Global Hydroelectric Power Generation Market Overview:
As per MRFR analysis, the Hydroelectric Power Generation Market Size was estimated at 324.85 (USD Billion) in 2022.The Hydroelectric Power Generation Market Industry is expected to grow from 347.27(USD Billion) in 2023 to 633.06 (USD Billion) by 2032. The Hydroelectric Power Generation Market CAGR (growth rate) is expected to be around 6.9% during the forecast period (2024 - 2032).
Key Hydroelectric Power Generation Market Trends Highlighted
The hydroelectric power generation market is being fueled by the rise in the requisite of renewable energy sources, environmental issues, and different government policies. Another factor favoring the growth of the market is the embracing of new technologies, such as the enhancement of turbine efficiency. Furthermore, the increasing prices of fossil fuel energy and energy security very well complement hydroelectric power generation.
The market presents huge opportunities in venturing into developing countries, growing cutting-edge technologies, and even moving towards hybrid systems of renewable energy and hydroelectric plants. Current trends incorporate that of optimizing plant processes through the adoption of AI and machine learning as a means of increasing productivity and lowering operation costs. Lastly, the application of hydroelectric power is now being incorporated into smart grids and distributed generation systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydroelectric Power Generation Market Drivers
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Increasing Demand for Renewable Energy Sources
The increasing trend of the hydropower generation market can be attributed to the rise in the global search for clean and renewable sources of energy. Hydropower generation is ever-gaining attention as countries around the world strive to abandon the use of fossil fuels. Hydroelectricity is a form of green energy that does not emit pollutants into the atmosphere, aids in the reduction of greenhouse gases, and improves the quality of air.
In parallel, as renewable energy continues to be in demand so would hydroelectric power generation remain in demand.
Government Support and Incentives
The other main driving factor for the growth of hydroelectric power generation is government support and incentives. The governments of many countries all over the world offer financial incentives and other support in order to encourage the development of hydroelectric power. Moreover, these incentives make the development of hydroelectric power more affordable for investors, which, ultimately, can help to drive the growth of the market. The Global Hydroelectric Power Generation Market Industry is projected to grow over the forecast period, Considering the growing support from various governments to develop renewable sources of energy.
Technological Advancements
Technological advancements are also playing a role in the growth of the hydroelectric power generation market. Advances in turbine technology, for example, have made it possible to generate electricity from smaller and more efficient hydroelectric power plants. This is making hydroelectric power more accessible to a wider range of communities and businesses. Additionally, advances in transmission and distribution technology are making it easier to integrate hydroelectric power into the electric grid.
Hydroelectric Power Generation Market Segment Insights:
Hydroelectric Power Generation Market Generation Capacity Insights
Segmentation by generation capacity renders a clear vision of the dynamics in the Global Hydroelectric Power Generation Market. It provides a separate outlook for each of the distinct types: less than 10 MW, 10 MW to 100 MW, 100 MW to 1,000 MW, and over 1,000 MW. Small hydropower plants of less than 10 MW are prevalent and actively utilized in emerging market economies, particularly in remote and off-grid locations. They account for a substantial part of the market and give an opportunity to provide electricity to the most isolated rural communities.
This type supports the generation of energy in a decentralized way and is estimated to grow substantially in the following years because of the growing demand for renewable energy in remote, off-grid regions. Medium hydro power plants from 10 MW to 100 MW in generation capacity are the mid-segment of the market. They are typically built on smaller rivers and provide a more balanced approach to the cost of electricity generated. The main factor raising this segment’s share is the growing support of the government and other stakeholders who actively promote the development of renewable energy technology in the long run of the forecast.
Large hydropower plants of between 100 MW and 1,000 MW are prevalent and account for a substantial share of the market. They are built on large rivers and encourage the highest demand, as they have the uppermost capacity for electricity generation. The factor contributing to the prevalence of electricity generation through hydropower might be the growing demand in the lucrative developed and industrialized markets. The premium segment is hydropower plants of over 1,000 MW in generation capacity. They are mainly built on major rivers or dams and have the highest capacity for electricity generation.
The segment is estimated to grow at a moderate pace, and the factors contributing to the growth are the demand for large renewable energy projects and the growth capacity for pumped-storage hydroelectricity. Overall, the Global Hydroelectric Power Generation Market is estimated to grow substantially in the coming years. It will be facilitated by increasing demand for renewable energy, growing concern about the environment, and the initiatives of the government to reduce carbon emissions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydroelectric Power Generation Market Project Type Insights
The Global Hydroelectric Power Generation Market segmentation by project type includes Greenfield Projects, Revamping Projects, and Upgrading Projects. Among these, Greenfield Projects held the largest revenue share in 2023, owing to the increasing demand for new hydroelectric power plants to meet the growing electricity demand worldwide. Revamping Projects are expected to witness significant growth in the coming years as existing hydroelectric power plants undergo modernization and upgrades to enhance their efficiency and extend their lifespan. Upgrading Projects, which involve the installation of new equipment or technologies to improve the performance of existing hydroelectric power plants, are also expected to contribute to the growth of this segment.
Hydroelectric Power Generation Market Turbine Type Insights
The Global Hydroelectric Power Generation Market is segmented by turbine type into Kaplan, Francis, Pelton, and Bulb. Among these, the Kaplan turbine segment held the largest market share in 2023, accounting for over 45% of the global market. The Francis turbine segment is expected to witness the fastest growth over the forecast period, owing to its high efficiency and adaptability to a wide range of water flows and heads.
The Pelton turbine segment is expected to hold a significant market share, owing to its suitability for high-head applications, while the Bulb turbine segment is expected to witness moderate growth due to its specific design for low-head applications. The Global Hydroelectric Power Generation Market is driven by factors such as increasing demand for renewable energy sources, government initiatives to promote clean energy, and technological advancements that improve turbine efficiency.
Hydroelectric Power Generation Market Control System Insights
The Global Hydroelectric Power Generation Market segmentation by Control System includes Automated Control Systems, Semi-Automated Control Systems, and Manually Operated Control Systems. Automated Control Systems held the largest revenue share in 2023, owing to the increasing demand for efficient and reliable control systems in hydroelectric power plants. Semi-automated control Systems are expected to witness significant growth in the coming years due to their ability to provide a balance between automation and manual control. Manually Operated Control Systems are expected to account for a small share of the market due to their limited capabilities and high operating costs.
Hydroelectric Power Generation Market End-Use Industry Insights
The end-use industry segment of the Global Hydroelectric Power Generation Market is categorized into residential, commercial, industrial, and utilities. Among these, the industrial sector is anticipated to dominate the market in the coming years, owing to the rising demand for electricity from industries such as manufacturing, mining, and construction. The commercial sector is also expected to witness significant growth due to the increasing number of commercial establishments and the growing adoption of energy-efficient technologies.
The residential sector is projected to have a steady growth rate, driven by the increasing population and the rising demand for electricity in households. The utilities sector is expected to play a crucial role in the market, as it is responsible for the generation, transmission, and distribution of electricity to end-users. This growth is attributed to the increasing demand for renewable energy sources, government initiatives to promote hydroelectric power generation and technological advancements in the industry.
Hydroelectric Power Generation Market Regional Insights
North America, Europe, APAC, South America, and MEA are the primary regions for the Global Hydroelectric Power Generation Market. Asia-Pacific region is dominating the Global Hydroelectric Power Generation Market owing to the rising energy demand and increasing urbanization. China is leading the global hydroelectric power market due to its supportive government policies and the presence of abundant water resources. Europe is following with a 25.3% share in the global hydroelectric power market, driven by the increasing adoption of renewable energy sources and supportive government regulations.
Additionally, the region has a number of mature markets, such as Norway, Spain, and France. The Global Hydroelectric Power Generation Market in the North American region accounted for over 15% of the global market share. The US and Canada are the major countries in the North American region that drives the growth of the regional market. South America is expected to witness a significant growth rate during the forecast period due to increasing investment in renewable energy projects. Brazil is the leading market in the region, with the largest hydroelectric power plants in the world. The Middle East and Africa region is expected to have a moderate growth rate due to increasing population and economic development in the region. Saudi Arabia and Egypt are the major countries in the region that drive the growth of the regional market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydroelectric Power Generation Market Key Players And Competitive Insights:
Major players in the Hydroelectric Power Generation Market industry are constantly investing in research and development to improve the efficiency and reduce the cost of their products. Leading Hydroelectric Power Generation Market players are also focusing on expanding their global presence through acquisitions and partnerships. Hydroelectric Power Generation Market development is being driven by the increasing demand for renewable energy sources and the growing awareness of the environmental benefits of hydropower.
The Hydroelectric Power Generation Market Competitive Landscape is expected to remain highly competitive in the coming years.GE Renewable Energy is a leading provider of hydroelectric power generation equipment and services. The company has a global presence and offers a wide range of products and services, including turbines, generators, and control systems. GE Renewable Energy is committed to innovation and is constantly investing in research and development to improve the efficiency and reduce the cost of its products.
The company is also focused on expanding its global presence through acquisitions and partnerships. GE Renewable Energy's strong financial performance and commitment to innovation make it a leading player in the Hydroelectric Power Generation Market. Voith Hydro is another leading provider of hydroelectric power generation equipment and services. The company has a global presence and offers a wide range of products and services, including turbines, generators, and control systems.
Voith Hydro is committed to innovation and is constantly investing in research and development to improve the efficiency and reduce the cost of its products. The company is also focused on expanding its global presence through acquisitions and partnerships. Voith Hydro's strong financial performance and commitment to innovation make it a leading player in the Hydroelectric Power Generation Market.
Key Companies in the Hydroelectric Power Generation Market Include:
- PowerChina
- IHI Corporation
- Mitsubishi Heavy Industries, Ltd.
- Siemens AG
- China Three Gorges Corporation
- China Datang Corporation
- Voith
- EDP Energias de Portugal, S.A.
- Andritz Hydro
- Hitachi, Ltd.
- Statkraft AS
- Alstom SA
- General Electric Company
- Toshiba Energy Systems Solutions Corporation
- GE Renewable Energy
Hydroelectric Power Generation Market Industry Developments
The global Hydroelectric Power Generation Market is anticipated to grow from USD 395.76 billion in 2023 to USD 633.06 billion by 2032, exhibiting a CAGR of 6.9% during the forecast period. The increasing demand for renewable energy sources to combat climate change, coupled with government initiatives promoting hydropower projects, is expected to drive market growth.
Key market players are focusing on developing innovative technologies to enhance efficiency and reduce environmental impact. For instance, in May 2023, GE Renewable Energy introduced its new hydroelectric turbine, the Francis 117, designed to maximize efficiency and minimize environmental footprint. Additionally, the rising adoption of digitalization and smart grid technologies is expected to create new opportunities for growth in the coming years.
Hydroelectric Power Generation Market Segmentation Insights
Hydroelectric Power Generation Market Generation Capacity Outlook
- Less than 10 MW
- 10 MW to 100 MW
- 100 MW to 1,000 MW
- Over 1,000 MW
Hydroelectric Power Generation Market Project Type Outlook
- Greenfield Projects
- Revamping Projects
- Upgrading Projects
Hydroelectric Power Generation Market Turbine Type Outlook
- Kaplan
- Francis
- Pelton
- Bulb
Hydroelectric Power Generation Market Control System Outlook
- Automated Control Systems
- Semi-Automated Control Systems
- Manually Operated Control Systems
Hydroelectric Power Generation Market End-Use Industry Outlook
- Residential
- Commercial
- Industrial
- Utilities
Hydroelectric Power Generation Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
324.85(USD Billion) |
| Market Size 2023 |
347.27(USD Billion) |
| Market Size 2032 |
633.06(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.9% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
PowerChina, IHI Corporation, Mitsubishi Heavy Industries, Ltd., Siemens AG, China Three Gorges Corporation, China Datang Corporation, Voith, EDP Energias de Portugal, S.A., Andritz Hydro, Hitachi, Ltd., Statkraft AS, Alstom SA, General Electric Company, Toshiba Energy Systems Solutions Corporation, GE Renewable Energy |
| Segments Covered |
Generation Capacity, Project Type, Turbine Type, Control System, End-Use Industry, Regional |
| Key Market Opportunities |
1 Growing demand for renewable energy sources2 Government incentives and subsidies3 Technological advancements4 Increasing hydropower project investments5 Environmental concerns |
| Key Market Dynamics |
Increased renewable energy adoption Technological advancements Growing population amp urbanization Fluctuating fossil fuel prices Government incentives |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Hydroelectric Power Generation Market is expected to reach USD 633.06 billion by 2032, exhibiting a CAGR of 6.9% from 2024 to 2032.
Asia-Pacific is expected to dominate the Global Hydroelectric Power Generation Market, accounting for the largest market share due to the presence of abundant hydropower resources.
Increasing demand for renewable energy, government initiatives to promote clean energy, and technological advancements are driving the growth of the Global Hydroelectric Power Generation Market.
Hydroelectric power is primarily used for electricity generation, providing a reliable and sustainable source of energy
Major players in the Global Hydroelectric Power Generation Market include companies such as China Three Gorges Corporation, GE Renewable Energy, and Voith.
