The rapid expansion of the oil and gas, chemicals and petrochemicals, and water and wastewater treatment segments is widening the potential of the pump services market in Southeast Asia. End users are placing greater focus on efficiency and productivity of plants and this is likely to directly drive the need for pump services.
According to new analysis from Frost & Sullivan, Analysis of Southeast Asian Pump Services Market, the market earned revenues of US$1.73 billion in 2014 and is estimated to reach US$2.38 billion in 2019.
"The unpredictable global economy and its filtered down effects in Southeast Asia have forced end users to tighten capital spending while raising operational expenditure, thus directly opening up opportunities in the services market," said Frost & Sullivan Industrial Automation and Process Control Senior Research Analyst Vandhana Venkatesan. "The ability to handle smart and intelligent pump systems that have in built process controllers and pump diagnostics will be a differentiating factor for service providers as these pumps are likely to become popular in the future."
However, revenue growth will be moderate in the short term future as the lack of technological advancement and product differentiation forces manufacturers to bundle services in order to survive in a competitive environment. End users' lack of awareness on the benefits of pump services further subdues demand in the region.
Nevertheless, the market will bounce back in the longer term as the advent of the Internet of Things lends momentum to the valve automation business in order to connect remote pipelines and wirelessly monitor valves. As the hardware market stabilises, the adoption of maintenance, repair and overhaul as well as installation and commission services will go up.
"Focus on offering customised services such as asset management and condition monitoring is vital," stated Venkatesan. "To stay in the reckoning, pump manufacturers need to cater directly to end users in the short and medium terms while gradually building partnerships with specialist service providers over the long term to meet the expansive needs of the Southeast Asian market."
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/20052015/customisation-is-key-to-success-in-southeast-asian-pumps-services-market-811/