Frost & Sullivan Find Submersible Pumps Fill Key Process Role
Submersible pump suppliers in North America face the challenge of growing in a mature market, where 2012 growth estimates hovered at about 3 percent. Companies must employ innovative methods to identify areas of potential growth and develop opportunities around those areas to create value for their customers.
Frost & Sullivan, a business consulting firm that specializes in industry growth, recently released its Analysis of North American Submersible Pumps Market research, which found that the market earned revenues of $264.5 million in 2011 and estimates this to reach $364.7 million in 2018. This report presents a slow growth climate, meaning manufacturers need to actively and aggressively identify opportunities that fit with their corporate strategies to overcome market averages. The analysis showcases key market metrics, expected growth over the next seven years, and market drivers anticipated to influence market supplier activity.
"There are a number of factors currently affecting the general market - economic uncertainties, regulatory shifts, and so on," says Frost & Sullivan Research Analyst Anudeep Yegireddi. "Add to that the maturity of the technology and overall industry, and it is a challenging scenario that is not offering tremendous growth."
Though Frost & Sullivan expect minimal growth as a whole, certain areas have growth potential within the submersible pump market, especially among the water and wastewater industry, which represents one of the largest groups of submersible pump users. Growth in the consumption and demand for fresh water in addition to water system infrastructure improvements are expected to contribute towards higher than average market growth. An increase in municipal water and wastewater applications corresponds to an increase in demand for submersible pumps.
Submersible pumps are necessary to accurately treat and purify surface, raw water, and wastewater, and will increase as the population expands and more treatment facilities are built. Additionally, its unique design wherein the pump and motor are submerged in water allows these pumps to handle large solids, making them key drivers in water and wastewater applications.
Construction, another major submersible pump market, is slowly recovering from the economic recession; this industry lag, especially within the residential building market, is expected to continue until the mortgage problems inherent in banks resolve themselves. "The construction market has finally stabilized a bit," says Yegireddi.
"Forecasts are cautiously optimistic for growth, albeit nominal, in this industry. This trend is expected to bode well for submersible pump demand."
In a slow-growth market, service becomes an increasingly important area of competitive advantage among manufacturers. Without regular maintenance, large institutional end-users face expensive and inefficient downtime that continuous process industries such as oil & gas, chemicals, pulp & paper, and power generation cannot afford. For this reason, manufacturers with a local customer service presence are highly valued among end-users for their reduced service lead times and increased uptime. Tapping into this consumer need will ensure pump manufacturers are not missing out on potential growth in this slow market environment.