Market Perspective

The global Hydropower Market was valued at USD 239.85 billion in 2022 and is projected to reach USD 357.47 billion in revenue by 2030, growing at a CAGR of 4.97% from 2023 to 2030.

The global hydropower market holds massive growth potential driven by several key factors. One of the primary drivers is the increasing demand for clean and sustainable energy sources to combat climate change. Hydropower is considered a reliable and renewable energy option, contributing to reduced greenhouse gas emissions. Additionally, governments worldwide are promoting investments in hydropower infrastructure as a means to enhance energy security. Technological advancements, such as improved turbine designs and efficient energy storage solutions, are also propelling market growth. Furthermore, the integration of digital technologies is enhancing the operational efficiency of hydropower plants, reducing maintenance costs, and improving overall performance. Opportunities in the market include the modernization of existing hydropower facilities and the development of small-scale and mini hydropower projects, especially in remote areas where grid connectivity is limited. Overall, the hydropower market is primed to observe substantial growth in the coming years, driven by sustainability goals and the soaring need for clean energy solutions.

Analyst’s Review on the Global Hydropower Market

The hydropower market is set to undergo significant changes between 2023 and 2030, shaped by several key trends. Firstly, there will be a growing emphasis on upgrading and refurbishing existing hydropower infrastructure. This will involve modernizing aging plants to improve efficiency and extend their operational lifespan. Secondly, there is a shift towards smaller-scale hydropower projects, including mini and micro installations. These projects offer flexibility and can cater to localized energy needs in diverse geographical regions. Thirdly, the adoption of advanced digital technologies like IoT sensors and predictive analytics will optimize the operation and maintenance of hydropower facilities, reducing downtime and improving energy output. Lastly, environmental considerations will play a crucial role, with a focus on mitigating the impact of hydropower installations on ecosystems. Overall, the market is expected to witness steady growth driven by modernization efforts, technological advancements, and sustainability goals.

Market Definition

Hydropower, also known as hydroelectric power, is a form of renewable energy that harnesses the power of moving water to generate electricity. It has been in use for centuries and is one of the oldest and largest sources of renewable energy. Hydropower works by using the force of flowing or falling water to turn a turbine, which then drives a generator to produce electricity.

Hydropower offers key advantages due to its renewable and sustainable nature. It relies on the continuous water cycle, which ensures a reliable and long-term source of energy. Unlike finite fossil fuels, water is constantly replenished through rainfall and natural processes, making hydropower crucial in transitioning to a sustainable energy future. Additionally, hydropower provides clean energy generation without releasing greenhouse gases or air pollutants, contrasting with fossil fuel power plants. This results in cleaner air, reduced carbon footprint, and enhanced environmental quality. Consequently, hydropower is widely regarded as a more environmentally friendly alternative to conventional energy sources.

In conclusion, hydropower is a valuable and widely used source of renewable energy. Its ability to harness the power of water to generate electricity makes it a reliable and sustainable option. While it has numerous advantages, including its renewable nature and clean energy generation, it is important to carefully consider the environmental impacts and costs associated with hydropower projects. By balancing the benefits and challenges, hydropower can continue to play a significant role in our energy mix while minimizing its impact on the environment.

Market Dynamics

Environmental sustainability is likely to propel market growth. As the world seeks to reduce its carbon footprint and combat climate change, the demand for renewable energy sources like hydropower is expected to grow significantly. However, a notable challenge facing the hydropower market is its environmental impact, especially in large-scale projects. The construction of dams and reservoirs can disrupt local ecosystems, leading to habitat destruction and altered water flow patterns. Mitigating these environmental concerns while harnessing the benefits of hydropower remains a complex challenge. Striking a balance between energy generation and environmental conservation is crucial to sustainably develop the hydropower sector. Additionally, the cost and infrastructure requirements of building hydropower plants can be substantial, making it necessary to carefully evaluate the feasibility and long-term sustainability of each project.

Segmentation Analysis

The global hydropower market is segmented based on type and geography.

Based on type, the hydropower market is categorized into micro hydropower, small hydropower, and large hydropower. The large hydropower segment held the largest market share in 2022 owing to growing investments and associated projects. The adoption of advanced digital technologies, such as IoT sensors and predictive analytics, is expected to optimize the operation and maintenance of large hydropower facilities, improving energy output and reducing downtime. For instance, in June 2021, the International Energy Agency stated that the global hydropower capacity is set to increase by 17%, or 230 GW, in the forthcoming years.

Geographical Analysis

Based on region, the global hydropower market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America dominated the market in 2022 owing to the well-established infrastructure of large-scale hydropower plants, particularly in countries like the United States and Canada. These nations have harnessed the energy potential of major rivers and water bodies to meet a significant portion of their electricity demands. Additionally, favorable policies and incentives have spurred the modernization and expansion of existing hydropower facilities in North America. The region's commitment to renewable energy sources and environmental sustainability has further bolstered its position as a market leader. While North America continues to dominate, it is also actively exploring opportunities in small-scale and micro hydropower projects to diversify its hydropower portfolio and retain its position in the global hydropower market.

Competitive Landscape

The global hydropower market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Expansion & investments are the major strategic initiatives. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the hydropower market are

• Alstom
• Siemens
• PowerChina
• China Three Gorges Corporation
• Tata Power
• Voith GmbH & Co. KGaA
• ABB
• ALFA LAVAL
• ANDRITZ AG
• GENERAL ELECTRIC

Key Developments

• August 2023 (Expansion): ANDRITZ secured a contract from ENGIE Brasil Energia, a prominent Brazilian company, for the modernization of the Jaguara hydropower plant in Brazil.
• April 2023 (Expansion): Voith Hydro was awarded a contract to undertake the expansion of the Kruonis pumped storage plant in Lithuania. The expansion project is valued at USD 156.9 million and was intended to increase the capacity and capabilities of the Kruonis plant.

The global Hydropower Market is segmented as:

By Type

• Micro Hydropower
• Small Hydropower
• Large Hydropower

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America