The State of the Industry 2026 survey reveals a resilient pump sector adapting to change and seeking new growth.
While the whirlwind of global geopolitics continues to place strain on economies and the industries that drive them, some variables remain constant.
For the Australian pump industry, while various pressures influenced performance in 2025, some dependable end markets remained key backbones in the year just gone.
Now in its 13th year, the annual State of the Industry survey has once again provided the Australian pump industry a platform for which to understand the current state of play.
Analysis finds that mining and water and wastewater industries continued to underpin many balance sheets in 2025, with expectations that some other sectors will play larger roles in 2026.
The Federal Government has reaffirmed its commitment to ushering in a renewable energy revolution, aiming for emissions reduction of 62–70 per cent from 2005 levels by 2035.
Australia’s carbon emissions were 28 per cent below 2005 levels to the end of March 2025, meaning policy support and clean energy adoption will need to accelerate if we are to reach the target.
With this in mind, respondents were asked how the renewable energy transition will influence the pump industry next year.
The pump industry also provided its thoughts on the key challenges and opportunities for 2026, while we also gain insight into customer behaviour from 2025.
State of the Industry responses 2026
The prevailing sentiment from survey respondents, made up of pump original equipment manufacturers (OEMs), suppliers, end users, after-sales and servicing, design, and imports, for the year just gone was that performance met expectations (see Figure 1). This made up 57 per cent of responses, with 29 per cent of respondents suggesting that performance fell short of expectations.
Several of those who felt performance regressed owed this to projects being postponed or cancelled altogether, with one respondent suggesting that customers were reducing risk and “going with known products rather than experimenting with new technologies”.
Given economic turbulence worldwide, it’s safe to say that risk aversion in many sectors is higher now than it has been in the past. This isn’t to say that emerging technologies won’t cut through, it’s just that, for now, there’s more reticence in the market.
Some of those who saw performance exceed expectations put this down to internal restructuring and business strategy, while others “hustled”, for want of a better term.
Do you expect your company to perform better in 2026 than 2025?
As shown in Figure 2, the majority of respondents expect their company to perform better in 2026. Some put this down to further interest rate cuts, while others see delayed projects coming to fruition.
Some companies believe their decision to break into new regions will bolster the order book, with the impending release of new products and innovations providing another reason for optimism.
Those who believe performance will regress in 2026 put it down to the following reasons: lack of government support and competence, a weak economy and weak Australian dollar, geopolitical instability, and decreased customer budgets.
Another company believes they are currently “at capacity”. The same business said they had a “solid sales base” in 2025, suggesting they are content with where their operation is at.
Which sectors are driving the highest growth in the Australian pump industry?
According to State of the Industry survey data, many pump companies continue to rely on certain trusted industries (see Figure 3).
The presence of mining and water and wastewater as the pump sector’s predominant markets is not only represented in 2025 results but expectations are that these markets will remain key pillars in 2026.
One respondent who selected ‘mining’ and ‘water and wastewater’ in their response believes that municipalities who have not spent on infrastructure “will need to do so soon to keep up with population growth”.
A respondent who selected ‘irrigation’, ‘mining’ and ‘water and wastewater’ as key markets in 2026 suggested that Australian manufacturing quality was equal to European brands at a “lower price tag”.
Elsewhere, respondents foresee demand for Australian commodities as a key driver from the mining sector.
“With the gold and copper prices increasing, I expect projects to be approved and fast tracked,” one respondent said. “Existing brownfield sites are mostly looking to increase throughput also.”
Gold prices topped $US4000 ($6182) per ounce (oz) for the first time in early October, extending an unprecedented run for the precious metal. The commodity was hovering just above $US2600/oz to start 2025.
Copper prices have soared to start 2026, scaling $US6 per pound.
The role of renewable energy
Respondents were evenly split on whether Australian pump companies will play a larger role in the renewable energy transition in 2026 from 2025, with the same percentage saying ‘yes’ and ‘no’.
Those who said ‘yes’ put this down to various factors, including the fact that smart pumping systems are the “heart of the process” in renewable energy. Another said ‘yes’ due to the clean-energy sector’s demand for “smart design in pump control and operation”.
Another respondent said they expected an uptick in demand from renewable energy because governments have been giving the “green light for a record number of (clean energy) projects”.
In saying ‘no’, one person surveyed said that renewables rely on “highly efficient pumps and highly efficient motors”. They suggested Australia could be lagging behind with its motor efficiency standards – IE2 is the minimum requirement – and that “we are starting to see more and more requests for IE4, IE5 and even IE6 motors being asked for”.
One person surveyed observed an unfortunate trend towards Australian renewable energy applications “fully importing products” from overseas, while another respondent said, “I see many of these (clean energy) projects becoming unviable in the short term and ultimately postponed or cancelled”.
Customer expectations
When asked what changes in customer behaviour they had seen over the past 12 months, the responses were varied.
Some indicated that customer decision making was being increasingly influenced by “very tight budgets”, while one person surveyed said customers are “expecting better efficiency at yesteryear’s prices”.
Another saw pump companies benefiting from being able to provide “engineering solutions, not just pumps”. Other perspectives included respondents saying that a higher customer focus has been on “energy saving and sustainability”, while, through a mining lens, there’s been a “shift from iron ore and nickel to gold and copper”.
The same respondent observed that customers were hesitant to try new technologies “in-lieu of proven albeit old and outdated products”.
Opportunities and challenges
Rounding out the State of the Industry survey was an analysis of the Australian pump industry’s opportunities and challenges in the next 12–24 months.
Many respondents outlined the industries that will drive growth, with expectations that demand will be tied to mining, municipal, oil and gas, and water and wastewater sectors. One respondent saw the emerging biogas market as a potential driver of growth in the short-to-medium term, while another flagged increased pump demand from the defence industry.
Recent defence developments that could drive demand for local pump companies include eight new Mogami frigates set to be built in Western Australia as part of a $10 billion contract the Federal Government signed with Japanese company Mitsubishi Heavy Industries earlier this year.
Elsewhere, shipbuilder Austal recently inked a strategic shipbuilding agreement with the Federal Government to support the construction of Tier 2 surface combatants at its Henderson facility in Perth.
As for pump sector headwinds over the next 12–24 months, some respondents pointed to continued economic uncertainties, including rising costs of production, warehousing and transportation. Others foresee geopolitical challenges, including price reductions from competing European brands and increasing competition from China.
One respondent said, because many companies are doing the same thing, “you must diversify” to stay ahead, while another sees competition arising from companies continually refining their craft to achieve “low running costs” and a “high efficiency operation”.
Another person surveyed said the Australian pump industry is facing a “lack of trained staff”, with older pump professionals retiring and knowledge being lost from the sector. They said this is compounded by “no formal training or trade qualifications” that will have a “significant impact in years to come”.
The State of the Industry 2026 survey shows an Australian pump industry holding steady amid global uncertainty. Mining and water and wastewater sectors continue to anchor performance, while optimism is growing around renewables, defence and new infrastructure investment.
Looking forward, growth will hinge on how well the pump industry adapts to shifting markets and growing competition. Challenges such as cost pressures and skills shortages remain front of mind, while for many, 2026 represents a chance to separate yourself from the pack, where diversification could be a key advantage.
This feature appeared in the Summer 2025/26 edition of Pump Industry.
