The global solar-powered pumps market was valued at US$867.241 million in 2020 and is expected to grow at a CAGR of 29.54% to reach a market value of US$5,309.452 million in 2027 over the forecast period.
Solar-powered pumps are a low-cost, easy-to-use, and energy-efficient alternative to traditional electric and fuel-powered pump sets. Solar water pumps are extensively used in residential and commercial settings, as well as in agriculture for irrigation. The use of solar-powered pumps eliminates the cost of energy as they use the energy from the sun through solar panels and provide a more feasible, environmentally friendly option for pumping water. The main components of a solar pumping system include an electric motor, a photovoltaic (PV) array, and a pump. Solar-powered pumps are categorized as direct current (DC) or alternating current (AC) based on their motor’s type. Increasing agricultural activity is a significant way to fight poverty and stimulate socio-economic development worldwide. According to the United Nations Environment Programme (UNEP), there has been an estimated 7 percent reduction in poverty in Africa and more than 5 percent in Asia for every 10 percent increase in farm yield. Many agrarian economies continuously support the accelerated development of irrigation infrastructure to stimulate agricultural productivity and combat food security. As such, there is a high demand for affordable, reliable, and environmentally sustainable energy input for delivering irrigation services. Solar-based solutions can provide reliable, cost-effective, and environmentally sustainable energy for decentralizing irrigation services, increasing productivity, improved livelihoods, and social welfare. Solar-powered pumps are handy for rural locations that are not part of the local electricity grid while proving to be a clean and simple alternative to fuel-burning windmills and generators. Solar-powered pumps will also free governments from high spending on fossil fuel subsidies. The use of solar-powered pumps is increasing at a significant rate across the agriculture sector. With around 40 percent of the global population relying on agriculture as its main source of income, access to water for irrigation is a constant challenge for many farmers and agricultural workers. The major driver of the solar-powered pump market is the increasing cost of electricity worldwide, along with the growing electricity consumption. According to the U.S. Energy Information Administration (EIA), global electricity consumption is continuously increasing faster than the global population, which is leading to a rise in the average amount of electricity consumed per person, or per capita electricity consumption. This growing per capita electricity consumption is majorly attributed to the rapid shift to more energy-intensive industries along with the changes in service demand. Another reason for the growing adoption of solar-powered pumps is the lack of availability of electricity in remote areas across agrarian economies. In countries like Africa and India, there are still many villages that do not have comprehensive coverage of grid electricity. Furthermore, many agricultural-dependent countries employ running water pumps using diesel generators with high operating costs. As a result, solar-powered pumps are becoming a superior alternative to diesel and electric generators to save on high irrigation costs for farmers. Moreover, the installation of solar-powered pumps for irrigation will also help the government to save on the electrification cost in remote areas.
With the declining cost of solar panels, there has been mass adoption of solar energy among various end-users. This factor also increases the adoption of solar pump systems, thus positively impacting the growth of the global solar-powered pumps market. According to Renewable Power Generation Costs in 2019 report by the International Renewable Energy Agency (IRENA), the cost of energy for photovoltaic solar has dropped by 82 percent since 2010. As solar power is widely used and a much more affordable source of electricity, this would boost the demand for solar-powered pumps for providing water for irrigation purposes as well to provide potable water.
By geography, the global solar-powered pumps market has been segmented into five major regional markets- North America, South America, Europe, the Middle East and Africa (MEA), and Asia Pacific (APAC). The Asia Pacific accounted for a significant share of the global solar-powered pumps market in 2019. This regional market is also poised to grow at a substantial compound annual growth rate during the forecast period, with countries like China and India driving the growth. These countries are increasingly adopting solar-powered pumps for various purposes, such as irrigation and wastewater management. Supportive government initiatives and programs to ramp up the use of solar energy will continue to propel the growth of the solar-powered pump market in this region. For example, in February 2020, the Indian Finance Minister announced the expansion of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) Scheme, under which funds would be provided to 20 lakh farmers for the setting up standalone solar-powered pumps. Europe is also one of the leading regional markets for solar pump manufacturers. The growth of the solar-powered pump market in this region is attributed to increasing agricultural activities coupled with high concerns regarding environmental sustainability. As per the European Commission (EC), it is estimated that US$28.44 billion is required to invest in renewable sources by governments in European countries between 2020 and 2050. This would eventually increase the use of solar-powered pumps in the region, thereby driving the regional market growth. The Middle East and Africa solar pump market is also experiencing decent growth over the projected period on account of the rising focus on reducing the dependency on importing fossil fuels to generate electricity for agriculture and potable drinking water.
C.S.C. teamed up with Tata Power in April 2021 to develop solar-powered microgrids & water pumps. Tata Power will leverage its technical and financial resources to put up distributed, small-scale solar energy systems in rural areas, supplying people and businesses with power 24 hours a day, seven days a week. C.S.C., on the other hand, draws village-level businesses into the partnership to deliver timely, low-cost service and help rural markets with distributed solar electricity.
Lorentz was awarded the Energy Globe Award in August 2020 for their efficient drinking water initiative in Cape Verde, Africa. LORENTZ Partner GTEK Lda installed and executed a Lorentz PSK2 solar pumping system for the project.
At the Un International COP26 climate summit in Glasgow on October 31, 2021, the United Kingdom and India established their International Solar Alliance (I.S.A.) by introducing Green Grid Initiatives. The Green Grid Initiative aims to build a partnership between the two countries that will aid them in transforming solar energy promptly and working to reduce the cost of solar power pumps, allowing other countries to adopt solar-powered systems.
SunEdison signed a memorandum of understanding to restructure and transition its solar business in June 2020. The company's completed & pending projects will be split under the suggested restructuring plan, allowing them to focus solely on the residential and small business rooftop solar segments.
Due to COVID-19, the market for solar pumps declined. Fewer investments & economic fluctuations are the prime reasons for the decline. The solar pump market's demand and supply chain have been badly harmed as a result of the pandemic. Another consequence of the pandemic on this market is the price reduction followed by a drop in sales. The market for solar water pumps is being harmed by the slowdown in mining, groundwater extraction, and treatment. Furthermore, market lockdowns and shutdowns for the solar water pump business are hampering the growth. In addition, the cost of raw materials is rising, disrupting the solar water pump manufacturing process. Consequently, all of these issues are lowering the demand for solar pumps and slowing their growth pace.
Prominent key market players in the solar-powered pumps market include Vincent Solar Energy, Tata Power Solar Systems Ltd., Lubi Industries LLP, Oswal Pumps, Greenmax Technology, Shakti Pumps USA LLC, SOLAR PUMPTEC, Aquasub Engineering, Bright Solar Limited, GRUNDFOS, and US Solar-powered pumps. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global solar-powered pump market have been covered along with their relative competitive position and strategies.
Frequently Asked Questions (FAQs)
Q1. What will be the solar-powered pumps market size by 2027?
A1. The global solar-powered pumps market is expected to reach a total market size of US$5,309.452 million in 2027.
Q2. What are the growth prospects for the global solar-powered pumps market?
A2. The solar-powered pumps market is expected to grow at a CAGR of 29.54% during the forecast.
Q3. What is the size of the global solar-powered pumps market?
A3. Solar-Powered Pumps Market was valued at US$867.241 million in 2020.
Q4. Which region holds the largest market share in the solar-powered pumps market?
A4. The Asia Pacific accounted for a significant share of the global solar-powered pumps market.
Q5. What factors are anticipated to drive the solar-powered pumps market growth?
A5. The major driver of the solar-powered pump market is the increasing cost of electricity worldwide, along with the growing electricity consumption.
Vincent Solar Energy
Tata Power Solar Systems Ltd.
Lubi Industries LLP
Shakti Pumps India Ltd
Bright Solar Limited
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