With improving economies in North America and the Asia-Pacific (APAC) regions, there are tremendous opportunities for pump manufacturers, according to a new analysis from Frost & Sullivan.
As developing nations are expected to witness the highest growth owing to booming chemicals industries, manufacturers are gradually shifting focus away from developed economies. In particular, APAC, accounting for 46 percent of chemical sales worldwide, will command attention as it rides high on MNC investment and successful merger and acquisition activities in the chemicals industry, according to the report, Analysis of the Global Pumps Market in the Chemicals Industry.
The report finds that the market earned revenues of more than $4 billion in 2013 and estimates this to cross $5 billion in 2020.
The study covers trends in both centrifugal and positive-displacement (PD) pumps. Centrifugal pumps will continue to hold a larger market share due to broad application potential. On the other hand, PD pumps will see higher compound annual growth owing to enhanced marketing efforts and customers’ realization of the advantages of using these pumps over centrifugal pumps.
“As the automotive, construction and manufacturing industries—top end-users of chemical products worldwide—are likely to expand in the upcoming years, the demand for chemicals and thus pumps will rise,” saysFrost & Sullivan Industrial Automation & Process Control Research Analyst Sakthi Pandian.
These major end-users of chemicals are still recovering from the recent economic recession, and hence the pumps market has not reached its full potential. While the global pump market in the chemicals industry has been showing signs of recovery, it will only reach the post-recession level by 2018.
READ ALSO: Power Plants Will Spend $3B for Pumps in 2014
Along with the residual impact of recession, tough competition from low-cost manufacturers in developing nations restrains market development. As customers are increasingly adopting these inexpensive but high-quality chemical pumps that comply with environmental standards, the market share of leading participants is being eroded, according to Frost & Sullivan.
“Since the leading pump manufacturers find it difficult to compete with low-cost rivals on the basis of price, they will have to rely on the quality of their products, services and maintenance to survive in the global market,” Pandian says. “Participants looking to secure their position in the market must also quickly capitalize on customers’ preference for integrated solutions, services and asset-management technology.”
For more information on Analysis of the Global Pumps Market in the Chemicals Industry, click here.
