The global pumps in solar power generation market accounted for US$ 365.1 Mn in 2017 and is expected to grow at a CAGR of 13.5% during the forecast period 2018 – 2025, to account for US$ 987.4 Mn by 2025.
The pumps in solar power generation market has experienced significant growth and adoption rate in the past few years and is expected to experience notable growth and adoption in years to come. Concentrated solar power (CSP) technology utilizes mirrors to concentrate the sun’s energy to drive steam turbine in order to create electricity. Pumps plays a vital role CSP systems to heat the required fluid to generate steam. Thus, global growth in CSP plants installation fuel the pumps market in solar power generation.
The CSP plants can store this thermal energy for future use to generate electricity during peak hours when there is no sunlight. Further, there are several government policies that remarkably supporting the CSP technologies to reduce overall cost of solar energy and facilitates the production of electricity with lower cost, increased efficiency, and improved reliability. Within this market, various regions are observed to exhibit different growth trends. Europe hold the largest share of the total market. Geographically, the pumps in solar power generation market is currently dominated by Europe and North America, however the pumps in solar power generation market is expected to be in favor of Asia-Pacific, which is anticipated to witness remarkable growth rate owing to the increase in number of CSP plants in China and India over the coming years. Asia Pacific region in global pumps in solar power generation market is expected to witness a CAGR growth rate of 5.8% in the coming years.
Exhibit: Pumps in Solar Power Generation Market by Region
Increase in electricity demand fuelling the demand for pumps in solar power generation
Globally, there is an increase in electricity demand with the rise in industrialization and growth in population. The solar energy needs to be stored in order to meet the rise in electricity demand. Moreover, high amount of energy is essential to store in order to overcome unexpected seasonal and weather variabilities. CSP is an essential technology for the future electricity generation which facilitate the storage of thermal energy that can be used to supply peak electricity. Commercially, many of the companies adopting solar energy systems to generate electricity directly from sun to reduce demand charges. Moreover, by 2030, CSP is expected to account for 7% of world electricity demand. Whereas, the International Energy Agency (IEA) has projected that in the long run by 2050, CSP is expected to meet 8%-10% of global electricity demand with the estimated installed capacity of 800 GW. CSP technologies highly dependent on the use of pumps to heat the fluid to generate steam. Thus, growth in CSP plants with the surge in demand for electricity is expected to further boost the pumps needed in concentrated solar power generation, thereby, bolstering the pumps in solar power generation market.
Substantial investment in R&D in order to reduce the overall project cost
Concentrated solar power (CSP) is a capital-intensive technology and initial investment mainly depends on labour and solar field equipment which ranges from $2,500 to $10,200 USD per kW. The cost is also depends on storage size and capacity factor on accounts for the amount of electricity generation cost. Along with this, initial set-up cost, CSP requires significant operation & maintenance cost which is around 30 USD/MWh. The key components which require maintenance are cleaning the mirror, replacement of receivers & mirrors, and insuring the plant. However, CSP doesn’t need any enormous improvement in performance and cost in order to make it financially feasible. Currently, research is being carried out in the field of concentrated solar power (CSP) on every component. Several federal research and development initiatives are expected to reduce the cost of concentrating solar power to 6% per kilo-watt-hour. Thus, considering the aforementioned factors, research and development in the field of CSP will further boost the demand for solar power generation. Thus, growing investments in R&D in order to reduce the overall cost is anticipated to create lucrative market space for pumps in solar power generation market players.
Pumps in Solar Power Generation Market – Power Plant Type Insight
The global pumps in solar power generation market by power plant type is segmented into categories namely; linear parabolic trough, power tower, Fresnel plant. Concentrated solar power (CSP) technologies concentrates sun’s rays to heat a medium which is further used in heat engine process. This heating engine process helps to drive an electrical generator and produces electricity. This system makes the use of three types of designs such as linear parabolic trough, power tower, and Fresnel plant. The increase in number of CSP plant installation in turn increases the demand for pumps in solar power generation. The key requirements for setting up concentrated solar power plants are the availability of areas of high direct normal solar radiation, access to water resources, and available & proximate transmission access. Power tower segment is the fastest growing component segment in pumps in solar power generation market and is expected to grow at a prime CAGR during the forecast period.
Exhibit: Pumps in Solar Power Generation Market by Power Plant Type
Pumps in Solar Power Generation Market – Pump Type Insight
The pump type segment in pimps in solar power generation market include into heat transfer fluid pump and molten salt pump. The Solar Energy Technologies Office (SETO) supports research and development of concentrating solar power (CSP) systems that help reduce the cost of solar energy. CSP systems store energy in terms of thermal storage that enables the supply of solar power even when there is no sunlight. SETO further supports the development of innovative CSP technologies in order to generate electricity with lower cost, improved reliability, and increase efficiency compared other current commercialized technologies. Heat transfer fluid pump and molten salt pump are important in CSP systems in order to heat the transfer fluid to generate steam and to drive the turbine. The Heat transfer fluid pumps segment in the pumps in solar power generation market is expected to surge at an exponential rate during the forecast period.
The market initiative and new development was observed as the most adopted strategy in global pumps in solar power generation market. Few of the recent strategies by some of the players operating in pumps in solar power generation market landscape are listed below:-
2018: Sulzer has entered into a contract to provide 18 pumps to Aksay 50MW CSP plant located in China for solar and power islands. Aksay which is a molten-salt parabolic trough power plant accompanied with 15-hours molten-salt heat storage system
2017: KSB Group expands its network of service in the USA. The company purchased DUBRIC Industries Inc. (US), specialised in providing selling pumps, rotating equipment, servicing along with related spare parts. This takeover by the company has stretched pump manufacturing service network in the USA
2017: Wilo acquired 3 companies in USA namely Weil Pump Company, Inc., Scot Pump Company, and Karak Machine Corporation. This acquisition allow Wilo SE to enhance its footprint in US as a leading player in the North American market
2017: Wilo introduced Wilo-Stratos MAXO, a world’s first smart pump with system efficiency and user-friendly features. This new pump also received the “Design Plus” award at the ISH in Frankfurt
2017: KSB Aktiengesellschaft, Frankenthal (Germany) increased its product portfolio for compact high-pressure Movitec pumps with new horizontal version. H(S)I is a new addition developed for horizontal installation
GLOBAL PUMPS IN SOLAR POWER GENERATION MARKET – SEGMENTATION
GLOBAL PUMPS IN SOLAR POWER GENERATION MARKET – BY POWER PLANT TYPE
GLOBAL PUMPS IN SOLAR POWER GENERATION MARKET – BY PUMP TYPE
GLOBAL PUMPS IN SOLAR POWER GENERATION MARKET – BY GEOGRAPHY
GLOBAL PUMPS IN SOLAR POWER GENERATION MARKET - COMPANY PROFILES