Global Pumps

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Global demand for pumps is forecast to increase 5.1% per year to $97.9 billion in 2026, driven by strong gains in the process manufacturing industries of China and other Asia/Pacific nations. Growth will also be bolstered by increasing industrialization and urbanization in a number of Asia/Pacific countries. Ongoing recovery from the impact of the COVID-19 pandemic will provide further opportunities across markets in all regions.

Supply Chain Issues Continuing to Impact Market

Like many other industries, the pumps market was affected by supply chain disruptions associated with the pandemic. Supply shortages and rising raw materials prices led to pump suppliers hiking prices, which contributed to very strong sales growth in value terms as markets began to recover in 2021.

While the pumps market achieved double-digit growth in 2021, even faster gains were prevented by difficulties meeting orders. Many firms reported order intake well in excess of revenues as they struggled to keep up with demand. Supply chain issues are expected to persist through 2022, with China’s attempts to implement zero-COVID policies leading to ongoing disruption in manufacturing and logistics. Those firms that are able to cut through these issues and provide timely deliveries will have significant opportunities for sales.

Solar Pumps for Agriculture Hold Strong Potential in Developing Regions

One important growth segment outside of process manufacturing is solar water pumps, which are increasingly common in India and finding expanding use in sub-Saharan Africa. These products represent a promising agricultural tool in regions that lack electricity infrastructure but receive high levels of sunshine, which describes areas covering hundreds of millions of people and thus presents a massive potential market.

Currently, the largest obstacle to solar water pump adoption is their high up-front costs, which is a particularly significant issue due to the typically limited financial flexibility of customers in what would otherwise be the key target markets. However, solar pumps offer long-term cost savings, and these products will become increasingly attractive as the price of solar energy systems continues to fall. In addition, firms are finding ways to expand market access by offering options like pay-as-you-go financing, with the rising prevalence of mobile banking representing an important synergistic technology.

Market Segmentation an Important Consideration for Company Strategies

While the global pumps market includes a variety of general-purpose products, much of the market consists of relatively specialized products that are mainly used in a particular target market. As a result, firms in the industry vary greatly in their level of exposure to different markets. Most of the global pumps market leaders pursue a strategy of market diversification and make pumps for a wide variety of applications. However, the industry includes a number of firms that have chosen to heavily emphasize the oil and gas market, and these companies underperformed in 2020 as the global oil and gas industry contracted. Market losses have contributed to further consolidation, as companies that participated in oil and gas as a non-primary market (e.g., Weir Group) reduced their participation.