The global centrifugal pump market was valued at USD 45.52 billion in 2022 and is expected to reach USD 59.38 billion by 2028, growing at a CAGR of 4.53%. The market is expected to witness considerable year-on-year growth due to the growing replacement demand, high demand for efficient and advanced pumps, and the launch of wastewater treatment schemes, especially in the residential sector. The rising shift towards solar-powered centrifugal pumps and the advent of intelligent & smart pumps is expected to boost the centrifugal pump market during the forecast period significantly. Moreover, increased mining activity and mined material production in China, India, and other developing countries are projected to boost centrifugal pump production.
- Strong aftermarket demand in the global mining market offers immense opportunities for the global pump market, particularly centrifugal pumps.
- Increased investments in intelligent and effective safe pump solutions will likely meet future demand for centrifugal pumps.
- Due to the pandemic, the shutdown of construction activities in North America and Europe significantly affected the infrastructure development market, affecting the demand for centrifugal pumps in the regions.
- There are concerns about the global economy's macro-outlook on account of COVID-19, while the long-term fundamentals of the mining industry stay strong.
- Technical collaborations and partnerships for product enhancements are expected to drive centrifugal pump market growth in the future.
- The sales and demand for standard centrifugal pumps declined owing to fixed cost reduction. In contrast, domestic and overseas building pumps observe sluggish demand due to COVID-19.
- Suspension or delay in construction activities leads to negative GDP growth rates, affecting future construction development.
- North and South America showed stable growth in the centrifugal pump market in 2022 and are expected to maintain momentum during the forecast period. Other regions, such as Asia, Africa, and Europe, displayed moderate growth rates, and government-imposed restrictions in several countries affected the market.
MARKET TRENDS & OPPORTUNITIES
Demand for Energy Efficient Pumps
There is rapid global implementation of energy-saving initiatives to minimize power consumption. Several consumers globally integrate renewable energy technologies for various applications and use energy-efficient equipment for low operational energy requirements as a part of energy conservation measures. Some of the reasons behind the increased interest in energy efficiency and rationalization are:
- Climate change and the desire to reduce carbon emissions
- Harmful effects of using fossil fuels to produce electricity
- Desire to improve global economic competitiveness and deliver more sustainable products and services
- High demand for conventional energy sources and their high prices
- Propensity to shift toward a green economy and generate new job opportunities
Moreover, major regional vendors are expected to launch energy-efficient pumps with the latest technologies, providing a dynamic marketplace for domestic vendors.
Rising Shift Towards Solar-Powered Centrifugal Pumps
Solar-powered centrifugal pumps have increasingly been popular as a cost-effective and sustainable solution for various applications in different industries, specifically for agriculture and water. These systems mainly use solar energy to power water pumps, eliminating the need for duel-powered generators or electricity. The operation of these pumps is more economical as it requires lower operation and maintenance costs and low environmental impact compared to internal combustion engines. In addition, solar-powered centrifugal pumps offer several advantages over traditional pumps powered by fossil fuels or electricity from the grid. Governments and organizations worldwide are promoting the use of solar energy and providing incentives to encourage the adoption of solar-powered pumps, further driving their market growth.
Volatility in Oil & Gas Prices
The oil & gas industry is the highest revenue generator in the global centrifugal pump market. However, volatility in oil & gas prices impacts the global market condition. The mining sector also witnessed losses similar to the offshore oil & gas sector due to the low demand for coal, metals, and minerals, decreasing the demand for slurry and dewatering pumps. Global energy transitions impact the oil sector. Firms need to weigh the expenditures required to ensure enough supply while the need to reduce emissions. Hence, any further advancements in the industry are expected to face a setback, and demand for pumps in the market in developed countries is expected to be impacted.
INSIGHTS BY TYPE OF STAGE
The single-stage centrifugal pumps dominate the global centrifugal pump market by type of stage. The demand for single-stage is expected to witness the highest growth during the forecast period owing to the demand in manufacturing, petrochemical, electricity, fertilizer, pharmaceutical, mining, and other general industrial applications. Apart from these, high-pressure multi-stage centrifugal pumps are used in steam boilers in the power generation sector.
INSIGHTS BY TYPE OF IMPELLER
The enclosed impeller type dominated the global centrifugal pump market, accounting for almost 70% market share in 2022. Rise in demand for replacement in various industries, including residential or commercial; an enclosed type of impeller is highly preferred as per differentiated design features and capabilities in the market. For any industry, the selection of impeller type majorly depends on specific requirements as per application, the nature of the fluid being pumped, and the expected performance parameters.
INSIGHTS BY POSITION OF IMPELLER
Based on the position of the impeller, the global centrifugal pump market is bifurcated into overhung impellers and between-bearing impellers. Among these, overhung impellers dominated the industry during the forecast period. As centrifugal pumps are highly preferred in water & wastewater treatment plants, these pumps usually consist of overhung impellers compared to other large-scale industries. A rise in the adoption of desalination technologies in the water & wastewater industry is expected to boost the demand for overhung impellers in the market.
INSIGHTS BY SHAFT ORIENTATION
The horizontal shaft orientation segment dominated the global centrifugal pump market in 2022 and recorded the highest CAGR during the forecast period. The horizontal shaft pumps are widely used in various commercial and industrial applications, including water supply systems, process industries, and wastewater management. With the horizontal position, there is a convenience in access to pumps in these industries. Compared to the vertical segment, horizontal shaft orientation pumps are highly cost-effective due to their less piping arrangement and construction. Thus, the demand for horizontal shafts is expected to boost during the forecast period.
INSIGHT BY END-USER
The global centrifugal pump market can be categorized as industrial, agricultural, commercial, and residential based on end-users. In 2022, the global centrifugal pump market was dominated by industrial end users, with a share of more than 74% of the market. The demand for industrial pumps is anticipated to grow due to the growing industrial sector. Furthermore, the industrial end-user segment is further categorized into oil & gas, water & wastewater, food & beverage, chemical, power, mining, pharmaceutical, and others. Among these, the oil & gas industry is expected to dominate the market due to a recovery in oil prices and a high number of onshore and offshore fields, leading to the expansion of the oil & gas industry.
INSIGHT BY DISTRIBUTION CHANNEL
The direct distribution channel dominated the global centrifugal pump market in 2022. Directing sales through distribution partners allows vendors of centrifugal pumps to access new market segments that are difficult to reach by the direct channel. Some vendors operating in the centrifugal pump market use the direct and indirect channel parallel, and some have entirely switched to an indirect sales channel to improve their business. However, developing, implementing, and expanding an indirect sales channel is comparatively difficult and expensive for any business.
Ongoing economic growth in countries such as China and India is expected to outpace the growth of the target market in the developed economies of North America and Western Europe, and the developing countries of South America. The improvements in economies of Asian countries such as China, India, and South Korea make Asia the region's most attractive global centrifugal pump market.
- Building equipment markets are sluggish due to the effect of the pandemic, and standard pump orders and sales declined due to a decrease in the building equipment markets across several geographies.
- The suspension of construction work or delay of construction in many countries due to COVID-19 led to negative GDP growth rates, thereby hampering further investments in the industrial sector and the growth of the centrifugal pump market.
- The demand and sale of centrifugal pumps were low in Japan, China, Europe, North America, and Southeast Asia due to the ongoing conflict of the Russia-Ukraine war. With the rise in crude oil prices, there has been inflation in shipping and raw materials costs. This is expected to decrease the growth of the centrifugal pump industry during the forecast period.
- Project order and construction investments are expected to create opportunities in the global centrifugal pump market.
- A profit increase due to strong sales of custom pumps in the oil & gas market in China, Middle Eastern countries, and Japan is expected during the forecast period.
The global centrifugal pump market is highly competitive, and the key factor is the ‘differentiating product line.’ The other key competitive factors include efficiency, product reliability & availability, service capabilities, and price. Vendors are actively investing in R&D to develop fundamental technology to establish competitiveness by enhancing core product technology in the centrifugal pump market. Vendors differentiate themselves by enhancing product development, focusing on after-sales business, and cutting costs through greater operational efficiency.
In pursuing large capital projects, competitive drivers and competition vary depending on the industry and products involved. Industries experiencing slow growth = tend to have a competitive environment more heavily influenced by price due to supply outweighing demand, and price competition tends to be more significant for original pump orders than aftermarket services. Considering the forecast for 2028, pricing for original centrifugal pump orders is expected to be a particularly influential competitive factor. In the aftermarket portion, the competition is majorly against large, well-established national and global competitors and, in some markets, against regional and local companies.