LONDON, Sept. 15, 2005 (PRNewswire) -- The European positive displacement pumps market is being increasingly influenced by the growth of East European economies and the imminent accession of East European countries into the European Union (EU) is expected to reinforce confidence and bolster demand. Key end user segments such as the food and beverage, pharmaceutical and water and wastewater industries are also undergoing significant expansions, thereby ensuring healthy growth across most product segments.
In the wake of the promising market outlook, the European positive displacement pumps market is emerging as a lucrative target for overseas manufacturers. With the market moving towards a competitive mix of high value technology and low prices, there has been a surge of imported pumps from China, South America and other low-cost manufacturing regions.
"The import of cheaper pumps could intensify competition and slim down the price margins for pump manufacturers," notes Frost & Sullivan analyst Sebastian Raja Ignatius M. " With the influx of these low-cost pumps, established participants are being forced to rework their manufacturing processes to reduce production costs and to develop products for niche markets and form strategic alliances in order to remain competitive."
While the changing complexity of pump technologies limits the scope for any further price reductions, manufacturers will need to start adding value to their products to attract more customers. In addition to improving their product technology, providing a high quality of customer service and support and employing greater branding could help manufacturers differentiate themselves within the market.
As modern pumps face far more stringent application processes in comparison to those used earlier, there has been a consistent advance in demand for better-quality products. Also, stricter health and environmental legislations across end user segments have been fuelling the demand for high-end, sophisticated pumps that ensure regulatory compliancy. This, in turn, is enabling suppliers to gain premium prices in contrast to standard designs and greater unit prices are raising overall revenues in the market.
However, in this fiercely competitive and mature market, manufacturers face many critical challenges in enhancing their overall standing. In addressing these challenges corporate growth strategies are increasingly being tailored around continuous improvements to distribution channels and expansion through the establishment of subsidiaries and quality agents in various countries to provide 24-hour end user support.
The European positive displacement pumps market is set to register continued growth and revenues are forecast to increase from $1.45 billion in 2004 to $1.76 billion by 2011. Although there are a relatively large number of manufacturers, only a few have managed to build a commanding market share, with the top three manufacturers together accounting for an estimated 12.1 per cent of the market.
Diaphragm pumps constituted the largest product segment in 2004, accounting for an estimated 27.2 per cent of the overall revenues. However, the lobe and peristaltic pump segments are also anticipated to enjoy steady revenue growth in future years, benefiting from growth in key application segments, notably food and beverages, pharmaceuticals and water and wastewater treatment.
While eastern Europe is projected to be the strongest performing regional market, the German positive displacement pumps market could see its revenues decline over the coming years. Nevertheless, with its strong and well-established industrial base, it remains the single most important region in terms of revenue share.
"The key to success in the mature European positive displacement pumps market is to have a strong focus on end user needs," says Sebastian. "Manufacturers that anticipate and develop innovative solutions to satisfy these needs and build long-lasting relationships with end users stand to gain market presence."
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Frost & Sullivan (http://industrialautomation.frost.com), a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.
