Middle East and Africa Centrifugal Pumps Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Middle East and Africa Centrifugal Pumps Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Middle East and Africa Centrifugal Pumps Market are expected to register a CAGR of about 4.6% over the forecast period. The increasing demand for more efficient pumps and rapid industrialization in the Middle East & Africa region is expected to propel the growth of the centrifugal pumps market. The growing need for better efficiency, especially across the water and wastewater industry, is also one of the key factors supporting the studied market growth.

Key Highlights

• Centrifugal pumps are hydraulically operated machines that transfer fluids through increased pressure. These pumps can have different structures, but their fluid dynamic characteristics and working principle are mostly the same. The swift increase in product demand from the industries such as water & wastewater, oil & gas construction, etc., across numerous emerging countries in the Middle East & Africa region is a crucial factor driving the growth of the centrifugal pumps market.
• Water is a scarce commodity across most of the countries in the studied region. Hence, the investment in the water & wastewater industry has been growing significantly. For instance, in March 2022, at MENA Desalination Projects Forum 2022, Saudi Arabia announced more than 60 water projects worth SR35 billion (USD9.33 billion). As centrifugal pumps are widely used for pumping applications across the water & wastewater industry, the demand is expected to grow during the forecast period.
• The centrifugal pumps are also essential to the daily operation of many facilities, as they are typically low in cost, have low maintenance requirements, and have long operating lives. Considering the benefits, several vendors in the Middle East & African region offer various types of centrifugal pumps. For instance, Sulzer Ltd. is among the leading provider of centrifugal pumps in Saudi Arabia; the company provides a broad range of centrifugal pumps used across various industries. The company has been working closely with Saline Water Conversion Corporation (SWCC), a Saudi Government Agency, on a project that is expected to increase the availability of fresh water, supporting the growth of economic and tourism activity in the West Coast region of the Kingdom, by 2030.
• As the rapid pace of urbanization and industrial advancement in the MEA region has considerably strengthened the growth prospects of the pumps market, centrifugal pump companies have started focusing on refining the technology of the pumps, producing more specialized pumps to increase performance in specific applications. For instance, to cover the widest spectrum for various applications ranging from water pumping to the oil & gas industry, EBARA Pumps Middle East FZE provides a wide range of 1.0 kW pumps to 10 MW pumps.
• However, the centrifugal pumps are highly susceptible to cavitation when the net positive suction head of the system is too low for the selected pump and corrosion inside the pump owing to fluid properties. Along with the availability of alternatives, these factors are challenging the studied market's growth.
• Furthermore, COVID-19 has negatively impacted the market growth in the middle eastern region, mainly due to a stoppage in discrete manufacturing industry operations. Due to restrictions in lockdowns, delays in project construction activities exponentially affected the whole supply and distribution network, hitting industrial equipment companies with a lag.

Key Market TrendsWater and Wastewater Management to Drive the Demand for Centrifugal Pumps

• Although rich in oil & gas resources, water scarcity has been prevalent in the Middle East & African regions. According to the Population Reference Bureau (PRB), the Middle East and North Africa region is home to about 6.3% of the world's population; however, the region contains only about 1% of the world's renewable fresh water.
• Such trends are driving the demand for solutions enabling the water & wastewater industry to enhance its operational efficiency further. As Centrifugal pumps are suitable particularly for high flow rates, low-viscosity, and high volume liquids, their demand is expected to grow in the MEA region.
• Several countries in the MEA region are increasing their investment in the water & wastewater management industry to ensure sufficient availability of scarce resources, creating more opportunities for the centrifugal pump vendors. For instance, in February 2021, Egis, a notable name in the construction engineering and mobility service sectors, secured a contract from Qatar's public works authority Ashghal for the design, build, operation, and maintenance of the first phase of the Integrated Industrial Wastewater Treatment Works project in Doha.
• These initiatives are also well supported by global organizations. For instance, to support improved access to clean water and wastewater services across the Middle East and Africa, IFC, a member of the World Bank Group, announced a financing package to Metito, a leading global provider of water and alternative energy management solutions.
• Similarly, in June 2022, Lagos State Government, through the Lagos Water Corporation (LWC), announced a partnership with the United States Agency for International Development (USAID) on the revitalization of the safe Water, Sanitation, and Hygiene (WASH) sector. To support this initiative, the U.S. agency would assist the state government with 10 percent of USD400 million through the LWC. Such trends are expected to support the growth of the studied market during the forecast period.

Saudi Arabia to Hold Significant Market Share

• The Kingdom of Saudi Arabia (KSA) is the largest country (in terms of area) in the Middle East region. The country has a population of around 35.5 million, more than 7 million of whom live in the capital city, Riyadh (Source: OPEC). The country's astonishing economic rise due to vast oil reserves has significantly transformed the country's infrastructure, which in turn is driving the demand for centrifugal pumps.
• According to OPEC, Saudi Arabia possesses around 17 percent of the world's proven petroleum reserves. The country is also among the leading producer and exporters of crude oil. For instance, in 2021, the total value of petroleum exports from the country amounted to USD 202,166 million.
• The growing size of Saudi Arabia's oil & gas industry is driving the demand for centrifugal pumps. Single-stage centrifugal pumps, especially, are growing in order as they are primarily used to transfer low viscosity fluids. These pumps are typically part of a larger pump network comprising other centrifugal/other pumps like horizontal multistage pump units for water injection pumps used in secondary oil and gas recovery or crude oil shipping.
• The Saudi Arabia Government is also increasing its investment in water and wastewater plants as the growth of the industrial sector and rapid urbanization drive the demand for water in the country. The investments are being made mostly in the form of new wastewater treatment plants or water desalination plants wherein centrifugal pumps play an important role.
• Additionally, the demand for centrifugal pumps is also growing from other industries. For instance, in November 2021, Fives, a major supplier of centrifugal pumps, received a new contract for Cryomec centrifugal pumps from a major industrial gas complex in Jubail Industrial City, Saudi Arabia. Combined trends are expected to support the country's studied market growth.

Competitive Landscape

The Middle East and Africa Centrifugal Pumps Market is competitive and consists of several partakers like Baker Hughes Company, Flowserve Corporation, Schlumberger Limited, and Xylem, among others. The companies are focusing on increasing their market presence by forming multiple partnerships, investing in projects, and launching new products in the market.

• March 2022 - A leading designer & manufacturer of low life cycle cost centrifugal pumps and associated equipment, primarily for the offshore and onshore oil and gas industries, delivered an order through Gas Arabian Services for bespoke, compact API 610 vertical in-line pumps to be used in the SABIC petrochemical refinery in Yanbu, Saudi Arabia.
• November 2021 - Fives, a leading provider of centrifugal pumps, won a new contract for Cryomec pumps in Saudi Arabia. The contract was from a major industrial gas complex in Jubail Industrial City. The project will use two continuous-duty Cryomec LABS for LIN (liquid nitrogen) application, while two Cryomec DGS will be used as truck loading pumps to transfer LOX (liquid oxygen) from storage to the trailers.

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• The market estimate (ME) sheet in Excel format
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