Centrifugal pump is a mechanical device used for transportation and transfer oil from different types of end-use industries. The centrifugal pump is typically used in industrial applications, domestic purposes, and also agricultural applications. This pump works on the principle of centrifugal force wherein it converts rotational kinetic energy provided by a prime motor into hydrodynamic energy for transfer of liquid being pumped. Centrifugal pumps are the most widely used pump type and are widely preferred over other pumps due to their design simplicity, a wide range of capacity, smooth flow rate, and ease of maintenance and operational efficiency.
The global centrifugal pump market is estimated to account for US$ 52,918 Mn in terms of value by the end of 2027.
Market Dynamics- Drivers
The demand for centrifugal pumps has increased significantly in the recent past, owing to rising infrastructure development across the globe. Governments of developing countries such as China and India are focusing on urbanization, which in turn, is expected to fuel demand for centrifugal pumps, particularly in domestic, Water & wastewater treatment industries. Thus, these factors are expected to drive growth of the global centrifugal pump market during the forecast period. For instance, in 2015, the Government of China targeted urban wastewater infrastructure investments of around US$ 60 Bn.
Centrifugal pumps have witnessed massive demand from process industries, especially in pulp, chemical, paper, and food and beverage industries. Furthermore, increasing demand for energy-efficient manufacturing operations in developed countries is expected to boost expenditure on new pumping equipment, thereby driving demand for a centrifugal pump. Moreover, this demand is typically witnessed by SMEs in emerging economies such as India and China. Therefore, these factors are expected to propel the global centrifugal pump market growth in
APAC held dominant position in the global centrifugal pump market in 2019, accounting for 33.4% share in terms of value, followed by Europe, North America and RoW respectively.
Figure 1: Global Centrifugal Pump Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraint
China-based pump manufacturers are offering products at competitive prices. Increasing price pressure from these players is influencing key suppliers to offer high-quality, reliable, efficient, and technologically-advanced centrifugal pumps at competitive prices. Presence of these products is reducing market share of other manufacturers present in the market. Therefore, these factors are expected to restrain growth of the global centrifugal pump market during the forecast period. For instance, Chinese players sell centrifugal pumps at 25% to 30% lower prices as compared to global and regional brands.
Products are available in the market offer low energy efficiency. There is a constant need for research and development activities, in order to expand product efficiency. Moreover, centrifugal pumps have low replacement rate, which in turn, is expected to hinder the global centrifugal market growth in the near future. For instance, most manufacturers spend around 2% of their overall revenue on R&D of new technology and pump types, mainly focusing on pumps to be more energy-efficient and have a long operating life.
|Base Year:||2019||Market Size in 2019:||US$ 36,700 Mn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||4.7%||2027 Value Projection:||US$ 52,918 Mn|
ITT Corporation, Ruhrpumpen Group, KSB AG, Xylem Inc., Flowserve Corporation, Wilo SE, Sulzer AG, Weir Group plc, Ebara Corporation, and Grundfos AG
|Restraints & Challenges:||
Majority of centrifugal pump manufacturers are focused on the optimization of centrifugal pumping systems and increasing production speed. Pump manufacturers can a wide range of products in their portfolio with customization. Since customer requirements are moving towards niche applications from general, manufacturers are providing custom-made products. Manufacturers can capitalize on the opportunity of optimizing the speed of large centrifugal pumps, which can save energy and reduce wear and tear of centrifugal pumps.
Manufacturers are required to evaluate life cycle costs and allow smart buying decisions for customers. Centrifugal pump industry players need to analyze the cost of energy and the return of investment for centrifugal pumps rather than concentrating on buying and installation costs. According to Coherent Market Insights’ analysis, buying and installation cost accounts for 18% of the total unit cost, while operation and lifecycle cost represents the remaining 80% of the overall centrifugal pump cost.
Figure 2: Global Centrifugal Pump Market Value (US$ Mn), 2017 – 2027
The global centrifugal pump market was valued at US$ 36,700 Mn in 2019 and is forecast to reach a value of US$ 52,918 Mn by 2027 at a CAGR of 4.7% between 2020 and 2027.
Key players operating in the market are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in May 2015, WPIL Ltd. acquired Gruppo Aturia and its subsidiaries France-based Pompes Rutschi SAS and Switzerland-based Rutschi Fluid AG. Moreover, in July 2015, Sulzer Ltd. acquired Expert International Pompe Service (EIPS), which offers maintenance and repair services for pumps in Casablanca, Morocco. In December 2015, Ebara Corporation acquired Brazil-based pump manufacturer Thebe Bombas Hydraulicas SA.
Micro disc pumping technology enables manufacturers to create small-size and energy-efficient centrifugal pumps. With the ongoing trends such as size reduction, portability, and variable frequency drive operation, demand for small, silent, energy-efficient and high-performance centrifugal pumps is gaining traction. Micro disc pumps are already being used in pharmaceuticals and medical applications such as for blood pressure measurement.
Major companies operating in the global centrifugal pump market are ITT Corporation, Ruhrpumpen Group, KSB AG, Xylem Inc., Flowserve Corporation, Wilo SE, Sulzer AG, Weir Group plc, Ebara Corporation, and Grundfos AG.
Global Centrifugal Pump Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. There is significant impact on centrifugal pump market, as these centrifugal pumps are used in oil & gas industries. Due to lockdown imposed by countries, the demand and price of the crude oil has fallen. For instance, in March 2020, in US the price of the crude oil has decreased from US $61.06 to $23.36. Additionally, every country has banned international and domestic travel, due to this there is had huge drop in the consumption of Aviation Turbine Fuel (ATF) across the globe. All these factors have significant impact on Centrifugal pump market and there is huge drop in the demand of centrifugal pumps.
Centrifugal pumps are the devices which are used to convert rotational kinetic energy into hydrodynamic energy. These rotational energy basically comes from the electric motor or from an engine. Cetrifugal pumps are used in petroleum pumping, water pumping and sewage water pumping. Innovations in technologies such as 3D printed impellers have brought revolution in the centrifugal industry. These pumps are also used for the transportation of oil. Centrifugal pumps are the most widely used type of pump and are widely preferred over other pumps due to their design simplicity, large capacity, smooth flow rate, ease of maintenance and operational efficiency.
Increasing demand from oil and gas sector is expected to drive growth of centrifugal pump market over the forecast period. This is attributed to high demand of centrifugal pumps in oil and gas sectors to pump oil and petroleum products, gases and fluid during the operations. The upsurge in the development of oil and gas infrastructure is expected to boost the demand of this market. The increasing demand of crude oil is also driving the demand for the oil infrastructures. There are several downstream projects that are lined up from many regions such as Asia-Pacific, Middle East & Africa. This, in turn, increases is expected to create demand for centrifugal pump from these regions. For instance, in 2018, China is expected to have 240 plants with a total capacity of around 100 MTPA, by 2026. The capital expenditure for the projects in China accounted for about US$ 52000 million.
The demand for centrifugal pumps has increased significantly in the recent past, owing to rising infrastructure development across the globe. Governments of developing countries such as China and India are focusing on urbanization, which in turn, is expected to fuel demand for centrifugal pumps, particularly in water & wastewater treatment industries. For instance, in 2015, the Government of China targeted urban wastewater infrastructure investments of around US$ 60,000 million. These factors are expected to drive growth of the global centrifugal pump market during the forecast period.
This report segments the global centrifugal pump market on the basis of product type, capacity (HP), end use and region. On the basis of product type, the global centrifugal pump market is segmented into Single-stage Pump, Multi-stage Pump, Axial & Mixed Flow Pump, Submersible Pump and Sealless & Circulator Pumps). On the basis capacity (HP), the global centrifugal pump market is segmented into high, medium and low. On the basis of end use, the global centrifugal pump market is segmented into Industrial (Chemicals, Water & Wastewater Treatment, Power, Oil & Gas, Pharmaceuticals, Food & Beverages and Others), Agricultural and Domestic. On the basis of region, the global centrifugal pump market is segmented into North America, Europe, Asia Pacific, ROW.
Key features of the study:
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