Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A vacuum pump is a device used to create a partial vacuum by removing gas molecules from a sealed volume. The vacuum pump includes the different types of pumps operating at a typical pressure range. The different pressure range includes process vacuum, rough vacuum, industrial vacuum, thin film deposition, semiconductor process vacuum, and more. Vacuums have been used in day-to-day equipment such as mobile technologies, powerful computers, mobile telephones, x-ray machines, electron microscopes, etc. Vacuum technology/components are categorized into three main sub-segments namely; vacuum pumps, vacuum instrumentation, and vacuum hardware.
The MEA Vacuum Pumps Market was accounted for US$ 339.7 Mn in terms of value in 2019 and is expected to grow at CAGR of 11.1% for the period 2020-2027.
Market Dynamics- Drivers
- Increasing demand for energy is expected to drive growth of the MEA vacuum pumps market during the forecast period
There is a high demand for energy for running production and manufacturing facilities, owing to increasing industrial and manufacturing activities combined with rapid infrastructure development in the MEA region. Furthermore, rapid growth of population and urbanization are expected to boost the energy demand. Governments across the MEA region are making Greenfield investments in energy generation projects apart from booming oil & gas industry. Therefore, these factors are expected to drive growth of the MEA vacuum pumps market during the forecast period.
- Resurgence of large project activity after an economic slowdown is expected to propel the MEA vacuum pumps market growth over the forecast period
MEA region has suffered a slowdown in the manufacturing and industrial sectors due to the MEA recession in 2008. It affected the overall economy of countries in the MEA region, especially in GCC countries. This led to the stalling of large projects including infrastructure development, setting up free zone, and industrial parks for the manufacturing sector. However, the revival of the economy from 2013 has aided MEA region to regain its growth back on track with the resurgence of large project activity. Currently, real estate and construction sector accounted the largest share of an ongoing project in the MEA region with 47% in 2014. Hence, these factors are expected to propel the MEA vacuum pumps market growth over the forecast period.
GCC Countries held dominant position in the MEA Vacuum Pumps market in 2019, accounting for 34.7% share in terms of value, followed by Europe and Asia Pacific respectively
Figure 1: MEA Vacuum Pumps Market Share (%) in terms of Value, By Region, 2019
MEA Vacuum Pumps Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 pandemic have adversely affected the vacuum pumps market. The vacuum pumps are widely used in the Oil & Gas industries. Several countries across the globe such as India and Spain have imposed nationwide lockdown, owing to which public and private transport have reduced to large extent. According to CMI study, global road transport facility in May 2020 reduced by 50% compared to in May 2019, owing to which the demand of petrol and diesel have reduced to large extent. This adversely impacted the oil & gas industry. The MEA countries such as Saudi Arabia, Iran and Iraq are one of the largest producers of the natural oil in the world. Owing to the reduced sale or revenue, the oil & gas industries are expected to spend less on the new equipment such as vacuum pumps. Thus the COVID-19 pandemic is expected to retrain the growth of the market in the year 2020-2021.
Market Dynamics- Restraints
- Instability and regional conflicts are expected to restrain growth of the MEA vacuum pumps market during the forecast period
MEA region has witnessed drastic political and geopolitical crises over the years. MEA witnessed major crises leading to change in political establishments in some of the countries, owing to rise of Arab spring post-2010. Furthermore, Egypt and Libya suffered the most resulting in overthrowing dictatorship rule. The region further got into turmoil with infighting of regional outfits with country armed forces. Rise of ISIS in Iraq led to the destabilization of Iraq and recent conflict between Saudi Arabia and Yemen in 2015 may impact growth of the region. Therefore, these factors are expected to restrain growth of the MEA vacuum pumps market during the forecast period.
- High cost of electrification is expected to hinder the MEA vacuum pumps market growth over the forecast period
Vacuum pumps require electrification to properly function. As a result of this, it incurs additional fuel costs and hinders overall adoption of the process. Therefore, these factors are expected to hinder the MEA vacuum pumps market growth over the forecast period.
MEA Vacuum Pumps Market Report Coverage
||Market Size in 2019:
||USD 339.7 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||USD 792.5 Mn
- Middle East and Africa: Iran, Iraq, GCC Countries, North Africa, South Africa and Rest of MEA
- By Application Range -(Low Vacuum Pressure, Medium Vacuum Pressure and High and Ultra-high Vacuum Pressure)
- By Type -(Entrapment Pumps (Adsorption Pump, Getter Pump, Cyropump and Condenser Pump), Gas Transfer Pumps, (Positive Displacement Pumps and Kinetic Vacuum Pumps))
- By End-use Application -(Oil & Gas, Industrial and Manufacturing, Power, Chemical Processing, Semiconductor and Electronics and Others (Pharmaceutical, Aviation))
Gardner Denver, Inc., Sterling SIHI GmbH, Pfeiffer Vacuum GmbH, Ebara Corporation, ULVAC, Inc., Dekker Vacuum Technologies, Inc., Oerlikon Leybold Vacuum GmbH, Graham Corporation, Atlas Copco AB, and Tuthill Corporation.
- Increasing demand for energy
- Resurgence of large project activity after an economic slowdown
|Restraints & Challenges:
- Instability and regional conflicts
- Service industries and capital projects can provide major growth opportunities in the MEA vacuum pumps market
Large budget allocations by the government to public projects, major real estate projects/ developments, population growth, increase in revenues from oil and gas, are contributing to an infrastructure and construction expansion, as well as increasing demand for education and training. Major companies in the market can capitalize on these opportunities by providing novel products and gain a competitive edge in the market.
- Growing adoption in health industries can provide lucrative business opportunities in the MEA vacuum pumps market
Countries in MEA region are building and upgrading many health care facilities. The GCC countries virtually import all of their medical equipment and supplies and are highly dependent on foreign-trained physicians. Sub-sectors include hospitals & health care facilities management, pharmaceuticals, institutional & medical devices, and supplies which are potential applications for vacuum pumps.
Figure 2: MEA Vacuum Pumps Market Value (US$ Mn), 2017 - 2027
The MEA Vacuum Pumps market was valued at US$ 339.7 Mn in 2019 and is forecast to reach a value of US$ 792.5 Mn by 2027 at a CAGR of 11.1% between 2020 and 2027.
- Growing urbanization is a major trend
It is expected that around 65% of the total population in Middle East and North Africa region would be living in urban regions by the end of 2025. Countries such as Bahrain, Kuwait, Lebanon, and Qatar will be witnessing over 90% urbanization according to the population reference bureau (PRB) and United Nations Population Division (U.S.), World Urbanization Prospects report. Megaprojects such as a Cairo-Dakar Highway corridor and GCC Etihad Rail corridor projects aimed for inter-regional trade will be driving factors for urbanization.
- Infrastructure development is another key trend
The MEA countries are undertaking a range of infrastructure projects including building/upgrading state of the art airports, bridges, ports, highways, economic cities, bridges, high-speed rail, urban transport facilities, and social infrastructure projects. Some of the prominent projects include Palm Islands (Dubai), Dubai Metro, New metro networks planned in Jeddah, Mecca, Kuwait City, and Abu Dhabi.
Value Chain Analysis
The value chain of vacuum pumps market consists of raw material suppliers which provide various ferrous and non-ferrous metals, silicon, fluoropolymers, etc. Vacuum pump manufacturers make use of these raw materials to design and develop various components for their vacuum pump solutions. Manufacturers also make use of various components provided by metal foundries and casting companies which provide specific components such as motors, gauges, valves, etc. Thereby, vacuum pump manufacturers are able to assemble their products and supply the same to their customers. Vacuum pump manufacturers make use of various sales channels to market their products. Companies can make use of an employed sales force or can use third party distributors to gain market penetration in the regions. Some of the key distributors of vacuum pumps in the Middle East region include Synergy International FZE, KFB Middle East FZE, and Sigma Star Equipment & Machinery LLC. Through such distribution channels, vacuum pump manufacturers are able to cater to various end-use sectors including oil and gas, power, industrial and manufacturing industries.
Major companies operating in the MEA vacuum pumps market are Gardner Denver, Inc., Sterling SIHI GmbH, Pfeiffer Vacuum GmbH, Ebara Corporation, ULVAC, Inc., Dekker Vacuum Technologies, Inc., Oerlikon Leybold Vacuum GmbH, Graham Corporation, Atlas Copco AB, and Tuthill Corporation.
- Major companies are focused on product launches, in order to expand the product portfolio. For instance, in April 2019, Pfeiffer Vacuum GmbH launched new high-performance roots vacuum pumps.
- Key players are involved in product launches, in order to gain a competitive edge in the market. For instance, in April 2018, ULVAC, Inc. introduced LS Vacuum, a series of dry vacuum pumps.