The pump market is expected to witness a CAGR of more than 4.7%, majorly due to increasing demand from the end-user industries, such as oil and gas, water and wastewater, chemicals and petrochemicals, and mining industry, among others. Moreover, due to recovery in oil price and the increasing number of onshore and offshore fields reaching their maturity, exploration and production activity is expected to make a shift toward deeper offshore regions, which result in increasing offshore deepwater projects. This, in turn, is expected to drive the pump market during the forecast period. However, technological advancements in the alternative option of the conventional pumps, such as solar pumps, are expected to hinder the pump market during the forecast period.
The development of water and wastewater infrastructure has become imperative, due to the surging demand for water. The demand for pumps from the water and wastewater industry is growing rapidly on account of the massive development of water infrastructure. This, in turn, is expected to propel the pump market during the forecast period
Furthermore, the manufacturing of pumps has witnessed the combination of 3D printing technology, combined with computer modeling. This has led to a cutting edge development in pump design, repair, and replacement, which, in turn, drives the global pump market and provides opportunity for the market in the future.
Asia-Pacific dominated the market across the world, in 2018, with majority of the demand coming from China and India. It is the fastest-growing region in the market studied, followed by North America.
Key Market Trends
Increasing Demand for Water and Wastewater Treatment Plants
- Most of the human and industrial activities that use water produce wastewater. As the overall demand for water grows, the quantity of wastewater produced and its overall pollution load increase continuously across the world. As a result, governments across the world have introduced strict policies and regulations regarding wastewater treatment, for both the municipal and industrial sectors.
- Around two-thirds of the world’s population live in areas that experience water scarcity for at least a month, annually. Around 50% of people facing this level of water scarcity live in India and China. Therefore, the demand for treatment of wastewater produced, as a result of the human and industrial sector water usage, is expected to grow to improve the efficiency of water usage and meet the water demands.
- Moreover, on an average, high-income countries treat about 70% of the industrial and municipal wastewater they generate., and this ratio dropped to 38% in upper-middle-income countries and about 28% in lower-middle-income countries. With increasing awareness about the environment and growing water shortage, the demand for water treatment plants, and in turn, pumps in water treatment plants is expected to increase in the developing countries.
- Furthermore, the modular design of the wastewater treatment plant has reduced the initial heavy investment challenge and allows an economical solution. These plants can readily be expanded as the wastewater flow, as capacity requirement of treatment plant increases. Due to this, new trends in the water treatment industry, relatively in smaller industries, have started installing water treatment plants.
- Therefore, the growing concerns regarding the environmental impact of wastewater and water scarcity, stricter government regulation, and declining cost of water treatment plants are expected to drive the water treatment industry, and in turn, increase demand for the pump market during the forecast period.
Asia-Pacific to Dominate the Market Growth
- Asia-Pacific is witnessing huge economic growth, which resulted in the development of industrial infrastructure. The industrial infrastructure in the region is witnessing growth, with policy level focus on driving the industrial sector.
- Most of the countries in Asia-Pacific are in a growing phase and the high rate of population growth has led to the increased requirement for water supply.
- Moreover, excess water extraction in countries, such as India, has resulted in a 61% decline in the water level, between 2007 and 2018. This has translated into an increase in demand for high head pumps.
- Additionally, during April 2000-June 2018, India attracted FDI investment of about USD 7 billion and USD 2.32 billion in the petroleum and natural gas, and mining industry, respectively. In October 2017, Vedanta Resources, a London-based company, announced its investment of USD 9 billion in the mining and hydrocarbon industry.
- Thus, high investments, policies, and various industries are likely to propel the pump market in the region, during the forecast period.
The pump market is moderately fragmented, due to many companies operating in the industry. The key players in this market include Flowserve Corporation, Grundfos Holding AS, KSB SE & Co. KGaA, ITT Inc., Sulzer Ltd, Ebara Corporation, Weir Group PLC, Schlumberger Ltd, Baker Hughes Company, and Clyde Union Inc., among others.
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