New technologies and digital transformation are rapidly changing various industries' faces, and the pump industry is no exception. Recently, several developments are made on the efficacy of these devices to correctly fit in with digitalization. As the energy prices continue to escalate, the pressure to adopt new business models for manufacturers will also be evolving to boost product monitoring while decreasing the environmental effect.
Persistence Market Research (PMR) turns the spotlight on the global Pumps Market' to explore the potential demand patterns and development opportunities on pumping systems in its new offering. The analysis also provides valuable information for the stakeholders on several areas of evolving trends and the pumps marketplace's operational and strategic impacts.
Pumps Market -- Tracing the Historical Route and Assessing Technological Advancements
Today's pumps are many years ahead of their previous counterparts. As the focus is still on hydraulic science, rudimentary designs developed, and new designs and innovations started to flood the market. In 2018, global sales of pumps had been valued at US$ 37.5 billion, and a high number of market players are focusing on aligning with the ever-changing trends and introducing innovative products at a competitive cost.
Increasing infrastructural development activities in addition to the exploration of new water resources globally, in the view of ongoing urbanization, has been parallel to the rapid adoption of pumps. Nevertheless, recently, the emergence of various Chinese players offering pumps at relatively low cost has been challenging the growth of regional and global market players. Moreover, more focus on improving modern-day pumps' operating life than spending the r&d on new goods has affected the aftermarket sales of pumps and their parts.
Centrifugal Pumps -- The Product of Choice
Manufacturers continue to concentrate on increasing the production of centrifugal pumps for wastewater treatment and water treatment, as the group has seen robust earnings in the last few years. Providing high flow rates and including a broad array of liquid pumping uses are compared with positive displacement pumps. The result is that the centrifugal pumps continue to witness greater innovations and investment. The effect of new trends like 'portability,' 'miniaturization,' and 'size decrease' -- end-users' preference which has triggered tectonic shifts in many industries -- is evident in centrifugal pumps. Manufacturers leverage new technologies like microdisk pumping to make small-size yet energy-efficient centrifugal pumps to capitalize on hygiene and chemical markets.
As many organizations draw attention to the threat of water scarcity, wastewater treatment has become an essential part of the sustainable development objectives. Identifying the growing importance of water and wastewater treatment throughout the planet, pump market players are directing their attention and researching their products' potential in these applications. Increased federal investments in water and wastewater treatment activities are further likely to work for the pump makers' makers' benefit.
Multi-Modal Method to Gain Prominence in Pumps Market
Market Players on an Acquisition Spree
Recognizing the pumps market's fragmented nature, key players are breaking up the 'mergers & acquisitions' code to keep ahead of the pack. As an example, Ebara Corporation established EBAS (Ebara Bombas América do Sul Ltda) in 2018 by joining Ebara Indústrias Mecânicas e Comércio Ltda (EIMCO) using its fully-owned pump manufacturing company, Thebe Bombas Hidráulicas Ltda.
Profiting on swiftly improving wastewater treatment actions also remains a key focus section of the pump market players. Such attempts were further afield when Xylem Inc. announced its acquisition of EmNet LLC, an intelligent solutions provider for municipalities to manage the urban water cycle and wastewater and stormwater systems.
Prioritizing Energy-Efficient Products
As dwindling, natural energy sources become a global crisis, many process plants and production facilities are increasing their concentration on the amount of energy expended by several equipment types. For many businesses, the environmental effects of their operations are becoming more and more critical. Consequently, pump manufacturers continuously improve their products' efficacy, which reduces energy costs and lower maintenance requirements.
Expansion of Manufacturing Capabilities in Developing Countries
Regardless of many local players' presence, leading pump manufacturers are always geared towards building new production facilities in developing nations where operations costs are relatively low. Desirable government policies in these countries and increasing demand for pumping gear from SMEs have also led to these realignment strategies.
Pumps Market: The Competitive Landscape Analysis
The worldwide pumps market reveals a high level of fragmentation, with a large presence of small- and - medium-scale manufacturers aggressively competing to gain substantial share.
As Chinese gamers continue to provide low-cost products, leading producers are differentiating by incorporating innovative technologies and additional services. With a greater focus on reducing operating expenses, equipment rental is earning friction as a cost-effective and viable alternative to purchase. Consequently, pump manufacturers build effective strategies to respond to such trends and satisfy certain users' requirements.
Besides expanding their product portfolio, many market players focus on optimizing pumping systems and increasing production rates that could conserve energy and reduce the overall cost of ownership without compromising on the performance parameters. While leading players stayed focused on M&A actions for a stable position in the market, numerous small players are increasingly searching for global partnerships through technology collaborations to enter the foreign market.
Report authors assert a positive outlook of the international pumps market, which is projected to register a value CAGR of ~4% during 2019 and 2029. Considering the growing trends of 'micro-irrigation' in small farms and increasing deployment of small pumps, businesses will have to direct their attention towards customization'.
As end-users' needs change to market applications, offering customized products should be a crucial development approach. According to the analysts, for pump companies struggling with price pressure in a competitive market, adopting business models such as 'pump-as-a-service' will provide opportunities to get ahead of the competitors.
Wide applications of positive and centrifugal displacement pumps in wastewater treatment and water distribution activities are most likely to push the market for pumps throughout the forecast period. These pumps cover nearly 28 percent of the centrifugal pumps market value commission. Pumps are significantly used in water & wastewater treatment uses. Multistage pumps have been seeing rapid expansion in Western countries because of their greater adoption rate.
Increasing Momentum in the Construction Industry
Centrifugal pumps are among the most commonly used pumps because of design simplicity, smooth flow speed, broad capacity range, and ease of operative & maintenance efficiency. Positive displacement pumps are best for high-pressure applications requiring the same quantity of flow produced at precisely the same rate.
The construction industry is one of the main end-users of pumps, and with growing investments in this industry, the worldwide pumps market is slated to see potential growth in the next few years. With governments and other private companies expected to take on a range of new building jobs in the coming 10 years, the pumps market is projected to see significant demand in the next few years.
Submersible Centrifugal Pumps Witnessing High Adoption
The centrifugal pumps business is divided into a mixed & axial flow pump, single-stage pump, seal-less, multistage pump, and a submersible pump and circulator pump by product type. This report on the pumps market also provides essential market information associated with end-use applications, such as irrigation & agriculture, water treatment, oil & gas, mining, domestic, wastewater treatment, and other industrial application.
The report covers the earnings of new pumps and the sales of rental and used pumps. This worldwide pump market study also doesn't consider the personalization and maintenance services given by manufacturers and suppliers.
The global pump market is estimated to reach US$ 40 Bn at the end of 2019 and is expected to get more than US$ 60 Bn at the end of 2029. The global pump marketplace is estimated to reach a CAGR of ~ 4.5% during the forecast period. The incremental opportunity generated by the worldwide pumps market between 2019 and 2029 is predicted to reach US$ 20 Bn.
Regional Leaders in APAC to Reap Benefits Of Competitive Pricing Plan
The rising global pump marketplace is estimated to represent a steady growth rate throughout the forecast period because of product improvements and investments in new production plants by key players. Acquisitions, mergers, and partnerships among the top players in the worldwide pump market are estimated to raise the demand.
Moreover, partnerships and joint ventures involving producers and automation suppliers are further contributing to the pump's market growth momentum. However, higher electricity consumption is restricting the development of the electric pumps market.
Low-price offerings by China-based Pump producers act as a restraint to most regional and international players supplying pumps. On the other hand, increasing investments in the Asia Pacific region for water and wastewater treatment is projected to support the pumps market's growth during the forecast period. Additionally, the strengthening of distribution channels in emerging markets is projected to boost various kinds of pumps.
Key Vendor Analysis
Some of the significant market players stated in this research on the global pumps marketplace are:
And WILO SE, amongst others.
Key participants in the international pumps market, some of which are multinational players, offer water & wastewater treatment applications in various regions.
Recently, competition in the international market has increased, which has created opportunities for partnerships and collaborations with sales and distribution businesses. The producers from Asia, notably Chinese sellers, supply low-price pumps, which will boost sales in the Asian region. However, it affects the market share of European and North American players.
Players from India are recognized to be targeting regions like ASEAN and Middle East & Africa. Competition in the international marketplace is estimated to increase further because of the earnings growth of players from Asia throughout the forecast period.
The international motor-driven equipment market has been extremely volatile during the last few years because of the decline of global oil and commodity rates. Equipment makers, including pumps and compressors manufacturers, are searching for ways to minimize profit losses amid those economic uncertainties. Topics like Industry 4.0 and the Industrial Internet of Things (IIoT) growing prominence within the industrial automation community.
Producers are seeing these as exciting opportunities, believing that they can drive future profits. The compressor and pump market have seen an increasing tendency to implement new technologies, creating an opportunity for producers to innovate and offer full solutions, instead of only adding a component to their entire gear portfolios. It follows that pump and compressor providers improve their experience along the whole supply chain in compressor and pump system applications.
Pump and compressor makers are undergoing a digital transformation by embracing IIoT, extensive data, and AI. These supporting technologies, and related transformational efforts, are supplying equipment manufacturers with a competitive edge.
Two main technological trends have a direct and near-term influence on the market for industrial pumps and compressors -- digitalization and additive production. Digitalization is anticipated to have the most immediate impact because end-users have been collecting data from equipment in real-world applications by using sensors to monitor their performance.
Although this information has been collected for a while, technology is making progress with how software can better use this to create useful information. Better data usage means equipment maintenance can shift from scheduled maintenance to condition-based and preventative care. Companies like KSB, Sulzer, and WILO have developed connected equipment to enable real-time monitoring in the production line to increase productivity and limit downtime.
On the other hand, technologies such as additive production and 3D printing impact the production process for compressors and pumps and spare part services. The capability to print equipment parts using 3D printers enables manufacturers to decrease the resources necessary to manufacture and transfer components to the right places at the perfect time in the manufacturing procedure.
Furthermore, 3D printers can produce parts and components with differing topologies, allowing for easier testing of experimental products. However, because the potential logistical and cost benefits to 3D printing technology aren't likely to be seen for 5-10 years, casting and machining are expected to remain the predominant manufacturing way of industrial compressors short-term.
Presently KSB is using 3D printing technology to reproduce spare parts that are hard to obtain or have been discontinued. This enables continued operation of current systems and eliminates the need for extensive modifications by end-users.
Servicing and Procurement
Communication is vital to digitalization in the realm of IIoT. Because of the 2014 downturn in the oil and gas and mining industries, pump traders drive more than ever to become integrated solution providers. A current IHS Markit study indicates that the numbers of connected nodes in the pump (positive displacement pumps and centrifugal pumps) and compressor applications will increase considerably, with a compound annual growth rate (CAGR) 45.6percent from 2017 to 2022.
Connected compressors and pumps facilitate predictive maintenance, with the capability to observe and improve pump efficiency, improving both uptime and energy efficiency. In high-cost, high-risk, and error-prone industries, using connected pumps enables the transmission of important data that enables an assortment of IIoT applications.
For example, pump sensors can capture the essential parameters like temperature, pressure, and liquid level to measure hardware performance and forecast the need for downtime and the prospect of failure through an analytical model. The water and wastewater, oil and gas, and industrial construction sectors are the largest adopters of connecting equipment. These are competitive and price-sensitive markets, which should spark the most innovation and creativity in the not too distant future.
Another noteworthy trend is the change in the business and procurement model in compressor and pump industries. The current procurement model is one of the capital expenditure (CapEx) backed by operating expenditure (OpEx). The end-users buy the equipment for a new project using CapEx, while OpEx will be spent on subsequent maintenance and services.
In the future, procurement is anticipated to transition into an OpEx-only model. Recent technological trends create a bigger market for pilot programs that include predictive maintenance. These programs seek out and replace, or service, end-of-life devices before they pose unscheduled downtime.
In this situation, end-users are expected to spend the OpEx, and the equipment will be provided as part of a service package. This is a welcomed transition for producers because they may rely on a particular manufacturing timeline as part of the contract with the end-user.
Other components of an end-user environment that might be influenced by equipment as part of a service contract version include increased overall environment efficacy and increased uptime. More extensive manufacturing operations, together with the capacity to take care of their own services and micro-manage their equipment environment, will probably continue with the conventional CapExmodel of equipment procurement.
The compressor and pump market have been evolving with the industrial Internet of things (IIoT) and business 4.0. The impact of digital transformation is essential. It can be viewed across all manufacturing areas, from the business model and equipment manufacturing process at the producers' finish to the procurement model in the end-user industries. IHS Markit will proceed to track the development of IIoT and smart manufacturing in motor-driven systems such as pumps, fans, and compressors.