The global sales of solar pumps have been projected to prosper at 11.7 percent CAGR between 2017 and 2027, as India prepares to take centre stage with robust applications in irrigation.
A new research report has estimated that the global solar pumps market will reach up from a value of $822 million in 2017 to a value beyond $2,000 million in the next decade. During the forecast period 2017-2027, the global market for solar pumps is projected to grow at a stellar CAGR of 11.7%.
The Middle East and Africa have been the top consumer of solar powered pumps over the years. China has also been a key market owing to substantial adoption of solar pumps. However, India has been expected to challenge MENA and China in terms of growth rate, emerging as the fastest growing region with the most attractive opportunities for solar pumps manufacturers.
“Report anticipates robust growth for the India solar pumps market at a CAGR of over 15.0% during 2017-2027,” said a research analyst at Future Market Insights.
The ‘Solar Pumps Market: Global Industry Analysis (2012-2016) and Opportunity Assessment (2017-2027)’ report further highlighted that apart from India, the overall growth for the Asia Pacific, precisely the Southeast Asia & Pacific region is also likely to be on a higher side at a CAGR value of over 12%. In a nutshell, developing economies are slated for robust growth in the global solar pumps market over the next decade.
Indian market to witness hefty sales of solar pumps predominantly driven by governmental policies
Relatively low awareness about installation and benefits of solar powered pumps among farmer communities has been a long-standing challenge to limit the adoption of solar pumps in developing countries such as India. The study, however, indicates that rapidly growing awareness has already caused sales of solar pumps to surge and agricultural sector has now become the top consumer of solar pumps. Another impactful challenge to market growth is higher upfront costs. Favourable government schemes for farmers, coupled with increasing affordability, will fuel the market growth in the near future. The Indian government has recently implemented several initiatives regarding renewable energy projects, resulting in a heap of tax and subsidy benefits.
Soaring demand from water-intensive end-use industry is another factor shaping the future of solar pumps market in India. Irrigation will remain the top application throughout the forecast period, owing to growing water conservation efforts at ground level and technological advances in agriculture. To support and encourage farmer communities for solar pumps deployment on a large-scale, the Government of India is providing an interest-subsidy and a reduced capital-subsidy.
“The Government of India has been taking strong steps towards solar pumps popularisation since the past few years. The plan involves credit extensions to other developing countries to purchase solar pumps from manufacturers based in India. Moreover, the government also has plans to use the International Solar Alliance specifically for popularisation of indigenously developed solar water pumps in Africa, with the help of NGOs. A few less developed countries in Africa are already experiencing the benefits of solar pumps installation in the form of drastically increased farm yields and income of rural families. This will be the most important factor driving the market growth in India,” opines an analyst.