Intelligent Pumps with Analytics Capabilities Are Expected to be the New Norm -- Frost & Sullivan
A recent analysis by Frost & Sullivan’s found that an average of 50% to 60% of pump original equipment manufacturers’ (OEMs’) revenue is expected to be generated from services-related activities, such as real-time monitoring and reliability services. This will result in the pump industry transitioning from a product-based to a service-based model in the wake of Industrial Internet of Things (IIoT) in this digitalization era. Global pump revenue is estimated to reach $46.92 billion by 2025 from approximately $38.34 billion in 2019.
“In the next five years, a large portion of pump OEMs’ growth will be driven by services that leverage analytics to provide insights on improving pump reliability and lifetime,” said Kiravani Emani, Industrial Automation & Process Control Research Analyst at Frost & Sullivan. “Additionally, service-based business models are expected to become more predominant; as a result, pump OEMs are expected to diversify their revenues and deliver standalone services to unlock new revenue streams.”
Emani added “Intelligent pumps with analytics capabilities are expected to be the new norm as customers require meaningful data insights on pump performance as opposed to a device that will merely display data. Further, the water and wastewater, chemicals, refining, and oil and gas production industries are expected to embrace IoT-based pump solutions as these industries are actively working towards digitalization.”
The advent of IIoT has unlocked innovative and profitable business models for pump vendors. The need to shift from a traditional business model (hardware) to services is presenting tremendous growth prospects for pump OEMs, including:
Expanding service capabilities with a focus on building innovative business models to unlock revenue opportunities.
Offering high-quality, reliable and precise services for customers by investing in IIoT-based technologies such as cloud computing and edge analytics.
Adopting an integrated approach by leveraging the strength of channel partners to enhance the customer experience.
Reducing energy consumption and controlling operational costs to boost the demand for energy-efficient pumps.