Pump Market to Generate Revenues of $40 Billion In 2014
Pumps suppliers around the world will enjoy revenues of just under $40 billion in 2014. This is the latest finding in Pumps World Market published by the McIlvaine Company.
Pumps World Market (Image: McIlvaine)
East Asia will be the leader with forecasted purchases of $13.8 billion. NAFTA will surpass Western Europe due to the oil and gas activity in the U.S. and the negative manufacturing climate in Europe. The high price of energy is slowing growth of manufacturing in Western Europe. Eastern Europe is faring somewhat better, but is still obligated by EU policies.
South America will exceed West Asia in 2014 due to the mining and energy projects underway. Mines require water for processing and cooling. Long pipelines also require multiple pumping stations. Oil and gas exploration requires pumps for movement of the product as well as for produced water, chemical additives and lubrication fluids.
The Middle East remains a major market. However, the unconventional oil and gas processing in the U.S. and subsea processing in a number of areas have two negative impacts on the Middle East market share. Total production is negatively affected in the Middle East. Also the comparative investment in pumps for conventional extraction is much less than unconventional extraction and processing.
The large size of the Asian market is due to the continuing investment in infrastructure. The pump requirements for municipal drinking and wastewater treatment are substantial. The preference for coal-fired power to supply additional generation is also a factor. Huge water requirements are necessary for power plant cooling. The extraction of water for Asian coal-fired power will reach 1.5 million mgd (millions of gallons per day) by 2020. By comparison, U.S. power plants extract 300,000 mgd. U.S. drinking water plants extract only 40,000 mgd. However, the world s power plants return all but 45,000 mgd to the rivers and streams, whereas, all the drinking water is consumed.
Source: The McIlvaine Company