Hydraulic Fracturing Presents a Most Profitable Market Opportunity for Pump Manufacturers

The hydraulic fracturing  pump market is one of the Most Profitable Markets (MPM) for pump suppliers. It is large and will grow at close to double digit rates in the next few years. The application is extremely challenging. This creates a situation where a better designed pump can be sold at a much higher price. The repair part market is bigger than the new equipment market. So this creates a large combined market.

There are a few major purchasers each of whom will spend more than $50 million per year on pump hardware, repairs and services. This makes direct sales possible. Without sales commissions or distributor markup, the gross profit will be higher.

It is recommended that pump companies invest in very detailed market forecasting which is focused on increasing profits and not just revenues.  This forecast can be described as the “Most Profitable Market” (MPM).

Hydraulic Fracturing Presents a Most Profitable Market Opportunity for Pump Manufacturers