With rapid urbanization and an increase in demand from the oil and gas sector, the industrial pump market is growing at a rapid pace. The global industrial pump market is estimated to grow at a rate of approximately 4.6 percent per annum and is expected to reach the total valuation of $54.6 billion by the year 2020. The largest demand is from the Asia Pacific region which comprises 37 percent of the global pump market. North America and Europe are second in terms of demand. The global pump market is expected to grow significantly in regions such as Asia Pacific, Latin America, Middle East, and Africa. The Tier-1 suppliers producing pumps of high quality and specifications dominate the industrial pump market.
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What are industrial pumps?
The industrial pump is heavy-duty pumps used for the movement of various types of products in commercial establishments. These pumps have application in a number of industries, especially where movement of fluids performs a major role. Various shapes, capacities, and sizes of these industrial pumps can be used depending on the application.
Two types of industrial pumps are positive displacement pumps and centrifugal pumps. Centrifugal pumps have extensive industrial applications because of their low cost, long service life, and low maintenance. Centrifugal pumps are used to displace fluids with low viscosity whereas positive displacement fluids are used to displace fluids with high viscosity.
Reasons for the rise in growth of Industrial Pump Market
Infrastructure development is the main reason for the increase in demand for industrial pumps over the last few years. Industrial pumps find application in various industries for circulation, boiling, and handling of sludge. Also, there will be a positive impact on demand due to the growth of the power industry. In emerging countries of the Asia Pacific region including India and China, the development in infrastructure is expected to increase the demand for industrial pumps over the forecast period.
The demand is also driven by the constant need for improvement of manufacturing in developed countries. The demand for industrial pumps in North America and Europe is generally from the manufacturing industries. The performance of industrial pumps especially of centrifugal pumps depends on the global economy along with development in end-user industries. The primary growth drivers are the oil and gas sectors. In oil producing regions such as the Middle East, the demand is increasing with unceasing drilling activities.
Impact of oil market price on Industrial pump market
With weak price and inconsistency in demand, the oil and gas industry has seen a tremendous change globally. The gross domestic product of several countries is driven by the oil and gas market. Because of recent weakness in the oil and gas segment due to low investment, the growth rate for the industrial pump market is expected to slow down and as a result, industrial pump market prices are also expected to experience stagnation.
The global production is still dominated by conventional sources of oil and gas. Various factors are responsible for deciding the fate of the industrial pump market in the oil and gas sector. The major factors for growth of the industrial pump market are shale production in the U.S., oil sands in Canada and the discovery of other conventional sources of energy in Latin America and the Asia Pacific region. The higher revenue generation stream for the industrial pump market is from upstream oil and gas which occurs in offshore, onshore as well as production activities.
In the oil and gas industry, the use of centrifugal pumps is primarily in midstream and downstream applications. The application is for the functions of storage and transportation. For water injection, horizontal multistage pumps are used. Some highly engineered pumps are also used by oil producers for some other applications.
The industrial pump market will witness moderate growth in the oil and gas sector. The growth rate for centrifugal pumps would be higher due to an increase in investments in upstream applications. As there are postponement and cancellation of a number of oil and gas industry projects globally, the growth rate of pthe ositive displacement pump is low.
However, the market for positive displacement pump is expected to grow gradually because of the slow recovery in oil prices and continuity in upstream activities. These pumps have wide application in locations where there is sand content in crude oil and where the flow of oil is declining. In shale exploration and high-pressure applications, reciprocating pumps are used. In production and exploration activities, metering pumps are used.
The energy sector is dominated in the long term by the oil and gas industry globally. The investment in the extraction of oil and gas from inaccessible locations has slowed down due to which there only a moderate growth being witnessed in the current market. The industrial pump market in the oil and gas market will be driven by these factors and is expected to perform steadily for the next few years.