Global Pump and Compressor Market Outlook

  • The total global pump and compressor market was valued at $71 billion in 2017, with pumps holding ~68 percent of the share 
  • The pump market is forecast to grow at a CAGR of 4–5 percent to $54.6 billion by 2020 
  • The compressor market is forecast to grow at a CAGR of 6–6.5 percent to $28.5 billion by 2020 
  • The APAC is the highest demand generating region, followed by North America and Europepumps-compressor-mining-global-market-size

Global Market Maturity 

  • The global pump and compressor markets are valued at $47.6 billion and $23.33 billion, respectively, in 2017 and is expected to grow at a CAGR of 4-5 percent and 6-7 percent, respectively, until 2020. APAC accounts for approximately 34–36 percent of the market for both the rotary equipment 
  • In the mining industry, the supplier base for both pumps and compressors are relatively consolidated when compared to other industries

Market Trends 

  • The low-maturity regions, such as the Middle East, Africa, and LATAM are served by distributors, and the OEMs expand their presence through them for both sales and maintenance 
  • Regions, such as APAC, have medium maturity, in terms of adoption of smart technology and value-based approach. They focus on initial cost, followed by energy and maintenance costs while procuring pumps and compressors

Global Pump and Compressor Market by End-user Industries

  • The mining rotary equipment market is driven by the extent of capital expenditure, both in new facilities and expansion or upgrade of existing facilities
  • Production levels also determine the rate at which the existing pumps need to be replaced. So, the new rotary equipment is purchased and installed late in the project lifecycle
  • Owing to the falling mineral prices, there has been a slowdown in new mining projects. This, coupled with the rising mining cost, might weaken the demand for new rotary equipment in this segment
  • The similar impact on the oil and gas industry is likely to weaken OEMs’ revenues, thereby, there is an opportunity for negotiation with manufacturers who have significant oil and gas end-use sales

Global Pump and Compressor Market by Product Category

  • Positive displacement (PD) pumps are set to increase their market share in mining applications, especially progressive cavity pumps, owing to their ability to transfer high-viscous fluids with high-solid content 
  • Screw compressors will dominate the mining compressor market. The integrated VSD drives are set to increase the compressor energy efficiency and their market is expected to grow at 8–9 percent between 2015 and 2018

Global Market Drivers and Constraints

The repair, retrofitting, and rental markets are likely to grow in the slowdown period, however, investments can be made in technically advanced pumps and compressors with higher efficiency and lower the total cost of owners

Drivers

Driven by efficiency and advanced technology

  • Emphasis on energy efficiency will increase the demand for efficient and sustainable equipment
  • Pumps with lower maintenance cost and longer lifetime, using technology such as remote monitoring, surface coating, will drive the market for new equipment

Strong demand from repair, reusable water, and rental market

  • Growing demand from repair, retrofitting increases the scope for global manufacturers in aftermarket parts and services
  • Mines have started recycling and reusing the water for irrigation, which can drive the demand for mild steel pumps and compressors, which are used along with evaporators

Constraints

Commodity prices and raw material price fluctuation

  • Fluctuations in currency exchange rate, as well as fluctuations in raw material prices, risk net revenue and operating margin of global manufacturers, respectively. Commodity prices decline would reduce the demand for new mining equipment

Maintenance labor

  • The availability of skilled labor for mining equipment is decreasing, particularly in the emerging regions, also their associated costs are getting higher

Regulations

  • Stringent environmental laws and regulations with regard to water and waste disposal and air emission Driven by efficiency and advanced technology