INDIAN PUMP INDUSTRY OVERVIEW
The India pump market size was valued at USD 2.2. billion in 2020 and is expected to reach USD 3.3 billion in 2026, growing at a compound annual growth rate (CAGR) of 7% during 2020-2026. 16% of India's pump manufacturing potential is export-oriented and is projected to expand further.
Competitive pricing and manufacturing capabilities are major factors boosting growth in the pump market in India. Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka, and Andhra Pradesh are major markets for agricultural pumping systems. Top end-user industries in the India pump market include water and waste manufacturing, electricity generation, oil and gas, metals, and mining.
The government's planned investment in irrigation projects is expected to will also help fuel industry demand. Indian firms are constantly searching for strategic alliances to reach global markets through technological collaborations and to also provide high-quality products in the Indian market. The introduction of intelligent pump systems with smart track and control fluid flow or pressure, responds to process adjustments, and which have failure tolerance features will reduce the total cost of ownership, creating lucrative opportunities for manufacturers in the market. Manufacturers in the organized sector consider the BEE star ranking to be the most significant competitive advantage. Star ranking aims to boost the value of the brand and the quality of the business in the manufacturing, agricultural and other industries. The increased focus on after-sales services will enable vendors to maintain a long-term relationship with the customers in the India pump market.
- Improvements in motor efficiency in terms of electromechanical perspective and IoT effects are expected to create and adapt efficient pumps with the latest technology, such as hydraulic design.
- Water and wastewater, chemical, pharmaceutical, power generation, and construction services account for around 60% of demand in the pump market in India.
- Under the KUSUM scheme, the government has planned to provide momentum to the solar pumps business with the target of around 27.5 lakh pumps over the next five years that is expected to reduce the dependency on farmers on the power grid.
- Between 2019 and 2020, India exported centrifugal pumps worth over USD 183 million, and the total exported volume was around 56,35,699.
- 16% of India's pump manufacturing potential is export-oriented and is projected to expand further.
- Several small-scale pump manufacturers have made price-sensitive offerings feasible through the purchase of cost-effective raw materials from vendors and long-term contracts.
INDIA PUMP MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Product Type
- End-user Type
INDIA PUMP MARKET – PRODUCT TYPE
Centrifugal systems to contribute to over USD 840 million in the India pump market
In India, centrifugal pumps, including single and multi-stage, turbine, submersible, and others, are manufactured by various vendors such as KSB, Kirloskar, Roto pumps, and others. Hence, the centrifugal pump market in India is expected to be competitive with various established vendors and their expansion activities in this product portfolio. The growth momentum of the centrifugal segment is expected to be in an accelerating trajectory during 2020-2026.
Withing centrifugal pumps, single-stage, and submersible pumps are mostly used in India. The submersible pump market in India is on a positive growth trajectory. Agriculture and infrastructure projects account for a major chunk of the demand pumps. The industrial segment of the pump market in India is technology-intensive, and therefore it is difficult for SMEs to penetrate the market. Almost 90% of the country’s demand is met by domestic pump manufacturers, and imports constitute around 10% of the country’s demand. Thus, both Indian and international players play a role in meeting the local demand in the country.
INDIA PUMP MARKET – END-USER
In 2020, the industrial end-user segment accounted for around 60% of the Indian pump industry
The cement, steel, and oil and gas sectors, and water supplies, are major clients of industrial pumps. Factors such as increased demand for oil and gas and investment in water and wastewater treatment activities are projected to have a substantial effect on exports from India and are expected to increase pump sales. The pump market in India by the industrial sector is growing at a CAGR of over 7% during the forecast period.
Within the industrial end-user, the water and wastewater sector is expected to post incremental revenues worth around USD 138 million by 2026. The increasing focus of the water and wastewater industry is on energy-efficient products will encourage development in the solar pump market in India. The future development provides immense growth opportunities for pump manufacturers, given the government increased focus on water management. The announcement of government policies has inspired farmers to install independent irrigation facilities to ensure consistent availability of water. The Government’s flagship projects of building 100 smart cities and the Atal Mission for Rejuvenation and Urban Transformation are expected to open up opportunities for the pump market in India.
Growth & Investment Opportunities
Growth factors for Indian pumps include:
- Increase in population and higher dependence on agriculture
- Growing public awareness of the safety of drinking water
- Declining quality of water
- Lower levels of water
- Environmental pressure on pollution disposal from government entities
INDIA PUMP MARKET – GEOGRAPHY
The pump market in Southern India to grow at a CAGR of over 7% during 2020-2026
Coimbatore is one of the major manufacturers of pumps for the agricultural and domestic industries and industrial use. Consumers in South India are aware of the benefits of star ratings, thereby purchasing star-rated pumps. They have high expectations for pump sets within the limits of their buying power to provide a hassle-free experience. Over the last few years, recognition and approval standards for branded pumps have been growing. Low voltage compatibility, however, limits the possibility of labeled pumps for large farming communities. In Andhra Pradesh, farmers choose Texmo, CRI, Falcon, and Suguna among the national brands.
Tamil Nadu has built a base of more than 2 lakh agricultural pumps, which is among the highest in India. As a result, the quality of coverage decreases and the transmission losses impact remote areas in particular. Farmers are often left without electricity connections, and those that have power supply are offered services at odd hours to control the supply condition.
INDIA PUMP MARKET – COMPETITIVE LANDSCAPE
The pump market in India is highly fragmented, with the presence of small, medium, and large vendors across the country. There are many domestic and international vendors in the market. There is high competition for small vendors from large vendors or vendors with a diversified product portfolio and large R&D platform. Local marketing campaigns have played a vital role in regional markets, as consumers historically relied on local providers rather than other competitors. Markets across the country are severely affected by COVID-19 in 2020. This is expected to lead to intense competition among the players for reduced business opportunities.
Moreover, there is going to be continued pressure on margins due to an increase in input costs on the one hand and lower prices due to competition on the other. The competition is expected to be more aggressive leading to price pressures and uncertainty in global economic growth is expected to impact the pump market in India. Crompton has one of the industry-first innovations in pump with a digital control panel, with a single-phase preventive switch-off feature, which has enhanced its pump series. Also, renewable thermal solar power projects are expected to present many opportunities where the company Flowserve, is positioned with a technical offering across pumps, valves, and seals.
The India pump market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
By Product Type
- Single Stage
- Industrial Sector
- Oil & Gas
- Water & Wastewater
- Food & Beverage
- Commercial Sector
- Public Utilities
- By Distribution Channel
- Residential Sector
- By Distribution Channel
- Agricultural Sector
- By Power Output
- 3–7 HP
- 7–10 HP
- 10–13 HP
- 13–15 HP
- By Product
- By Distribution Channel
- Uttar Pradesh
- Andhra Pradesh
- Tamil Nadu
- Madhya Pradesh