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The global solar water pump market size was USD 2.38 billion in 2020. The market is projected to grow from USD 2.86 billion in 2021 to USD 5.64 billion in 2028 at a CAGR of 10.2% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -18.1% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
A solar water pump is a system driven by solar energy and pumps water for many purposes, such as irrigation, community water supply, and potable drinking water, and has decreased its reliance on diesel, gas, or coal. These systems are environmentally sustainable and have low fuel-free maintenance requirements. It is one of the most capable applications of solar energy, which can be effective in rural and remote regions in most of the world. With the rise in demand for reliable and clean water supply and agriculture activities, it is anticipated to increase the product demand in rural areas.
Reduction in Sales Volume During COVID-19 Pandemic
The global health emergency caused due to the impact of COVID 19 has been staggering and unprecedented with a major impact on families and economics. The solar power pump market has experienced a bad impact due to COVID-19 induced drop in sales of solar power units. Globally, all regions registered a slowdown, with South Africa with the worst effect, leading to a nearly 60% drop in sales. Before this, South Africa was anticipated to see strong and continued growth, compared to the first half of 2019 and knocking the progress of energy access set by IEA. On the other hand, India experienced positive growth of almost 6%, with key players operating in the market putting their efforts by providing the sector with financial, technical, and operational support, which has proven vital.
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Increasing Investments in Agriculture Applications Spur Market Opportunities
Agriculture is one of the major sectors that contributes a significant percentage to a country’s GDP growth. With rise in investment in agriculture, irrigation application is anticipated to increase the demand for solar water pumping systems as irrigation is an important parameter for farmers. The increase in modernization in the agriculture sector and the gradual shift toward sustainable energy sources are propelling the opportunities for solar pumps in the coming years. For example, on June 11, 2020, Kenya National Budget had brought a major encouragement in the irrigation sector and has announced an investment of USD 35 million to expand the community household irrigation, which will allow individual farmers to double their agriculture yield by making the use of these solar pumps as they are powered by the sun and money is saved on fuel. This can result in a positive step toward increasing the smallholder farmer yield, resilience, and income. Therefore, investment costs are creating opportunities for adopting such pump systems.
In addition, Tata Power Solar Systems, one of the leading market players, has bagged an award of 250MW solar project by National Thermal Power Corporation Limited (NTPC) under the Central Public Sector Undertaking (CPSU) scheme. The project is said to consolidate the company’s “Make in India” mission and underscore the company’s competitive and quality offering as a leading solar E.P.C. player in the country, achieving a leadership position among utility-scale, rooftop solar, and solar pump businesses.
Government Subsidies to Adopt Solar Energy Drive Market Growth
Solar water pump is one of the prominent applications of solar energy. With the shift toward clean renewable energy sources and clean energy, various government bodies have established subsidies for solar type of water pumps to increase the acceptance and adoption of solar powered water pump systems. For instance, in India, the market is heavily influenced by a subsidy on the pumps that aims to promote their uptake to decrease the negative environmental impacts and reduce the dependency on fossil fuel-powered pumps.
For example, in India, government schemes, such as Pradhan Mantri KisanUrja Suraksha Evam Utthan Mahabhiyan Yojana (PM-KUSUM), CPSU (Government Producers) Scheme - Phase II, and Solar Rooftop Phase II program, facilitate improvement of power generation and solar inclusion across the country. Thereby, support from the government is one factors that drives this market.
Use of Solar Pumps in Improving Livelihood Propels Market Growth
The increase in product adoption represents an opportunity for market players and developers in the solar pump industry to capitalize on the commercial potential of such pumps and improve the livelihoods in rural areas. Market players such as Shakti Pumps, Bengal Renewables, and others make their solar pump technology and business model more affordable and accessible for smallholder farmers. With increase in growth, various market players see this as a potential opportunity to change the market landscape significantly. For example, generic manufacturers operating in the market sell solar pumps for as low as USD 200, whereas traditional players focus on large-scale irrigation products and are developing solar water pumps for small-scale irrigation, which is also getting recognition by farmers, and are taking interests in cross-selling of solar pumps. Therefore, such factors are driving the market growth.
High Cost and Lack of Awareness of Solar Water Pumps Hinder Market Growth
The main reasons for the low uptake of solar water pumps are the affordability of the system and current financial solution, which act as the greatest challenges for the market growth. Subsequently, many other options are less attractive for smallholder farmers given their high costs and unfavorable terms. Moreover, even with subsidies, most of these pumps are too expensive for smallholder farmers to afford, the most prominent customers of the solar pump market. In addition, lack of awareness about the technology also hinders market growth. For context, a recent study in Tanzania showed no awareness or uptake of this type of water pumps among a sample of smallholder farmers despite market availability. In India, only 2% of smallholder farmers are aware of the government subsidy program for such pumps.
Submersible Pump to Hold Dominant Market Share Due to Better Energy Efficiency
The market is segmented into submersible pump and surface pump by type. These two types of pumps generally depend on the water source that determines which pump type is more suitable. Submersible pumps are completely submerged in the water source, mainly in wells and boreholes. Submersible pumps can also be installed horizontally inside water reservoirs at a minimum depth of 0.5 m, well anchored, and fitted with a cooling sleeve (to enable enough cooling to the motor, which create greater efficiency due to less energy required to move the fluid through the liquid path of the pump. Surface pumps are generally placed at the side of a lake or on the top of the water surface. They are well suited for pushing water over long distances and can draw water from about 6.5 vertical meters.
A.C. Pumps to Hold Dominant Market Share due to its High Durability and Performance
By motor type, the market is bifurcated into AC motor and DC motor. P.V. array is directly connected to a pump assembly with a DC motor via a DC controller. DC pumps have longer lifespans and are more efficient than an equivalent size of AC as no power conversion is necessary. However, these pumps are limited in head and flow and are generally used for lower head, lower volume (smaller) applications of up to 4 kW power demand. Moreover, DC pumps have encountered several incorrect wiring cases, electronic circuitry failure, dangerous DC voltages, and terminals that did not provide good electrical connection, which led to lower adoption over AC pumps.
Upto 5 HP to Hold Dominant Market Share Due to Less Upfront Cost
Based on power rating, the market is segmented into upto 5 HP, 5 HP to 10 HP, 10 HP to 20 HP, and more than 20 HP. These water pumps generally range upto 5 HP. It is much cheaper than other power ratings and provides maximum suction head.
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Agriculture Application to Hold Dominant Market Share due to Large Adoption of Solar Water Pumps
The market is bifurcated into agriculture, water treatment, and others by application. Agriculture has accompanied almost 63% of the total solar water pump market value as the biggest consumers are farmers across India and the Sub-Saharan region. A large part of the Indian workforce, with nearly 40%, depends upon the agriculture sector, due to which irrigation plays a vital role. The agriculture sector uses such pumps for irrigation purposes, which helps farmers control water and electricity supply through solar water pumps and helps them improve groundwater management. For example, on April 18, 2021, in India, government schemes have solved major problems, such as water scarcity, by deploying off-grid solar-powered water pumps, which harness renewable energy to draw water for agriculture in the daytime as some villages in Maharashtra only get electricity at night. Thus, the ability to run a water pump during the day is important to local farmers.
Solar water pumps can be used for potable drinking water supply for residential and commercial purposes in water management. Subsequently, as a solar powered water pump does not require any electricity supply, it is one of the most prominent technologies for water supply in rural, remote areas where no electricity grid in available. Moreover, the solar powered water pump holds a prominent share of around 29% for water management applications.
Other applications include water livestock, where the pumps are used to supply water in animal cattle, feedlots, dairy operations, and other on-farm needs. In addition, they are also used by different organizations in rural areas where water scarcity is one of the major causes of lower economic development.
Asia Pacific Solar Water Pump Market Size, 2020 (USD Billion)
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Geographic regions analyzed for the market comprise Asia Pacific, Latin America, the Middle East & Africa, and the rest of the world. The geographical distribution of solar water pumps reflects general economic activity, despite rapid growth in some countries, particularly in India, China, and Sub-Saharan Africa. Subsequently, the solar powered water pump market trends have been heavily driven by government subsidies in India. For instance, as per Lightening Global Off-grid Solar Report, India has over 150,000 solar water pumps sold to date bolstered by government subsidies, which hold the major market share of total units sold globally. In addition, larger pumps are more dominant in India due to the water intensity of crops such as rice and greater groundwater depth in some parts of the country. Moreover, Asia Pacific region has the densest area for irrigation, which is poised for the highest demand for solar powered water pumps.
In Latin America, the market dynamics have been positive due to the power generation factor, resulting in major growth of clean energy, and thus anticipated to propel the solar water pump market growth across the region.
In the Middle East & Africa, majorly across the sub-Saharan Africa, the solar powered water pump industry is growing due to recent advances in technology and falling prices. Diesel pumps and electric pumps connected to the grid are traditionally the most common types of water pumps. However, with the sharp decline in the cost of PV panels, solar powered water pumps have begun to gain traction and will grow during the forecast timeframe.
In Europe, the adoption of the pumps is merely low, limiting the sales of pumps and aftermarket parts. However, with an increase in focus on clean energy sources, countries adopt renewable energy-powered technologies, which is expected to propel the market growth across the region. For example, on October 31, 2021, the U.K. and India have set their International Solar Alliance (I.S.A.) by launching Green Grid Initiatives at the United Nations COP26 climate summit in Glasgow. Green Grid Initiative aims to start a coalition between both nations, which will benefit them in transforming solar energy in time and work on developing technological transformation in solar power pumps and lowering their cost, thereby allowing other countries to adopt solar-powered systems.
Key Participants Are Concentrating On Enhancing Their Product Capacities
The solar water pump market comprises various key players delivering products for numerous applications, thereby shaping the competitive landscape. Major players operating in the market, such as Shakti Pumps, Waaree Energies Ltd, K.S.B. Limited, and Aqua Group, are focusing on improving product capability to maintain their brand. For instance, in June 2020, SunEdison entered into a framework agreement to restructure and transfer its solar business. Under the proposed restructuring plan, the company's completed and pending projects will be separated, further allowing them to focus mainly on residential and small commercial rooftop solar segments.
An Infographic Representation of Solar Water Pump Market
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The market research report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the report. Furthermore, the report covers a detailed analysis of market segments, including type, motor type, power rating, applications, and regions, helping our readers get a comprehensive overview of the global industry.
Value (USD Billion)
By Type, Motor Type, Power Rating, Application, and Region
By Motor Type
By Power Rating
As per the Fortune Business Insights study, the global solar water pump market was USD 2.38 billion in 2020.
The global solar water pump market is projected to grow at a CAGR of 10.2% over the forecast period.
The market size of Asia Pacific stood at USD 1.45 billion in 2020.
Based on type, the submersible pump segment holds the dominating share in the global market.
The global solar water pump market size is expected to reach USD 5.64 billion by 2028.
The key solar water pump market drivers are increased agricultural investment, mainly in Asia Pacific, propelling the product demand. Besides that, government subsidies and shifts toward clean energy sources drive the market growth.
The top players in the market are Shakti Pumps, K.S.B. Group, Dankoff Solar, Grundfos, Surya International, and Waaree Energies Ltd.
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