The recent accession of several eastern European countries to the EU is the most significant driver in the European centrifugal pumps markets. Growth in end-user segments will sustain levels of demand. Overall, increasing customer focus on quality will support steady long-term market growth and will help to overcome challenges such as competition from low-cost Asian manufacturers, as well as pricing and quality pressures. These are the findings of a Frost and Sullivan report into the European Centrifugal Pumps Markets which earned revenues of USD4,800 million in 2006. These revenues are estimated to reach USD5,872.7 million in 2013.
"Opportunities for new installations of centrifugal pumps will increase as several new EU accession countries from eastern Europe move to comply with EU directives," notes Frost and Sullivan Research Analyst Varun Ramdas. "Moreover, efforts to update existing infrastructure, coupled with growth in the industrial sector, will boost demand levels."
Most parts of western and central Europe are fully compliant with EU directives on the likes of energy efficiency. Efforts by EU member states from eastern Europe to comply with these regulations will support long-term revenue growth in the centrifugal pumps markets. In addition, stringent environmental regulations such as emissions control will promote demand for high-quality products.
One of the key challenges that manufacturers face is intensifying competition from low-cost Asian manufacturers and the resultant pricing pressures. "As most of the pump manufacturers have overlapping product portfolios, the key differentiating factor is price,' says Ramdas. "Companies are under pressure to offer competitive prices, yet they also face quality pressures, with end users demanding higher-quality products at low prices."
The report concludes that intense competition and a lack of product differentiation are forcing participants to become total solutions providers, thereby augmenting their role as pump suppliers. In the light of this shift, the advice from Frost and Sullivan for pump manufacturers is that they should improve their customer service offering and focus on R&D to produce innovative solutions to penetrate the market.
