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Frost & Sullivan Optimistic that the South African Pumps Market Will Remain Buoyant - The South African pumps market is growing steadily, supported by ongoing infrastructure projects within the power generation and water and wastewater industries
Frost & Sullivan Optimistic that the South African Pumps Market Will Remain Buoyant

 

NewswireToday - /newswire/ - Cape Town, South Africa, 2009/12/03 - The South African pumps market is growing steadily, supported by ongoing infrastructure projects within the power generation and water and wastewater industries.

   
 
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Although the market has experienced a marginal decline in demand due to the global recession, it is still exhibiting steady growth with most supplier order books in a healthy state.

New analysis from Frost & Sullivan (industrialautomation.frost.com), South African Centrifugal and Positive Displacement Pumps Market, finds that the market earned revenues of $175.4 million in 2008 and expects this to reach $323.6 million in 2015. Centrifugal pumps, positive displacement pumps and pump parts are the product segments covered in the study.

If you are interested in more information about this study, please send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

"Massive capital investment projects within the utilities, chemicals and petrochemicals and water and wastewater end-user industries are expected to contribute to a higher demand for industrial pump products over the long term," notes Frost & Sullivan Research Analyst James Fungai Maposa. "Eskom's Medupi and Kusile Power Stations, as well as PetroSA and Sasol's planned expansion activities are some of the projects poised to support steady market expansion."

The South African industrial pumps market has burgeoned in recent years, owing to the 2010 Soccer World Cup tournament in South Africa, state-owned power utility Eskom's expansion plans and growth of the mining sector. The mining industry has however slowed down in the global economic downturn. Nevertheless, it is still set to contribute to sustained demand for slurry pumps and mine dewatering works, as mines have to be kept dry regardless of them being operational or not.

The South African industrial pumps market is susceptible to increases in raw material costs. Although it is cheaper for some companies to manufacture and assemble their pump products and components in South Africa, global increases in metal prices since 2003 have had a negative impact on the pricing of finished pump products.

"Raw material costs have increased due to availability constraints, with lower amounts of the raw material being supplied due to most mining entities focusing their attention on precious minerals, which have higher returns on investment," cautions Maposa. "The escalation of raw material costs due to scarcity and the rising costs of extraction and processing have resulted in tremendous sales pressure on manufacturers and dealers."

Although raw material shortages continue to have a negative impact on market growth, the evolution of pump technologies continues to attract end-user attention and sustain end-user demand for pump products within key process industries in South Africa. Most suppliers are continuing to develop their products and have brought to market pumps and pump components with enhanced durability and lower maintenance costs.

"Through sizeable investments in research and development, most manufacturers' newer pump series are reported to be stronger, lighter, using fewer parts as well as having a smaller space footprint than previous models," remarks Maposa. "Confidence in the new product series is high, such that some of the market participants have extended product warranty life cycles to five years instead of the usual three."

South African Centrifugal and Positive Displacement Pumps Market is part of the Industrial Automation & Process Control Growth Partnership Service programme, which also includes research in the following markets: South African Valves and Actuators Market, South African Valves and Actuators Market in the Chemicals and Petrochemicals Industry and, South African Channel Partners Analysis for Industrial Automation and Control Solutions. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

South African Centrifugal and Positive Displacement Pumps Market / M4E6.

 
 
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Frost & Sullivan Optimistic that the South African Pumps Market Will Remain Buoyant

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