June 22, 2024
Solar Water Pump Systems Market

Solar Water Pump Systems Market is Estimated To Witness High Growth Owing To Increased Adoption of Solar-powered Irrigation Systems

The Solar Water Pump Systems Market is estimated to be valued at US$ 1.92 billion in 2023 and is expected to exhibit a CAGR of 13% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Solar water pump systems utilize solar energy to pump water from reservoirs like borewells, open wells, lakes, and community reservoirs for irrigation and drinking purposes in off-grid locations. These pumps offer advantages such as zero operational cost, reduced carbon footprint, simple operation and maintenance, and independence from grid connectivity. The increasing need for sustainable and cost-effective water pumping solutions in rural and remote areas is augmenting the demand for solar water pump systems.

Market key trends:
Rising adoption of solar-powered irrigation systems to boost agricultural productivity in a sustainable manner is a major trend driving the growth of the solar water pump systems market. Solar water pumps can provide irrigation throughout the day without any dependence on grid electricity, thereby ensuring continuous water supply for crop cultivation even in locations away from power infrastructure. Furthermore, government incentives and subsidies in many countries for installing solar pumping systems are encouraging more farmers to adopt these systems. For instance, the Ministry of New and Renewable Energy in India offers a 30% capital subsidy under the Solar Pumps Programme to promote solar energy in the agricultural sector.

Porter’s Analysis
Threat of new entrants: Low capital requirements for manufacturing and operations pose a moderate threat of new entrants. However, established suppliers have economies of scale and strong brand recognition.
Bargaining power of buyers: Large buyers have significant bargaining power due to the availability of substitute products. However, small buyers have limited bargaining power.
Bargaining power of suppliers: A few key component suppliers exist, giving them some bargaining power over price, quality, and availability. Supplier power is balanced by competition between alternative component sources.
Threat of new substitutes: Solar and wind energy are major substitutes. Technological advances can enable wider adoption of these clean energy sources.
Competitive rivalry: Intense competition exists amongst existing suppliers on the basis of product quality, reliability, pricing and innovation.

SWOT Analysis
Strengths: Growing awareness and government incentives/subsidies are driving market growth. Solar energy provides affordable access to water in remote areas not connected to the grid.
Weaknesses: High initial installation costs. Dependency on climate/weather conditions. Need technicians for installation and maintenance.
Opportunities: Untapped rural market in developing nations presents vast opportunities. Integration of IoT can optimize performance and reduce costs.
Threats: Policy changes like reduction/removal of subsidies can impact demand. Dependency on fossil fuels for backup during low solar irradiation periods.

Key Takeaways
The global Solar Water Pumps Market Share is expected to witness high growth, exhibiting CAGR of 13% over the forecast period, due to increasing rural electrification in developing countries. The Asian market, led by India and China, will continue dominating globally due to the large agricultural sector and government initiatives for solar energy adoption in rural areas. The market in Latin America and Middle East & Africa is also projected to grow at a double-digit rate.

Regional analysis – Asia Pacific accounted for over 65% of the global solar water pump market share in 2023, led by China, India and other Southeast Asian countries. China has emerged as a leading manufacturer, while India tops in terms of installations due to various government schemes. Europe and North America are relatively mature markets but expected to grow at a moderate pace.

Key players operating in the solar water pump systems market are Grundfos, Lorentz, Shakti Pumps, CRI Pumps, Tata Power Solar, Bright Solar, USL, Lubi Electronics, Solar Power & Pump Co, JNTech, JISL, ADA, Hanergy, CRI Pump, Dankoff Solar, Greenmax Technology, Rainbow Power Co, SunEdison, Solartech, Megha Engineering. The market remains fragmented with local and regional suppliers catering to rural areas in developing nations.collaboration/partnerships remain key

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it