The global pumps market is anticipated to gain remarkable momentum in the years to come, mainly on account of increased investments in developing regions like the Asia Pacific and Latin America. Foreign investments help emergent nations enhance their economic potential by offering capital to finance the influx of novel products in industries, boost infrastructure and productivity while creating more employment opportunities in the process.
U.S. pumps market by application, 2014 - 2025 (USD Million)
According to the World Investment Report, China is the world’s second largest FDI recipient. The country’s economy was ranked the second most attractive to multinational firms between 2017-2019. Reportedly, increasing investment from the United States restored confidence in China’s economic growth after data unveiled that U.S. investments in the nation have increased by 65.6 percent in the first quarter of 2019 despite the ongoing trade war. Increasing investment is directed toward developing infrastructure and expanding manufacturing facilities, a factor that would help boost the global pumps market size over the forecast period.
The rapid industrialization in emerging economies is another factor that is likely to support the pumps market demand over the coming years. A major proponent of industrialization depends on the productivity advantage of manufacturing over other sectors along with higher externalities that may arise from manufacturing growth. The globalization wave, surge in outsourcing and the emerging economies, especially in the Asia Pacific will attract immense investments in the future.
The region is currently witnessing a profit trend that is fueled by massive investments in processing related industries such as water, waste-water, oil and gas industries in which pumps find wide application scope in daily operations. Therefore, considerable investments toward the development of chemical and oil and gas industries are estimated to boost the revenue graph of the global pumps market.
In addition to rapid industrialization, the demand for pumps will be further supported by the potential construction boom in the future. As per Timetric’s Construction Intelligence Center and The Bureau of Labor Statistics, the construction industry is estimated to be one of the fastest growing industries into 2020. Population in the United States is also expected to grow at an accelerated pace, resulting in the rise for residential housing, which would propel the demand for residential construction over the coming years.
Additionally, commercial construction is also estimated to grow in the U.S., with the regional government investments and consumer spending in office buildings, retail space, and tourism continues to increase. Furthermore, the government apparently also intends to raise the nation’s budget in favor of home ownership, housing developments and sustainable community. Pumps find extensive uses in the construction sector, therefore, it goes without saying that the growing need for building and construction will foster the global pumps market over the forthcoming years.
Considering the position-driven landscape, pumps market is bifurcated into submersible and non-submersible pumps. Submersible pumps are designed to be tightly contained units, ensuring no leakage or short out electricity when submerged. These also use direct pressure via the pipe or hose in order to pass the fluid. The position of these pumps have an additional benefit as it is placed inside the fluid and helps pump out the fluid more efficiently.
On the other hand, non-submersible pumps can be fuel driven and are usually more powerful with the ability to pump more. These pumps are majorly utilized in industrial sectors, therefore, their demand will be highly supported by the growing investments in the industrial sectors of emerging economies. As per a report by Global Market Insights, Inc., non-submersible products led the overall pumps market in 2018. Primarily endorsed by the expanding industrial sector in the APAC, non-submersible pumps industry size was pegged at USD 46 billion in 2018 and it is expected to grow at a CAGR of more than 2% over 2019-2025.
Pumps are significant devices in the operation process of several industries such as mining, construction, oil and gas, food and beverages and manufacturing. The expansion trends across these industries owing to increasing foreign or domestic investments and rapid urbanization will continue to augment the growth of the pumps industry. Indeed, the global pumps market valuation is expected to surpass $91 billion by 2025, according to a research report by Global Market Insights, Inc.