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Market Definition:
A water pump is a device that moves water by mechanical action, typically converted from electrical energy into hydraulic energy. Alternatively, a Water pump is a hydraulic machine used to raise, compressor transfer fluids. One of the most vital applications of the water pump is in the circulation of fluids. Water pumps find applications in almost all industries including residential and agriculture sectors. Centrifugal water pumps and positive displacement water pumps are the two major types of water pumps.
With the growth in construction activities, oil & gas extraction, expanding irrigation network, growing dependence on ground water, etc., the demand for water pumps have been soaring in the Middle East and North Africa region.
Market Insights:
The Middle East & North Africa (MENA) Water Pumps Market is projected to grow at a CAGR of around 3.81% during the forecast period, i.e., 2022-27, says MarkNtel Advisors. The surging investment in the energy and power sector would attribute to the increasing demand for water pumps in the region. Moreover, the water pump market in the Middle East & Africa has seen several highs and lows during the past couple of years. The volatility in crude prices had a significant impact on the sales of water pumps in the region. The crude prices crashed from an all-time high in Q1 2014 to a historical low in 2021, and again skyrocketed in early 2022 owing to the Russian-Ukraine military conflict.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 3.81% |
| Country Covered | UAE, Saudi Arabia, Turkey, Qatar, Oman, Egypt, Israel, Iraq, Algeria, Morocco, Rest of Middle East & North Africa |
| Key Companies Profiled | Flowserve Corporation, Sulzer Limited, IDEX, Dover, Ebara, SPX Flow, Kirloskar Brothers Limited (KBL), Grundfos, Xylem Inc, KSB Group, Wilo ITT Inc., Torishima Pump MFG. Co. LTD. |
| Unit Denominations | USD Million/Billion |
Therefore, 2017-2021 was full of immense instability in demand for water pumps in the MENA region. Crude production cuts, inconsistent demand for chemicals and petrochemicals, delay in the construction activity, etc., all contributed to fluctuation sales trend of water pumps in the region. The end-users in the region are highly dependent upon imports for their requirements of water pumps. Therefore, the global macro factors have a direct impact on the sales for water pumps in the region. The impact of COVID-19 on operations, supply chains, and businesses of water pumps across all the Middle Eastern and African countries has likely sustained throughout 2021.
Covid-19 had a Negative Impact on the Middle East & North Africa (MENA) Water Pumps Market
The emergence of the Covid-19 pandemic had a decelerating effect on the water pump market in the Middle East & North Africa regions. The market faced certain challenges with the hampered supply chain & shutdown of manufacturing units. The end-user industries like oil & gas, chemicals, power generations, HVAC, etc., were also badly affected, and hence, the demand for water pumps slumped by around 10% in 2020, over 2019. In addition, the average cost of water pumps in the region also rose in the range of 12% to 15% during 2020-21 in the MENA region owing to the increased cost of raw materials in the countries such as China, Germany, the US, India, etc. These countries have been among major suppliers of water pumps to the countries in the MENA region.
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Market Segmentation
Based on the Type:
The MENA region water pump market bifurcates by type into centrifugal pumps and positive displacement pumps. The centrifugal pump segment dominated the MENA market in 2021, and the trend would continue to do so in the forthcoming years. Several industry verticals, such as the chemical industry, food & beverages, dairy, oil & energy, etc., deploy Centrifugal pumps in MENA region. The presence of leading oil producers and their plan to expand production facilities has been driving the procurement of centrifugal pumps in the country over the past couple of years. For instance: Saudi Aramco planned to increase its oil production capacity to 13 million barrels a day from 12 million barrels a day in Saudi Arabia by 2027. Moreover, the total under construction projects in GCC states alone were valued more than USD800 billion in 2021, with total construction market potential exceeding USD3 trillion (as of December 2021). Several mega construction projects announced in the region includes:
Based on End-Users:
In 2022, the oil & gas industry in the Middle East and North Africa region revived owing to a surge in crude demand and geopolitical instability brought forward by Russia-Ukraine conflict. The regional firms undertake major expansion programs, advance unconventional hydrocarbons exploration initiatives, and act to secure their future market share in the industry. According to MEED Projects, projects worth USD652 billion (as of Dec 2020) worth of oil, gas, and petrochemicals are planned or underway across the MENA countries. Of this, some USD392 billion of projects are in their planning phase.
The current investments in upstream field exploration and production capacity would lead to a striking augmentation of the region’s oil production capacities of operators by 2025. Eventually, the sales for water pumps in this region is likely to soar at a CAGR of around 4% during 2022-27.
Regional Landscape
Based on the Geography, the Middle East & North Africa (MENA) Water Pumps market expands across:
Saudi Arabia water pumps registered a subdued growth during 2017-21 owing to a slowdown in construction activities. The decline in government budget allocation towards infrastructure creation and reduced greenfield investments in oil and gas, tourism, etc., has also negatively impacted the growth of water pumps in Saudi Arabia. The market further nosedived due to global disruption in the supply chain owing to COVID-19. The imposition of lockdown led to the suspension of construction activities. Consequently, the sales of water pumps plummeted massively in 2020. However, the market performed comparatively better due to the gradual revitalization of construction activities, rising government investments in municipal water treatment, and desalination plants in 2021. The construction activities in the country are expected to be in full swing in the latter half of 2022, which would induce the demand for water pumps.
UAE and Egypt are expected to outperform the regional peers in the year-on-year growth of water pumps in the forecast period, due to their lower dependence upon crude revenues and comparatively lesser approval time for any major greenfield investment projects. The water pump sales in UAE are expected to grow at a CAGR of around 3.7% during 2022-27.
Market Dynamics:
Key Drivers: Rising Installation of Waste Water Treatment Plants in the MENA Region
The warming temperature of the MENA region has caused the water crisis scenario in various countries such as Saudi Arabia, Oman, Kuwait, etc., and they have also reported temperatures above 50 degrees Celsius in recent years. Consequently, the rising water crisis circumstances have created the need for recycling waste water for further usage like irrigation facilities for agricultural lands. Significantly, the implementation of waste water treatment plants has been done in the MENA region over the last few years in order to combat the water scarcity situation. Thus, owing to the factors aforementioned, the market of water pumps in the MENA region witnessed significant growth in the historical years.
In addition, the rising construction projects of waste water treatment plants in the MENA region have fuelled the demand for water pumps like centrifugal pumps in recent years. Moreover, the burgeoning investments for the establishment of waste water treatment plants have also amplified the sale of water pumps in recent years. For example,
Therefore, the massive investments for the installation of waste water treatment plants would positively impact the growth of the MENA water pumps market in the forthcoming years.
Growth Restraint: Challenges Related to Integration of IOT Based Water Pumps
IoT-based water pumps are a growing market. However, conventional water pumps hold the majority market share. The IoT-based water pumps require handling with appropriate labor & digital solutions. The demand for conventional water pumps in several developing countries is prevailing. Many developing countries in the region cannot operate the sophisticated technologies, which is likely to pose a substantial challenge for IoT-based water pumps. The market for IoT and intelligent water pumps would face roadblocks in many countries such as Egypt, Algeria, etc., and several other countries with penetration of high speed internet.
Key Companies Operating in the Market
Flowserve, Sulzer, KSB, Xylem, Grundfos, ITT, IDEX, Dover, Ebara, etc., were few of the top players operating in the Middle East and North Africa water pumps market in 2021.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Middle East & North Africa (MENA) Water Pumps Market is projected to grow at a CAGR of around 3.81% during 2022-27.
A. The Centrifugal Pump is anticipated to emerge as an area of remunerative opportunities for the leading players in the Middle East & North Africa (MENA) Water Pumps Market during 2022-27.
A. The growing sector of water and waste water management in MENA regions, are the prime aspects anticipated to drive the Middle East & North Africa (MENA) Water Pumps Market in the coming years.
