Vacuum Pump Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Vacuum Pump Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global vacuum pump market is projected to register a CAGR of 7.1% over the forecast period. The overall growth of the vacuum pump market is primarily driven by customers' investments in new production technology and, to a certain extent, by investments in production capacity. The growing adoption of vacuum pumps in oil & gas, power, chemical processing, oil & gas, and semiconductor industries is further driving the demand for vacuum pumps.

Key Highlights

• Vacuum pumps play a significant role in the production process of semiconductor devices. The overall demand for the semiconductor IC market is driven by smartphones and other applications across consumer electronics, automotive, etc. These are caused by technology transitions, such as wireless technologies (5G) and artificial intelligence. Also, the trending usage of Internet of Things-based devices is expected to encourage the semiconductor industry to invest in this equipment.
• According to World Semiconductor Trade Statistics (WSTS), the global sales of semiconductors witnessed a year-on-year growth of 26.2% in 2021. Further, the global semiconductor market was expected to grow to USD 663 billion in 2022, representing a 13.9% growth rate. In 2022, most major categories are expected to see high year-over-year growth, led by Logic with 24.1% growth, Analog and sensors with 21.9% and 16.6% growth.
• The increasing application of MEMS technology in the vacuum pump industry is expected to drive the market further. MEMS technology has many applications across numerous market verticals, specifically consumer electronics, such as tablets, smartphones, and video game systems. For instance, MEMS-based environmental hubs and gas sensor vacuum pumps are becoming more prevalent since people's perception of their immediate environment has changed. Due to pollution, the population cares more about the air they breathe, both within their houses and outside.
• Moreover, vacuum pumps also play a vital role in the pharmaceutical industry. These pumps are used in all manufacturing stages, including drying, distillation, degassing, crystallization, sublimation, and filling. Each vacuum pump is used as a part of a vacuum prime system design used to make intermediate products, active pharmaceutical ingredients, and bulk drugs. Such applications in various end-user industries make vacuum pumps vital elements that carry out critical tasks in the value chain.
• Further, the market has been witnessing activities to boost production capacities, driven by a high focus on capturing the demand from the semiconductor industry. The growing demand for high-spec semiconductors necessary to address the demand for Cloud, AI, IoT, automated driving (self-driving cars), and 5G through the provision of cutting-edge semiconductor manufacturing equipment is further encouraging the vendors to expand their manufacturing footprint and market presence.
• However, the vapor pressure of the liquid inside the pump limits the ultimate suction pressure of the pump, which is among the major limitations of vacuum pumps. Additionally, these pumps are also prone to liquid slug damage. Such factors are challenging the growth of the studied market.
• The outbreak of the COVID-19 pandemic has affected the market for vacuum technologies in the initial months due to supply chain and logistics disruption. Still, later, it witnessed increased adoption of various other solutions. According to Altas Copco, order volumes for equipment also increased, mainly due to increased demand for vacuum equipment in the semiconductor industry. The order intake increased in Asia and Europe but decreased in North America. The market is expected to witness further growth as the industries have started resuming their operations to pre-pandemic levels and above.

Key Market TrendsOil & Gas Sector is Expected to Hold Significant Market Share

• Oil is a vital and versatile substance, used in different ways and in different forms for various applications. The Organization of the Petroleum Exporting Countries (OPEC) projects that the global oil product demand will reach around 109 million barrels per day by 2045, with transportation fuels such as gasoline and diesel anticipated to remain the most consumed products.
• Currently, most pumps and other installations in oil and gas have large operational expenditures compared to capital costs. This pushes their B/C ratio and increases their payback period. To avoid this problem, large vacuum apparatus such as vacuum pumps must be very efficient, reducing additional equipment running these pumps and having adequate control systems.
• Steam ejectors use a lot of energy in this industry and require huge capital and maintenance costs associated with steam generation and pumping. A vacuum pump can effectively replace most steam injectors to reduce this problem. This effectively reduces the high costs of generating steam and increases the benefits. The efficiency of this equipment is also very high as compared to steam processes. Therefore, more substantial savings and increased benefits are obtained when using these machines.
• Furthermore, jet vacuum pumps are often combined with liquid ring pumps to create a vacuum in crude oil distillation columns. Combining two pump types with a simple but appropriate control system facilitates low cooling water consumption, power, and motive medium. A player such as the GEA group offers jet vacuum pumps that are suited for this application. They convey large quantities of gas, which operate smoothly and need very little maintenance. A wide choice of materials means that corrosion can be reduced or eliminated.
• The Middle East and Africa region is the largest oil-producing region and is expected to offer significant growth opportunities to vacuum pump providers as oil production has been increasing. For instance, according to British Petroleum (BP), in 2021, Saudi Arabia produced 10,954 barrels of crude oil per day. Such trends are anticipated to support the growth of the studied market in the coming years.

North America to Hold Significant Market Share

• The increasing investments in the end-user industries, such as oil and gas, chemical, and power generation, significantly impact the vacuum pump market in the North American region. Countries in the area, such as the United States and Canada, have abundant oil reserves in the form of oil sands. For instance, according to Natural Resource Canada, 97% of the country's proven oil reserves are located in the oil sands.
• The boom of shale gas in the United States and the stabilizing oil prices are driving the usage of vacuum pumps in the chemical and oil and gas industries. Additionally, these applications are often exposed to harsher conditions, resulting in low productivity, driving the oil and gas companies to replace existing equipment with advanced technologies.
• Energy production in the United States continues to expand rapidly. For instance, ExxonMobil, one of the major oil producers in the country, announced its plans to increase production activity in the Permian Basin of West Texas by producing around 1 million BPD oil equivalent by 2024.
• The United States also pioneered various solar energy projects and remained a powerhouse in new renewable energy technologies. The US Department of Energy's Energy Information Administration (EIA) estimated that the net capacity of the electric power sector in the country was estimated to be around 1.07 terawatts in 2020 and was expected to increase significantly in the future to reach approximately 1.7 terawatts by 2050.
• Vendors are increasingly launching new products to cater to the growing demand for vacuum pumps across various end-user industries. For instance, in October 2021, Nitto Kohki USA announced the introduction of a standalone vacuum pump device suitable for pick-and-place applications. The LV-125A (Linicon) vacuum pump is compact, lightweight, and features an oil-less design helping it to easily fit into cleanroom assembly operations.
• Furthermore, increased sales of coal in the North American region could lead to higher investments by mining companies in vacuum pumps, as they are extensively used in mining plants. According to the Energy Information Administration, the total consumption of coal in the United States totaled 133.7 MMst in the first quarter of 2022. This was 17.2% higher than the 114.1 MMst reported in the fourth quarter of 2021. Such trends could lead to coal plants installing many conventional and advanced vacuum pumps, thus, driving the demand for vacuum pumps in this region.

Competitive Landscape

The vacuum pump market is fragmented due to the presence of prominent global and local players. Also, global investment in R&D in power generation infrastructure and facility upgrades in the oil and gas are the essential drivers that are giving intense rivalry among competitors. Key players are Gardner Denver Inc., Atlas Copco Group, Flowserve Corporation, etc.

• May 2022 - Atlas Copco launched a new range of GHS VSD+ vacuum pumps. The new GHS 1402-2002 VSD+ series pumps have a new design for better performance, smaller footprint, optimal oil separation, and an innovative new controller to support the use cases of Industry 4.0. The company offers these speed-driven screw pumps in three pumping speed classes.
• May 2022 - Advik Hi-Tech, a leading automotive component manufacturer, announced that it had entered into an exclusive technology licensing agreement with Entecnia, Spain, for electric vacuum pumps for braking systems of passenger cars. The partnership is expected to enable Advik to cater to OEMs entering the xEV’s space as well as help them reduce CO2 emissions for ICE vehicles.

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