Solar pump growth soars with a CAGR of 6.8% till 2027

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Solar pump growth soars with a CAGR of 6.8% till 2027

Solar pump growth soars with a CAGR of 6.8% till 2027

Articles
Oct 30,23

Recently, Allied Market Research published a report on Solar Water Pump Systems Market which shows that the agriculture segment was the highest contributor to the growing solar pump market with a CAGR of 7.2 per cent during 2020 to 2027.

Solar pump growth soars with a CAGR of 6.8% till 2027

The global solar water pump system market is increasing due to usage of renewable sources of energy. According to a new report published by Allied Market Research, the global solar pump market was valued at $1.21 billion in 2019, and is projected to reach $2.05 billion by 2027, registering a CAGR of 6.8 per cent from 2020 to 2027. Solar energy is majorly used in developing countries like India where the infrastructure is growing. Solar water pump system is made of solar panel, a motor connected to PV. The solar panels provide the electricity to the motor to pump the water. They are widely used for various applications, including irrigation, livestock, and domestic water supply, especially in areas where access to traditional electricity sources is limited. Asia-Pacific and Europe collectively accounted for around 77.1 per cent and 55.0 per cent share in 2019. Europe and North America are expected to witness considerable CAGRs of 8.5 per cent and 7.3 per cent, respectively, during the forecast period.

Agriculture sector: A major contributor

Solar water pump are widely used in agriculture industry for the purpose of irrigation. And its usage has been increasing because of it reduces the electricity bills of the farmers. The government is also encouraging the use of solar water pumps to reduce the power usage from agricultural industry and it is clean and safe helps in carbon reduction.

According to the report, the agriculture segment was the highest contributor to the market, and is expected to grow at a CAGR of 7.2 per cent during the forecast period. Countries in Asia-Pacific, such as India, are increasingly installing solar pump for water irrigation purpose. As solar energy is easily available, it is expected that the demand for solar pump, particularly for farming application, will increase notably. But the challenge remains within its installation cost which is quiet high for farmers which is an obstacle in growth of the market.

Other sector contributors

The submersible and surface suction segments collectively accounted for around 83.3 per cent market share in 2019, with the former constituting around 55.3 per cent share, as per the report. The floating and surface suction segments are expected to witness significant CAGRs of 8.7 per cent and 7.3 per cent, respectively, during the forecast period. Other than irrigation submersible pumps are now also being used in oil and gas sector for the chemical injection.

The AC pump segment was the highest contributor to the market expected to grow at a CAGR of 5.8 per cent during the forecast period. This is attributed to the fact that AC pump are anti-corrosive and provide high wear resistance. Moreover, they reduce the operating costs due to their high pumping efficiency and longevity. In addition, they are highly reliable and offer notable results even under harsh conditions. The DC pump segment is estimated to grow at a CAGR of 8.9 per cent during the forecast period.

Solar water pump facilitates efficient use of electricity for increasing agricultural productivity. Around 40 per cent of the worldwide populace is based on agriculture, as its primary supply of income, yet access to water remains an ongoing war for many.

Fee reductions in economies such as India, Japan, and Africa for solar water pump have the ability to make modern-day irrigation available and fee-powerful for almost 500 million small-scale farmers international.

The major focus is on small-sized sun water pump (50–1,000W), as these are used by most of the consumers. Government of the emerging economies such as India, Japan, and Africa are accelerating development and commercialisation of solar pump.