Global Commercial Pumps Market - Segmented by Type (Single Stage Pumps, Seal-less and Circulator Pumps, Multi Stage Pumps, and Submersible Pumps), End-user (Agriculture and Irrigation, Oil and Gas, Construction, Water Treatment, Mining Industry, Energy and Power Generation, and Chemical Industry), and Region - Growth, Trends, and Forecast (2018 - 2023)
The commercial pumps market is expected to grow at a CAGR 5.21% during the forecast period (2018 - 2023). Commercial pumps are one of the major machinery in any manufacturing and commercial operations. The commercial pumps market is highly dependent on irrigation, agriculture, construction, and oil and gas industries. These end-users have continuous demand for the commercial pump equipment and consist major share of the market.
The recent introduction of the green buildings concept has transformed the production strategies of many top commercial pump vendors in the market. There has been high research and development activities in the market to produce highly energy efficient and smart commercial pumps. The advancements taking place in the software front of the end-users are forcing the use of IoT solutions. This requires the modern commercial pumps market to cope up with the requirements. Hence, the commercial pumps market is on the verge of transformation providing an edge over the competitors to those vendors who have the capabilities to manufacture smart and energy efficient commercial pumps.
Rising Adoption of Green Buildings in US to Increase the Demand
Commercial pumps have significant applications in the construction sector. They are majorly used for water circulation systems and waste management. Generally, buildings are responsible for an enormous amount of global energy use, resource consumption and greenhouse gas emissions. As the demand for more sustainable building options increases, green construction is becoming increasingly profitable and desirable within the international construction market. Green buildings are known for the usage of low energy consuming appliances, especially pumps, which are the prime contributors to energy consumption of a building. More energy efficient variants of commercial pumps are installed in green buildings to reduce the carbon footprint of the region.
In the United States alone, buildings account for almost 40% of national CO2 emissions out-consuming both the industrial and transportation sectors. To keep this situation under control, the construction companies in the region adopted Leadership in Energy and Environmental Design (LEED) standards to construct green buildings. According to US Green Building Council (USGBC), currently in US, LEED certified buildings have 34% lower CO2 emissions, consume 25% less energy and 11% less water, and have diverted more than 80 million tons of waste from landfills. USGBC estimates that by 2018, green construction will directly contribute a million jobs and USD 75.6 billion in wages. The industry’s direct contribution to U.S. Gross Domestic Product (GDP) is also expected to reach USD 303.5 billion by the end of 2018.
Increasing Activity in Upstream to Create New Opportunities
Oil & gas sector is the most prominent source of demand for the commercial pumps industry. The intensive work of drilling and extracting requires reliable and powerful pumps to draw resource from great depths of the ocean and land. Commercial pumps are installed in almost every vertical of the oil & gas sector. Commercial pumps are used in regulating the transport operations via pipelines, they installed in several refineries to feed the machines treating crude oil with raw product, they are used at the outlets or gas station to provide the end product to the customer, etc.
The recent low crude oil price situation since the late 2014 has shaken many secondary industries that are highly dependent on the oil & gas industry. With more than 1.8 million barrels of crude oil held back every day from the global supply due to OPEC regulations, the crude oil prices are stabilizing slowly. The newly found shale gas resources in North America and increasing investments in the Middle East region towards exploration and drilling activities is reviving all the secondary industries that are highly dependent on the oil & gas industry, including the commercial pumps market.
Key Developments in the Market