Centrifugal pumps market to grow at 4.15% CAGR, driven by wastewater
A global centrifugal pumps market research reports that mergers and acquisitions (M&A) have become an effective way for established players to penetrate new markets and diversify their product portfolio.
These M&A activities are being increasingly seen in the pump markets in the developed countries.
The analysts forecast global centrifugal pumps market to grow at a CAGR of 4.15% during the period 2016-2020.
The primary factors driving the overall growth of the water and wastewater industry include rising population, urbanisation, increase in manufacturing activities, and oil and gas production.
Industries such as power, pharmaceuticals, and food and beverage that are heavily water-reliant will have a significant impact on the global demand for water.
Increased production in these manufacturing industries makes water conservation and adherence to stringent environmental guidelines more significant.
A centrifugal pump is a device that converts the input power into kinetic energy of a liquid and primarily is composed of two major components, the rotary element or impeller, and the stationary element or casing.
Factors such as rapid industrialisation coupled with rising investments in the power generation and water infrastructure sectors will aid in the growth of this market during the predicted period.
Moreover, the augmented demand for centrifugal pumps for water cycling and wastewater management purposes will result in this market's moderate CAGR of more than 4% during the forecast period.
The study makes estimates of eminent factors, such as the growing application of 3D printing in the centrifugal pump industry, to impel the prospects for growth in the market during the forecast period.
3D printing technology has seen significant advances in the last decade, with fabrication techniques having become less costly and more accessible to both consumers and businesses.
Due to the advent of this affordable technology, pump manufacturers have combined it with digital advances in modelling software to reduce the overall cost of pump repair, replacement, and design.
The water and wastewater end-user segment will account for a market share of more than 35% by 2020 and will be the largest market segment during the forecast period.
Centrifugal pumps will be extensively utilised in this segment due to their smooth flow rate, the range of capacity, design simplicity, and ease of maintenance and operations.
The global centrifugal pumps market is competitive as several regional, and local vendors have started manufacturing customised and energy-efficient centrifugal pumps, which are available at a lower price than their international counterparts.
Though the market is unsaturated with several new vendors, it is quite difficult for them to compete with international vendors in terms of quality, features, functionalities, and services.
With the introduction of new products with new advanced features and technologies, the level of competition in this market will increase exponentially until 2020.