Diaphragm pumps are some of the most energy-efficient pumps in the market, using more motor torque on the foreword (power) stroke and far less on the back stroke. Owing to the pumps’ low initial costs, cheap repair and maintenance costs, and easy installation process, combined with their wide application range for pumping fluids with varied viscosities, diaphragm pumps are among the most popular, reliable, and versatile pumps in North America. Pricing plays a key role in the purchase of pumps in this highly fragmented market. Hence, the air-operated double diaphragm (AODD) pumps face stiff competition. Furthermore, low-cost imports from Asia-Pacific add to the pressure in this market segment.
One of the biggest growth drivers of the diaphragm pumps market for the short term is the rising focus on development in the water and wastewater industry in the United States and Canada. The Canadian government is looking at investments worth $20 billion to improve its local water and wastewater infrastructure and green infrastructure. In the United States, key focus has been placed on improving storm water and water re-use systems in the country, along with desalination until the end of 2018.
Growing investments in water and wastewater are driving demand for diaphragm pumps because these pumps are fully capable of handling and effectively managing any kind of debris. This makes them ideal for conveying and metering among other applications. Also, rising emphasis on factors such as quality, reliability, and accuracy in critical processes to achieve operational excellence serves as a driver for the mechanical and hydraulic pumps segments.
These factors play a key role in purchasing decisions concerning pumps, especially in industries such as oil and gas and water and wastewater, where it is necessary to minimize unplanned maintenance and shutdowns. The increasing demand for sanitized flow of liquids and high-quality process equipment has led the market to cater to the individual needs of customers, wherein the customer may lay additional emphasis on the material of pump construction and other instrumentation and controls used.
Diaphragm pumps are either replaced or refurbished after their average lifecycle of 6 years. The demand to replace these pumps with new ones drives the market, as end users aim to achieve energy efficiency and lower the cost of ownership. The diaphragms are also replaced at an average interval of 5 months to ensure that the prime of the pump is maintained and operational performance optimized.
Diaphragm Pumps Revenue Forecast:
The total revenue generated by the North American diaphragm pumps market in 2016 was $568.6 million. The market is expected to generate revenue of $640.0 million by 2022, growing at a CAGR of 2.0% between 2016 and 2022. The market saw briefly subdued growth rates in 2015 and 2016, as a result of the global oil price drop during the period. However, recovery in oil prices and improving business sentiments across the world are opening tremendous growth opportunities for the North American diaphragm pumps market.
Factors such as a forecasted stabilization in energy and commodity prices are expected to act as minor tailwinds for the diaphragm pumps market in resource-rich countries in 2017. It is also imperative to note that factors such as advancement in technology, improved labor force skills, and enhanced productivity across the globe are acting as modest positive signals for the diaphragm pumps market. However, these potentially favourable factors are not immune from the risk of the pressure of ongoing political, policy, and economic uncertainties worldwide.
Because of these uncertainties, most manufacturers in North America are adopting a more conservative approach in terms of investments and product expansions to be able to prepare for disruptions from geopolitical tensions, uncertainties in government policies, instabilities in financial markets, and cut-throat competition in the North American market. However, going by the growth trends in the North American economy, the market opportunity for diaphragm pumps looks favourable during the forecast period and manufacturers will need to capitalize on the improving conditions.
End-user Industry Perspective
Oil & Gas: The demand for diaphragm pumps in the oil and gas industry is expected to experience comparatively strong growth across regions because of investments in shale oil development and deep water resources, leading to a cumulative annual growth rate (CAGR) of 1.1% from 2016 to 2022. Air-operated diaphragm pumps are the most in demand, as a result of the hostile working conditions and aggressive fluids that are handled.
Food and Beverages: Diaphragm pumps in the food and beverage industry are expected to grow at a CAGR of 1.8% from 2016 to 2022, as this industry has been one of the most stable in terms of growth during the sluggish economic spells of 2014–2016. Investments, especially in the packaged foods segment, are an important driver for the diaphragm pumps market across regions. The food and beverage industry has a high priority for quality and hygienic standards, which leads to a demand for sanitary pumps to maintain an uncontaminated and sterile environment. Diaphragm pumps have an advantage in this industry—minimized contact with metal parts.
Water and Wastewater: Investments in the water and wastewater industry for drinking water and safe waste disposal across regions will drive the diaphragm pumps market to grow at a CAGR of 2.5% from 2016 to 2022. De-watering applications in both the industrial and municipal segments will drive demand for diaphragm pumps because of the harsh working conditions that require longer lifecycles of pumps.
Chemicals: Revenue for diaphragm pumps earned from the chemical industry will grow at a CAGR of 2.1% from 2016 to 2022 and will continue to hold the largest share in this market, with many applications in the growing specialty and basic chemicals segments. As a result of the slowdown in China and Europe in 2016, several major projects went on hold; however, the industry is expected to be driven by several infrastructure projects across emerging regions.
Pharmaceuticals: Driven by the development of generic drugs and contract manufacturing, the pharmaceutical industry is expected to drive the diaphragm pumps market’s CAGR of 1.6% from 2016 to 2022. These end users deal with high-value media and have several applications that require clean-in-place (CIP) conditions. Diaphragm pumps come with the advantage of transferring fluids without leakage and with accurate measuring for dosing. An added advantage of diaphragm pumps in the pharmaceutical industry is the provision of single-use applications in biotechnology laboratories.
Power Generation: With developments in power generation to meet North American demand, the diaphragm pumps market is expected to grow at a CAGR of 1.5% from 2016 to 2022. As economies and investments into other industries grow, the demand for electricity is expected to further drive the market in hydropower, wind, solar, and thermal plants.
Other Segments: The North American region is at a phase of slow recovery from sluggish growth in the last few years. This trend is expected to result in mild growth in industries such as mining and marine, which could ultimately drive revenue for the diaphragm pumps industry. The growth momentum from across these industries would pick up marginally, not only from diminishing dependence on domestic demand, but also because of growing exports to the rest of the recovering world. Economic stability factors are expected to facilitate the confidence of investors, leading to faster growth in the replacements market.
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