Oil and gas in Asia Pacific to drive global water pump markets
Growing urbanisation and industrialisation in the developing countries and increasing use of water pumps in industries is driving the demand in the water pumps market globally.
According to a new market study by Persistence Market Research, Asia Pacific is the largest market for water pumps followed by Europe and North America.
Asia Pacific also has the highest growth rate in the water pumps market, mainly due to surge in infrastructural developments in developing countries such as India and China.
Centrifugal water pumps are used widely in buildings, wells, fire protection system and hot water circulation in industries, whereas positive displacement (PD) design type water pumps are used in hydraulic systems.
Centrifugal water pumps hold majority of the market share and it is expected to grow at a steady rate owing to increasing demand from industries such as oil and gas and municipalities.
Industrial water pumps had the largest market share in 2013 in the market, and their share is also growing at a high rate due to increasing industrialisation in Asia Pacific countries where oil and gas industry is the major end user.
The increasing number of water recycling and water waste treatment plants, especially in India and China, is 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 their usage in several household applications, including in-house water fountain, gardening, and water coolers.
However, certain factors are restraining the water pumps market, which includes the growing threat from unorganised players in Asia Pacific, especially in the agricultural domain.
The poor farmers in the developing countries are price sensitive and prefer to buy low-priced water pumps instead of reputed brands.
The global water pumps market is advancing towards consolidation with a number of mergers and acquisitions (M&A) taking place globally.
The acquisition of Finder Pompe by Dover, Alaska Pump & Supply by DXP Enterprises, and 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 75% of its stake to Sulzer.
These inorganic expansions of companies are reducing industry rivalry in the water pump market.