How can pump manufacturers grow revenue and stay competitive in today’s low-cost global market?
The answer lies in moving from selling only products to selling services — powered by digital technology. This shift allows pump manufacturers to earn more and deliver more value to customers. That’s why the concept of Pump-as-a-Service is gaining traction. Thanks to advanced technology, servicing pumps is now becoming a key revenue stream for pump.
How are Pump Manufacturers Adapting to Digital Transformation?
With growth in the traditional pump market slowing down, many manufacturers are turning to services to expand their business. The pump market has matured, but the demand for pump services is growing rapidly — making it a promising space to focus on.
Why Services Matter in the Pump Manufacturing Business
Standard services in this industry include installing pumps, replacing parts, repairing damage, and overhauling machines. These activities generated $10.5 billion in 2018, which is 70% of the pump services market.
Here’s why services are becoming more critical:
- More pumps are being installed across industries, which means regular servicing is now essential.
- Companies want to lower their operating costs and make better use of their equipment — so they need help tracking performance and improving efficiency.
- There’s growing interest in smart services like remote pump monitoring, vibration alerts, and real-time controls — giving companies more visibility into pump health and performance.
What Factors Impact the Shift in the Pumps Business Model from Pumps to Service?
Reduction in Operational Expenditure (OPEX)
According to the 2018 Frost & Sullivan end-user survey, pumps—especially critical pumps—were ranked as the top-most asset in terms of incurring high operational and maintenance cost as well as requiring continuous monitoring. Limited capital spending compels end users to adopt proactive plant maintenance methods.
Need to Maximize Pump Utilization and Lifecycle
Visibility on the performance of pumps and their wetted parts such as seals and bearings are imperative so that end users can prevent early replacement of equipment and parts, maximize asset utilization, and reduce total equipment costs.
Need for Personalized Services
Consumers require end-to-end support across all aspects of the pump lifecycle, including selection, customization, commissioning, installation, and maintenance. End users love to have a dedicated team of experts offering critical support to enhance pump efficiency across plant sites.
Adapting to Fluctuating Energy Costs and Regulatory Mandates
Pumps designed with energy monitoring capabilities which reduce waste and consumption during process operations are critical so consumers can abide by regional regulations.
How Can Pump Manufacturers Transform Their Service Model?
Turning pumps into a service-based business doesn’t happen overnight. It’s a step-by-step process. Here’s a simple guide to how manufacturers can do it:
Step 1: Gain Visibility to Improve Efficiency
Start by collecting data from pumps — like performance trends and service history. This helps you:
- Spot early faults
- Reduce unplanned downtime
- Send the right service alerts
- Improve spare part availability
Using edge analytics (processing data at the pump site itself), manufacturers can catch early warning signs before they turn into major problems. This helps reduce the time it takes to fix things.
Step 2: Offer Proactive, Predictive Services
Build service plans that prevent issues instead of reacting to them. By using real-time and historical pump data with machine learning, you can:
- Predict failures
- Automate service schedules
- Improve spare part management
- Reduce on-site technician visits
This shift to proactive maintenance saves customers money and increases uptime — improving satisfaction and trust.
Step 3: Become a Long-Term Partner, Not Just a Vendor
With the right data, you can offer premium services that no one else can. This builds stronger relationships with customers and helps them:
- Lower risks
- Control costs
- Get predictable performance
You move from being just a supplier to a strategic partner who supports the customer’s entire operations — for the long term.
Conclusion
Selling pumps is no longer the only way to grow. Services are now a major source of revenue for pump manufacturers. To succeed in the Pump-as-a-Service model, companies must:
- Use smart, connected technologies
- Train their teams in digital skills
- Offer flexible and high-value services
MachineAstro’s iEdge 360 platform helps pump manufacturers make this transition easy. It collects pump data in real-time, uses AI and Machine Learning to analyze performance, and enables truly predictive maintenance.
With iEdge IoT, you can quickly shift to the Pump-as-a-Service model and start creating new revenue — without complex setup.
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