Anand Mugundhu Gnanamoorthy is a senior research analyst for Frost & Sullivan’s Industrial Automation & Process Control practice. His research maintains a focus on pumps, valves, compressors and related topics.
Within Asia, varying pockets of opportunity exist for pump suppliers, depending on the country of focus. Indonesia, for example, is expected to quintuple its electricity consumption by 2030. The opportunity that this demand will generate for pumps is significant, as new infrastructure will be needed to accomplish provision of adequate supply.
The Chinese engine, of course, continues to hum. By 2015, power generation in China is expected to surpass that of North America. Though the Chinese pump market is highly fragmented, increased demand will benefit suppliers across the board. India’s power development is driven by capacity shortages, growing electrification and power industry liberalization. Its percentage of the world’s electricity output is expected to almost double by 2030. Major North American pump suppliers have responded to this potential by increasing their manufacturing presence in that country.
A further interesting region for future opportunity is Africa. The key driver for the development of the African power generation market is a shortage of generation capacity, particularly prevalent in Sub-Saharan Africa. This is expected to prompt substantial investments for new capacity, which bodes well for pump demand in the region through the next decade. The political volatility of the region, however, means that pump suppliers tread cautiously when considering investments.
Continually, one of the top five industry verticals to use pumps extensively in operations, the global power generation industry is expected to provide promising growth during the next 10 years. Emerging economies will be the biggest engines of growth, with coal plants continuing to dominate the landscape. Innovation in the nuclear industry, however, promises a strong potential for future growth.