Growing Demand for Hydropower is driving the growth at a CAGR of 5.5% during the forecast period

The Hydropower Market is estimated to register a CAGR of 5.5% during the forecast period of 2023 to 2030.

MRFR recognizes the following companies as the key players in the Global hydropower market market— Stakraft Sweden, Siemens AG (Germany), Andritz Hydro GmbH, Engie (France), China Three Gorges Corporation.

Market Highlights

The Global hydropower market market is accounted for to register a CAGR of 5.5% during the forecast period and is estimated to reach USD  3,33,447.1 Million by 2030.

One of the primary driving forces in the hydropowers market is the escalating demand for hydropower from alternative energy sources. Hydropowers have witnessed a significant surge in demand, driven by the growing global emphasis on sustainable and clean energy solutions. With increasing concerns about climate change and the need to reduce carbon emissions, hydropower emerges as a pivotal player in meeting the escalating demand for electricity while minimizing environmental impact. This surge in demand is attributed to the inherent advantages of hydropower, including its renewable nature, reliability, and minimal greenhouse gas emissions, making it a key contributor to the transition towards a greener and more sustainable energy landscape.

The Global Hydropower Market is witnessing robust expansion, fueled by a combination of technological advancements, supportive government policies, and the drive towards decarbonization. Governments worldwide are increasingly investing in hydropower projects to achieve renewable energy targets and reduce dependency on fossil fuels. The scalability of hydropower projects makes them adaptable to diverse geographical and economic contexts, further fueling market growth. As the global community intensifies efforts to combat climate change, the hydropower sector stands poised for continued expansion, offering a reliable and sustainable solution to the rising demand for electricity.

Technological innovations in hydropower systems have played a significant role in enhancing efficiency and reducing environmental impact. The development of advanced turbines, improved dam designs, and innovations in energy storage solutions have contributed to making hydropower more economically viable and ecologically sustainable. These advancements are crucial for addressing the challenges associated with the intermittency of some renewable energy sources.

Different regions around the world are experiencing varying trends in hydropower development. In regions with abundant water resources, such as Scandinavia and parts of South America, hydropower has long been a dominant source of energy. In contrast, other regions are now investing heavily in hydropower projects to meet growing energy demands. Asia, for example, has witnessed substantial investments in hydropower infrastructure, driven by economic growth and the need for clean energy.

Browse In-depth Detailed Research Report [Table of Content, List of Figures, List of Tables] of Hydropower Market Trends Report

Segment Analysis

The Global hydropower market market has been segmented based on capacity, component, and region.

The Hydropower Market has been categorized based on component into Mini Hydropower, Micro & Pico Hydropower, Small Hydropower, and Large & Medium Hydropower. Among these, large & medium hydropower is projected to dominate the Global hydropower market revenue through the projected period as estimated by MRFR analysts. This prominence can be attributed to several key factors that position large and medium hydropower as a leading contributor to the global energy landscape. The sheer scale and capacity of large and medium hydropower projects play a pivotal role in meeting the escalating demand for electricity, particularly in regions with robust industrialization and growing population needs. These projects often involve substantial investment and long-term planning, contributing to their stability and reliability as major sources of power generation. Additionally, large and medium hydropower installations benefit from economies of scale, resulting in lower per-unit electricity generation costs, thus offering an economically competitive and environmentally sustainable solution for meeting the rising global energy demand.

Based on capacity, the hydropower market market has been segmented into Electromechanical Equipment, Electric & Power Infrastructure, Civil Construction, and Others. The Electromechanical equipment segment dominated the Global hydropower market. This dominance can be attributed to the pivotal role that electromechanical components play in the efficient conversion of hydraulic energy into electricity within hydropower plants. Electromechanical equipment encompasses turbines, generators, and associated control systems, forming the core components responsible for the energy conversion process. The dominance of this segment is underpinned by the critical function these components perform, where turbines convert the kinetic energy of flowing water into mechanical energy, and generators transform this mechanical energy into electricity. The ongoing advancements in turbine technology, including innovations in design and materials, contribute to enhanced efficiency and increased capacity, further solidifying the dominance of the Electromechanical Equipment segment in the global hydropower market.

Regional Analysis

By region, the global market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Among these, the Asia Pacific emerged as the leading and the fastest-growing region. The region's expansive river systems and mountainous terrains provide an abundance of natural resources, creating ideal conditions for the development of large-scale hydropower projects. Countries such as China, India, and several Southeast Asian countries have capitalized on these geographical advantages, implementing ambitious hydropower initiatives to meet surging energy demands driven by rapid industrialization and urbanization. The scale of hydropower installations in Asia Pacific, including mega-dams and reservoirs, contributes significantly to the region's leadership in global hydropower capacity.

Asia Pacific's dominance in the hydropower sector is further reinforced by proactive government policies that prioritize renewable energy and sustainable development. Many countries in the region have implemented robust frameworks, providing incentives, subsidies, and streamlined regulatory processes to encourage the growth of hydropower projects. Moreover, the strategic integration of hydropower into national energy plans plays a crucial role in ensuring grid stability and addressing the challenges of rising energy consumption.

Europe stands as a significant dominator in the global hydropower market after Asia Pacific, leveraging its historical commitment to renewable energy and sustainable practices. The region boasts a well-established hydropower infrastructure, with several countries such as Norway, Sweden, and Switzerland relying heavily on hydropower for electricity generation. Europe's dominance is attributed to a combination of factors, including its commitment to reducing carbon emissions, favorable geographic conditions, and continuous advancements in hydropower technology.

Government policies and initiatives promoting renewable energy have driven substantial investments in modernizing existing hydropower facilities and exploring innovative technologies, ensuring Europe's sustained leadership in the global hydropower market. The continent's strategic positioning emphasizes a balanced and diversified energy portfolio, making hydropower a cornerstone of its commitment to a greener and more sustainable future

Key Findings of the Study

• The Global hydropower market market is expected to reach USD 3,33,447.1 Million by 2030, at a CAGR of 5.5% during the forecast period.


• The Asia Pacific region accounted for the fastest growth in the global market.


• Based on Component, the Electromechanical Equipment segment was attributed to holding the largest market in 2022.


• Based on Capacity, the Large & Medium Hydropower segment was attributed to holding the largest market in 2022.


• Stakraft Sweden, Siemens AG (Germany), Andritz Hydro GmbH, Engie (France), China Three Gorges Corporation