Solar Pumps Market Analysis By Product (DC Surface Suction, AC Submersible, DC Submersible And AC Floating), By Application (Agriculture And Drinking Water) And Segment Forecasts To 2022

Industry Insights

The global solar pumps market was 120,786 units in 2014. Increasing agricultural activities coupled with water extraction for irrigation based on renewable energy is expected to drive the global solar pumps market over the forecast period.

Increasing government subsidies from in the form of financial incentives to install solar pumps is further expected to drive the market growth over the forecast period. Increasing dependency on renewable energy-based products on account of depleting fossil fuel reserves is also expected to drive the solar pumps market over the forecast period.

Increasing government subsidies in the form of financial incentives to farmers and solar pump manufacturers is expected to augment solar pumps demand in India. Moreover, the Ministry of New and Renewable Environment (MNRE) is targeting to install 1,000,000 by the year-end of 2020-21. This would aid in further growth of solar pumps in the country in the future.

Increasing agriculture activities coupled with livestock water drinking activities is expected to remain a major driving factor for solar pump demand in the U.S. The country has a dominating market share for solar pump demand in North America over the past and is expected to continue its dominance in the future.

Countries such as China, India, Bangladesh, Pakistan, Morocco, Kenya, Namibia, and Nigeria have set targets to reduce fossil fuel imports and benefit financially from it. These regions have abundant solar energy supply with a huge renewable energy tapping potential. This factor is expected to augment solar pump market growth over the forecast period.

Solar pumps are primarily used for agricultural and drinking water purposes. They are used in remote regions where off-grid energy in the form of electricity is not available. Use of solar energy to drive pumps cut down the operating cost, which is majorly consumed in the form of diesel.

Stringent government regulations to reduce carbon footprints into the atmosphere are expected to augment solar pumps market growth over the next seven years. Solar energy used for water pumps does not emit any carbon footprints into the atmosphere and provides a clean source of energy.

Government subsidies in the form of financial incentives to farmers and solar pump manufacturers are expected to propel the solar pump market over the forecast period. However, the high initial cost compared to conventional diesel pumps is expected to remain a key challenge for market participants.

Product Insights

DC suction emerged as the leading product for solar pumps and accounted for over 80% of the total solar pumps market in 2014. Increasing drip irrigation activities particularly in emerging economies of Asia Pacific and the Middle East & Africa is expected to drive solar-powered DC suction pumps over the forecast period.

AC submersible pumps are expected to witness the highest growth rate over the forecast period. Growing demand for higher efficiency solar pumps particularly in emerging economies of India and Bangladesh is expected to drive the demand for AC submersible pumps over the forecast period. AC submersible pumps are specially designed to pump groundwater from deeper wells or boreholes where DC suction pumps cannot be used.

DC submersible pumps require low maintenance and are highly efficient. Also, less number of solar panels are required for installing DC submersible pumps in comparison to AC submersible pumps. Thereby, lower initial investments are required as compared to AC submersible pumps. These factors are expected to increase market demand for DC submersible pumps in the future.

Application Insights

Agriculture was the dominant application segment of solar pumps and accounted for 60% of the total solar pumps market in 2014. The global increase in agricultural activities coupled with water required for irrigation is expected to drive the solar pumps market for this application.

Government subsidies to farmers and solar pump manufacturers particularly in emerging economies of Asia Pacific are expected to fuel solar pump market growth over the next seven years for agriculture application.

Clean and continuous water supply is necessary to remote place of various regions where electricity supply is a problem and operating diesel pumps proves to be expensive. This factor is expected to drive the solar pumps market over the forecast period as these places have huge potential to tap renewable energy in the form of solar.

Government-sponsored programs dedicated to the long-term supply of drinking water are implemented in various developing countries. For these programs, solar pumps provide a better solution due to the requirement of little or no maintenance in comparison to diesel-operated pumps.

Regional Insights

Asia Pacific emerged as the largest solar pump market and accounted for over 30% of total market volume in 2014. Increasing government subsidies and reduction of fossil fuel imports for agricultural activities is expected to drive the solar pump market in this region over the forecast period.

Increasing agricultural activities coupled with growing government subsidies in the form of financial incentives is expected to drive the solar pumps market in Asia Pacific. Countries in this region such as China, India, Bangladesh, and Pakistan are major agricultural regions with abundant availability of solar energy.

Europe emerged as the second-largest region for solar pumps globally. Countries in this region such as Germany, U.K., Italy, and France are major consumers of solar pumps. Increasing agricultural activities in these regions coupled with livestock water supply are expected to expand market penetration in this region over the next seven years.

The Middle East & Africa is also witnessing significant growth over the forecast period. The shift in trend towards reducing dependency on importing fossil fuels in the form of diesel and butane for their primary need for energy to generate electricity for agriculture and drinking water.

Solar Pumps Market Share Insights

The global solar pumps market is dominated by top multinational corporations that have a presence across the value chain. Some of the major companies operating in the global solar pumps market include Lorentz, SunEdison, Grundfos, USL, and Bright Solar. Other companies include CRI Pumps, TATA Power Solar Systems Ltd., and Shakti Pumps among others.

Some of the companies in the solar pump market are entering into a collaboration with government bodies and institutions to enhance their market share. For instance, Shakti Pumps in September 2013 became a channel partner with MNRE under its scheme “Off-Grid and Decentralized Solar Applications”. This initiative would enable to expand the company’s distribution network and thus increase its market penetration in India. 

Report Scope

Segments Covered in the report

This report forecasts revenue and volume growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2012 to 2022. For this study, Grand View Research has segmented the global solar pumps market on the basis of product, application, and region.

• Product Outlook (Revenue, USD Million; Volume, Units; 2012 - 2022)

  • DC Surface Suction

  • AC Submersible

  • DC Submersible

  • AC Floating

• Application Outlook (Revenue, USD Million; Volume, GW; 2012 - 2022)

  • Agriculture

  • Drinking Water

• Regional Outlook (Revenue, USD Million; Volume, GW; 2012 - 2022)

  • North America

    • The U.S.

  • Europe

  • Asia Pacific

    • China

    • India

  • Central & South America

  • Middle East & Africa