Emerging economies including Brazil and Malaysia and emerging domestic markets in China will become major users in the global positive displacement pump market by 2018, according to an analysis by Frost & Sullivan. The consultancy cites oil and gas, water and wastewater, power generation, mining, and food and beverage as the five key industries that will propel pump consumption.
As these markets open up, Frost & Sullivan says pump suppliers should determine their key markets on which to focus and develop strategies for creating brand and product presence for those markets. The Mountain View, Calif.-based analyst cites strength in screw and progressive cavity (PC) pumps and mergers and acquisitions with local companies as important cogs in growth plans, in particular.
In the oil and gas segment, Brazil, a net energy exporter, is predicted to be among the top five oil producers in the world. Extensive investment should follow, including capital and advanced artificial lift technologies such as electric submersible pumps and PC pumps.
Whereas Brazilian growth is expected to occur in the short term, a long-term opportunity lies in Malaysia, which is to become a major deep water oilfield service and equipment (OFSE) hub for Southeast Asian countries. Frost & Sullivan reports that the creation of local manufacturing in Malaysia for pump equipment is preferable due to contractual clauses by its national government for indigenization, or the process of seeding intellectual and technological knowledge into the domestic workforce.
Meanwhile, China, now an established economic power, looks to grow its interior water and wastewater infrastructure with a 12-year, $1.5 trillion domestic investment plan. India and Brazil also have established similar infrastructural investment plans and therefore will drive pump consumption. Food grain storage will also be an issue, with China’s and India’s rain patterns as they struggle to feed their growing populations. This will open up the market for irrigation pumps and biotechnology-driven cleaning-in-place (CIP) and sterilization-in-place (SIP) equipment.
Pumps for food manufacturing in China will be in high demand, too, as the country is poised to overtake the U.S. as the world’s largest grocery market by 2014, according to Frost & Sullivan. Growth will be driven by the modernization and industrialization of western China, as opposed to the country’s saturated eastern region.
China’s appetite for coal will continue to be just as voracious as its food needs. Coal will still account for 41 percent of all of China’s power generation in 2030 — compared with 74 percent currently. Aging thermal power plants will require equipment overhauls, “positively impacting pump manufacturers,” Frost & Sullivan notes. As that transpires, though, China will ramp up nuclear power significantly to 400 gigawatts by 2050, which will energize the need for submersible pumps, sump pumps, boiler feed pumps, and chemical injection pumps.
In metals, there seems to be no stopping China’s demand, as well. “Chinese mining companies are growing exponentially and are expected to be some of the largest in the world in a few years,” Frost & Sullivan’s report notes. “Partnerships with local Chinese mining participants, pump manufacturers, and research institutes are a must to secure growth” for foreign suppliers.