Industrial Pumps Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Industrial Pumps Category Overview

The industrial pumps category is expected to grow at a CAGR of 4.9% from 2023 to 2030. The industry is being driven significantly by the increased adoption of these pumps in the oil & gas (largest consumer), pharmaceutical, medical, chemical, and petrochemical sectors. The developed nations, particularly those in the European Union and the United States, have a largely saturated food & beverage processing industry, however, the category is witnessing increased demand for industrial pumps in developing nations such as India, Brazil, etc. as the food & beverage processing sector in these nations are being flourished due to increased demand for food.

The industry is witnessing higher adoption of digitization for better water management, timely problem identification, real-time data collection, and remote monitoring. IoT (internet of things) is one such solution that offers a machine-human interface, enabling better monitoring of pump operations in real-time with less human intervention. This is exemplified by smart sensors, a key component of the IoT, which combines external sensors and embedded sensor arrays. In addition, big data is being leveraged by the innovators for the integration of digital technology into pumps, which supports in the optimization of a pump’s effectiveness by analyzing, anticipating and resolving recurring damages. Big data analytics assist in proactively tracking a pump system's history so that it may be maintained appropriately. This cuts down service time and improves the accuracy of failures being fixed in shorter amounts of time.

The category for industrial pumps is moderately fragmented and competitive with the presence of large number of regional and global market players. The players promote their products by utilizing numerous channels such as end-users, distributors, e-commerce portals, company’s website, etc. and compete with each other on different characteristics such as product availability, reputation of the business, technology, design, performance and price. In addition, they are adopting different strategies such as mergers & acquisitions, investment in research & development, expansion of the distribution network and launching of new products, in order to expand their market share and reach. Due to the intense rivalry in the market, players have limited negotiation ability because customers can simply switch to a better option based on pricing and supply capacity.

Initial costs (price of pump, installation & commissioning), cost of energy, and maintenance & repairs are the major key cost components of this category. Businesses in the category, generally use a cost-plus and competition-based pricing model. In the U.S., the price of industrial pumps ranges from $158 to $21,000 based on the brand, power rating, size, construction material, etc. The industry has been witnessing a rise in the price of the pumps by multi-fold due to a continuous rise in the price of raw materials such as copper, steel, plastics, etc. This has brought a slowdown in the industry, leading to a reduced demand for industrial pumps. For instance, if a manufacturer was manufacturing 45 - 50 odd pumps a day, it has now reduced to 11 - 16 a day.

Asia-Pacific dominates the global industrial pumps category, holding 45.4% of the market share. The region is witnessing a continuous reduction in the level of groundwater, which has led to the increased re-usage of water. As a result, industrial pumps are being widely installed in the buildings to support the water infrastructure, thus, leading to higher demand for the product.In Europe, the growth of the industrial pumps category is anticipated to be fuelled by rising energy demand and government investments in renewable energy sources. The stringent regulations framed for restricting water pollution are likely to drive the demand for treatment of water in industrial and municipal sectors which in turn will drive the demand for global industry. Furthermore, assessing the right pump (in terms of power rating and pump capacity) required for the industrial facility, evaluating if the supplier can offer adequate after-sales support through the lifecycle of the pump, ensuring that the supplier meets the regulatory standards, and negotiating prices & terms with suppliers are some of the best sourcing practices considered in this category.

Industrial Pumps Procurement Intelligence Report Scope