Investments in Water and Wastewater Are Key Drivers of Growth

MOUNTAIN VIEW, Calif. (March 5, 2013) – North America is a mature market for submersible pumps, a scenario that challenges suppliers to sharpen their strategic thinking and expand their toolbox of tactics to grow beyond today's market averages, according to Frost & Sullivan. With 2012 growth estimated at approximately 3 percent, pump manufacturers must find the dynamic seams in the market that can provide growth that is more in line with their corporate objectives.

New analysis from Frost & Sullivan’s “Analysis of the North American Submersible Pumps Market” research finds that the market earned revenues of $264.5 million in 2011 and estimates this to reach $364.7 million in 2018. This analysis reveals that battling maturity in the North American region means manufacturers need keen market oversight to spot opportunities to best nominal industry growth rates. This research showcases key market metrics, expected growth over the next seven years, and market drivers anticipated to influence strategic activities of market suppliers.

"There are a number of factors currently affecting the general market – economic uncertainties, regulatory shifts, and so on," said Frost & Sullivan Research Analyst Anudeep Yegireddi. "Add to that the maturity of the technology and overall industry, and it is a challenging scenario that is not offering tremendous growth."

While the total market is expected to experience minimal growth through the forecast period, there are some areas that Frost & Sullivan sees as potential bright spots. An example is the water and wastewater industry, one of the largest groups of submersible pumps users. Expected growth in the consumption of and demand for fresh water as well as the dire need for water system infrastructure improvements are anticipated drivers toward stronger than average market growth. As municipal water and wastewater applications continue to grow, the need for submersible pumps increases.

Surface, raw water and the pre-treatment of water and wastewater require a purification process that necessitates a submersible pump to accurately treat the water with chemicals. As the population continues to grow, the need to develop more treatment facilities is expected to increase. In addition, the demand for submersible pumps is likely to drive the market in water and wastewater applications because of its unique design wherein both the pump and motor are submerged in water to handle large solids or to grind solids to smaller sizes.

Construction, one of the major submersible pump end-user verticals, has been slow to recover from the economic recession. While the global crisis of 2009 has faded, the construction industry, especially the residential building market, is still greatly affected. This lag is expected to continue until the mortgage problems inherent in banks resolve themselves.

“The construction market has finally stabilized a bit," said Yegireddi. "Forecasts are cautiously optimistic for growth, albeit nominal, in this industry. This trend is expected to bode well for submersible pump demand."

Amongst competitive factors, the service play continues to gain importance, as with other pump types. Service is becoming the critical factor for large institutional end-users — without regular maintenance, they risk downtime that would result in a significant drop in productivity, lower profitability, and high energy consumption. Continuous process industries such as oil and gas, chemicals, and pulp and paper, as well as vital industries such as power generation, cannot afford downtime. The presence of local customer service personnel aids in reducing service lead times and ensures high uptime. This is a major reason that end-users prefer to associate with manufacturers that have a local presence.

“Analysis of the North American Submersible Pumps Market” is part of the Industrial Automation and Process Control Growth Partnership Services program, which also includes: Strategic Analysis of the Global MES and ECQM Market for the Regulated Industries; North American Hydraulic Motors, Pumps, and Hydrostatic Transmissions in Industrial Applications; Global Distributed Control System Market; and Global Positive Displacement Pumps Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

Frost & Sullivan works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, it has been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.

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