Intelligent pumps with analytics capabilities expected to be new norm: report
A large portion of pump OEMs' growth will be driven by services in the next 5 years
SANTA CLARA, Calif. — Frost & Sullivan’s recent analysis, 2025 Vision: Future of Pumps in a Connected World, finds that an average of 50% to 60% of pump original equipment manufacturers’ (OEMs’) revenue is expected to be generated from services-related activities, such as real-time monitoring and reliability services.
This will result in the pump industry transitioning from a product-based to a service-based model in the wake of Industrial Internet of Things (IIoT) in this digitalization era. Global pump revenue is estimated to reach US$46.92 billion by 2025 from approximately US$38.34 billion in 2019.
“In the next five years, a large portion of pump OEMs’ growth will be driven by services that leverage analytics to provide insights on improving pump reliability and lifetime,” said Kiravani Emani, industrial automation & process control research analyst at Frost & Sullivan, in a prepared statement. “Additionally, service-based business models are expected to become more predominant; as a result, pump OEMs are expected to diversify their revenues and deliver standalone services to unlock new revenue streams.”
Emani added: “Intelligent pumps with analytics capabilities are expected to be the new norm as customers require meaningful data insights on pump performance as opposed to a device that will merely display data. Further, the water and wastewater, chemicals, refining, and oil and gas production industries are expected to embrace IoT-based pump solutions as these industries are actively working towards digitalization.”
According to Frost & Sullivan, the need to shift from a traditional business model (hardware) to services is presenting growth prospects for pump OEMs, including:
- Expanding service capabilities to unlock revenue opportunities.
- Offering high-quality, reliable and precise services for customers by investing in IIoT-based technologies such as cloud computing and edge analytics.
- Adopting an integrated approach by leveraging the strength of channel partners to enhance the customer experience.
- Reducing energy consumption and controlling operational costs to boost the demand for energy-efficient pumps.