Hydropower Market Trends

Global Hydropower Market Overview

The Hydropower Market size was valued at USD 254.49 Billion in 2023. The Hydropower Market is projected to grow USD 388.07 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.30% during the forecast period (2024 - 2032). Hydropower, also known as hydroelectric power, is a renewable energy source that harnesses the energy of flowing or falling water to generate electricity. This process involves directing water through a turbine connected to a generator, where the kinetic energy of the water is converted into electrical energy. Whether utilizing the controlled flow from a dam or the natural movement of a river in run-of-river systems, hydropower plays a crucial role in global electricity generation. It is considered a clean energy source due to its lack of direct greenhouse gas emissions during operation, making it a sustainable and widely utilized method for producing electricity worldwide.

The hydropower market is witnessing significant growth and evolution as a key renewable energy source globally. Hydropower, generated from the force of moving water, has long been recognized for its reliability, scalability, and low greenhouse gas emissions. The large and medium hydropower market is experiencing steady growth, driven by the increasing demand for renewable energy sources to address climate change concerns and reduce reliance on fossil fuels. Hydropower plants, ranging from large-scale dams to small run-of-river installations, play a vital role in the global energy transition.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Hydropower Market Trends

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  Rising Demand from Alternative Energy Sources

  
  

The global hydropower market is currently experiencing a surge in demand, driven by the growing emphasis on alternative energy sources. As the world grapples with the challenges of climate change and the need to reduce carbon emissions, hydropower has emerged as a key player in the transition to a more sustainable energy landscape. Governments, industries, and consumers alike are recognizing the inherent benefits of hydropower, which harnesses the energy of flowing water to generate electricity.

One of the primary drivers of the rising demand for hydropower is its environmental sustainability. Unlike fossil fuels, hydropower is a renewable energy source that produces electricity without emitting harmful greenhouse gases. As the global community seeks cleaner and greener energy alternatives, hydropower stands out as a reliable and environmentally friendly option. Additionally, hydropower projects often have long lifespans, providing a stable and consistent source of electricity over the years.

The economic viability of hydropower further contributes to its increasing popularity. The initial investment required for building hydropower infrastructure can be significant, but the long-term operational costs are relatively low. Once a hydropower plant is established, it can provide a steady and cost-effective source of electricity for decades. This economic advantage makes hydropower an attractive option for both developed and developing nations looking to meet their energy needs in a sustainable manner.

Furthermore, hydropower offers the advantage of energy storage through the use of reservoirs. Unlike some other renewable sources like solar or wind, hydropower can be stored and dispatched when demand is high, providing a reliable and flexible energy supply. This characteristic makes hydropower an essential component in the integration of intermittent renewable sources into the overall energy grid, ensuring a stable and resilient power system.

The global push for hydropower is also fueled by advancements in technology and innovation. Ongoing research and development efforts are enhancing the efficiency and environmental compatibility of hydropower systems. Modern turbine designs, improved fish passage technologies, and environmental impact mitigation measures are addressing concerns associated with the ecological impact of hydropower projects. These innovations contribute to making hydropower a more sustainable and socially acceptable form of energy generation.

In addition to its role in electricity generation, hydropower projects often bring ancillary benefits to the communities in which they are located. The creation of reservoirs for hydropower plants can provide opportunities for water supply, irrigation, and recreational activities. Moreover, hydropower projects can stimulate local economies by creating jobs during construction and operation phases, as well as fostering the development of related industries and services.

While the global hydropower market is experiencing a surge in demand, it is crucial to recognize the need for responsible and sustainable development. Balancing the benefits of hydropower with environmental and social considerations is essential to ensure the long-term success and acceptance of such projects. Governments, industry stakeholders, and communities must collaborate to implement policies and practices that prioritize environmental conservation, social equity, and economic development.

In conclusion, the rising demand for hydropower in the global energy market is driven by a combination of environmental awareness, economic viability, technological advancements, and ancillary community benefits. As the world strives to reduce its dependence on fossil fuels and mitigate the impacts of climate change, hydropower emerges as a reliable and sustainable solution to meet the growing energy needs of the future. The ongoing development of hydropower projects, coupled with responsible and inclusive practices, positions hydropower as a key player in the transition to a cleaner and more sustainable energy landscape.

Growing Electricity Demand will Escalate the Demand of Hydropower

The escalating global demand for electricity has become a driving force behind the surge in the hydropower market. As countries strive to meet the ever-increasing energy needs of their growing populations and expanding economies, hydropower emerges as a pivotal player in the renewable energy landscape. The inherent advantages of hydropower, such as its reliability, sustainability, and low environmental impact, position it as a key contributor to the global energy mix.

One of the primary factors fuelling the demand for hydropower is its ability to provide a consistent and stable source of electricity. Unlike some renewable energy sources that are intermittent and dependent on weather conditions, hydropower can deliver a steady supply of power throughout the year. This reliability is crucial for meeting the base load electricity demand, ensuring a consistent power supply to support various industries, homes, and critical infrastructure.

Furthermore, the environmental sustainability of hydropower plays a significant role in its increasing demand. With the world's heightened focus on mitigating climate change and reducing greenhouse gas emissions, hydropower stands out as a clean energy option. Unlike fossil fuels, which contribute to air pollution and global warming, hydropower generates electricity without emitting harmful pollutants, making it an environmentally friendly choice.

The versatility of hydropower installations adds to its attractiveness in meeting diverse energy needs. Large-scale hydropower projects, such as dams and reservoirs, can provide substantial amounts of electricity to meet the demands of entire regions. At the same time, smaller-scale hydropower systems, like run-of-river and in-stream turbines, offer decentralized solutions for local communities or industries. This flexibility makes hydropower adaptable to various geographical and economic contexts, contributing to its widespread adoption across the globe.

The global hydropower market is witnessing significant growth, driven by ongoing technological advancements and innovation in hydropower technologies. Modern hydropower systems incorporate advanced turbines, control systems, and grid integration technologies, enhancing efficiency and reducing environmental impacts. Additionally, ongoing research and development initiatives focus on improving the environmental compatibility of hydropower projects, addressing concerns related to fish migration, water quality, and ecosystem conservation.

In addition to being a clean and reliable energy source, hydropower contributes to water resource management and flood control. Many hydropower projects are designed to serve dual purposes, providing a balance between energy generation and water management. By regulating water flow, hydropower installations can help mitigate the impact of floods, ensuring the safety of downstream communities and infrastructure.

Hydropower Market Segment Insights:

Hydropower Market by Capacity Insights

The Hydropower Market has been categorized based on Capacity into Mini Hydropower, Micro & Pico Hydropower, Small Hydropower, and Large & Medium Hydropower. In 2022, the large & medium hydropower segment drove the Hydropower Market by holding a substantial market share of 66% with a market value of USD 1,47,133.9 million. It is projected to register a CAGR of 6.05% during the projected timeframe.

Hydropower Market by Component Insights

Based on Component, the hydropower market has been segmented into Electromechanical Equipment, Electric & Power Infrastructure, Civil Construction, Insulation, Refractory Brics, and Others. In 2022, the electromechanical equipment segment drove the Hydropower Market by holding a substantial market share of 39.2% with a market value of USD 87,269.6 million. It is projected to register a CAGR of 5.6% during the projected timeframe.

Hydropower Market Regional Insights

By region, the global market is segmented into North America, Europe, Latin America, Africa, and Rest of the World. Among these, the Asia Pacific emerged as the leading and the fastest-growing segment with a CAGR of 6.4%. The segment is projected to reach a value of USD 99,232.3 million by the end of the forecast period. The Europe region accounted for the second-largest growing segment with a healthy CAGR of 4.8%.

Hydropower Key Market Players & Competitive Insights

The global hydropower market is highly competitive, with key industry players adopting strategies such as partnerships, agreement, acquisitions, investment, partnerships, mergers, and expansions to strengthen their market positions. Most companies in the market focus on expanding operations across the globe, augmenting their capabilities, and building strong partner relationships.

The growth of market players is dependent on market conditions, government support, and industry development. Thus, vendors should focus on expanding geographically and improving product quality. Stakraft Sweden, Siemens AG (Germany), Andritz Hydro GmbH, Engie (France), China Three Gorges Corporation, Voith GmbH, Alfa Laval, ABB Ltd, Engie, Tata Power Corporation, Fortum, Norsk Hydro SA are the leading companies in this market, who compete based on market presence, quality, and price.

Key players are taking steps toward capacity expansions and technological advancement, thereby increasing their consumption. The regional and global players may strengthen their presence globally through acquisitions during the review period. It has also been forecast that improvements in the global economic scenario and the growing hydropower industry in emerging nations would fuel market growth, making it an ideal time for players to innovate the technology and increase their global market shares.

Key Companies in the Hydropower Market includes:

• Siemen AG


• Stakraft Sweden


• Andritz Hydro GmbH


• China Three Gorges Corporation


• Voith GmbH


• Alfa Laval


• ABB Ltd


• Engie


• Tata Power Corporation


• Norsk Hydro SA

Hydropower Industry Developments

October 2023: CTG's Baihetan hydropower station has won the 2023 FIDIC Outstanding Project Award, marking the 5th time CTG has received the prestigious FIDIC award. Baihetan's commissioning marked the completion of the world's largest clean energy corridor, which consists of 6 major hydropower plants developed by CTG along the Yangtze River with a total installed capacity of 16GW.

April 2023: Tata Power Co. Ltd’s distribution arm has signed a 200-MW medium-term hydro power purchase agreement with NTPC Vidyut Vyapar Nigam Ltd (NVVNL) to meet the projected peak demand.

September 2023: CTG‘s three cascade hydropower stations along the Qingjiang River in Hubei Province achieved their first full-capacity operation this year on September 23. The peak output exceeded 3.3 million kilowatts. The total installed capacity of hydropower stations is 3.32 million kilowatts, the 11 generating units of the 3 stations set a new daily power generation record of 70.85 million kilowatt-hours

Hydropower Segmentation

Hydropower Capacity Outlook

• Mini Hydropower


• Micro & Pico Hydropower


• Small Hydropower


• Large & Medium Hydropower

Hydropower Component Outlook

• Electromechanical Equipment


• Electric & Power Infrastructure


• Civil Construction


• Others

Hydropower End User Outlook

• Industrial


• Utility


• Others

Hydropower Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • Russia
  
  
  • Italy
  
  
  • France
  
  
  • Spain
  
  
  • UK
  
  
  • Swden
  
  
  • Fimland
  
  
  • Norway
  
  
  • Denmark
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  • Middle East & Africa
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Mexico
  
  
  • Rest of Latin America