Pumps, the "workhorses" of industry, are used in a wide variety of applications including the oil and gas, petrochemical, food & beverage, and chemical processing industries. In the wake of the industrial Internet of Things (IIoT), says the firm, the pump industry will be transitioning from a product-based to a service-based model where pump OEMs will be offering real-time monitoring and reliability services.
The firm estimates global pump revenue to reach $46.92 billion by 2025 from approximately $38.34 billion in 2019.
"In the next five years, a large portion of pump OEMs' growth will be driven by services that leverage analytics to provide insights on improving pump reliability and lifetime," says Kiravani Emani, Industrial Automation & Process Control Research Analyst at Frost & Sullivan. "Additionally, service-based business models are expected to become more predominant; as a result, pump OEMs are expected to diversify their revenues and deliver standalone services to unlock new revenue streams."
"Intelligent pumps with analytics capabilities are expected to be the new norm as customers require meaningful data insights on pump performance as opposed to a device that will merely display data," says Emani. "Further, the water and wastewater, chemicals, refining, and oil and gas production industries are expected to embrace IoT-based pump solutions as these industries are actively working towards digitalization."
The need to shift from a traditional business model (hardware) to services, says the firm, is presenting tremendous growth prospects for pump OEMs, including the following:
- Expanding service capabilities with a focus on building innovative business models to unlock revenue opportunities.
- Offering high-quality, reliable and precise services for customers by investing in IIoT-based technologies such as cloud computing and edge analytics.
- Adopting an integrated approach by leveraging the strength of channel partners to enhance the customer experience.
- Reducing energy consumption and controlling operational costs to boost the demand for energy-efficient pumps.
For more, see the firms report: " 2025 Vision: Future of Pumps in a