According to a recent study, in terms of revenue, the global solar pumps market is estimated to expand at a CAGR of 12% during the forecast period, owing to numerous factors. The study, from Transparency Market Research, offers thorough insights and forecasts in the solar pumps market.
A solar pump is a major solar equipment product. It consists of a pump and a PV panel that has semiconductors. When this panel is exposed to sunlight, current gets generated and it helps pump water. Solar pumps have a wide range of applications, from household to agriculture and irrigation.
The solar pumps market is anticipated to grow at a rapid pace during the forecast period, due to an increase in agricultural and irrigation activities, mainly in developing countries in Asia Pacific and the Middle East & Africa.
The solar pumps market is growing due to the rising demand for pumps in domestic and agriculture applications, mainly for supply water in farms and for irrigation. Also, solar water pumps are increasingly being preferred in oil and gas fracking activities to reduce the environmental impact of these activities.
The growing adoption of solar energy for irrigation and agriculture activities across the globe is the major driving factor of the solar pumps market. Asia Pacific is anticipated to be a major region in the solar pumps market during the forecast period. India, China, and Bangladesh, which are major agricultural countries with ample sunlight, are projected to expand their solar pumps market.
Governments in developing countries are encouraging people to use solar energy, especially in agricultural sectors, which is fuelling the demand for solar pumps. Additionally, a decline in solar equipment prices is encouraging the solar pumps market.
However, lack of technological knowledge and lack of awareness about solar technology, and limited understanding about the rural market for solar equipment, are major factors causing the lower adoption of solar pumps in developing countries.
Manufacturers do not have a clear idea about the full potential of the market due to the limited understanding of the rural market. These factors are anticipated to hamper the growth of the solar pumps market during the forecast period. People prefer electrical pumps instead of solar pumps due to lower maintenance costs.
Also, these can be easily controlled by an automated system. Additionally, the capital cost of solar pumps is high, and it also requires some more inputs which make the electric pump more attractive and cheaper. The solar pumps market is expected to get hampered during the forecast period, due to increasing electrification across developing countries.
Asia Pacific and the Middle East & Africa are estimated to witness significant growth in the solar pumps market, owing to extensive agriculture lands and the quest to reduce the use of fossil fuel energy. Government initiatives toward pollution-free and clean energy are also expected to support the expansion of the solar pumps markets in these regions.
The solar pumps markets in North America and Europe are expected to show considerably high growth rates during the forecast period. The rising trend of adoption of renewable energy in developed countries is anticipated to boost the expansion of the solar pumps markets in these two regions.