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 water pump is a device that moves water by mechanical action. Pumping of water is a basic and practical technique regardless of it whether water is drawn from a fresh source or moved to a needed location. Water pumps are operated by different sources of energy including electric, fuel engines, or wind power. These water pumps find applications in various end-use sectors including commercial, residential, agricultural, etc. There are two basic types of water pumps namely centrifugal and positive displacement. Although both water pumps are used to move water, centrifugal places use a rotating impeller to pressurize the discharge flow.
The Thailand water pump market was valued US$ 22.9 Mn in 2019 and expected to reach US$ 37.0 Mn by 2027.
Market Dynamics- Drivers
- Low input cost incurred due to water pumps is expected to drive growth of the Thailand water pump market during the forecast period
The South Asia Region is a Thailand manufacturing hub since it offers various benefits to manufacturers such as low input cost, ample skilled personnel, and easy availability of raw materials as well as technology. Domestic manufacturers of water pumps are expected to witness significant growth in the near future and are expected to target markets such as East Europe, Latin America, and Africa. Hence, these factors are expected to support growth of the market in the near future.
- Constant expansion of water supply network is expected to propel the Thailand water pump network market growth over the forecast period
Thailand is witnessing constant expansion in water supply and sanitation projects that are initiated by the government of Thailand. As a result of this, water pump sales are expected to boost significantly with centrifugal pumps below 30HP witnessing major demand for domestic applications. Moreover, rising demand for efficient water supply infrastructure for agriculture as well as domestic applications is expected to accelerate sales of water pumps and thereby propel the Thailand water pump market growth over the forecast period.
Central & Eastern Thailand dominated the Thailand water pump market in 2019, accounting for 30.8% share in terms of value, followed by, Northern Thailand, North-eastern Thailand, and Southern Thailand respectively.
Figure 1: Thailand water pump Market Share (%), in Terms of Value, By Region, 2019
Market Dynamics- Restraints
- Rising dominance of local players leading to a fragmented market is expected to restrain growth of the Thailand water pump market during the forecast period
Rising threat from private label players, particularly in the agriculture segment is a major threat for market players that are seeking to enter the Thailand market. Majority of farmers across the country are price sensitive and hence prefer buying low-priced water pumps rather than going for repeated brands. Moreover, Strong volume sales of water pumps for agricultural purposes, which are offered by domestic manufacturers at lower prices is aiding unorganized market and thus restraining growth of the Thailand water pump market in the near future.
- Political instability in the country is expected to hamper the Thailand water pump market growth over the forecast period
Political instability in Thailand could have negative impact on infrastructure investment during the forecast period, leading to decline in demand for water pumps. As a result of this, water pump manufacturers may minimize prices, in order to sustain in the market. Hence, these factors are expected to hamper the Thailand water pump market growth over the forecast period.
- Rising urbanization and industrialization can present lucrative growth opportunities for market players
Thailand is currently witnessing urbanization and industrialization, which in turn, has increased the demand for water pumps. According to Coherent Market Insights’ analysis, in 2014, industrial and municipal segmented accounted for around 33% in the Thailand world pump market. Moreover, both segments are expected to maintain their dominance in the near future. Water capacity is a major issue affecting various regions across the globe. Governments of various countries are enforcing stringent regulations to mandate recycle and reuse of water, especially in industries.
- Increasing consumer preference for energy-efficient centrifugal water pumps can offer major business opportunities for market players
Growing requirement of industrial as well as social infrastructures including energy and water in emerging economies is expected to drive growth of the market. According to Coherent Market Insights’ analysis, as of 2014, Thailand is one of the major countries in water consumption for food production as well as agro-industrial activities
Figure 2: Thailand water pump Market Value (US$ Mn), 2017 - 2027
The Thailand water pump market was valued at US$ 22.9 Mn in 2019 and is forecast to reach a value of US$ 37.0 Mn by 2027 at a CAGR of 6.2% between 2020 and 2027.
- Rising dominance of Chinese water pump manufacturers in Thailand
Thailand is a hub of Chinese players wherein they sell centrifugal water pumps at relatively lower prices. As a result of this, many Thailand players in the market are focused on price differentiation, in order to target price-sensitive customers. Furthermore, this trend is expected to continue during the forecast period.
- Growing practices of family farming is another major trend in the market
The use of monobloc pumps has increased significantly in the recent past, owing to growing trend of family farming across the country. Family farming is practiced in small agricultural plots and requires centrifugal pumps with low HP in irrigation. Pumps used in agriculture and domestic purposes provide minimal product differentiation in terms of price and quality and hence, a similar buy trend is applied to both end users.
Key players operating in the Thailand water pump market are Grundfos, Venz Industrial Co., Ltd., Sulzer Ltd., Hung Pump Group, KSB AG, Nanfang Pump Industry Co. Ltd., Kirloskar Brothers Limited, Shanghai Kaiquan Pump Group Co Ltd, Flowserve Corporation, and Ebara Corporation.
- Key companies in the market are focused on product launches, in order to enhance product portfolio. For instance, in September 2019, Sulzer Ltd. introduced XJ 900, a submersible drainage pump with a high-efficiency electric motor.
- Major players in the market are involved in agreements and contracts, in order to gain a competitive edge in the market. For instance, in February 2018, KSB Pumps AG entered into contract Government of India to supply primary coolant pumps to NPCIL.