Pentair has emerged as the new leader in the market that treats and controls liquids and gases (including air), driven in part by the addition of the revenues it added through its recent acquisition of Tyco Valve. With Tyco Valve, McIlvaine says Pentair pump and filtration revenues generated a combined $7 billion in sales in 2012, and a 3.5 percent increase is anticipated in 2013. This will create revenues of $7.2 billion in the treatment and control sector.
Ecolab, which acquired Nalco, expects a revenue increase of 5 percent in 2013, moving the company into second place with treatment and control revenues of over $5.2 billion, according to McIlvaine. The former leader, Flowserve, will drop to third place.
There was another significant merger last year–Colfax acquired Howden. Most of the Howden revenue is in control (fans) and some is in treatment (heat exchangers). Colfax supplies pumps, but also has substantial business outside the treatment and control sector, which is why Colfax only moved to number 10 in McIlvaine's ranking.
Xylem is a divestiture of ITT. It is, therefore, a smaller player now than previously. GE is the largest company in the sector, and its acquisition of Dresser boosted its treatment and control revenues. Nevertheless, treatment and control is a small portion of GE's total revenues.
The total market for treatment and control is forecasted to rise 5 percent to $340 billion in 2013, but the leader will only garner 2 percent of the market, so the market will remain quite fractured.
The treatment and control is increasingly being recognized as a discrete market, according to McIlvaine. Various players, however, view the market slightly differently. Parker Hannifin sees a $100 billion market in which it is the largest player at $13 billion. With its filtration, hydraulics and pneumatics products, it is a major participant in treatment and control, but is not among the top five.
For more information on McIlvaine's Air/Gas/Water/Fluid Treatment and Control: World Markets report, click here.