Increasing investments in wastewater treatment and water supply activities, and growing urbanization in developing economies, such as China and India, are among factors influencing the global demand for pumps, according to a research study on the global pumps market by Persistence Market Research (PMR). The global market for pumps witnessed significant growth in 2018, the report states, and is anticipated to reach $40 billion this year.
The global demand for pumps is directly correlated to infrastructure development activities worldwide.
Submersible Centrifugal Pumps
There is a high demand for submersible centrifugal pumps in the Asia-Pacific region. Submersible pumps with applications in water and wastewater treatment are increasing momentum in emerging economies.
The growing demand for submersible pumps is projected to impact the leading manufacturers to initiate partnerships and joint ventures with regional distributors and suppliers to strengthen their businesses. Manufacturers are channelizing efforts to increase their production and distribution units to cater to demand from the rising import and export of centrifugal and positive displacement pumps, the PMR report says.
The growth of the pumps market can be attributed to applications in oil and gas industries. This has led to the growth of the global pumps market in countries such as the United States, India, China, South Korea and Japan. The establishment of new plants for pumps and growing investments in emerging economies across Asia are estimated to improve the demand for pumps over the forecast period, according to the PMR report.
Chinese & Online Influence
While the pumps market is growing, the price of pumps has decreased due to the increase in the number of pump manufacturers and the emergence of Chinese manufacturers as the main exporters of pumps, the report states. Customers are more inclined toward low-cost pumps due to the high-maintenance costs associated with various pumps.
The evolution of internet-empowered informed consumers is anticipated to change the industry in two key ways: price transparency and online sales. Consumers can quickly access pumps with prices offered by various suppliers online.
Based on product type, the submersible centrifugal pumps segment is projected to reach a share of 31 percent by the end of 2029 and remain significant on the basis of global value share. Based on the application of centrifugal pumps, the wastewater treatment segment is estimated to remain a major segment in the global pumps market, accounting for an expected value of more than $14 billion by the end of 2029, the report states.
In 2018, Asia-Pacific was among the attractive regions in the pumps market, and accounted for 38 percent of the global market share. Research and development in pumps for applications in oil and gas, mining and chemical is also anticipated to drive the demand for pumps in regions such as Asia-Pacific (APAC), Middle East Asia (MEA) and Latin America.
Long-Term Outlook
On the basis of the market value, the global pumps market is estimated to register a compound annual growth rate (CAGR) of 4.5 percent during the forecast period and create an absolute dollar opportunity worth more than $20 billion. During the forecast period, the adoption of pumps in the APAC and MEA regions is likely to be high, and these regions are expected to register CAGRs of 5 percent and 4.5 percent, respectively.