Emerging Markets for the Centrifugal Pump Industry

Centrifugal Pumps are one of the most commonly used industrial pumps for pumping fluids. These pumps are widely used because of lower cost and ease of installation. Fitted with impellers centrifugal pumps make use of principle of conversion of kinetic energy of a flowing fluid (velocity pressure) into static pressure. The rotation of pump impeller causes conversion of fluid momentum to pressure. Easy mechanism coupled with other advantages has lead to a commendable market size.

The centrifugal pump market is projected to grow from an estimated USD 30.65 billion in 2017 to USD 36.98 billion by 2022, at a CAGR of 3.83%, from 2017 to 2022. Increasing investments in modernizing water and wastewater infrastructure, infrastructure development, and power generation in emerging economies and the growth of industries such as chemicals and manufacturing is driving the market for centrifugal pumps across the world. So, though the industry as a whole is expected to undergo a period of boom, there will be specific sectors and geographical regions that will perform better than the others.

For instance, the industrial segment is expected to hold the largest share of the centrifugal pump market, by end-user. Rapid growth and urbanization, especially in APAC, will lead to a higher demand for industrial segment of Centrifugal pumps. Further, usage in industries such as water and wastewater, oil & gas, process industries, chemicals, and mining is increasing due to high efficiency, wide capacity range, flow rate, and ease of operation and maintenance. The end-user segmentation of the centrifugal pumps market can be widely classified into the following industries:

IIoT technology

Water and wastewater

IIoT

Commercial building

Centrifugal Pump

Oil and gas

 IIoT Platform

Chemical

IIoT based monitoring system

Food and beverage

The water and wastewater end-user segment will account for a market share of more than 35% by 2020 and is expected to hold the largest market segment during this period while commercial buildings could account for 22.5% of the market share. Centrifugal pumps will be extensively utilized in this segment due to their smooth flow rate, the range of capacity, design simplicity, and ease of maintenance and operations.

Even though wastewater and commercial building will hold a large share of the market; oil and gas, nuclear power plants and mining industry will see less than average growth. Though these industries will continue to generate demand for Centrifugal pumps it won’t be at a rate as seen earlier. There are several reasons for this which have been explained as below:

The mining industry uses Centrifugal pumps extensively for extracting fossil fuels which are then burnt to generate electricity. However as CO2 is a byproduct of this process and contributes to adverse environmental effects, governments across the world are trying to limit electricity consumption by as much as possible. European Union Pump efficiency regulations are a step towards this direction. Other governments are expected to soon follow similar measures. Thus consumption and production are being limited as much as possible, affecting the demand for centrifugal pumps by the mining industry.

Nuclear power plants rely highly on cooling systems to ensure continuous and safe operation of the nuclear reactors. The cooling system in a nuclear power plant uses numerous centrifugal pumps to circulate water as a medium to cool the reactors. However, following the Fukushima Daiichi disaster in Japan in 2011, several countries have decided to curb the role of nuclear plants in producing power despite their contribution to reducing carbon emissions.

The decline of oil prices has also caused turmoil within the oil and gas industry, resulting in significant reductions of capital expenditure that can lead to lower than expected growth in demand for Centrifugal Pumps.

Owing to these factors even though there is an overall growth in the market for Industrial Centrifugal Pumps; Manufacturers and Rentals need to recognize specific problems affecting certain industries and provide value-added comprehensive solutions, to ensure that they enjoy a competitive advantage in the market. As end-user industries tend to be extremely competitive when functioning with low margins manufacturers/ rentals need to provide equipment which is cost effective yet efficient.


Problems specific to each end user Industry

Municipal Water and Wastewater treatment

Industries working in water will need to ensure that the quality of water being pumped is suitable for their requirement. For instance, municipal water needs to be of drinkable quality and certain governments specify the required amount of minerals that need to be present. Water quality when tested manually is a cost burden.

Commercial Building

Centrifugal Pumps have several applications in commercial buildings in the form of Hydronic Pumps used in HVAC Systems for ambient heating or cooling, booster pumps to deliver potable water and fire pumps to provide a pressurized water supply for firefighters and automatic sprinklers. Now running of these pumps consume a lot of power and this leads to high electricity costs. In addition, it is compulsory for Pumps in EU Countries to be compliant to European Union Pump Efficiency Regulations for power consumption. Deviation from these standards leads to audit fines.

Oil and Gas

For fuel generation, Centrifugal Pumps are used to extract resources from underground reserves. These power-hungry, uncontrolled pumps collaborate to rising energy demand and associated rising costs thereby leading to increased costs for users. In the face of falling capital expenditure as mentioned earlier; stakeholders in this industry is looking for value-added comprehensive solutions. In addition pumps in this Industry see a lot of damage due to extreme weather environments.

Chemical and Food and Beverage Industry

The Chemical Industry deals with various corrosive and abrasive components passing through the pump which can cause a lot of damage. The F&B Industry needs to maintain quality of fluids that it pumps. This again needs comprehensive monitoring.

Solution

Most problems faced by these industries regarding usage of Centrifugal Pumps can be solved through IIoT based monitoring system. Such an IoT platform for these IIoT integrated smart pumping solutions comprise of three significant parts:

  1. Sensors, including cables and junction boxes
  2. Data collection device
  3. Monitoring/analysis software

The sensors work to pick data from different hardware which is then relayed using GPRS/Internet/ Ethernet etc to a web-based application which stakeholders can access on their smart devices such as phones, laptops, and computers.

What an IIoT integrated Centrifugal Pump can do:

  1. With the help of Water sensors/ Pressure sensors and other relevant sensors, it can pick data about water quality and pressure and then relay it to concerned stakeholders. This will prevent damage to pump as well as cut down costs in manually monitoring these parameters.

  2. In commercial buildings where power consumption is a challenge, magnetic sensors can help ensure that power consumption is within required parameters. Any deviation will lead to alerts. Also, damage to pumps can be monitored through such sensors and predictive maintenance of pumps can be undertaken so that downtime is nil.

  3. Heat sensors in the IIoT platform will help ensure minimum damage to the mining pump by monitoring ideal operational temperature. Again it will help detect preventable damages.

  4. For pumps being used in Chemical or Food and Beverage Industry, such a platform can help in remotely monitoring the quality of the fluid. Whether it is corroding the pump or about to cause health hazards as is in the case of chemical industry can also be monitored.

Since an IIoT Platform provides easy remote monitoring this helps Pump Manufacturers/Rental/Users analyze pump performance and damage. For end-user industries pump downtime can cause huge losses. With IIoT Platform it is possible to not only identify specific failed component but also measure several other parameters that contribute to damage. By performing predictive maintenance businesses can save millions. For Manufacturers and Rentals, this is good news because they can gain a competitive advantage in the market by providing such value-added integrated solutions.

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