Innovative Business Models Centered Around Services are Expected to Unlock New Revenue Streams for the Pumps Industry
This study forecasts the future of the pumps industry amidst the onset of a new wave of digitalization and the Industrial Internet of Things (IIoT). The changing market conditions influenced by demand-supply shock, oil price volatility, political tension, and shift in customer preferences are making pump manufacturers revisit their value proposition. In a mature and fragmented industry like pumps where growth from pump equipment remains in the single digit, pump OEMs have started to observe a spike in demand for aftermarket services. This spike also indicates a shift in pump OEMs’ role from being mere product suppliers to a thought-partner enabling end-users in their digital transformation journey to collaboratively build a connected ecosystem. The pumps market, valued at ~$38.34 billion in 2019, is expected to discover new growth opportunities by expanding its service capabilities with IIoT technologies and move beyond standard aftermarket services. In this pump visionary study, we have identified the top 5 global Mega Trends and assessed their implication for the pumps industry. The study also discusses the market size and offers a breakdown by region, product segment, and end-user industry. To understand the role of services in the pump market, the study also includes revenue potential from the services segment. An overview of the key market participants, their product offering, and their market positioning have been provided in this report.
The publisher has identified the top 4 innovative business models that pump OEMs can implement by investing and integrating IIoT into their solution offering. These models will enable OEMs to unlock new revenue streams and stay ahead of their peers. The study does a deep dive into each business model and assesses its implication on the pumps industry. Some of the key IIoT technologies that are instrumental in the successful transition of the industry include cloud computing, analytics, artificial intelligence, and machine learning and blockchain. The end-user shift from a CAPEX to an OPEX model and the need for data insights, require pump OEMs to proactively embrace these progressive technologies in their service offering.
With the potential to realize double-digit growth from services, pump OEMs are at a juncture to revisit their product and service offerings as well as their relationship across the distribution channel. By expanding service capabilities with advanced and digital services, pump OEMs are well-positioned to increase the uptime, reliability, and lifetime of the machine. They can assist their end-users to move towards a predictive maintenance approach, reduce OPEX, and increase production efficiency.
Key Issues Addressed
- What is the current state of the pumps industry and how is it expected to grow by 2025?
- What are the innovative business models pump OEMs can explore as they move towards pumps-as-a-service?
- What are the key growth opportunities for the pump industry? How can they benefit from these opportunities?
- What are the global Mega Trends and how do they impact the pump industry?
- What is the mindset of end-users towards the new pump solutions?
