IoT-enabled pump demand driving North American positive displacement pump market
Driven by continued investments in the US oil and gas industry, along with increased activity in the biopharmaceuticals and the medical devices sectors, the North American positive displacement (PD) pumps market witnessed a spike in sales in 2019, generating $2.5 billion in revenue.
The sector is expected to witness moderate growth in the next seven years despite temporary economic hiccups, predominantly due to continued investment in shale exploration activities and an increased interest in smart pump technology. Frost & Sullivan predicts that revenues in the sector will increase to $3 billion by 2026 at a CAGR of 2.6%.
"In a mature market condition, expansion of service capabilities by leveraging Industrial Internet of Things is instrumental for pump manufacturers to unlock new revenue opportunities," said Kiravani Emani, Industry Analyst at Frost & Sullivan. "It is observed that many industries in North America are keen on exploring smart pump solutions that enable real-time monitoring and evaluation, which will help in reducing pump maintenance costs and prevent the occurrence of production mishaps in critical processes."
Frost & Sullivan's latest research, North American Positive Displacement Pumps Market, Forecast to 2026, provides an overview of the PD pumps market in the United States of America and Canada, highlighting the major industry trends, technological advancements, emergence of new business models, and the economic factors driving the industry. The report offers an in-depth analysis of product segments, regional demand patterns, new product capabilities, and end-user markets, and also identifies the key opportunities that will play a critical role in uncovering new avenues for the growth of the sector.
Pump manufacturers are rethinking their value proposition and are transitioning toward new business models such as pumps-as-a-service. End-users no longer favor mere hardware providers offering basic pump services. Integration of advanced technology, such as AI and machine learning, that eases PD pump maintenance, eliminates challenges with respect to leakages, and improves pump efficiency and throughput are now being preferred by end-users across processes and industries.
"End-users are redefining their maintenance approach and are investing in asset solutions that help them reduce the operational expenditure," noted Emani. "Pump manufacturers who offer asset and condition monitoring solutions for pumps, which are ranked as assets that require the most maintenance, are expected to outperform peers and sustain in the challenging economic conditions expected in the coming years."
Companies operating in this sector can also foster growth by:
- Designing and building energy-efficient pumps that comply with prevailing regulations
- Delivering an extensive range of services that enable end-to-end monitoring of pumps, which will improve their efficiency and life
- Offering pump monitoring solutions with flexible pricing plans to gain wider traction
- Leveraging IIoT-based technology to maximize equipment utilization and mitigate potential risks