Market Trends of Gear Pumps Industry
This section covers the major market trends shaping the Gear Pumps Market according to our research experts:
Chemical and Petrochemical Industry to Grow Significantly
- Gear pumps are essential components of the petrochemical industry. They are employed in the production of crude oil, diesel oil, lubricating oil, pitch, and bitumen. They are also used to carry hazardous substances such as sodium silicate, mixed chemicals, acids, polymers, isocyanates, and others.
- The rising demand for petrochemicals in various applications such as automobiles, packaging, household goods, and medical equipment is a key factor encouraging the manufacturers operating in this segment to increase their global production capacity. For instance, in May 2022, Bharat Petroleum Corporation Limited (BPCL) is expanding its petrochemical capacity and has planned a large investment of INR 30,000 crores in petrochemical projects in the next five years to remain competitive in the dynamic industry and be future-ready.
- Furthermore, companies engaged in manufacturing petrochemical products continuously undergo mergers and acquisitions and joint ventures with governments and other key players. In December 2021, China National Petroleum Corporation (CNPC) commenced the construction of an interstate crude pipeline connecting Niger and Benin. The 1950 kilometers pipeline is expected to transmit the first oil shipment in 2022 from the Agadem basin, Niger, to Port Seme, Benin, after its completion.
- According to BASF, in 2021 chemical production rose in all regions and the global average reached 6.1 percent. This is above average for the years before the covid pandemic and represents a strong rebound following the pandemic recession, where overall global chemical production contracted by 0.4% in 2020.
- The demand for chemicals is strengthening as manufacturers ramp up the production of goods. The American Chemistry Council expected the demand for chemicals by 3.9% in 2021, as demand from construction, plastic goods, and food will more than make up their 2020 deficits.
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Asia Pacific is Expected to Hold Major Growth
- The countries like China, India and Japan are witnessing an increase in industrial activities, inducing growth in demand for crude oil and chemicals, among others. China is expected to account for significant growth in crude oil refining capacity between 2019 and 2025 in Asia-Pacific.
- China's oil consumption has seen significant growth with rising demand from the increasing automotive fleet across the country. Furthermore, to meet the county's oil and gas demand and boost domestic energy supplies, China's Ministry of Natural Resources announced the opening of foreign direct investments in the oil and gas industry. It aims to allow foreign companies to explore for and produce oil and gas in the country. In February 2021, CNOOC announced a total capital expenditure of USD 15.46 billion, with targeted net production of 545-555 million barrels of oil equivalent (Mboe).
- Furthermore, in July 2021, the government of India allowed 100% Foreign Direct Investment (FDI) in many segments of the sector, including natural gas, petroleum products, and refineries, among others, to cater to the increasing demand in the country.
- The construction sector in the countries of Asia Pacific is experiencing massive growth. China has been majorly driven by numerous developments in the residential and commercial construction sectors supported by the growing economy. In China, the housing authorities of Hong Kong launched several measures to push-start the construction of low-cost housing. The officials aim to provide 301,000 public housing units in 10 years till 2030. Such developments in construction sector is propelling the demand for gear pumps in paints and coatings industry.
- Moreover, the gear pumps find their application in the food and beverage industry for transfer tasks or pressure build-up, especially when conveying oils, fats, chocolate, sugars and syrups, molasses, etc. Thus, an increase in food and beverage manufacturing is further expected to propel the demand for the market studied.
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