As per MRFR analysis, the APAC Hydropower Market Size was estimated at 127.25 (USD Billion) in 2023. The APAC Hydropower Market Industry is expected to grow from 132.68(USD Billion) in 2024 to 220.16 (USD Billion) by 2035. The APAC Hydropower Market CAGR (growth rate) is expected to be around 4.711% during the forecast period (2025 - 2035).
Key APAC Hydropower Market Trends Highlighted
The APAC hydropower market is experiencing significant growth driven by a rising demand for renewable energy and a commitment to reducing greenhouse gas emissions. Countries in the region, particularly those like China, India, and Indonesia, are increasingly investing in hydropower projects as part of their energy transition strategies. This shift is supported by government policies that promote sustainable energy sources and provide financial incentives for renewable energy development. The push towards achieving energy security and diversifying energy sources has also become a key market driver as APAC nations aim to reduce reliance on fossil fuels.Advanced engineering and infrastructure development present new opportunities for the APAC hydropower markets. Innovations like smart grid technologies, as well as improved efficiency in turbines, can support operational capacity and sustainability.
There is also great potential for the development of small-scale hydropower projects in rural regions, as they can offer supportive localized energy solutions and strengthen the local economies. Emerging financing models alongside international collaboration can greatly enhance investments in hydropower as APAC countries work towards balancing energy demands with sustainable solutions. There is a growing tendency to support environmental concerns which is affecting policy formulation, and this shift is very much felt within the government’s expenditure budget set for funding hydropower initiatives.
Additionally, the focus on climate resilience has led to more hydropower projects designed to withstand extreme weather events, ensuring long-term viability. This growing integration of climate-focused planning into energy projects illustrates a commitment to balancing energy needs with environmental protection in the APAC region. Overall, these trends indicate a dynamic landscape for hydropower, where sustainability, technology, and regional cooperation will play crucial roles in shaping the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
APAC Hydropower Market Drivers
Growing Demand for Renewable Energy
The APAC Hydropower Market Industry is experiencing significant growth driven by an increasing demand for renewable energy sources. The Asia-Pacific region, which is home to some of the world's largest economies, is actively pursuing goals to reduce carbon emissions in line with international agreements like the Paris Agreement. The International Energy Agency reported that renewable power generation in Asia accounted for over 55% of global renewable generation capacity in 2022, with hydropower being a crucial contributor. Countries like China and India are at the forefront, with China alone producing over 43% of the world's hydropower output. This heightened focus on sustainable energy is conducive to hydropower investments, as governments aim to incorporate more renewable sources into their energy mix. Additionally, national policies promoting clean energy, such as the National Action Plan on Climate Change in India, further stimulate the growth of the APAC Hydropower Market.
Government Initiatives and Policy Support
Robust government initiatives and policy support for renewable energy projects significantly drive the growth of the APAC Hydropower Market Industry. In countries like Vietnam, the government has outlined its Renewable Energy Development Strategy, aiming for renewable energy to constitute 30% of total electricity production by 2030. Such policies are designed to encourage investment in hydropower projects, with a strong focus on reducing reliance on fossil fuels. Moreover, the Asian Development Bank, along with various regional governments, has been actively financing renewable energy projects, including hydropower, thereby providing essential capital for development. As of 2023, the total investment in renewable energy projects across APAC has reached over 100 billion USD, further indicating the increasing governmental emphasis on supporting hydropower initiatives.
Technological Advancements in Hydropower
Technological advancements in hydropower generation and installation are pivotal drivers in the APAC Hydropower Market Industry. With continuous improvements in turbine efficiency and energy conversion technology, the generation of hydropower has become more economically viable. According to the International Hydropower Association, innovations such as high-efficiency turbine designs and advanced grid integration technologies can increase energy output by up to 30%.Furthermore, countries like Japan are leveraging technology improvements to upgrade existing plants, allowing them to meet increasing energy demands without necessitating new constructions. As innovations continue, existing projects can provide higher outputs, enhancing the attractiveness of hydropower as a sustainable energy solution in the region.
APAC Hydropower Market Segment Insights
Hydropower Market Capacity Insights
The APAC Hydropower Market, particularly the Capacity segment, demonstrates significant growth and diversification, driven by the increasing demand for renewable energy sources across the region. This market includes various segments such as Mini Hydropower, Micro and Pico Hydropower, Small Hydropower, and Large and Medium Hydropower, each playing a vital role in harnessing water resources effectively. Mini Hydropower systems are increasingly recognized for their ability to provide decentralized energy solutions, particularly in rural areas where grid connectivity is limited. Their compact size and capacity to generate power from smaller streams make them a sustainable option for local communities, thereby promoting energy independence and accessibility.Micro and Pico Hydropower systems cater to even smaller applications, meeting the needs of households or small institutions.
These systems are becoming more popular in remote areas, contributing to local economies by providing a reliable, clean power source. Small Hydropower, on the other hand, serves as a bridge between microsystems and larger plants, effectively balancing efficiency and environmental impact. It has gained traction due to its ability to produce power in smaller river systems without significant ecological disruption.Large and Medium Hydropower continues to dominate the market, playing a crucial role in the energy grid of several APAC countries. These installations leverage larger water bodies and provide substantial electricity generation, often serving as baseload power supply systems. Their scale allows for the distribution of energy across vast regions, supporting urban centers and contributing to national energy security.
These large-scale hydropower projects are reinforced by government policies and investments focused on clean energy infrastructure development.The APAC region's commitment to sustainable energy is evident in various national policies promoting hydropower as a primary renewable resource. This focus is fueled by the need to reduce carbon emissions and combat climate change while ensuring energy stability. However, challenges such as environmental concerns, social impacts on local communities, and investment in technology for efficient operations remain significant. As the hydropower landscape evolves, opportunities for innovation and collaborations in technology development will support the growth of each capacity segment in the APAC Hydropower Market. The diverse applications of different hydropower technologies demonstrate the sector's adaptability and potential, setting the stage for future advancements in renewable energy generation across the region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydropower Market Component Insights
The APAC Hydropower Market, focusing on the Component segment, encapsulates critical areas essential for the effective generation of renewable energy. Key elements such as Electromechanical Equipment are pivotal, comprising turbines and generators, which are often the heart of hydropower plants and directly impact efficiency. Electric and Power Infrastructure, representing a necessary backbone, ensures the seamless transmission of generated electricity to end-users, which is becoming increasingly vital as demand for renewable energy surges in the region.Civil Construction forms another essential part of this segment, encompassing the building of dams, tunnels, and support structures, vital for creating the physical foundation of hydropower operations.
Additionally, the 'Others' category captures various auxiliary components, including control systems and maintenance technologies, which enhance operation effectiveness and sustainability. The ongoing investment in renewable energy sources and governmental initiatives in countries like China and India further amplify the importance of these components as they seek to meet energy needs while reducing carbon emissions.The interplay of these segments not only fuels the growth of the APAC Hydropower Market but also aligns with broader goals for sustainable development across the region.
Hydropower Market End User Insights
The End User segment of the APAC Hydropower Market is vital as it showcases diverse applications of hydropower across various industries. The Industrial sector plays a significant role as industries increasingly turn to renewable energy resources to reduce operational costs and promote sustainability. Utilities largely dominate the market, driven by the shift towards cleaner energy sources and increasing electricity demands from urbanization, making them crucial players in the transformation toward a low-carbon economy.
Additionally, the Others category includes municipal and domestic applications, which highlight the importance of hydropower in local energy systems, providing reliable and clean energy to communities.Government initiatives in APAC are also pushing for greater investment in renewable energy, presenting opportunities for growth in this sector. The APAC Hydropower Market is expected to benefit from favorable policies and technological advancements that drive efficiency and capacity expansion, influencing the overall dynamics of energy production and consumption in the region.
Hydropower Market Regional Insights
The APAC Hydropower Market is experiencing significant trends influenced by regional dynamics and economic growth across various countries. Within this segment, China stands out with its substantial investment in hydropower infrastructure, reflecting its commitment to renewable energy initiatives. India follows, where rapid urbanization and industrial growth fuel the demand for sustainable energy sources. Japan is focusing on the modernization of existing systems and efficient resource management, while South Korea emphasizes technological innovations to enhance hydropower efficiency.In Malaysia, initiatives aimed at environmental sustainability and renewable sources encourage hydropower development.
Thailand and Indonesia also play critical roles, with their diverse geographical features promoting the establishment of new hydropower projects. The Rest of APAC indicates a strong potential for growth as countries increasingly prioritize clean energy to meet their targets for carbon neutrality. Challenges such as regulatory hurdles and environmental concerns must be addressed, presenting opportunities for innovation in the APAC Hydropower Market.The ongoing investments in infrastructure and technology, alongside the increasing focus on sustainability, contribute to shaping the future of hydropower in this vibrant region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
APAC Hydropower Market Key Players and Competitive Insights
The APAC Hydropower Market is experiencing significant transformation as renewable energy sources gain traction in the region. With countries looking to reduce their dependence on fossil fuels and meet international climate agreements, hydropower has emerged as a prominent solution due to its capacity for generating substantial amounts of electricity while ensuring environmental sustainability. The competitive landscape is characterized by various players focusing on leveraging technological advancements, enhancing efficiency, and improving the sustainability of hydropower projects. Companies that can adapt to regulatory changes, invest in innovative technologies, and engage in strategic partnerships are likely to establish a strong foothold in the APAC hydropower market.
This market's dynamics are shaped by the demand for clean energy solutions, governmental policies supporting renewable energy, and the financial viability of hydropower projects in different countries.State Grid Corporation of China plays a pivotal role in the APAC hydropower market, exhibiting significant strengths through its extensive network and infrastructure capabilities. As one of the largest utility companies in the world, it boasts robust expertise in power generation, transmission, and distribution. The corporation's involvement in hydropower extends beyond mere electricity generation; it encompasses comprehensive initiatives from project design to operational management. Through strategic investments and collaborations, the State Grid Corporation of China has been able to enhance its market presence and drive operational efficiencies across various hydropower facilities in the region.
Its scale and integration allow it to leverage economies of scale, thereby reducing costs and improving service delivery, which contributes to its competitive advantage in the growing hydropower sector.RusHydro, another key player in the APAC hydropower market, focuses on renewable energy innovation and infrastructure development. This company has expanded its market presence by offering a range of services, including the design, construction, and operation of hydropower plants. RusHydro’s strengths lie in its technological advancements and commitment to sustainability, allowing it to optimize energy generation while minimizing environmental impact.
The company is also recognized for pursuing strategic mergers and acquisitions aimed at enhancing its operational capabilities within the region. Its diverse portfolio includes various hydropower projects designed to meet the rising energy demands of APAC countries while fostering economic growth and environmental sustainability. By aligning its operations with regional energy policies, RusHydro seeks to solidify its position as a leader in the hydropower market, contributing to the overall expansion of renewable energy across APAC.
Key Companies in the APAC Hydropower Market Include
APAC Hydropower Market Industry Developments
The APAC Hydropower Market is witnessing significant developments as governments and corporations focus on renewable energy investments. Recently, in September 2023, State Grid Corporation of China announced plans to enhance its hydropower capacity to meet increasing energy demands, aligning with China's commitment to carbon neutrality. Meanwhile, in October 2023, China Huaneng Group unveiled a large-scale hydropower project in Yunnan Province that is expected to generate approximately 6,000 megawatts of power, showcasing the region's commitment to expand sustainable energy sources. Companies like General Electric and Voith Hydro are actively involved in upgrading existing infrastructures with new hydro technology to improve efficiency and reduce environmental impacts.
In terms of mergers and acquisitions, Electricite de France and National Hydroelectric Power Corporation are reported to be in talks for collaborative projects aimed at joint renewable energy initiatives as of November 2023. The market valuation of APAC Hydropower companies has seen positive growth, driven by heightened investments and government support, impacting overall energy stability in the region. In the past few years, major projects in countries like India and Vietnam have reinforced hydropower's role in their energy strategies.
APAC Hydropower Market Segmentation Insights
Hydropower Market Capacity Outlook
Hydropower Market Component Outlook
Hydropower Market End User Outlook
Hydropower Market Regional Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 127.25 (USD Billion) |
| MARKET SIZE 2024 | 132.68 (USD Billion) |
| MARKET SIZE 2035 | 220.16 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 4.711% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | State Grid Corporation of China, RusHydro, Electricite de France, Inner Mongolia Yitai Coal Co., Ltd., General Electric, China Huaneng Group, China Yangtze Power, China Three Gorges Corporation, Sungrow Power Supply, Toshiba Energy Systems and Solutions Corporation, Korea Hydro and Nuclear Power Co., Ltd., Voith Hydro, National Hydroelectric Power Corporation, Powerchina, Andritz Hydro |
| SEGMENTS COVERED | Capacity, Component, End User, Regional |
| KEY MARKET OPPORTUNITIES | Increased government support initiatives, Aging infrastructure modernization projects, Rising demand for renewable energy, Expansion of micro-hydropower solutions, Cross-border hydropower trade potential |
| KEY MARKET DYNAMICS | Infrastructure investment growth, Government policy support, Renewable energy transition, Climate change adaptation, Technological advancements in efficiency |
| COUNTRIES COVERED | China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC |
Frequently Asked Questions (FAQ) :
The APAC Hydropower Market is expected to be valued at approximately 220.16 USD Billion by the year 2035.
The expected CAGR for the APAC Hydropower Market from 2025 to 2035 is 4.711 percent.
By 2035, China is expected to hold the largest market share in the APAC Hydropower Market, valued at 110.0 USD Billion.
In 2024, the APAC Hydropower Market in India is valued at 30.0 USD Billion.
Key players in the APAC Hydropower Market include State Grid Corporation of China, RusHydro, and Electricite de France among others.
The market size for Large & Medium Hydropower in the APAC Hydropower Market is valued at 77.61 USD Billion in 2024.
The expected market value of Mini Hydropower in the APAC Hydropower Market is projected to be 37.17 USD Billion by 2035.
The APAC Hydropower Market presents growth opportunities driven by increasing renewable energy adoption and technological advancements.
In 2035, the hydropower market in Japan is expected to be valued at 28.0 USD Billion.
The market size for Small Hydropower in the APAC Hydropower Market is valued at 21.53 USD Billion in 2024.
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