Investment Surge and Trends in the Pumps Industry
2 Min Read
Fluid power and control distribution—the intricate systems of hoses, fittings, valves, and pumps that move fluids across industrial processes—is undergoing a transformative shift. This pumps industry, underpinning everything from oil rigs to medical devices, is surging with opportunity, attracting the keen eyes of private equity investors. Why are private equity consulting firms sharing the pumps industry as investment opportunities for PE clients?
Private equity firms are drawn to fluid power’s wide-ranging impact. Critical failures in sectors like oil & gas, manufacturing, and healthcare can lead to significant downtime and financial losses. This creates a high demand for reliable, high-quality fluid power solutions, making it a prime target for investment.
Fluid Handling Industry M&A Activity
| Year | Transactions |
|---|---|
| 2019 | 71 |
| 2020 | 69 |
| 2021 | 102 |
| 2022 | 105 |
| 2023 (est.) | 103 |
PE Investor Insights
Fluid power and control distribution is not just about pipes and pumps—it’s about enabling critical processes that power our world. The pump industry’s resilience, growth potential, and technological advancements make it an attractive investment target for an investment thesis.
Why the Investment Surge?
Mission-Critical Applications: Fluid power is indispensable across diverse sectors like oil & gas, manufacturing, mining, and healthcare. Its failure isn’t an option, making reliability paramount.
Skyrocketing Demand: The U.S. industrial equipment market, a key indicator, is projected to swell from $313.9 billion in 2023 to $355.3 billion by 2029, driven by renewed private investment.
Consolidation as a Catalyst: OEMs and distributors are merging to offer comprehensive solutions, technical expertise, and broader market reach.
Technological Transformation: Predictive maintenance, powered by IoT and smart sensors, is revolutionizing the sector, minimizing downtime and enhancing safety.
PUMPS INDUSTRY: KEY TRENDS TO WATCH
The Rise of the “Full-Service” Provider: End users are seeking integrated solutions, not just individual components. Distributors are expanding their services to include technical expertise, system integration, and ongoing maintenance.
Predictive Maintenance Goes Mainstream: Sensors and real-time data analysis are empowering companies to proactively identify and address potential failures, ensuring uninterrupted operations.
Private Equity’s Strategic Role: Investors are playing a crucial role in driving consolidation, fueling innovation, and expanding the reach of fluid power solutions into new markets.
Ready to dive in?
Investment opportunities in fluid power and control systems don’t have to be draining. Connect with a private equity advisor through Apex Leaders, and surge ahead with confidence.
Resources:
Yahoo Finance. Hydraulic Hose Fittings Market to Grow by $1.36 Billion During 2021-2026
McKinsey & Company. Creating Value in the Specialty Pumps Market.
Pump & Systems. How M&A Activity Impacted the Pumps Industry in 2022