Solar Pump Market size was over USD 3.3 Billion in 2023 and is set to exceed USD 5.5 Billion by the end of 2036, growing at over 14.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of solar pump is assessed at USD 3.6 Billion.
Governments around the world are aggressively encouraging the use of solar energy through a range of incentives, feed-in tariffs, and subsidies, making solar pump installations financially feasible, and alluring to farmers, which propels market expansion. Moreover, farmers seeking to purchase solar pump systems are offered government grants other direct financial support, making investing in these systems simpler. According to the International Energy Agency’s data, since 2020, governments have increased their funding for clean energy investment to USD 1.34 trillion.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
14.5% |
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Base Year Market Size (2023) |
USD 3.3 Billion |
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Forecast Year Market Size (2036) |
USD 5.5 Billion |
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Regional Scope |
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Product (DC Surface Suction, AC Submersible, DC Submersible, AC Floating)
DC surface suction segment is poised to account for more than 81.0% solar pump market share by the end of 2036 on account of the growing usage of water in agriculture. The International Atomic Energy Agency states that the growing food demands will result in a 50% rise in the global water requirement for agriculture by 2050.
Irrigation is the primary use of water in agriculture, which is often drawn from rivers or lakes of stored surface water, or it can be pumped from groundwater reserves. This has led to a rise in the need for several high-suction solar DC water pump models that utilize direct current (DC) electricity to pump water from shallow sources, including ponds or rivers for irrigation in agriculture, and are made to descend further and raise water to the surface.
End-user (Agriculture, Water Management)
The agriculture segment is foreseen to expand at a staggering CAGR in the coming years, attributed to the rapid rise in the cost of fossil fuels. According to the data released by the Organization for Economic Co-operation and Development (OECD) and the International Energy Agency (IEA), the cost of global support for fossil fuels in 82 economies nearly doubled to USD 1,481.3 billion in 2022, up from USD 769.5 billion in 2021. Therefore, to reduce the need for costly fossil fuels in agriculture, low-cost solar pumps are being used by small farmers in hot, dry areas to irrigate their fields, for agricultural spraying, and livestock watering.
Operation (AC Pump, DC Pump)
The AC pump segment is projected to generate significant revenue in the solar pump market over the coming years. The majority of rural communities across the globe continue to face difficulties in obtaining a consistent and sustainable supply of water, leading to a higher demand for AC solar-powered pump systems.
AC solar pumps have gained traction for domestic and commercial applications, especially in supplying drinking water in rural areas, mountain villages, or wilderness campsites. The National Library of Medicine stated that approximately 844 million people worldwide still lack access to clean water sources, with 79% of them living in rural areas.
Our in-depth analysis of the global market includes the following segments:
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Capacity |
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Product |
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Operation |
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End-user |
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APAC Market Statistics
Asia Pacific in solar pump market is set to dominate around 35.1% revenue share by the end of 2036 due to the flourishing agriculture industry. In consequence, there is a huge amount of land being irrigated in the region, which may boost the need for solar pumps. As per the United Nations Environment Program, farming contributes significantly to the rural economy in many regions of Asia Pacific, making up about 29% of GDP and 65% of all jobs.
In India, the installation of solar pumps during the previous five years is seen as beneficial to farmers and has the potential to generate income. Recently, under the PM-KUSUM project, India has built more than 290,000 solar water pumps for farmers to lessen environmental pollution while offering farmers access to affordable decentralized solar electricity and water security.
Additionally, the government of Japan in tends to grant future-generation flexible solar panels priority status by providing installation cost subsidies and incentives, which may drive the market demand.
The market in China may witness lucrative growth owing to the presence of the World’s top solar pump manufacturers including LARENS, WHC SOLAR, and WASSERMANN.
North America Analysis
The North America in solar pump market is also predicted to have notable growth in the coming years. The need for effective water management strategies in rural and agricultural areas, growing concerns about environmental sustainability, and growing awareness of renewable sources are the main factors driving the market expansion in the region. Solar pumps are becoming more and more popular throughout the region as solar energy gets more dependable and affordable.
The solar pump landscape in the United States will expand significantly as groundwater is considered significant in many parts of the country. In particular, nearly 25% of the water supply in the United States comes from groundwater, from which more than 80 billion gallons of water are pumped to the surface every day. A report by the Government of Canada states that one third of all the Canadians and about 80% of the rural population consumes water provided by ground water.
In addition to investing money in R&D to create robust and effective solar pump systems, many significant players in the solar pump market are constantly collaborating, expanding, making agreements, and taking part in joint ventures to fortify their positions in the industry.
Author Credits: Dhruv Bhatia
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