Pump manufacturers in the oil and gas industry must adopt a solutions-based approach to marketing their products, if they are to improve their competitiveness and garner higher sales, according to new analysis released Wednesday from Frost & Sullivan.
The report, World Pumps Market in the Oil and Gas Industry, indicates that the market had revenues of $5.23 billion for 2005 and is projected to reach $8.01 billion by 2012.
When pump manufacturers offer additional services and solutions such as on-site assistance and installation, general service agreements, maintenance and spare parts, this helps to differentiate the company in an intensely competitive market and to generate more revenue, the analysis shows.
As regulations concerning energy consumption become more stringent into 2008, pump ma manufacturers will also have to improve energy costs and pump efficiency to remain competitive.
"Smaller firms, in particular, are facing increasing difficulties in complying with various standards for a wide range of equipment and components," says Frost & Sullivan Research Analyst Dushyant Mehra. "They will have to keep tabs on their equipment's noise and emission levels, hygiene standards, quality, and reliability."
According to Mehra, the rapid economic growth over the last few years, more industrialization, and a growing population will probably increase the pump market in the Asia Pacific and Latin American regions. This will be especially true for the Asia Pacific region, will be continue as the fastest-growing market and an attractive manufacturing destination, due to its lower labor costs, economical real estate, and convenient geographical location.