Hike in Pump Market Expected
May 1, 2004
Experts indicate that the market for industrial pumps will rise to $31 billion in 2007 from this year's $27 billion.
The market for industrial pumps will rise to $31 billion in 2007 from this year's $27 billion, according to a McIlvaine Co. report. The online report, "Pumps: World Markets," from the Northfield-Ill.-based research firm, notes there are more than 10,000 companies manufacturing pumps with flows of a fraction of a gallon per minute to more than 500,000 gal/min. Centrifugal pumps generate 73 percent of the revenues, diaphragm pumps generate 9 percent, and the rest is split between reciprocating and rotary designs. Although many industries purchase pumps, municipal wastewater plants make up the most buyers. In 2007, sales should reach $6.8 billion for pumps that move sewage to treatment plants, through the treatment process and then bring back the clean water to the waterway. Municipal water supplies (drinking water) are the second largest revenue segment, followed by the chemical industry. Refineries make up the fourth largest segment, followed by the power, and oil and gas industries. According to the report, China is the fastest growing market for pump sales, and the money it spends on pumps is expected to grow at a rate twice that of the world's total pump market. The power and wastewater sectors will be particularly strong. The U.S. market will benefit from a turnaround in the electronics industry and the requirement for power plants to install scrubbers. Pumps for scrubbers will boost the power market in the United States by nearly 10 percent. The pump report matches its historical revenue estimates with the aggregate of the sales by individual suppliers that make up the fragmented industry. Of the more than 10,000 companies supplying pumps, ITT is the largest with sales of $1.7 billion, according to McIlvaine, which ranks the top 10 pump makers.