centrifugal pumps are widely used in the oil and gas industry for their efficiency and ability to handle large volumes of fluid. They are particularly useful in upstream operations for tasks such as drilling and hydraulic fracturing. The segment is estimated to grow at a CAGR of 4.3% in the years to come, primarily driven by increasing oil and gas exploration activities and the subsequent need for efficient pumping solutions. Innovations in MV inverters are also likely to contribute to the growth of this segment, as advancements in energy efficiency and automation become more prevalent.

By Compressor

The positive displacement compressor segment dominates the compressor market within the US MV inverters market for the oil and gas industry, with over 57.5% market share in 2022. These compressors are favored for their high efficiency and ability to provide a continuous flow of compressed gas, making them ideal for oil and gas operations. The growing demand for natural gas and the increasing exploitation of unconventional reserves are likely to drive the growth of this segment. Technological advancements in MV inverters, particularly in automation and real-time monitoring, are also expected to contribute to the continued dominance of the Positive Displacement Compressor segment.

By End User

In the US MV inverters market within the oil and gas industry, the oil and gas segment held the highest share, with 56.5% of the market in 2022. This is unsurprising given the extensive use of MV inverters in various oil and gas operations, from exploration to refining. The segment's dominance is expected to continue, driven by increasing energy demand, ongoing investments in oil and gas infrastructure, and the push for more energy-efficient and reliable power conversion solutions. The growing trend of automation and digital transformation in the oil and gas industry is also likely to contribute to the sustained growth of this segment, as advanced MV inverters become more integral to optimizing operations and reducing costs.

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Top Players in the US Medium Voltage (MV) Inverters Market in the Oil and Gas Industry

• ABB Ltd
• Eaton Corporation
• Fuji Electric Co. Ltd.
• Hitachi, Ltd.
• Hyosung Corporation
• Inovance Technology Europe GmbH
• Mitsubishi Electric Corporation
• Schneider Electric SE
• Siemens AG
• Toshiba Corporation
• Other Prominent Player

Market Segmentation Overview:

By Application

• Upstream Operations
  • Gas Lift
  • Gas Gathering
  • Reinjection of Gas for Pressure Maintenance
  • Electric Submersible
  • Chemical Reinjection
  • Others
• Midstream Operations
  • Gas Processing Operations
  • Transmission and Distribution System
  • Reducing the Gas Volume for Shipments or for Storage
  • Transportation and Storage of Petroleum & Petrochemical Products
  • Others
• Downstream Operations
  • Heat Trains
  • Oil Transfer
  • Treating Cooling Water in the Processes
  • Others

By Substations

• Outdoor
• Indoor

By Pumps

• Centrifugal Pumps
• Reciprocating Pumps
• Positive Displacement Pumps
  • Piston Pumps (Lift, Force Pump)
  • Rotary pumps (Coil, Gear or Wing Pump)
  • Diaphragm Pumps
• Others

By Compressors

• Positive Displacement Compressor
  • Reciprocating Compressor (Diaphragm, Double and Single Acting)
  • Rotary Compressor (Lobe, Screw, Liquid Ring, Scroll, Vane)
• Dynamic Compressor
  • Centrifugal Compressor
  • Axial Flow Compressor
• Others

By End Users

• Oil and Gas
• Mining and Aggregate
• Chemical and Petrochemical
• Hoisting Machinery
• Others