The centrifugal pump market is estimated to be valued at USD 39.11 Bn in 2024, growing at a CAGR of 5.6% over the forecast period (2024-2031). Rapid industrialization and infrastructural development across emerging nations are fueling the demand for centrifugal pumps in various industries. Furthermore, the rising adoption of smart pumps integrated with IoT is also boosting the market growth.
Market Dynamics:
Rising industrialization and growth in the oil & gas industry are the major drivers of the centrifugal pump market. Rapid industrialization in developing regions of Asia Pacific and Latin America has boosted the demand for centrifugal pumps from process industries such as chemicals, power generation, mining, and food & beverage. According to the UN Industrial Development Organization, industrial value added in developing countries grew by around 6% annually between 2000 and 2017. Additionally, expanding oil & gas exploration and production activities across the globe are propelling the demand for submersible centrifugal pumps in drilling applications and slurry pumps in pipeline transportation. However, high initial investment and maintenance costs associated with centrifugal pumps hinder the market growth. Ongoing technological advancements in pump designs focused towards efficiency improvement provide new opportunities in the coming years.
Market Drivers
Increased Urbanization and Industrialization
The rapid pace of urbanization and industrialization happening across the world is a major driver for the centrifugal pump market. As more people move to cities from rural areas, it puts pressure on municipal bodies to provide improved infrastructure for water supply and wastewater disposal. This growing demand for water and sewage treatment boosts the need for centrifugal pumps in various municipal and industrial applications. The expansion of manufacturing sectors like chemicals, oil & gas, pharmaceuticals, etc. also increases the requirement for efficient pumping systems to handle large volumes of liquids in various industrial processes.
Rising Focus on Water & Wastewater Management
With the world facing acute water scarcity issues, governments and municipal bodies are putting more emphasis on proper water and wastewater management through various schemes and projects. Centrifugal pumps play a key role in transporting both potable water and sewage efficiently across long distances in central pumping stations. The implementation of stringent regulations regarding wastewater treatment before disposal is also driving the sales of submersible pumps and horizontal centrifugal pumps employed in sewage treatment plants. The need for the 24/7 supply of water and continual pumping of sewage even during power outages is augmenting the demand for customized pumping solutions in the water and wastewater sectors.
Market Restraints
High Initial Investment Costs
Centrifugal pumps have high initial procurement costs compared to positive displacement pumps due to more complex components and designs. This high upfront investment is a major deterrent, especially for price-sensitive end-use industries in developing regions. Additionally, large centrifugal pumps employed for bulk transportation of water and sewage over long distances involve huge capital expenditure which municipalities and water utilities may not be able to afford easily.
Rising Energy Costs
Centrifugal pumps consume more energy during operations compared to positive displacement pumps, which increases their overall operating costs. The input power required to drive centrifugal pumps is directly proportional to the pump flow rate and head. Fluctuating and rising electricity costs across major economies pose a challenge for industries and municipalities relying on centrifugal pumps. This encourages end users to focus more on energy-efficient pumps and variable speed drives to reduce lifecycle costs.
Market Opportunities
Growing Adoption in Agriculture Sector
With the agriculture industry facing severe water scarcity worldwide, there is a rising demand for advanced water management technologies like centrifugal pumps. Small and medium capacity vertical turbine pumps, submersible pumps, and self-priming pumps optimized for irrigation are gaining popularity among farmers. Leading pump manufacturers are launching customized solutions specifically designed for low-volume agricultural applications like drip irrigation systems and center pivot irrigation systems. This presents attractive opportunities for centrifugal pump companies to tap the untapped agriculture market potential.
Increased Replacements and Aftermarket Sales
A large percentage of installed centrifugal pumps across various industries and municipalities worldwide are aged and need replacements. As centrifugal pumps have working lives of 15-20 years on average, there will be a consistent demand coming in for replacement of existing pumps. Meanwhile, aftermarket sales of spare parts like impellers, diffusers, seals, and mechanical seals will continue to contribute significantly to the revenue of major OEMs. Pump OEMs are positioning themselves to capture this lucrative aftermarket business through excellent service and easy access to spare parts.
Link: https://www.coherentmarketinsights.com/market-insight/centrifugal-pump-market-3939
Key Developments:
- In January 2024, Grundfos has joined forces with Microsoft to develop water management products infused with artificial intelligence. This collaboration focuses on improving pump efficiency, optimizing water usage, and predicting repair needs.
- In December 2023, Wilo SE introduced the Stratos GIGA C smart pump series, featuring advanced control systems and connectivity. This series aims to enhance energy efficiency and enable remote monitoring capabilities.
- In January 2023, Ebara Pumps introduced a new in-line 3E centrifugal pump model with cast iron casing, available with two or four-pole motors, and featuring an integrated E-SPD+ frequency converter. The 3E model emphasizes close-coupled construction.
- In April 2022, GSD conducted an internal product launch of the ISH/ISP high-efficiency centrifugal pump in April 2022. This pump can be equipped with sensors for real-time monitoring, predictive alarm, fault analysis, energy efficiency analysis, and operational state optimization when integrated with the GSD intelligent IoT system.
Key Market Players:
CP Pumpen AG, DESMI A/S, Ebara Corporation, Flowserve Corporation, Grundfos, HERMETIC-Pumpen GmbH, HOMA Pumpenfabrik GmbH, Kirloskar Brothers Ltd., Klaus Union GmbH & Co. KG, KSB Group, Ruhrpumpen Group, Shakti Pump, Speck Pumpen Walter Speck GmbH & Co. KG, Sulzer AG, Toyo Denki Industrial Co. Ltd., Tsurumi Manufacturing Co., Ltd., Wier Group, WILO SE, WPIL Limited, and Xylem Inc. are the major players.
