Centrifugal Pumps Infrastructure Spending to Intensify Demand for Centrifugal Pumps in India
The centrifugal pumps market in India has taken a hit from the recent slowdown in the industrial sector and the delays in capacity additions in the power and infrastructure sectors.
Mumbai/India - To revive spending in these sectors and to boost industrial growth, the new Government is likely to roll out confidence building measures and reforms to ramp up project execution. Revival in core consumption segments such as agriculture, and industry is imperative to growth of centrifugal pumps in
New analysis from Frost & Sullivan, Analysis of the Centrifugal Pumps Market in India, finds that the market earned revenues of INR74, 643.0 million during 2013 and is expected to reach INR112, 504.4 in 2018 at a compound annual growth rate of 8.6 per cent.
Investments Ahead – Infrastructure Projects Boost Demand
The new government is expected to jump start investments in key infrastructure segments such as roads, highways, ports, railways and power. With increasing urbanization, there will be heightened focus on water conservation and waste water management. Supply side issues have also given rise to waste water management, which has led to municipalities and industrial units across Indian cities to install wastewater treatment facilities.
“Growth is also expected in other key sectors such as oil and gas as well as metals and mining,” said Frost & Sullivan Analyst. “These trends could potentially translate into opportunities for centrifugal pump manufacturers across sectors.”
Replacement Sales Low Due to Long Life of Pumps
Multiple application areas notwithstanding, the replacement sales of centrifugal pumps are low due to their long operating life. This deters end users from replacing pumps that are used in non-critical applications. The market is also pegged back by the lack of consistent R&D geared towards innovation and new product development. Most manufacturers spend only 2 percent of their total turnover on R&D of new technologies and pump types.
According to this analysis, market participants will also do well to develop more energy efficient pumps, as industrial end users are willing to invest in them to reduce their energy costs and carbon footprint. Similarly, these pumps are likely to attract the attention of commercial and residential end users that wish to reduce their operational costs. This cross-sector interest will considerably brighten the prospects of manufacturers in the centrifugal pumps market.