pumps market in desalination industry – quenching europe’s need for drinking water
DESCRIPTION
Analysis by Ashwin Annareddy, Industry Analyst, Industrial Automation & Process Control, Frost and Sullivan.TRANSCRIPT
Pumps Market in Desalination Industry –Quenching Europe’s Need For Drinking Water
Ashwin Annareddy, Industry Analyst
Industrial Automation & Process Control
2
Functional Expertise
• Domain knowledge in the Fluid Motion and Process Control sector with expertise in Pumps and Mechanical seals, including skills in marketing and business development.
• Particular expertise in:
- Market research for Pumps, Valves and Compressors (pre marketing and post marketing)
- Consulting for global projects on market entry strategies, product placement and strategy development
- Company, Product and Technology benchmarking
Industry Expertise
� Over 6 years of Industry rich experience in the Oil & Gas, Water and HVAC sectors leveraging long-standing working relationships with leading industry participants in
- Centrifugal pumps
- Fixed speed and Variable speed Pumping systems
- Mechanical Seals, Valves and Compressors
What I bring to the Team
• Immense Industry experience and domain knowledge of the Pumps sector
• Efficient and skilled analytics with strong business acumen
• Industry contacts and connections
• Understanding market trends from the participants’ point of view
• Experience of working on consulting assignments for global regions
Career Highlights
• Extensive expertise in industrial products in Fluid machinery
• Worked with leading corporates in Pumps and Mechanical Seals including Flowserve Sanmar Ltd. Mumbai, India
• Published articles in international publications such as World Pumps on the Global Centrifugal pumps market
Education
• Executive Post Graduate Diploma in Business Management (EPGDBM) with dual specialisation in Marketing and Leadership from Narsee Monjee Institute of Management Studies Mumbai, India
• Bachelor of Mechanical Engineering from University of Mumbai, India
Ashwin Annareddy
Ashwin AnnareddyIndustry Analyst – Industrial Automation & Process Control (Europe practice)
Frost & SullivanEuropeChennai, India
3
Market Analysis
Market Drivers and Restraints
Market Segmentation
Geographic Opportunities
Conclusions
Industry Challenges, Product and Technology Trends
Market Overview
Agenda
4
Market Overview
Demand-supported Market Growth
• Demand for pumps in desalination is buoyed by a demand for clean water which is driven by population growth, urbanization and industrialization in Europe.
• Even during the global economic downturn in 2009, many governments in Europe applied portions of their stimulus funding to ensure availability of clean water.
• Various water infrastructure maintenance and build-out projects, as well as investments in the development of potable water sources, continued throughout 2009 and are expected to steadily increase in the forecast period.
Hubs of Opportunity
• Countries along the Mediterranean coast and the United Kingdom are expected to attract investments in desalination plants and thus pumps in desalination.
• Major pump manufacturers have started providing integrated solutions alongwith energy recovery devices as decentralized systems.
• As Desalination continues to be a energy consuming application, centrifugal and positive displacement pumps with high efficiency will continue to show demand in large plants as well as potable solutions.
• This Frost & Sullivan thought leadership analysis applies the company’s expertise in the desalination industry to map growth opportunities across the European pumps market.
• With limited fresh water resources, water-stressed regions in Europe continue to look at desalination as a solution for potable water scarcity
• Frost & Sullivan research shows that the pump market in desalination remained stable inspite of the economic recession in Europe in 2009.
• Market participants in the pumps market are faced with the near-term challenge of investments in the market as the economy revival as it affects their unit sales in various applications.
• RO is the dominant technology for desalination in Europe while MSF and MED are prevalent in Middle East and Asia
• Spain continues to have the highest number of Desalination plants alongwith a large number of EPC contractors.
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Market Segmentation – Product and Application
2010
2011 - 2017
Historic Year
Pumps Market in Desalination Industry
Product Segmentation Application Segmentation
Centrifugal Pumps
Positive Displacement Pumps
Vacuum Pumps
Thermal Distillation
Multi Stage Flash (MSF)
Multi Effect Distillation (MED)
Membrane Technology
Reverse Osmosis
Electro-Dialysis
Others (Vapour Compression,Ultra Filtration, Micro Filtration,
Nano Filtration, Membrane Distillation)
Base Year
Forecast Period
2007 - 2009
Source: Frost & Sullivan
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Market Analysis
1.0%
85.0%
14.0%
Centrigugal pumps Positive Displacement pumps
Vacuum pumps
2.0%
1.0% 2.0%
95.0%
Thermal Distillation Membrane TechnologyElectro DialysisOthers
Pumps Market in Desalination: Breakdown by Product (Europe), 2010
Pumps Market in Desalination: Breakdown by Application (Europe), 2010
Source: Frost & SullivanSource: Frost & Sullivan
Others include Vapour Compression, Ultra filtration, Nano filtration, Membrane Distillation
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Market Analysis - Supply Chain
Pump suppliers
Contractors System Integrators Original EquipmentManufacturers (OEMs)
End Users
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Industry Challenges
European Pumps Market in Desalination: Industry Challenges (Europe), 2010-2017
Lowering the operating pressure to reduce energy consumption
Producing drinking water at competitive operating costs
Improving private funding in Desalination projects
Current technology in pumps is unable to reduce energy usage to ensure lower operating costs
Increasing water salinity necessitates superior
grades of material of pumps
European Pumps Market in
Desalination Industry
Reducing the Life Cycle Costs of pumps
Source: Frost & Sullivan.
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Product and Technology Trends
More than 14,400 Desalination plants
present globally, installed capacity
expected to double to 107 million m3 per day
by 2016
Very high cost of installation of the
desalination plants with capacities less 150,000-
gpd
Global market volume for desalination industry was
$4billion in 2005 and expected to reach
$30billion by 2015 with CAGR of 15.0 per cent
Long Life, Low Maintenance and
dependable performance pumps
needed for DesalinationHigh Pressure Centrifugal pumps with
high pressure, high efficiency and low
maintenance costs are best suited
PD pumps with piston and plunger for Reverse
Osmosis process with low pulsation and ideal for
smaller plant size
Source: Frost & Sullivan.
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Market Drivers and Restraints
European Pumps Market in Desalination Industry: Market Drivers and Restraints (Europe), 2011-2017
Source: Frost & Sullivan
High
Impact
Ma
rke
t D
rive
rsM
ark
et
Res
tra
ints
Impact
Drinking water scarcity puts greater emphasis on
desalination and opportunities for pumps
High capital investment in desalination plant
Economic crisis and its aftermath raises doubts on funding
Increased use of Integrated pump solutions for
desalination
Low
High
Low
Growth of Centrifugal pumps with improved
efficiency
Improved efficiency of RO technology
High
High energy requirements of Desalination plants
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Geographic Opportunities
Spain has the highest Spain has the highest
installed base of pumpsinstalled base of pumps
Poor Good
Prospect
Key Markets
• Spain, Italy, UK and Greece are currently the most exciting markets for Desalination pumps in Europe, offering the best prospects for growth
• Spain is the hub of activity in the Desalination industry, accounting for approximately 85.0% of all Europe. The nation was the first European country to install a desalination plant in 1964. The country boasts of a number of desalination plants, and is particularly strong in terms of the number of sub-supplier manufacturers located there.
• Italy is one of the foremost countries in desalination industry and occupies 5.0 per cent of the European pumps market in desalination industry. Italy is also active in the field of research related to the technology of desalination.
• The United Kingdom has recently set up its first desalination plant on the Thames and is expected to show strong market potential for pumps.
• Greece is experimenting using renewable energy sources such as geothermal energy and floating wind turbines to power desalination plants
Weaker markets
• Countries such as Romania, Bulgaria, Hungary and Czech Republic in Eastern Europe are considered weak markets for the European pumps market in desalination industry due to factors such as high investments costs and high cost of energy and operating costs.
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Major Market Participants
Other players include Finder Pompe, Nijhuis Pompen BV and Salvatore Robuschi
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Conclusions
Focus on emerging geographies in desalination
Increase awareness about new technology
in pumps
Focus on strategic and innovative services
End users looking at lower life cycle costs
Suppliers need to provide integrated
solutions
Conclusions
Need for energy efficiency and
increased product reliability
Enhance partnerships with EPC and OEMs
Source: Frost & Sullivan
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List of Research Studies for Pumps
Existing Research
WorldStrategic Analysis of World Intelligent Pump Systems Market2010
EuropeStrategic Analysis of Eastern European Pumps Market 2009
EuropeStrategic Analysis of the European Pumps Market in the Oil and Gas Industry2009
EuropeEuropean Pumps Market in Water and Wastewater Industry2010
EuropeStrategic Analysis of European Positive Displacement Pumps Market2010
EuropeExecutive Report on Growth Opportunities in Strategic Services in European Pumps Market2009
EuropeStrategic Analysis of Pumps Market in European Pharmaceutical Industry2010
RegionStudyYear
15
List of Research Studies for Pumps
Upcoming Research
WorldWorld Pumps Market in Water and Wastewater Industry2011
WorldWorld Mechanical Seals Market2011
EuropeEuropean Pumps Market in Oil & Gas Industry2011
EuropeStrategic Analysis of European Centrifugal Pumps Market2011
WorldPumps in Global Biotech Industry2011
EuropeEuropean Pumps in Geothermal Energy Applications2011
EuropeStrategic Analysis of European Positive Displacement Pumps Market2011
EuropeEuropean Pumps Market in Desalination Industry2011
RegionStudyYear
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For Additional Information
Joanna LewandowskaCorporate Communications Executive
Phone: +48 22 390 41 46Email: [email protected]
Mark Illingworth
Account Manager
Phone: +44(0)20 7343 8338
Email: [email protected]
Ashwin Annareddy
Industry Analyst - IPC
Phone: +91 44 6160 6666
Email: [email protected]
Sivakumar NProgramme Manager – IPCPhone: +91 44 6160 6666
Email: [email protected]