By the end of 2015, the global pumps market will tide over several waves of uncertainty to register substantial growth, according to a new outlook report by Frost & Sullivan.

The decline in oil prices, in the beginning of 2015, in particular, forced consolidation and a shift to innovative operational procedures as end-users focused on value-buying and energy efficiency.

The state of global oil prices at the end of 2015 is still uncertain and is expected to have a significant impact on the end-user industries across the globe. This, along with developments in subsea and shale gas around the world, is opening up immense opportunities for pumps companies.

Frost & Sullivan’s 2015 Outlook of the Global Pumps Industry finds that the market is expected to earn revenues of $40.09 billion in 2015. The study covers the oil and gas, water and wastewater, chemicals, power, food and beverages, and pharmaceutical end-user industries.

“The advent of the Internet of Things (IoT) is shaking things up in the global pumps industry,” said Frost & Sullivan Industrial Automation and Process Control Research Analyst Shilpa Mathur Ramachandran. “The deployment of IoT and Industry 4.0 will increase operational efficiency by nearly 45 percent, escalate return on investment for manufacturers and widen application scope.”

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While turbulent global economic conditions are likely to cause price wars and dampen sales, the demand for cost-effective, easy-to-install centrifugal pumps will balance out any fall in overall uptake.

Moreover, opportunities are ripe in Asia and Africa. Asia-Pacific is the next hotspot for greenfield and brownfield investments in the pumps industry. The improving manufacturing competitiveness in Asian countries is spurring replacement opportunities for advanced pumps. Meanwhile, rising investments in the oil and gas, petrochemical, and food and beverage sectors are strengthening market prospects in emerging Latin American countries as well.

“As pump manufacturers look to tap this potential through sustained focus on innovation, the era of remote monitoring and proactive maintenance will unfold,” Ramachandran said. “With changes in the end-user landscape causing a shift from transactional relationships to partnerships, suppliers will employ new business models such as analytics-as-a-service and pump-as-a-service to remain relevant in the global pumps market.”