New analysis from Frost & Sullivan suggests that novel technologies such as intelligent pump systems are set to be the main driver for future growth in Europe. Demand for these 'smart' pumps is increasing across a wide range of end-user segments, generating revenues of $68.5 million in 2005. This is likely to reach $230.3 million in 2012.
"The growing uptake of intelligent pumps is largely due to stringent EU legislation on environmental and energy issues," notes Frost & Sullivan. "Also, the expansion in eastern Europe is likely to open up highly lucrative market opportunities." Changing legislation is creating demand for advanced equipment that can meet these new requirements. With end users under pressure to comply with strict energy and environmental policies, the focus is increasingly on acquiring more reliable and sophisticated pumps.
Simultaneously, end users have started taking a more long-term view of pump and total life running costs. Given that the cost of a pump is typically less than 20 percent of the total life costs, end users are beginning to demand higher-efficiency pumps despite their being more expensive because of the considerable future savings that these systems can offer them. However, this trend is yet to gather significant pace. For now, one of the biggest challenges facing pump manufacturers is to educate the end-user base - that extends across several sectors - about the benefits of integrated solutions. This is critical for building the long-term viability of intelligent pumps.
At present, perceived high prices and uncertainties about the actual advantages of utilizing combined pump and control systems are acting as deterrents to investment. End users also need to be convinced that the design of the products is effective enough to meet the various requirements of a broad range of established applications.
"Research and latest pump studies have shown that pump reliability is maximum when operated near the best efficiency point," says Frost & Sullivan. "Customers have gradually started understanding the benefits of intelligent pump systems and their effectiveness in preventing pump damage."
This new analysis comes hot on the heels of a Frost & Sullivan report looking specifically at the European vacuum pumps market. Whilst the wider pump market can be best described as mature, the vacuum segment has been growing, largely due to increased demand from the semiconductor industry. Coupled with an economic upturn in most other end-user industries and significant investment across eastern Europe, this has seen the vacuum pumps market enjoy a significant recovery after a 1.1 percent fall in 2003.
Rising demand from a resurgent semiconductor industry - the largest end-user sector for vacuum pumps in Europe - is set to boost the rotary, kinetic and specialised vacuum technology product categories. New applications (such as plasma displays, storage devices, 300 millimetre equipment and MEMS) coupled with the expansion of manufacturing facilities is expected to effect an estimated $306.8 million in vacuum pump sales to the semiconductor industry in 2010. Further, with users in a wide range of industrial areas continuing to invest in vacuum pump technology, the industrial processes application segment is projected to display good long-term potential. Demand for vacuum pumps is also expected to rise across automotive, aerospace, medical, and food and beverage end-user sectors.
The growing importance of eliminating process contamination is set to underline expanding sales of dry vacuum pumps. At the same time, tighter regulations and the need to enhance productivity and efficiency, as well as replace ageing equipment, are anticipated to compel vacuum pump end users to upgrade, driving demand and revenue growth levels. Supported by these trends, the European vacuum pumps market, says Frost & Sullivan, is likely to setting into a period of continued but challenging growth, with overall revenues forecast at $1.00 billion in 2010. Encouraged by demand for more advanced and specialised pump technology, the kinetic vacuum pumps sector is expected to display the highest advance in revenues, with reciprocating vacuum pumps projected to exhibit the highest advance in demand, due to more competitive prices and renewed replacement and upgrade programmes.
