The worldwide credit crunch is likely to have a major impact on almost every market in the next few years. A cyclical downturn in world pump markets was being doubted by few industry experts even before the present financial turmoil.

A greater downturn in capital investment is likely than it was during previous recessions. The current recession is expected to result in a slowdown in GDP growth, but a bigger fall in capital investment in 2009-‘10 compared with 2001-’02 is likely.

Total world pump market as per the EIF report is US$ 28950 Mn., out of which, the Water/Wastewater market for industrial and municipal use is 34%.  Present market segments of water resources management are water supply, water treatment, waste water treatment and desalination.

Water and wastewater treatment is a large market for pumps, with radically different market drivers for the advanced industrial countries compared with the developing countries.

In the case of the industrialized countries there are two major related factors. The first is the importance of environmental legislation in recent years and the second is the trend towards privatization of municipal utilities. The latter has also led to growing horizontal integration of privately owned gas, electricity and water companies.

Developing countries have fundamentally different market characteristics. Those with natural resources or dynamism which supports the growth of export revenue are able to afford the cost without entirely having to depend on international aid: examples are China, Malaysia, India, oil exporters in the Middle East, etc.  Many  other  developing  countries,  and  particularly  those  in  Africa, depend almost entirely  on international aid to support  investment in water and sewerage infrastructure. In these economies, if the system is not transparent, it not only keeps the countries starved of necessary investment, it has also inhibited the growth of funding in the short term. The recent large increase in food prices has also reduced the international aid available for water and sewage projects, since the food aid takes a larger share of aid budgets.

In the industrialized world the USA is the largest market (US$ 1838 Mn), followed
by Japan (US$ 1397 Mn) and Germany
(US$ 954 Mn) for pumps in Water sector.  Japan has had a massive municipal  investment program in recent years,  which is now unwinding  since  water  and sewerage standards have now reached new levels in other advanced industrial countries.

China (US$ 960 Mn) is the largest pump market in the developing world water sector, followed by India (US$ 276 Mn)

Western Europe, Japan and USA-Canada account for a very high proportion of the Water/ Wastewater Treatment. Some developing countries with low income levels are, in aggregate, a significant market for pumps in water and sewerage because of the importance of international aid.

Recession in West Europe, USA/Canada and Japan is expected to cut demand. However, growth is expected in the Middle East, China and India.

The major players in pump manufacturing in domestic market are Kirloskar Brothers Limited (KBL), WPIL, Mather & Platt (WILO), Jyoti and Flowmore today while in global market are, KBL, Hoysung Ebara, MHI, KUBOTO and CLYDE (WEIR).

The major players in water infrastructure projects in India are L&T, SPML, IVRCL, RAMKEY, NCCI and KBL.