Agricultural Pumps Market - Forecasts from 2022 to 2027

The agricultural pumps market is evaluated at US$3.712 billion for the year 2020 growing at a CAGR of 5.65% reaching the market size of US$5.455 billion by the year 2027.

Agricultural pumps are those types of water pumping solutions that are specifically designed to meet the water pumping or transport requirements in the agricultural sector from numerous sources such as bore-wells, rivers, and tanks, among others. The market for agricultural pumps is projected to show substantial growth over the course of the next five years. The major factors bolstering the market growth include the booming adoption of these pumps as they offer fruitful benefits to small-scale as well as large-scale farmers by maintaining a constant supply of water for irrigation as well as other purposes in a hassle-free manner. The growing domestic food demand, as well as the growing exports of agricultural commodities globally, is one of the key factors supplementing the demand as investments in new as well as modern agricultural machinery are expected to augment the market growth during the next five years. These pumps enable farmers to maintain a constant rate of production as they offer numerous benefits such as the enhancement of irrigational quality as they can be installed nearby the irrigation facilities to facilitate the transportation of water to every corner of the field. These pumps enhance the efficiency of farmers as they maintain a high rate of water flow throughout the field.

The market for agricultural pumps is also being driven by the fact that the players operating in the market are investing heavily in R&D for the development and launch of new high-tech solutions with advanced features. Also, heavy investments are being made in the development of pumps that can operate on alternative sources of energy such as solar, biogas, and others. Thus, the growing focus on sustainable farming coupled with the increasing number of product launches is also some of the additional factors that are propelling the business growth opportunities for the market players over the course of the next five years, as this further shows the potential for the market to witness healthy growth during the next five years.

Participation by market players

There are a high number of companies working in the agricultural pump market. However, some have solidified their position as the leading providers in this industry. These players are involved in a plethora of investments, product launches, and R&D as a part of their growth strategies to further strengthen their position and provide better products and services to their customers worldwide, which is further expected to propel the growth of the market in the coming years.

In November 2019, WILO USA, a subsidiary of WILO SE, one of the renowned manufacturers of pumps and pump systems, announced the acquisition of American-Marsh Pumps LLC, through its newly established subsidiary. The company aimed to strengthen its position across the US and also aimed to enhance its product portfolios for its customers across several industries.

In May 2019, Stanley Black & Decker, one of the leading industrial products manufacturing companies based in the United States, announced the launch of its new agricultural pump, Stanley Earth, a solar-powered water pump designed specifically to meet the needs of the farming sector. The primary aim of the company is to address these unmet societal challenges, which include sustainable development challenges that are majorly focused on water, energy, and climate.

In August 2018, Roto Pumps Limited, a globally known company established in 1968 and a manufacturer of positive displacement pumps, announced two new offerings in the agricultural segment to its Tirrana Agricultural Range.

In February 2018, Lindsay Corporation, a US-based irrigation systems manufacturer, announced the launch of its latest version of the FieldNET application. This application is designed to automate several functions across the farms, which include pumps and motors, among others.

Government schemes

The market for agricultural pumps is primarily being driven by the fact that the governments across both developed and developing economies of the globe are taking all the necessary steps by the governments across several countries throughout the globe to uplift the agricultural sector, as it is often considered one of the most integral parts of the economy in some countries. Various countries are taking initiatives to expand the agricultural output by promoting the use of modern machinery as a movement toward sustainable agriculture. Governments are motivating farmers to use pumps and other types of machinery that run on renewable sources by offering several subsidies and incentives to attract more and more farmers. For instance, in August 2019, the Indian government announced various schemes to promote solar energy as a means to address several challenges faced by farmers across the country. In this scheme, the government announced that it would install grid-connected solar power plants and solar pumps to ensure water security to the farmers of the country, in which approximately 17.5 lakh pumps were to be replaced by pumps running on diesel by the year 2022. Additionally, the state governments across the country are have also framed new policies and incentives to promote the usage of pumps running on renewable sources, which is also expected to propel the business growth opportunities for the manufacturers over the course of the next five years. For instance, the solar water pump scheme launched by the government of Maharashtra in which beneficiaries are supposed to get the pumps at subsidized rates and farmers only have to pay around 5% of the total cost of the pump. Moreover, the recent budget announced by the government of India further shows the market growth potential over the coming years. As funds have been allocated for the completion of pending irrigation projects and installations of new pumps have been proposed in these budgets.

The agricultural pump market has been segmented on the basis of type, application, and geography. By type, the segmentation of the market has been done as rotodynamic pumps and positive displacement pumps. By application, the classification of the market has been done as irrigation and livestock water transfer. Geographically, the market has been distributed into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Rotodynamic will experience rapid growth. By type, the market for rotodynamic agricultural pumps is projected to show promising growth throughout the course of the next five years. The booming investment in the adoption of modern agricultural machinery is a key factor augmenting the growth of this segment. Also, increased government spending on the completion of irrigation projects is also expected to increase the demand for rotodynamic agricultural pumps in the near future. These pumps are also more efficient as they can operate over a wide range of applications, and are easy to install. The positive displacement agricultural pump market is expected to hold a significant share in the global market. These pumps operate by changing the volumes in a closed system. These changes in volumes further push the water in the desired direction.

Irrigation is expected to hold a significant share

By application, the irrigation segment is expected to hold a major market share throughout the course of the next five years. The wide application of pumps for irrigation purposes is a key factor bolstering the significant share of this segment during the forecast period. Furthermore, the increased government spending in many countries on irrigation projects is supplementing the growth of this segment during the next five years. Therefore, as crops are considered the beating heart of the agricultural industry, water for irrigation is considered extremely important for keeping the output maintained.

APAC will have a significant share. Geographically, the Asia Pacific region is expected to hold a significant market share on account of the presence of some of the largest agricultural output countries such as India and China, among others. The market growth in the region is primarily due to the growing government focus on boosting agricultural output. Furthermore, the growing emphasis on renewable energy has resulted in an increase in the installation of solar pumps in countries such as India, demonstrating the market's potential to grow in the Asia-Pacific region over the next five years.

Key Developments

• Ace Pumps Corporation has launched three new pumps which have the company’s popular 206 motor and built-in pulse width modulated (PWM) control valves which allow equipment owners to implement PWM control regimens on planters, sprayers and fertilizer applications.
• Researchers at IIT Bhubaneshwar, India have introduced a solar power irrigation pump which consists of solar panels, and an inverter to power surface mounted pumps.
• Franklin Electric has completed its acquisition of Valley Farms Supply, Inc., a professional groundwater distributor. The company has completed its acquisition with an investment of USD 9.0 million.

Impact of COVID-19

The Covid-19 pandemic has significantly declined the market growth. In 2020 small players and organizations with weak financial positions were shut down which had reduced the total pumps manufacturing capacity. Moreover, shortage in supply and demand of spare parts, and lack of investments are some of the factors which have slowed down the overall market growth during the Pandemic. However, the situation is slowly improving which is a good sign for market recovery. Imports and exports have become easier over the past few months and key players are introducing new products in the market which will significantly drive the market growth. For instance, Grundfos has announced the launch of LC232 Controller, a new groundwater pump controller which helps in the development of smart agriculture practices across the Asia Pacific region.

Competitive Insights

Prominent/major key market players in the agricultural pump market include The Kirloskar Group, GRUNDFOS, and Crompton Greaves Consumer Electricals Limited among others. The players in the agricultural pump market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive positions and strategies. The report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered, along with the recent deals and investments of these important players in the agricultural pump market.

Market Segmentation

By Type

• Rotodynamic
• Positive Displacement

By Application

• Irrigation
• Livestock water transfer

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• UK
• Middle East and Africa
• Saudi Arabia
• UAE
• Asia Pacific
• China
• Japan
• India
• South Korea