Recovery for positive displacement pumps market

Edited by the Engineeringtalk editorial team Dec 13, 2000

Following an overhaul of existing production capacity and investment in new products, the positive displacement pumps market is continuing to see a strong recovery.

Following an overhaul of existing production capacity and investment in new products, the positive displacement pumps market is continuing to see a strong recovery.

Greater technological developments and increasing investment across a wide range of end-user sectors is stimulating growth for the industry as a whole.

A new study by Frost and Sullivan reveals how both product performance and specification are increasingly motivating purchasing decisions within the industry.

However, price remains a critical factor, particularly as competition intensifies between market participants.

Frost and Sullivan forecasts total revenues for the industry will rise from US$1.19 billion in 1999 to US$1.55 billion by 2006.

The compound annual growth rate is forecast at 3.8 per cent for the same period.

With the use of new materials in positive displacement pumps, the range of applications is broadening across all sectors.

The largest segment, diaphragm pumps, will experience the highest levels of growth with a compound annual growth rate of 4.6 per cent.

Demand for more hygienic centrifugal pumps continues to drive wide-scale technological developments, a result of stringent new legislation that has come into effect over recent years.

The need for higher specification products has escalated, with end-users demanding greater accuracy in control and monitoring, and the necessity for more environmentally friendly products.

Factors such as quality and brand reputation are gaining increasing prominence at the high-end of the market.

Price remains very much the dominant factor for the low technology end of the market.

Over the forecast period technological advances will continue to be a major driver of growth within the industry, Frost and Sullivan Research Analyst, Simon Booth, comments: 'In future years the positive displacement pumps market is projected to be driven by increasingly sophisticated and demanding applications and a focus on cost efficiency.

It should be manufacturers' responses to these demands that will determine their success over the coming years.' Germany holds the largest market share with 32 per cent of total European revenues.

End-users within this region are expected to curtail investment owing to the continued effects of the economic crisis in Russia and Asia, and the consequences of rising oil prices.

The second placed Italian market will experience the highest rates of revenue growth, with the region expected to take an increasing share of the total market as demand improves.

Leading players within the industry include Ingersoll-Dresser Pumps, Viking and Bran and Luebbe.

Market participants are increasingly looking towards the provision of a complete package including the development of product maintenance and training support.

The market structure is changing rapidly, a result of further consolidation measures.

The key driver behind this has been the need for companies to extend their global reach.

Organisations are becoming major global players via the process of mergers and acquisitions, key examples of companies that have pursued such a strategy include Colfax, Flowserve and Textron.

In summary, demand for higher performance and improved specification products will continue to rise over the forecast period.

A general increase in demand from a number of end-user sectors coupled with the impact of further legislation will prompt rising market revenues.

Nevertheless, further consolidation will contribute to intensified competition across the industry.

The ability to harness and develop key distribution channels will be a strong determinant of future success within the industry.

Simon Booth comments: "The key growth strategies include continuous improvements to distribution channels and expansion through the establishment of subsidiaries and quality agents in various countries to provide 24-hour customer support.".