Rising Demand: Market size, emerging trends and outlook

Market size, emerging trends and outlook

The pump industry in India is nearly a hundred years old. Pumps are among the mo­st basic equipment needed for every sector. They cater to a wide range of sectors, including infrastructure and agriculture. The pump industry has, through its own growth, co­ntributed immensely to the economic growth of the country.

Pumps come in a variety of sizes for a wide range of applications. They can be classified ac­cording to their basic operating principle as ei­ther dynamic or displacement pumps. Dyna­mic pumps can be sub-classified into centrifugal and special effect pumps. Displace­ment pumps can be sub-classified into rotary and re­cipro­ca­ting pumps. In principle, any liquid can be handled by any of the pump designs, but the centrifugal pump is generally the most economical.

Market size and trends

The Indian industry of pumps and valves has been a mature market for many years and has registered significant growth in the past few years. Notably, the sector provides one of the highest net value additions (over 20 per cent) in the engineering sector. It has matured significantly and domestic sales are increasing at the rate of 16-18 per cent per annum.

The pump market in India is valued at Rs 200 billion and is expected to grow at a compound annual growth rate of over 7 per cent during the period 2021–26. The segment has around 800 large, medium and small scale manufacturers producing over 4.5 million pumps per annum – the second highest amount of machinery manufactured in India after electric motors.

India exports pumps and valves to around 100 nations, catering to a wide range of sectors globally, including oil and gas, process industry, agriculture, industrial and domestic water supply, and construction. The key export markets include West Asia, North Africa, the US, Ger­ma­ny, Russia, China and Latin Ameri­ca. With rega­rd to imports, Indian pumps and valves are sour­ced from the US, China and France.

Sectoral demand

About 95 per cent of the pump market comprises centrifugal pumps, while the remaining 5 per cent is positive displacement pumps. Ag­riculture and building services account for the major portion of demand at 46 per cent of the market in terms of value. There are a large nu­m­ber of small and medium enterprises (SMEs) in these sectors. State-wise, Madhya Pradesh, Maharashtra, Tamil Nadu, Karnataka and An­dhra Pradesh constitute the biggest markets for agricultural pump sets. The industrial sector comprises the remaining 54 per cent. This segment requires higher investment due to its technology-intensive nature and, therefore, has fewer SMEs.

Of the infrastructure sectors, the water and wastewater treatment segment accounts for the maximum demand for pumps. This is followed by power, oil and gas, and mining.

Key players

Both Indian and foreign players play a role in the pump market. Some of the key Indian players, such as Kirloskar, CRI Pumps, Texmo In­dus­tries, Jyoti Pumps, WPIL Limited and Flow­more, have a considerable footprint in the pu­mp market, and offer customised solutions to different segments. In addition, several me­di­um-sized players such as Shakti Pumps, Fal­con Pumps, Roto Pumps, Kishor Pumps, Sharp Pu­m­ps, Suguna Pumps and Aqua SubPumps also have a significant market share.

The pump industry is seeing a change globally, with major international players entering the Indian market and thus seeking to inc­rease their presence. Foreign companies such as KSB Pum­ps, Grundfos Pumps, Wilo AG and Flowser­ve Corporation are already active in India and are leaders in industrial pumping systems.

The way forward

The demand for pumps is expected to grow at a steady rate due to the increased application of pumps in several end-user sectors. Indus­trial pumps are witnessing a high dema­nd from the cement, steel, oil and gas, and water and wastewater sectors. The increased oil and gas demand and high investments in water and wa­stewater treatment activities are projected to increase sales substantially.

Water and wastewater, chemicals, pharmaceuticals, construction, food and beverage, and mining are the major end-users in India. Fa­ctors such as increased focus on energy efficient products in the water and wastewater in­dustry, development of generic pharmac­eutical production, rapid urbanisation, rise in massive housing schemes and expansion of infrastructure projects are likely to influence the growth of industrial pumps in India.