Global water pump market consolidates amongst increased demand from developing countries
Growing urbanisation and industrialisation in the developing countries and increasing use of water pumps in industries is driving the demand for water pumps globally.
A new market study by Persistence Market Research names four segments driving growth in the water pump marketplace, namely industrial, municipal, agricultural, and domestic water pumps.
Based on technology, the two categories of water pumps are centrifugal water pumpd and positive displacement designs.
Centrifugal water pumps are used widely in buildings, wells, fire protection system, and hot water circulation in industries, whereas positive displacement pumps are used in hydraulic systems.
Positive displacement pumps are further segmented as reciprocating, metering, and rotary pumps, all of which are generally larger than centrifugal pumps of equal capacity.
Asia-Pacific is the largest market for water pumps, followed by Europe and North America, and it also boasts the highest growth rate in the water pumps market, mainly due to surge in infrastructural developments in countries such as India and China.
On the basis of product segments, centrifugal water pumps hold majority of the market share and are expected to grow further at a steady rate owing to increasing demand from industries such as oil and gas and municipalities.
By end user application, industrial water pumps had the largest market share in 2013, and here too fast growth rates are expected to increasing industrialisation in growing Asia-Pacific countries.
The increasing number of water recycling and wastewater treatment plants, especially in India and China, is also fuelling the water pumps market in Asia-Pacific.
New technologies in the water pump industry, such as intelligent pump systems, have been extending their cost benefits to the users.
Apart from water circulation, water pumps find use in several household applications, including in-house water fountains, gardening, and water coolers.
However, certain factors are holding the water pump market back, including the growing threat from unorganised players in Asia-Pacific, especially in the agricultural domain.
The poor farmers in developing countries are price-sensitive and prefer to buy low-priced water pumps instead of renowned brands.
The global water pumps market is advancing towards consolidation with a number of mergers and acquisitions taking place around the world.
The acquisition of Finder Pompe by Dover, of Alaska Pump & Supply by DXP Enterprises, and of PIMS Group by Xylem are some of the major acquisitions that took place in 2013.
Recently in 2014, Saudi Pump Factory – the largest pump manufacturer in the gulf region – sold a 75% stake in the company to Sulzer.
These inorganic expansions of companies are reducing industrial rivalry in the water pump market, Persistence says.
The major companies operating in water pump market include General Electric Co., Weatherford International, Weir Group, Torishima Pump Mfg. Co., Kirloskar Brothers, Watson-Marlow, Henan Province Xixia Automobile Water Pump Co., Saudi Pump Factory, and Shanghai Kai Quan Pump Co.