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Home Business News Emerging growth opportunities for process equipment manufacturers in India

Emerging growth opportunities for process equipment manufacturers in India

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Make in IndiaIncreasing demands of the growing population combined with GOI's reforms provide a distinctive advantage finds Frost & Sullivan's Industrial Automation & Process Control team.


Mumbai.
India’s GDP growth rate has been on the rise from 5.6% in 2012 to 7.6% in 2016. This consistent growth in the recent past has attracted the attention of global players to the country’s process equipment market. These foreign investments, along with the Government of India’s (GoI’s) National Manufacturing Policy for increasing the contribution of the manufacturing sector to the national GDP are opening up the market for process equipment manufacturers.


Significantly, nearly 38% of the total Indian population will live in urban areas by 2025; and cities will account for 80% of the GDP in 2030. This escalating urbanization has intensified the demand for power, energy, construction materials, water and food. In response, the GoI has rolled out various schemes, projects and policies to meet the domestic demand and thereby, support process equipment companies.

Top 5 Growth Opportunities in India for Process Equipment—Insights and Trends is the new analysis from Frost & Sullivan’s Industrial Automation & Process Control Growth Partnership Service program, which also includes subjects such as pumps, valves, compressors, automation services, gearboxes, motors, computer numerical controllers, and industrial mixers.

The pumps and valves markets are expected to be worth $1.64 billion and $929 million, respectively, by the end of 2016. Government policies and schemes that are expected to give a huge boost to process equipment manufacturers include:

  • New Exploration Licensing Policy (NELP)
  • Ultra Mega Power Project (UMPP)
  • Mega Food Park (MFP) and
  • Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR)


Additionally, the Make in India and Smart Cities initiatives foster a favorable investment climate for the process equipment market.

“However, to make optimal use of government programs, market participants must expand their footprint,” said Frost & Sullivan Industrial Automation & Process Control Research Analyst Ticaram Ramakrishnan. “As the process equipment market in India is highly fragmented and opportunities are spread across the country, it will be crucial to penetrate the market by establishing a strong distributor channel.”

Process Equipment manufacturers across the globe are facing a change in value proposition in their industry. There is an increasing demand for remote monitoring and asset management solutions to improve process efficiency and reduce OPEX respectively. Hence manufacturers offering a comprehensive package comprising process equipment and automation technologies along with diagnostic capabilities will enjoy a competitive edge. This will compel key market participants to expand their product lines through mergers, acquisitions and collaborations.

One of the main revenue generators for the process equipment market is the oil and gas industry. Even though the global outlook for this industry is not optimistic, the Indian oil and gas industry has been growing at a healthy pace due to pipeline expansions and refinery upgrade projects.

 

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