Abstract
Pricing Pressure Forces Manufacturers to Cut Costs
The increasing availability of low-cost products from non-European countries is having a profound
impact on the European positive displacement pumps market. Weak demand and standardised technology
coupled with immense pressure from end users have made price the key competitive differentiator in
the market. However, the scope for further price pressure is limited as, in many cases, the
technology is highly competitive and manufacturers are trying to raise quality and production
efficiency in order to produce more effectively priced products. Further, despite the increasing
competition and declining price levels, investment in more specialised and sophisticated
technologies has helped maintain overall revenues and a slow recovery of the market is expected in
the future.
This Frost & Sullivan research service analyses the European markets for positive
displacement pumps, providing a comprehensive market analysis with unit shipment and revenue
forecasts across products, applications and regions. While highlighting the key drivers and
restraints for the market, it also analyses the market share of companies in the various market
segments and provides strategic recommendations to help enhance growth.
Expansion of EU into Eastern Europe Likely to Drive Revenue Growth
The expansion of the European Union (EU) into eastern Europe has proved a positive development
for the participants in the market. With their relatively lower labour costs, cost-effective land
prices and proximal geographic location, investment in these countries is expected to see a
continuous rise. With the EU looking to bring the municipal and industrial infrastructure of the
region to western European standards, industrial growth rate in eastern Europe is expected to
accelerate. In turn, the development of an industrial base is expected to help increase demand for
positive displacement pumps in the short and medium term.
End users are demanding pumps of better quality to drive their application processes.
"Manufacturers are seeking to differentiate their products by incorporating advances and
improvements in them, which is also enabling suppliers to command premium prices in contrast to
standard designs," says the analyst of this research. "While this should help improve
growth rates in the positive displacement pumps market, it is also likely to ensure better revenues
for manufacturers that incorporate changes to satisfy end-user demands."
Increased Demand from Food and Beverage, Pharmaceutical and Water and Wastewater Treatment
Sectors
The food and beverage, pharmaceutical and water and wastewater industries are emerging as key
markets for positive displacement pumps since they are bound to witness considerable expansion in
the coming years. Furthermore, as most industries are under renewed pressure to comply with new and
likely regulations in respect to health and safety, hygiene, waste management, emissions, quality
and more, demand for positive displacement pumps that make compliance effective is likely to
increase.
While Germany remains the largest geographic market, diaphragm pumps account for a major slice of
the total revenues among product segments. However, lobe and peristaltic pumps are also expected to
show high growth rates due to the expected expansion in sectors such as food and beverage and
pharmaceuticals. "Increased demand for positive displacement pumps that are physically larger
in size and that use expensive materials and state-of-the-art production methods is expected to
boost revenue growth," says the analyst. "In order to differentiate themselves within the
market, manufacturers will need to add value to their products through better technology and ensure
high-quality service and support and greater branding."
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