The North American metering pumps market is in a mature state, and is expected to record a cumulative annual growth rate (CAGR) of 2.5% during 2016–2022. Although many manufacturers are attempting to introduce new technologies in the market, technological developments are becoming less frequent and some end users are reverting to the older style of metering pumps. This is because some end users consider these pumps to be more robust with functionality more suitable for their needs. Moreover, many new metering pumps are being produced using plastic and materials other than metal. This is affecting the performance of these pumps in high pressure conditions. Therefore, to ensure reliability and accuracy, end users are purchasing the older-style metering pumps.
Future sales, especially in water and wastewater applications, are expected to be driven primarily by population growth as well as replacement. In recent times, metering pumps are being replaced by other pumps as they are less expensive; moreover, their accuracy has improved. This has been observed in applications in which accuracy is not as crucial, such as in processing in high-value products.
This trend is being observed mainly with regard to certain applications such as those in the food and beverage sector. In such sectors, accuracy is not as crucial as it is during the dispersal of lethal chemicals. For example, a slight variation in the amount of syrup in a soft drink concoction is not likely to affect the product outcome. This is why other positive displacement pumps can be used for metering applications, which affects market revenue and slows growth.
From an operating landscape standpoint, the metering pump market is highly competitive, with a large number of small participants and low-cost imports from Asia-Pacific. As the quality of these products improves, these market participants are able to compete on a global scale. The marketing tactics used by some of these participants lure customers into believing in a greater-than-possible level of metering accuracy. This leads to customer expectation for such features from dominant market participants.
Market Distribution Channels
Distributors are the dominant mode of pump distribution, influencing more purchase decisions, and closely followed by direct selling. Large metering pump manufacturers have established a global presence with direct sales networks in key regions. They also have direct sales agents and subsidiaries around the world.
Some end users look for complete solutions for their metering requirements, which are provided by OEMs. Partnerships with OEMs ensure a steady channel of sales for metering pump manufacturers. Some metering pumps, which may be of low capacity and are commoditized, are sold by multi-brand distributors that cover large areas across regions. A number of exclusive distributors are also employed by major metering pump manufacturers to effectively reach their target customers.
2016 Revenue Forecast Discussion
In 2016, the North American (NA) metering pumps market generated revenue of $452.6 million, of which diaphragm pumps alone accounted for $289.3 million (63.9%). Piston/plunger pumps accounted for the second-largest share, contributing 29.7% or $134.4 million of the total market revenue. Since 2011, US and Canadian economies have started investing excessively in various infrastructure projects ranging from power generation and road and transport development to water and wastewater infrastructure. The highest demand for metering pumps comes from industries such as food and beverage (F&B) and pharmaceuticals. Revenue for metering pumps from these two industries grew by 2.5% and 2.2% in 2016 respectively.
As the North American metering pumps market is mostly a replacement market, revenue is expected to remain relatively stable. A slight increase in revenue is expected due to new equipment sales, as the population grows and more water/wastewater plants, ethanol plants, and so on are built. Furthermore, stricter governmental regulations and efficiency, accuracy, and technology improvements are expected to force manufacturers to upgrade equipment. These factors are also expected to slightly increase market revenue during the forecast period.
The NA metering pumps market is expected to record a CAGR of 2.5% between 2016 and 2022, reaching $525.4 million by the end of 2022. Of the countries in the region, Canada is expected to predominantly drive the growth of this market, recording a CAGR of 3.2% during the same period.
End-user Industry Discussion
- Oil & Gas: The demand for metering pumps in the oil and gas industry is expected to witness steady growth across the region due to investments in shale oil development and deep-water resources, leading to a CAGR of 2.7% during 2016–2022. Metering pumps in oil and gas are presently growing at 2.2% in 2017 and is expected to record $96.1 million in revenue by the end of 2022.
- Food & Beverages: Metering pumps in the food and beverage industry are expected to record a CAGR of 3.4% during the forecast period, as investment in this segment is an important driver for the metering pumps market across regions. Food and beverage end-users tend to move toward other pump technologies, as accuracy in some applications may not be critical to the process and may be a deterrent for this market.
- Water & Wastewater: Water and wastewater is the largest end-user segment contributing 25.5% of metering pumps market revenue (amounting to $115.6 million in 2016). The end-user industry market share is expected to decline to 25.2% (amounting to $132.2 million) by the end of 2022, driven solely by investments in the water and wastewater industry for drinking water and safe waste disposal.
- Chemicals: In the chemicals industry, the metering pumps market is expected to record a CAGR of 2.1% during 2016–2022, with several applications in the growing specialty chemicals segment. Revenue from the segment amounted to $81.1 million in 2016, and is expected to increase to $92.0 million by the end of 2022.
- Pharmaceuticals: The pharmaceuticals industry is expected to record a CAGR of 3.0% during 2016–2022, driven by the development of generic drugs and contract manufacturing. Industry revenue amounted to $52.1 million in 2016 and is expected to increase to $62.6 million by the end of 2022.
- While the total metering pumps market is projected to follow a slow growth period, market application areas such as anti-corrosion and anti-foaming processes are expected to record modest demand in the short term. Similarly, the use of energy-efficient technologies and drilling equipment is influencing the long-term purchase decisions of end users, subsequently impacting the demand for different metering technologies in the market.
- Regardless of the optimistic or pessimistic perspectives on the future of oil prices and their impact on the profitability of the oil business in the United States, the challenge for metering pump manufacturers is to develop a long-term market positioning strategy by manoeuvring among different activities and diversifying into related lines of business.
- Automated solutions are expected to play a key role in metering applications, driving demand for integrated solutions. Peristaltic metering pumps constitute a growing segment in metering pump applications. The metering pumps market is expected to stabilize as global economies recover and export demand increases.
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