The agricultural pumps market is evaluated at US$3.960 billion for the year 2019 growing at a CAGR of 5.69% reaching the market size of US$5.521 billion by the year 2025.
Agricultural pumps are those types of water pumping solutions that are specifically designed to meet the water pumping or transporting requirements in the agricultural sector from numerous sources such as bore-wells, rivers, and tanks among others. The market for agricultural pumps is projected to show a substantial growth over the course of the next five years. The major factors bolstering the market growth include the booming adoption of these pumps as they offer fruitful benefits to small scale as well as large scale farmers by maintaining a constant supply of water for irrigation as well as other purposes in a hassle-free manner. The growing domestic food demand, as well as the growing exports of agricultural commodities globally, is one of the key factors supplementing the demand as investments in new as well as modern agricultural machinery is expected to augment the market growth during the next five years. These pumps enable farmers to maintain a constant rate of production as they offer numerous benefits such as the enhancement of irrigational quality as these can be installed nearby the irrigation facilities to facilitate the transportation of water to every corner of the field. These pumps enhance the efficiency of farmers as it maintains a high rate of water flow throughout the field.
The market for agricultural pumps is also being driven by the fact that the players operating in the market are investing heavily in the form of R&D for the development and the launch of the new and high-tech solutions with advanced features. Also, heavy investments are being done for the development of pumps that can operate through alternative sources of energy such as solar, biogas, and others. Thus, the growing focus towards sustainable farming coupled with the increasing number of product launches are also some of the additional factors that are propelling the business growth opportunities for the market players over the course of the next five years, as this further shows the potential for the market to witness a healthy growth during the next five years.
Participation by market players
There is a high volume of companies working in the agricultural pumps market, however, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to further strengthen their position and provide better products and services to their customers worldwide, which is further expected to propel the growth of the market in the coming years.
November 2019, WILO USA, a subsidiary of WILO SE, one of the renowned manufacturers of pumps and pump systems announced the acquisition of American-Marsh Pumps LLC, through its newly established subsidiary. The company aimed to strengthen its position across the US and also aimed to enhance its product portfolios for its customers across several industries.
May 2019, Stanley Black & Decker, one of the leading industrial products manufacturing companies based out of the United States, announced the launch of its new agricultural pump, Stanley Earth, a solar-powered water pump designed specifically to meet the needs of the farming sector. The primary aim of the company is to address these unmet societal challenges that include sustainable development challenges that are majorly focused on water, energy, and climate.
August 2018, Roto Pumps Limited, a globally known company established in 1968 and a manufacturer of positive displacement pumps announced two new offerings in the agricultural segment to its Tirrana Agricultural Range.
February 2018, Lindsay Corporation, a US-based irrigation systems manufacturer announced the launch of its latest version of FieldNET application, this application is designed to automate several functions across the farms which included pumps and motors among others.
The market for agricultural pumps is primarily being driven by the fact that the governments across both developed and developing economies of the globe are taking all the necessary steps by the governments across several countries throughout the globe to uplift the agricultural sector as it is often considered as one of the most integral parts of the economy in some countries. Various countries are taking initiatives to expand the agricultural output by promoting the use of modern machinery as a movement towards sustainable agriculture. The governments are motivating the farmers to use pumps and other types of machinery that run on renewable sources by offering several subsidies and incentives to attract more and more farmers. For instance, in August 2019, the Indian government announced various schemes to penetrated solar energy as a means to address several challenges faced by the farmers across the country. In this scheme, the government announced to install grid-connected solar power plants and solar pumps to ensure water security to the farmers of the country in which approximately 17.5 lakhs pumps were to be replaced by pumps running on diesel by the year 2022. Additionally, the state governments across the countries are have also framed new policies and incentives to promote the usage of pumps running on renewable sources which is also expected to propel the business growth opportunities for the manufacturers over the course of the next five years. For instance, the Solar water pumps scheme launched by the government of Maharashtra in which beneficiaries are supposed to get the pumps at subsidized rates and farmers only have to pay around 5% of the total cost of the pump. Moreover, the recent budget announced by the government of India further shows the market growth potential over the coming years. As funds have been allocated for the completion of pending irrigation projects and installations of new pumps have been proposed in these budgets.
The agricultural pumps market has been segmented on the basis of type, application, and geography. By type, the segmentation of the market has been done as rotodynamic pumps and positive displacement pumps. By application, the classification of the market has been done as irrigation and livestock water transfer. Geographically, the market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Rotodynamic to witness good growth
By type, the market for rotodynamic agricultural pumps is projected to show promising growth throughout the course of the next five years. The booming investments in the adoption of modern agricultural machinery is a key factor augmenting the growth of this segment. Also, increased government spending in the completion of irrigation projects is also expected to amplify the demand or rotodynamic agricultural pumps in the near future. These pumps are also more efficient as they can operate over a wide range of applications, and are easy to install. The positive displacement agricultural pump market is expected to hold a significant share in the global market. These pumps operate by changing the volume in a closed system. These changes in volumes further push the water into the desired direction.
Irrigation expected to hold a significant share
By application, the irrigation segment is expected to hold a major market share throughout the course of the next five years. The wide applications of pumps for irrigation purposes is a key factor bolstering the significant share of this segment during the forecast period. Furthermore, the increased government spending in many countries in irrigation projects is supplementing the growth of this segment during the next five years. As crops are considered as the beating heart of the agricultural industry, thus, water for irrigation is considered to be extremely important for keeping the output maintained.
APAC to hold a noteworthy share
Geographically, the Asia Pacific region is expected to hold a significant market share on account of the presence of some of the largest agricultural output giving countries such as India and China among others. The market growth in the region is primarily due to the growing government focus towards boosting agricultural output. Also, the growing focus towards renewable energy has further led to an increase in the installation of solar pumps in countries like India, which further shows the potential of the market to grow in the Asia Pacific region during the next five years.
Prominent/major key market players in the agricultural pumps market include The Kirloskar Group, GRUNDFOS, and Crompton Greaves Consumer Electricals Limitedamong others. The players in the agricultural pumps market are implementing various growth strategies to gain a competitive advantage over its competitors in this market. Major market players in the market have been covered along with their relative competitive position and strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the agricultural pumps market.