A large portion of pump OEMs’ growth will be driven by services in the next 5 years.
Frost & Sullivan’s recent analysis, 2025 Vision: Future of Pumps in a Connected World, finds 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.
Kiravani Emani, Industrial Automation & Process Control Research Analyst at Frost & Sullivan, said:
“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. 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.
The post Connected Pumps with Analytics Capabilities are Expected to be the New Norm appeared first on IoT Business News.
via https://www.aiupnow.com
by IoT.Business.News, Khareem Sudlow
