Market Trends of Middle East and Africa Centrifugal Pumps Industry
This section covers the major market trends shaping the MEA Centrifugal Pumps Market according to our research experts:
Water and Wastewater Management to Drive the Demand for Centrifugal Pumps
- Although rich in oil & gas resources, water scarcity has been prevalent in the Middle East & African regions. According to the Population Reference Bureau (PRB), the Middle East and North Africa region is home to about 6.3% of the world's population; however, the region contains only about 1% of the world's renewable fresh water.
- Such trends are driving the demand for solutions enabling the water & wastewater industry to enhance its operational efficiency further. As Centrifugal pumps are suitable particularly for high flow rates, low-viscosity, and high volume liquids, their demand is expected to grow in the MEA region.
- Several countries in the MEA region are increasing their investment in the water & wastewater management industry to ensure sufficient availability of scarce resources, creating more opportunities for the centrifugal pump vendors. For instance, in February 2021, Egis, a notable name in the construction engineering and mobility service sectors, secured a contract from Qatar's public works authority Ashghal for the design, build, operation, and maintenance of the first phase of the Integrated Industrial Wastewater Treatment Works project in Doha.
- These initiatives are also well supported by global organizations. For instance, to support improved access to clean water and wastewater services across the Middle East and Africa, IFC, a member of the World Bank Group, announced a financing package to Metito, a leading global provider of water and alternative energy management solutions.
- Similarly, in June 2022, Lagos State Government, through the Lagos Water Corporation (LWC), announced a partnership with the United States Agency for International Development (USAID) on the revitalization of the safe Water, Sanitation, and Hygiene (WASH) sector. To support this initiative, the U.S. agency would assist the state government with 10 percent of USD400 million through the LWC. Such trends are expected to support the growth of the studied market during the forecast period.
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Saudi Arabia to Hold Significant Market Share
- The Kingdom of Saudi Arabia (KSA) is the largest country (in terms of area) in the Middle East region. The country has a population of around 35.5 million, more than 7 million of whom live in the capital city, Riyadh (Source: OPEC). The country's astonishing economic rise due to vast oil reserves has significantly transformed the country's infrastructure, which in turn is driving the demand for centrifugal pumps.
- According to OPEC, Saudi Arabia possesses around 17 percent of the world's proven petroleum reserves. The country is also among the leading producer and exporters of crude oil. For instance, in 2021, the total value of petroleum exports from the country amounted to USD 202,166 million.
- The growing size of Saudi Arabia's oil & gas industry is driving the demand for centrifugal pumps. Single-stage centrifugal pumps, especially, are growing in order as they are primarily used to transfer low viscosity fluids. These pumps are typically part of a larger pump network comprising other centrifugal/other pumps like horizontal multistage pump units for water injection pumps used in secondary oil and gas recovery or crude oil shipping.
- The Saudi Arabia Government is also increasing its investment in water and wastewater plants as the growth of the industrial sector and rapid urbanization drive the demand for water in the country. The investments are being made mostly in the form of new wastewater treatment plants or water desalination plants wherein centrifugal pumps play an important role.
- Additionally, the demand for centrifugal pumps is also growing from other industries. For instance, in November 2021, Fives, a major supplier of centrifugal pumps, received a new contract for Cryomec centrifugal pumps from a major industrial gas complex in Jubail Industrial City, Saudi Arabia. Combined trends are expected to support the country's studied market growth.
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