As per MRFR analysis, the Small Hydropower Market Size was estimated at 41.79 (USD Billion) in 2022. The Small Hydropower Market Industry is expected to grow from 43.83 (USD Billion) in 2023 to 67.4 (USD Billion) by 2032. The Small Hydropower Market CAGR (growth rate) is expected to be around 4.9% during the forecast period (2024 - 2032).
Key Small Hydropower Market Trends Highlighted
Such a market for small hydropower has some interesting market growth determinants. First, it is the increasing consumption of renewable energy sources due to climate change. Further, market growth is encouraged with government incentives and supportive approaches with regard to green energy production. Technological developments enabled the much of small hydropower systems to be much more efficient and economical, opening up the market for more applications. Yet, the expansion of small hydropower markets presents a potential therapy to the never-ending quest of bringing electricity to marginal and less developed areas where the nomadic power grid remains an illusion. Furthermore, complementing small hydro systems with other renewable energy sources and implementing them into distributed generation calls for the energy independence of the grid.
On the other hand, in these times, the tendency to adopt run-of-river systems is also observed, in which existing water flows are harnessed without the construction of dams or reservoirs. Using plug-and-play hydropower units can significantly ease the erection process and minimize the cost. Also, the advancement of computerization and the application of equipment capable of remote control and monitoring improves the operational efficiency of the system and helps reduce operational costs. These factors constitute the reasons why the expansion of hydropowers is inevitable, aiming to support other energy hybrid systems in enhancing a more environmentally friendly, stable energy system.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Small Hydropower Market Drivers
Rising Energy Demand and Depleting Fossil Fuel Resources
The global energy demand is increasing rapidly due to the growing population, urbanization, and industrialization. This has led to a greater reliance on fossil fuels, which are finite and non-renewable resources. As a result, there is a need to explore alternative sources of energy that are sustainable and environmentally friendly. Small hydropower is a promising option as it can provide a reliable and clean source of energy without contributing to greenhouse gas emissions.
The depletion of fossil fuel resources is another major factor driving the growth of the small hydropower market. Fossil fuels are a major source of energy for electricity generation, but their reserves are finite and are expected to be depleted in the coming decades. This has created a need for alternative sources of energy that can replace fossil fuels and meet the growing energy demand. Small hydropower is a viable option as it can provide a reliable and sustainable source of energy without relying on fossil fuels.
Governments worldwide are also promoting the use of renewable energy sources to reduce their dependence on fossil fuels and mitigate climate change. They are providing incentives, such as tax breaks and subsidies, to encourage the development of renewable energy projects. This has created a favorable environment for the growth of the small hydropower market.
Technological Advancements and Cost Reductions
Advancements in technology have made small hydropower systems more efficient and cost-effective. The development of new materials and technologies has led to the improvement of turbine designs, which has increased the efficiency of small hydropower systems. This has made small hydropower more competitive with other renewable energy sources, such as solar and wind power. The cost of small hydropower systems has also decreased in recent years due to economies of scale and technological advancements.
This has made small hydropower more affordable for developing countries and remote communities that lack access to reliable electricity. The declining cost of small hydropower systems is expected to further drive the growth of the market in the coming years.
Growing Environmental Concerns and Climate Change
The growing environmental concerns and the need to mitigate climate change are also driving the growth of the small hydropower market. Small hydropower is a clean and renewable source of energy that does not produce greenhouse gases or other pollutants. It can help reduce the dependence on fossil fuels and contribute to the fight against climate change. Governments worldwide are implementing policies and regulations to promote the use of renewable energy sources and reduce greenhouse gas emissions.
This is creating a favorable environment for the growth of the small hydropower market. Many countries have set ambitious targets for renewable energy production, and small hydropower is expected to play a significant role in achieving these targets.
Small Hydropower Market Segment Insights
Small Hydropower Market Installed Capacity Insights
The Small Hydropower Market segmentation by installed capacity offers a comprehensive analysis of the market based on the power generation capacity of small hydropower plants. This segmentation provides valuable insights into the market dynamics and trends across different capacity ranges. Up to 10 MW: This segment represents the smallest capacity range and accounts for a significant portion of the Small Hydropower Market revenue. These small-scale hydropower plants are typically installed in remote areas with limited grid connectivity and are used for local electricity generation.
The segment is expected to witness steady growth due to the increasing demand for decentralized and renewable energy sources. 10-50 MW: The 10-50 MW segment holds a substantial share of the Small Hydropower Market segmentation. These medium-scale hydropower plants offer higher power generation capacity compared to the smaller range and are often used to provide electricity to rural communities and small industries. The segment is projected to exhibit moderate growth driven by the increasing adoption of renewable energy technologies. 50-100 MW: The 50-100 MW segment represents a significant capacity range and plays a crucial role in the Small Hydropower Market data.
These larger-scale hydropower plants are typically constructed in areas with favorable hydrological conditions and contribute significantly to the overall power generation capacity. The segment is expected to experience steady growth due to the increasing demand for reliable and sustainable energy sources. Above 100 MW: The above 100 MW segment represents the highest capacity range in the Small Hydropower Market statistics. These large-scale hydropower plants are typically constructed in areas with abundant water resources and are capable of generating substantial amounts of electricity.
The segment is anticipated to witness moderate growth due to the increasing need for large-scale renewable energy projects and the development of more efficient hydropower technologies. Overall, the Small Hydropower Market industry is expected to continue expanding in the coming years, driven by the growing demand for clean and sustainable energy sources and the increasing focus on decentralized power generation. The segmentation by installed capacity provides valuable insights into the market dynamics, enabling stakeholders to make informed decisions and capitalize on growth opportunities.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Small Hydropower Market Turbine Type Insights
The Small Hydropower Market segmentation by Turbine Type offers valuable insights into the market dynamics. In 2023, the Pelton turbine segment held a significant market share due to its high efficiency in high-head applications. The Francis turbine segment is projected to witness substantial growth over the forecast period, owing to its wide applicability in medium-head hydropower plants. The Kaplan turbine segment is expected to gain traction, particularly in low-head hydropower projects. The Crossflow turbine segment is anticipated to account for a notable market share due to its cost-effectiveness and suitability for small-scale hydropower projects.
Other Turbine Types, including Impulse and Propeller turbines, are expected to contribute to the overall market growth, catering to specific project requirements.
Small Hydropower Market Technology Insights
The Small Hydropower Market is segmented by technology into Run-of-the-River, Reservoir, and Pumped Storage. Among these, the Run-of-the-River segment held the largest market share in 2023 and is expected to maintain its dominance throughout the forecast period. The growth of this segment can be attributed to the increasing adoption of this technology due to its low environmental impact and cost-effectiveness. The Reservoir segment is expected to witness a significant growth rate during the forecast period due to the rising demand for reliable and dispatchable power generation.
The Pumped Storage segment is expected to grow at a moderate pace due to its ability to store energy and provide flexibility to the grid.
Small Hydropower Market End-Use Insights
The Small Hydropower Market segmentation by End-Use includes Utilities, Industries, and Residential. In 2023, the Utilities segment held the largest market share of around 62.8%. The growth of this segment can be attributed to the increasing demand for electricity from remote and off-grid areas, as well as the rising popularity of renewable energy sources. The Industries segment is expected to witness a significant growth rate during the forecast period, owing to the growing demand for electricity from industrial applications. The Residential segment is also anticipated to grow at a steady pace, driven by the increasing adoption of small hydropower systems for residential purposes, particularly in rural and remote areas.
The Small Hydropower Market is expected to reach a valuation of USD 48.97 Billion by 2024, expanding at a CAGR of 5.0% during the forecast period from 2023 to 2032.
Small Hydropower Market Regional Insights
The regional segmentation of the Small Hydropower Market presents distinct market dynamics and growth opportunities. North America holds a significant market share, driven by favorable government policies and technological advancements. Europe, with its established hydropower industry, is another key region. APAC, led by China and India, is projected to witness substantial growth due to increasing energy demand and government initiatives promoting renewable energy. South America, particularly Brazil, offers ample hydropower potential, while MEA is expected to experience steady growth in the coming years.
These regional insights are crucial for market players to tailor their strategies and capitalize on specific growth opportunities in each region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Small Hydropower Market Key Players And Competitive Insights
Major players in the Small Hydropower Market industry are constantly striving to gain a competitive edge by implementing various strategies such as product innovation, mergers and acquisitions, and geographical expansion. Leading Small Hydropower Market players are focusing on developing cost-effective, efficient, and environmentally friendly solutions to meet the growing demand for renewable energy sources. They are also investing heavily in research and development to improve the performance and reduce the costs of small hydropower systems. The Small Hydropower Market development is expected to be driven by government initiatives, technological advancements, and increasing awareness about the benefits of renewable energy.
Voith is a leading company in the Small Hydropower Market industry, offering a wide range of products and services. The company's strength lies in its comprehensive product portfolio, which includes turbines, generators, control systems, and other components. Voith has a strong global presence, with operations in over 60 countries. The company's focus on innovation and customer satisfaction has enabled it to maintain a leading position in the market.
Andritz is a prominent competitor in the Small Hydropower Market industry. The company offers a wide range of products and services for small hydropower projects, including turbines, generators, and other components. Andritz has a strong focus on research and development, and it has developed a number of innovative solutions for the small hydropower industry. The company's global presence and its commitment to quality have made it a leading player in the market.
Key Companies in the Small Hydropower Market Include
Small Hydropower Market Industry Developments
The Small Hydropower Market is projected to grow from USD 43.83 billion in 2023 to USD 67.4 billion by 2032, at a CAGR of 4.9%. Rising energy demand, increasing environmental concerns, and supportive government policies are key factors driving the market growth.
Recent news developments include:
In January 2023, HydroChina Corporation announced plans to invest USD 2 billion in small hydropower projects in Southeast Asia.
In March 2023, the World Bank approved a USD 150 million loan to support the development of small hydropower in Nepal.
In May 2023, the European Union launched a new initiative to promote the adoption of small hydropower in developing countries.
These developments indicate a growing interest in small hydropower as a renewable energy source, particularly in developing countries.
Small Hydropower Market Segmentation Insights
Small Hydropower Market Regional Outlook
| Report Attribute/Metric | Details |
| Market Size 2022 | 41.79 (USD Billion) |
| Market Size 2023 | 43.83 (USD Billion) |
| Market Size 2032 | 67.4 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 4.9% (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 | Harbin Electric, China Yangtze Power, UPC Renewables, Hydropower New Zealand, RunofRiver, General Electric, Voith, Sulzer, Enel Green Power, Brookfield Renewable Partners, Statkraft, Tata Power, Hydro China Corporation, Toshiba, Andritz Hydro |
| Segments Covered | Installed Capacity, Turbine Type, Technology, End-Use, Regional |
| Key Market Opportunities | Decentralized power generation Improved grid stability Rural electrification Environmental sustainability Cost competitiveness. |
| Key Market Dynamics | Rising energy demands favorable government policies, technological advancements, increasing urbanization and growing environmental concerns. |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Small Hydropower Market is expected to reach a valuation of 43.83 Billion USD in 2023.
The Small Hydropower Market is expected to reach a valuation of 67.4 Billion USD in 2032.
The Small Hydropower Market is expected to grow at a CAGR of 4.9% from 2024 to 2032.
The North America region is expected to have the largest market share in the Small Hydropower Market in 2032.
The grid-connected segment is expected to have the largest market share in the Small Hydropower Market in 2032.
Some of the key competitors in the Small Hydropower Market include GE Renewable Energy, Voith Hydro, Andritz Hydro, and Harbin Electric.
The major factors driving the growth of the Small Hydropower Market include increasing demand for renewable energy, government incentives, and technological advancements.
The challenges faced by the Small Hydropower Market include high upfront costs, environmental concerns, and grid integration issues.
The opportunities for growth in the Small Hydropower Market include increasing demand for distributed generation, technological advancements, and government support.
The key trends in the Small Hydropower Market include increasing adoption of off-grid systems, advancements in turbine technology, and digitalization.
Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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