The rising demands of Industrial Pump Markets and its potential growth
Due to rapid industrialization and the development of infrastructure, the demand for industrial pump industries has increased significantly in developing countries. The demand in developed countries has also increased due to constant process improvements in manufacturing. The industrial pump market is expected to grow at a CAGR of 4-5% and reach $54.6 billion by 2020. This growth will be led mainly by the developing regions such as Latin America, the Middle East, Africa, and the Asia Pacific.
What are industrial pumps?
These pumps help with movement of fluids from one place to another and are used in many different industries. They come in various capacities, shapes, and sizes. They are broadly characterized into two categories i.e. positive displacement pumps and centrifugal pumps. Centrifugal pumps can be further identified as either radial, axial or mixed-flow.
The positive displacement pumps can be identified as a rotary lobe, screw, piston, and sliding vane. However, the performance standard of these pumps is highly critical for various industrial operations. If a pump that has been installed in cooling systems fails, it will lead to overheating and eventually damage the equipment.
Various industries using these pumps include water, wastewater, food, beverages, oil and gas, and chemicals.
Reasons for the rising demand for Industrial pump markets
Industrial pumps are used in almost all major industries including water, food, beverages, chemicals, and oil & gas. The major drivers of industrial pump markets are: –
- The increase in population and rapid urbanization has led to an increase in demand for treatment of water and wastewater by various industries. This, in turn, has resulted in a requirement for more pumps and growth of the industrial pump market.
- The demand for efficient and sustainable equipment is always high. This results in increased use of these pumps. The advanced technology pumps like those with remote monitoring facilities will also boost the market.
- The services in the power generation sector including circulation, boiler feed, cooling stations, and sludge handling are the largest consumers of centrifugal pumps. Also, positive displacement pumps are widely used in renewable power generation such as hydroelectric power generation.
- Demand from replacement market also results in growth in demand for industrial pumps in aftermarket parts and services manufacturers across the globe.
- Region wise, the demand in developing countries has been increasing due to rapid urbanization and development in infrastructure.
- Oil producing regions including the Middle East see the demand for industrial pumps in case of producing oil through unceasing drilling activities. In the US, the demand for equipment has increased with the increase in hydraulic fracturing in the oil.
Restraints in the growth of Industrial Pump Market
The industrial pump market is widely spread and used in various sectors. However, there are a few restraints to its growth the major one being fluctuation in the price of raw materials. The price of raw material keeps on fluctuating along with fluctuations in the currency exchange rate. This, in turn, results in fluctuation of risk net revenue and margins of manufacturers globally.
Various stringent laws are also acting as a roadblock for the industry. Stringent environmental laws regarding the water and waste disposal and emissions impede the growth of the market. Also, the unorganized sector manufacturers of industrial pumps prove to be a threat to organized industrial pump manufacturers with their low cost of manufacturing and network of distribution.
Top players in the Industrial Pump Market
The top players in the industrial pump market are IIT Corp., KSG AG, Ebara Corp., Baker Hughes, Flowserve Corp, Weir Group Plc and Clyde union. Usage of improved technology by these companies may result in the growth and expansion of this industry.
Size of Industrial Pump Market
In 2016, the value of global pump market was $45.7 billion. The growth of the market is forecasted to grow at a CAGR of 4-5 percent to $ 54.6 billion in 2020. The highest demand is found to be in the Asia Pacific due to rapid urbanization and high demand for water and wastewater treatment plants using industrial pumps. The second highest demand for industrial pumps is in North America followed by Europe. These developed countries use pumps for hydraulic fracturing in the oil and gas sector and also for continuous process improvement in manufacturing process.
Approximately 38% of the global industrial pump market is accounted for in the Asia Pacific. It is also expected to be in a similar range or even grow further until 2020. Due to low industrial output and stagnant conditions of the economy in Western Europe, the industrial pump market will show sluggish growth in this region.
Whereas there will be stronger growth in Eastern Europe due to improvement in output of industries including water treatment and chemical industries. Further, in the Asia Pacific region, the improved economy will result in a potential increase in opportunities for pump manufacturers in the construction and manufacturing industries. The industrial pump market constitutes of various fragments and caters to a variety of industries, it is predicted to witness significant growth in the coming years.