Pumped Hydro Storage Market Research Report By Storage Capacity (Below 100 MWh, 100-250 MWh, 250-500 MWh, Above 500 MWh), By Pumped Hydro Turbine Capacity (Below 100 MW, 100-250 MW, 250-500 MW, Above 500 MW), By Project Type (Standalone, Hybrid (With Solar PV, Wind, or Tidal), Add-on), By End-Use Sector (Utilities, Industries, Commercial, Residential) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Pumped Hydro Storage Market Overview:

As per MRFR analysis, the Pumped Hydro Storage Market Size was estimated at 380.88 (USD Billion) in 2022. The Pumped Hydro Storage Market Industry is expected to grow from 405.6(USD Billion) in 2023 to 714.2 (USD Billion) by 2032. The Pumped Hydro Storage Market CAGR (growth rate) is expected to be around 6.49% during the forecast period (2024 - 2032).

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

Key Pumped Hydro Storage Market Trends Highlighted

The growing pumped hydro storage market is driven by the necessity for flexible and reliable energy storage solutions. Pumped hydro storage plays a key role in maintaining a stable supply of electricity and balancing the grid as penetration of intermittent renewable energy sources, such as solar and wind, intensifies. Moreover, increased demand for peak-hour electricity and the growing adoption of electric vehicles also contribute to growth in pumped hydro storage systems.

Major market drivers comprise government policies and incentives promoting renewable energy and energy storage, advanced technological developments in technologies of pumped hydro storage, and rising investments in infrastructure construction works. Development opportunities lie in boosting the capacities of existing pumped hydro facilities, searching for new geographic locations with suitable topography, and inventing innovative techniques that can increase efficiency while reducing cost.

Notably, current tendencies in the field are evident from the use of modern control systems intended for optimization purposes as well as the adoption of variable speed technology so as to make it more flexible, among other benefits associated with it, such as DINAMO - Technologies. For example, there have been trends towards using hybrid systems that combine pumped hydro storage with other renewable forms, which aim to increase reliability, save costs on maintenance as well as enhance overall performance, thus reinforcing their importance within the global transition towards a low-carbon world.

Pumped Hydro Storage Market Drivers

Increasing Demand for Renewable Energy Sources

Due to the surging interest in renewable energy sources over the world, such as solar and wind power, caused by climate changes and the depletion of the majority of fossil fuels, pumped hydro storage systems have become a perfect solution for balancing the intermittent nature of the energy sources mentioned above by storing the excess of electricity during the low demand for this kind of energy and sending another one back whenever it is needed at a time when demand for electricity is high. Thus, electricity is supplied and delivered when it is required, creating an effective, stable, and reliable balance in the delivery process. Finally, this solution helps reduce the dependency on fossil fuels.

Government Incentives and Policies

International administrations are increasingly providing multiple incentives and plans to encourage the development of new stations of this kind. For example, in the US, the government has introduced tax incentives, subsidies, and feed-in tariffs to promote the building of new pumped hydro stations. Since more and more governments declare their intensive support for renewable energy generation by introducing ambitious plans and targets for its development, the construction of PSP stations is bound to increase even further.

Technological Advancements

The advancement of technology is another factor that contributes to the growth of the pumped hydro storage market. Improved turbines, pumps and control systems are becoming less expensive and more efficient. The technology also improves the reliability of the systems. Obviously, the efficiency and price of the technology have a great impact on the attractiveness of pumped hydro storage for investors and operators.

Pumped Hydro Storage Market Segment Insights:

Pumped Hydro Storage Market Storage Capacity Insights

The Global Pumped Hydro Storage Market is segmented based on storage capacity into Below 100 MWh, 100-250 MWh, 250-500 MWh, and Above 500 MWh. Among these segments, the Above 500 MWh segment is expected to hold the largest market share in 2023, owing to the increasing demand for large-scale energy storage solutions to support the integration of renewable energy sources. The 100-250 MWh segment is also expected to witness significant growth, driven by the rising demand for distributed energy storage systems. The Global Pumped Hydro Storage Market revenue for the Below 100 MWh segment is projected to reach USD 10.2 billion by 2024, growing at a CAGR of 6.4% during the forecast period.

The 100-250 MWh segment is expected to grow at a CAGR of 6.8%, reaching a market value of USD 15.4 billion by 2024. The 250-500 MWh segment is projected to witness a CAGR of 7.2%, reaching a market size of USD 12.6 billion by 2024. The Above 500 MWh segment is expected to grow at a CAGR of 7.5%, reaching a market value of USD 45.8 billion by 2024. The growth of the Pumped Hydro Storage Market is driven by several factors, including the increasing demand for renewable energy sources, the need for flexible and reliable energy storage solutions, and the growing adoption of electric vehicles. The market is also supported by government policies and incentives aimed at promoting the deployment of renewable energy and energy storage technologies.

Key players in the Global Pumped Hydro Storage Market include GE Renewable Energy, Voith Hydro, Andritz Hydro, Harbin Electric International Co., Ltd., and Mitsubishi Heavy Industries, Ltd. These companies are involved in the development, manufacturing, and installation of pumped hydro storage systems. They are also investing in research and development to improve the efficiency and cost-effectiveness of these systems.

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

Pumped Hydro Storage Market Pumped Hydro Turbine Capacity Insights

The Pumped Hydro Turbine Capacity segment plays a vital role in the Global Pumped Hydro Storage Market, contributing significantly to its overall growth. This segment classifies pumped hydro turbines based on their capacities, ranging from below 100 MW to above 500 MW. Each capacity range caters to specific project requirements and applications. In 2023, the segment with capacities below 100 MW held a considerable market share due to its suitability for smaller-scale projects and integration with renewable energy sources. The intermediate capacity range of 100-250 MW is projected to witness steady growth, driven by its adaptability to a wider range of project sizes. Meanwhile, the 250-500 MW capacity segment is anticipated to gain traction in regions with high energy demands and the need for flexible power generation. The segment above 500 MW is expected to contribute significantly to the Global Pumped Hydro Storage Market revenue, primarily due to its ability to store large amounts of energy and provide reliable grid support.

Pumped Hydro Storage Market Project Type Insights

The Global Pumped Hydro Storage Market is segmented by Project Type into Standalone, Hybrid (With Solar PV, Wind, or Tidal), and Add-on. The Standalone segment held the largest share of the market in 2023 and is projected to continue to dominate the market through 2032. The Hybrid segment is expected to grow at the fastest CAGR during the forecast period due to the increasing adoption of renewable energy sources. The Add-on segment is expected to account for a significant share of the market by 2032. In terms of market revenue, the Global Pumped Hydro Storage Market is expected to reach USD 452.5 billion in 2024 and is projected to grow to USD 795.6 billion by 2032 at a CAGR of 6.5%. The increasing demand for renewable energy sources, coupled with the need for energy storage solutions, is driving the growth of the pumped hydro storage market. The market is expected to witness significant growth in the Asia-Pacific region due to the increasing demand for electricity and the growing adoption of renewable energy sources in the region.

Pumped Hydro Storage Market End-Use Sector Insights

The Global Pumped Hydro Storage Market is segmented based on the end-use sector into utilities, industries, commercial, and residential. Among these, the utility segment is expected to hold the largest market share in 2023, and it is projected to continue its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing demand for reliable and cost-effective energy storage solutions by utility companies. The industry segment is also expected to witness significant growth in the coming years, owing to the rising demand for energy storage systems in various industrial applications such as manufacturing, mining, and oil gas. The commercial and residential segments are expected to experience moderate growth during the forecast period, driven by the increasing adoption of pumped hydro storage systems for peak shaving and backup power applications.

Pumped Hydro Storage Market Regional Insights

The regional segmentation of the Global Pumped Hydro Storage Market offers valuable insights into the market's geographical distribution and growth dynamics. North America is expected to account for a significant share of the market, driven by the presence of established pumped hydro storage facilities and favorable government policies. Europe is anticipated to be another major regional market, with countries like Germany and the United Kingdom investing heavily in renewable energy sources. The APAC region, led by China and India, is projected to witness substantial growth due to increasing energy demand and supportive government initiatives. South America and MEA are also expected to contribute to the market's expansion, albeit at a slower pace. These regions present opportunities for pumped hydro storage development to meet growing electricity needs and integrate intermittent renewable energy sources into their grids.

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

Pumped Hydro Storage Market Key Players And Competitive Insights:

Key players from the Pumped Hydro Storage Market industry are continuously investing in research and development to improve efficiency and reduce the cost of pumped hydro storage systems, as well as developing new technologies such as variable speed pumps and turbines to improve the flexibility and reliability of pumped hydro storage systems. The competitive landscape of the Pumped Hydro Storage Market industry is anticipated to remain fragmented in the foreseeable future. However, the key players are also expected to consolidate their market positions through partnerships, mergers, and acquisitions. 

Some of the major competitors in the Pumped Hydro Storage Market market are Andritz, GE Renewable Energy, Harbin Electric, Hitachi, Mitsubishi Heavy Industries, Toshiba, Voith, and Xylem. These companies design, manufacture, install, and maintain pumped hydro storage systems as well as are also conducting research for improving the efficiency and reducing the cost of pumped hydro storage systems. Another major competitor in the Pumped Hydro Storage Market industry is also GE Renewable Energy, which is a leading supplier of renewable energy solutions, including pumped hydro storage systems. The company has a global presence and has installed pumped hydro storage systems in more than 50 countries. GE Renewable Energy is also conducting research for improving efficiency and reducing costs of pumped hydro storage systems. The company is also investing in the development of hybrid pumped hydro storage systems, which also combine pumped hydro storage, solar power and wind power.

Key Companies in the Pumped Hydro Storage Market Include:

• Voith Turbo GmbH Co. KG


• Voith


• Fuji Electric Co., Ltd.


• Toshiba Corporation


• Hitachi Power Systems


• GE Power


• Mitsubishi Heavy Industries


• Suzlon Energy


• Siemens Energy


• Andritz Hydro


• Sinovel Wind Group


• Dongfang Turbine Co., Ltd.


• Alstom


• Doosan Heavy Industries Construction


• Harbin Power Engineering

Pumped Hydro Storage Market Industry Developments

The global pumped hydro storage market is projected to grow from USD 405.6 billion in 2023 to USD 714.2 billion by 2032, exhibiting a CAGR of 6.49% during the forecast period. The market is primarily driven by the increasing integration of renewable energy sources, such as solar and wind power, which necessitates the need for flexible and reliable energy storage solutions. Additionally, the growing demand for electricity in emerging economies, coupled with government initiatives to promote sustainable energy practices, is anticipated to fuel market growth.

Recent developments in the market include: 

In 2023, China announced plans to construct a 10 GW pumped-storage hydropower station in Jiangsu province, marking one of the largest projects of its kind globally.

 In the same year, the United States Department of Energy announced funding for innovative pumped hydro storage technologies, aiming to enhance the efficiency and cost-effectiveness of these systems.

Leading industry players, such as GE Renewable Energy and Voith Hydro, are investing in research and development to improve the performance and reduce the environmental impact of pumped hydro storage systems.

Pumped Hydro Storage Market Segmentation Insights

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  Pumped Hydro Storage Market Storage Capacity Outlook

  
  
  
  
  • Below 100 MWh
  
  
  • 100-250 MWh
  
  
  • 250-500 MWh
  
  
  • Above 500 MWh
  
  
  
  


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  Pumped Hydro Storage Market Pumped Hydro Turbine Capacity Outlook

  
  
  
  
  • Below 100 MW
  
  
  • 100-250 MW
  
  
  • 250-500 MW
  
  
  • Above 500 MW
  
  
  
  


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  Pumped Hydro Storage Market Project Type Outlook

  
  
  
  
  • Standalone
  
  
  • Hybrid (With Solar PV, Wind, or Tidal)
  
  
  • Add-on
  
  
  
  


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  Pumped Hydro Storage Market End-Use Sector Outlook

  
  
  
  
  • Utilities
  
  
  • Industries
  
  
  • Commercial
  
  
  • Residential
  
  
  
  


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  Pumped Hydro Storage Market Regional Outlook

  
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa