Report Overview
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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.
COVID-19 General Trends
Almost every industry worldwide has been impacted by the COVID-19 virus, although the extent of that impact has varied widely both in terms of magnitude and direction. In the first half of 2020, extensive business shutdowns, resultant product shortages, stay-at-home orders, and general uncertainty had a negative effect on most businesses. However, as the year progressed there was a divergence in how industries around the world were faring:
“Essential” businesses such as food and beverages, cleaning products, video conferencing, e-commerce/logistics services, and personal protection gear saw above average sales growth.
Revenues in the entertainment, hospitality, travel and tourism, mining, and oil and gas, and “nonessential” retail industries plummeted, which had a ripple effect on the industries that support these sectors.
Activity within the construction industry was especially divergent, with commercial and industrial construction seeing a negative impact while some residential renovation businesses flourished.
As people stayed at home, worked at home, and postponed travel, a number of consumer-related product and service industries benefited, including streaming services, food delivery, lawn and garden products, cooking and baking supplies, toys and games, and pet products.
As of April 2022, about approximately 5 billion individuals were fully vaccinated. While infection rates in Europe and in Eastern Asia have been on the rise, weekly mortality rates from COVID-19 have been declining. With the notable exception of China, most policies implemented to handle the virus will be designed to mitigate impact on businesses.
Freedonia continues to monitor trends in COVID-19 cases around the world and the impact of the virus on key industry sectors. We look at long-term historical patterns and responses to both economic and pandemic conditions in the past, as well as the current situation in key industries, to inform our long-term forecasts in each study.
This study examines the global fluid handling pumps industry. Historical data (2011, 2016, and 2021) and forecasts for 2022, 2026 and 2031 are presented for demand by product and market in US dollars.
Pumps are segmented into:
centrifugal
positive displacement (rotary, reciprocating, diaphragm)
specialty and other pumps, which includes pumps with designs that are uniquely specialized for specific applications, such as domestic water system pumps, turbine, drilling mud pumps, sump pumps, beverage service pumps, microfluidic laboratory pumps, and others
associated drivers, parts, and accessories
Pump demand is also segmented by market:
process manufacturing
water infrastructure
construction
oil and gas
electricity generation
other, which includes healthcare, marine, mining, and other manufacturing industries
Excluded from the scope of this report are automotive pumps, concrete pumps, fluid power pumps, and vacuum pumps.
VIDEO
This study examines the global fluid handling pumps industry. Historical data (2011, 2016, and 2021) and forecasts for 2022, 2026 and 2031 are presented for demand by product and market in US dollars.
Pumps are segmented into:
centrifugal
positive displacement (rotary, reciprocating, diaphragm)
specialty and other pumps, which includes pumps with designs that are uniquely specialized for specific applications, such as domestic water system pumps, turbine, drilling mud pumps, sump pumps, beverage service pumps, microfluidic laboratory pumps, and others
associated drivers, parts, and accessories
Pump demand is also segmented by market:
process manufacturing
water infrastructure
construction
oil and gas
electricity generation
other, which includes healthcare, marine, mining, and other manufacturing industries
Excluded from the scope of this report are automotive pumps, concrete pumps, fluid power pumps, and vacuum pumps.