Global water pump market to grow 5% a year until 2020
The global water pump market was valued at $40.5 billion (€37.2bln) in 2014 and is expected to grow at a compound annual growth rate of 5.6% during the period 2015 – 2020, according to a new market study.
According to P&S Market Research, the rapid growth of the urban population is creating pressure on the existing water infrastructure, which includes delivery of utility water and removal and treatment of wastewater.
To overcome this situation, various governments in Asia and Africa are expected to increase their spending on irrigation and drinking water schemes.
In 2011, in its Twelfth Five Year Plan, the Chinese government allocated $112 billion for upgrades to water treatment and piping systems.
Some of the drivers behind the growing demand of global water pumps include growing construction industry and rising disposable income, growing water scarcity, rapid industrialisation in developing economies, and rising level of urbanisation.
Growing threat from unorganised players in Asia-Pacific is one of the major restraints for water pump market.
On the basis of technology, the water pump market can be segmented into centrifugal and positive displacement pumps.
The various positive displacement pumps include rotary pump, reciprocating pump, and others.
A centrifugal pump refers to a rotodynamic pump that uses a rotating impeller to increase the pressure and flow rate of a fluid, and they are most commonly used to move a fluid through a piping system.
These pumps consist of two basic components - rotary element or impeller and stationary element or casing.
On the other hand, positive displacement pumps function by forcing a fixed volume of liquid from the inlet pressure section of the pump into the discharge zone.
In positive displacement pumps, efficiency increases with increase in viscosity.
By technology, the centrifugal water pump segment held larger share, compared to positive displacement water pump, in the global water pump market in 2014, and it is expected to grow at a CAGR of 4.8% during the forecast period of 2015-2020.
Based on end-user, the municipal water and wastewater industry held the largest share of the global water pump market in 2014.
By geography, the Asia-Pacific water pump market is expected to witness the fastest growth (6.5% CAGR) during 2015 - 2020.
This is mainly due to the rising urban population and industrialisation in the emerging markets of China and India.
The developing economies, such as India and China, are witnessing rapid industrialisation and China is the world's largest industrial producer.
According to data published by the United Nations, China's total industrial production was only 62% of that of the US in 2007, but this increased to 120% by 2011.
According to the Central Intelligence Agency's (CIA) World Factbook, in 2012, China's industrial production was valued at $3.7 trillion compared to $2.9 trillion for the US.
While in Europe, the growing construction of residential and non-residential buildings is driving the demand for water pumps.
The full market study is available here.