Submersible Pump Sector: Growth Drivers and Challenges
Growth Drivers
- Rise in sustainability and chemical recycling infrastructure: The global efforts aimed at minimizing chemical waste and recycling are expected to boost the application of submersible pumps in handling abrasive and multi-phase fluids. The chemical sector is poised to open lucrative doors for submersible pump manufacturers. The public initiatives aimed at expanding large-scale recycling infrastructure are poised to drive the sales of innovative submersible pumps in the coming years. AI and ML integration is estimated to increase the importance of submersible pumps in the chemical field for optimizing process efficiency and supporting high-volume operations.
- High applications in water and wastewater treatment facilities: The high fresh water demand is necessitating governments worldwide to invest in water & wastewater treatment facilities. The modernization moves and digital transformation initiatives are likely to fuel the adoption of next-gen submersible pumps. The majority of companies are investing in high-efficiency pump systems for wastewater and effluent treatment. The strict regulations on the discharge of chemicals in water are also contributing to the increasing of high-efficiency pump systems for wastewater and effluent treatment. The Urban Waste Water Treatment Directive (91/271/EEC) mandates EU chemical companies to adopt advanced submersible pumps.
Emerging Trade Dynamics: 2019–2024 Synopsis
The geopolitical tensions, post-COVID recovery, and rising demand from water infrastructure influenced the sales of submersible pumps between 2019 to 2024. The chemical, electronics, and water treatment sectors are primarily boosting the global trade of submersible pumps. The regional trade agreements and updated safety/environmental regulations are also contributing to the cross-border sales of submersible pumps.
Key Trade Routes
|
Exporter |
Destination |
Avg Annual Growth Rate (%) |
|
U.S. |
Europe |
5.5% |
|
China |
ASEAN |
6.9% |
Notable Trade Patterns (2018–2023)
|
Exporter |
Destination |
Avg Annual Growth Rate (%) |
|
U.S. |
Europe |
5.5% |
|
China |
ASEAN |
6.9% |
|
Germany |
NAFTA |
4.4% |
Global Events Impact: COVID-19
|
Year |
Event |
Impact on Trade Volume (%) |
|
2020 |
COVID-19 Pandemic |
−11.9% |
|
2021 |
Recovery Phase |
+8.1% |
Price History & Submersible Pump Market Synopsis (2019–2024)
The environmental regulations and stable raw material supply influence the sales of submersible pumps globally. The average price growth amounted to 12.2% annually post-2020 in North America, and the prices spiked 18.5% in 2021 in Asia Pacific. This was due to factory shutdowns and shipping delays. Post-2022, the submersible pump registered increasing sales due to the increasing applications in the water and wastewater sectors.
Submersible Pump Price Trend (2019–2024)
|
Year |
North America (USD/unit) |
Europe (USD/unit) |
Asia (USD/unit) |
|
2019 |
182.2 |
175.3 |
168.4 |
|
2020 |
190.1 |
178.1 |
173.1 |
|
2021 |
211.5 |
185.2 |
204.3 |
|
2022 |
219.3 |
214.4 |
218.2 |
|
2023 |
225.6 |
221.2 |
223.6 |
|
2024 |
229.5 (Est.) |
226.5 (Est.) |
228.1 (Est.) |
Annual Global Unit Sales (2019–2023)
|
Year |
Global Units Sold (Million) |
|
2019 |
22.7 |
|
2020 |
20.4 |
|
2021 |
23.9 |
|
2022 |
26.8 |
|
2023 |
28.6 |
|
2024 |
229.5 (Est.) |
Key Factors Influencing Price Fluctuations
|
Factor |
Impact Description |
|
Raw Material Costs |
Steel and copper prices increased 20.4% (2021–2022), boosting pump production costs. |
|
Geopolitical Events |
2022 Russia–Ukraine conflict resulted in a 30.4% energy cost hike, raising EU production costs. |
|
Environmental Policies |
EU carbon tax execution in 2023 added ~5.5% to average unit costs. |
Submersible Pump chemical shipments by Japan’s manufacturing industry (2018–2023)
The sales of submersible pumps are increasing at a high pace in Japan due to the strong presence of key manufacturers and end users. Technological innovations are fueling the sales of I and ML integrated submersible pumps. The rise in public spending on water and wastewater treatment facilities modernization is also opening profitable doors for submersible pump manufacturers.
Total Value of Shipments (2018–2023)
|
Year |
Shipment Value (JPY Trillion) |
|
2018 |
2.35 |
|
2019 |
2.30 |
|
2020 |
2.14 |
|
2021 |
2.46 |
|
2022 |
2.69 |
|
2023 |
2.76 |
Key Market Trends (2018–2023)
|
Segment |
Growth (%) CAGR |
Europe (USD/unit) |
|
Specialty Chemicals |
3.9% |
175.3 |
|
Submersible Pump |
4.5% |
178.1 |
|
Basic Petrochemicals |
-1.3% |
185.2 |
Role of Export Markets
|
Export Category |
Growth in 2023 (%) |
|
Electronic Chemicals |
+11.5% |
|
Submersible Pump to Asia |
+7.9% |
|
Battery Chemicals |
+13.5% |
Challenges
- Infrastructure limitations: The poor infrastructure is one of the major challenges for the sales of submersible pumps in underdeveloped countries. The limited power, logistics, and water resources supply hampers the demand for innovative pumping technologies, including submersible pumps. The study by the World Bank states that in 2023, more than 39.0% of the rural regions in Sub-Saharan Africa lacked reliable electricity. This reflects that low infrastructure availability is hindering the application of submersible pumps.
- Complex regulatory frameworks: The poor and incompetent regulations are expected to hinder the cross-border trade of submersible pumps. Varying regulatory policies are delaying new product launches and market entries. Submersible pump manufacturers are witnessing significant losses due to these time-consuming regulatory approval procedures. As per the International Electrotechnical Commission (IEC) 2024 study, nearly 66.2% of manufacturers witnessed increased costs and delays due to varying certification requirements. The mandatory compliance is adding up the costs, creating pricing challenges.
Submersible Pump Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.3% |
|
Base Year Market Size (2024) |
USD 11.9 billion |
|
Forecast Year Market Size (2037) |
USD 21.2 billion |
|
Regional Scope |
|
