Hydropower Market Research Report - Forecast to 2030

Hydropower Market Research Report Information By Capacity (Mini Hydropower, Micro And Pico Hydropower, Small Hydropower, Large Hydropower), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) ‚Äď Market Forecast Till 2030

ID: MRFR/E&P/2977-HCR | 111 Pages | Published By Anshula Mandaokar on March 2023         

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Global Hydropower Market Overview

Hydropower Market Size was valued at USD 238 billion in 2021. The Hydropower market industry is projected to grow from USD 245.14 Billion in 2022 to USD 301.49 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 3.0% during the forecast period (2022 - 2030). Demand for alternative energy sources is rising, and electricity rises are the key market drivers enhancing the hydropower market growth.

Hydropower Market Overview

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

Hydropower Market Trends

Rising demand for alternative energy sources will boost market growth

Rapid demand for renewable energy sources has contributed to a decrease in the overall amount of fossil fuels used to generate power. People have been using renewable energy sources more frequently to slow down warming and the rapid change in the environment. Due to the massive number of new industries and industrial facilities entering the worldwide market and necessitating a large supply of energy to continue operating, the total demand for electricity is rapidly rising. Because of the numerous electrical equipment used daily, the residential sector has witnessed a significant increase in power usage.

The market will expand during the projection period due to the growing focus on the efficiency of conversion of renewable energy integration and its many applications, including water supply for agriculture and flood control. The business climate for hydropower will improve due to the volatility of fossil fuel pricing on a scale and initiatives to increase energy security. One of the earliest energy sources is hydropower, which has been utilized for thousands of years to move paddle wheels that help with grain grinding. The world's largest renewable energy source, hydropower, makes up 20% of the world's electricity generation. It is a flexible, sustainable technology. One of the greatest energy conversion rates of any known source is found in hydropower. A mature water collecting system may give millions of people access to energy. A steady, consistent, affordable energy supply is necessary to advance the economy and alleviate poverty.

Figure 1 Hydropower gross capacity additions by region

Hydropower gross capacity additions by region

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

Until 1975, the rise of hydropower capacity was driven by the rapid economic growth and industrial development of industrialized nations, namely North America, Europe, Japan, and Australia. To maximize resource efficiency and reduce transmission costs, governments put heavy businesses next to hydropower stations during this period. Brazilian and the Russian Federation ("Russia") were also early adopters of hydropower, utilizing their plentiful resources to enhance electricity cost-effectively. However, between 1975 and 1990, emerging and developing nations in Asia and Latin America expanded their contributions to the growth of hydropower globally, while the percentage of additions in established economies for the first time declined below 50%. Since 1990, there has been a persistent geographic shift, with 85% of recent hydroelectric plant construction in emerging and developing nations. China has demonstrated extraordinary market dominance in the hydropower sector throughout this time, accounting for 50% of the increase in world gross capacity on its own.

Outside of China, there has been a considerable increase in hydropower capacity in countries like India, Brazil, and certain significant Southeast Asian economies (mainly after 2005), while sub-Saharan Africa is benefiting from the construction of big reservoir plants. Large hydropower projects have been regarded as essential to regional economic growth and irrigation strategies in many developing nations, in addition to generating energy. Since 2005, China has had the biggest hydroelectric fleet in the world. Brazil, the United States, Canada, Russia, Japan, and India are the next largest nations.

Hydropower Market Segment Insights

Hydropower Type Insights

Based on Capacity, the Hydropower market segmentation includes Mini Hydropower, Micro And Pico Hydropower, Small Hydropower and Large Hydropower. With a revenue share of more than 55.0% in 2021, the Micro And Pico Hydropower type segment commanded most of the market. Micro hydropower projects, which range in size from less than 1 M.W., can supply electricity to a small village or rural business in off-grid locations. The small hydropower market has been divided into micro hydropower and mini hydropower based on type. Micro hydropower systems are made up of crucial parts, including water pipes or channels for transportation, turbines, pumps, alternators, regulators, and wiring for energy distribution. Commercially available turbines and generators come as a package and must be put together, making the systems simple to maintain and replace. Consequently, more market prospects are anticipated due to inexpensive maintenance and simple replacement.

Figure 2 Hydropower Market, by Surgery, 2021 & 2030 (USD Million)

Hydropower Market, by Surgery, 2021 & 2030

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

Hydropower Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia pacific Hydropower market accounted for USD 102.10 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. With over 27.2 percent of the world's built hydroelectric Capacity, China is the world's greatest hydropower producer as of 2019. When it comes to massive hydroelectric projects, China, Brazil, the United States, Canada, India, and Japan are the world's top nations. The huge hydropower segment is predicted to be pushed over the projection period by elements such as a trend toward cleaner energy and initiatives to increase the share of renewable energy in the total power production mix in all of the main established and emerging nations in the globe. Smaller Southeast Asian nations are also making substantial advancements in the production of large-scale hydropower, independent of the large hydroelectric countries. The Mekong economy's expanding need for energy has drawn the interest of riparian nations interested in hydroelectric power. This is evidenced by the Region's considerable investment in hydroelectric facilities during the preceding few decades.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.



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

Europe's Hydropower market accounts for the second-largest market share. In 2021, Russia had the greatest market share in Europe. Over the projection period, factors like growing concerns about greenhouse gas (GHG) emissions and rising generating costs from non-renewable resources are anticipated to boost the use of small hydropower. The growing population and the rising need for effective and sustainable energy are anticipated to drive market expansion. One of the key reasons influencing the expansion of the regional industry has been the funding options for energy efficiency and conservation projects in the European Union. . Further, the Germany Hydropower market held the largest market share, and the U.K. Hydropower market was the fastest-growing market in the European Region.

Asia Pacific Hydropower market accounts for the second-fastest market share. After China and Brazil, the United States will produce the third-largest amount of hydroelectric power globally in 2021, according to the International Hydropower Association. In 2020, 102,8 GW of installed capacity was available. In 2015, 80 G.W. of installed Capacity was available. Changes in precipitation and surface runoff significantly impact the amount of hydroelectric power produced. The Columbia River basin, which provided 44% of the country's hydroelectricity in 2012, has the highest concentration of hydroelectric generating in the U.S. Large hydroelectricity building projects like the Tennessee Valley Authority, Grand Coulee Dam, and Hoover Dam has gained notoriety. Further, the US Hydropower market held the largest market share, and the Canada Hydropower market was the fastest-growing market in the Region.

Hydropower Key Market Players & Competitive Insights

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for the Hydropower market. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their presence. To grow and remain in a Hydropower market that is becoming increasingly competitive, Hydropower sector competitors must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business tactics Hydropower manufacturers use to serve customers and increase the market sector. The Hydropower sector has recently given medicine some of the most important advantages. The Hydropower market major player such as Voith GmbH (Germany), ANDRITZ HYDRO GmbH (Austria), General Electric Company (U.S.), China Three Gorges Corporation (China), Alfa Laval (Sweden), Metso Corporation (Sweden), Hydro-Québec (Canada), ABB Ltd (Switzerland), Engie (France), Tata Power Corporation (India)), and others are working on expanding the hydropower market demand by investing in research and development activities.

Axpo is a leader in energy trading, solar and wind power marketing, and Switzerland's top producer of renewable energy. In October 2020, Axpo announced that digital procedures rather than analog ones would be used for Kraftwerke Sarganserland power plant repairs, inspections, and maintenance. Switzerland's first digital hydropower plant uses a 360-degree strategy and completely integrated digital operations.

Isagen S.A. E.S.P. is a firm that produces and sells energy. The company uses thermal and hydraulic power facilities to produce and supply electricity. Isagen serves Colombian clients. Isagen SA, a Colombian energy company, was contracted to buy two 19.9 MW hydropower facilities in the Antioquia area in February 2021. With the aid of this specific project, which has cost this corporation about USD 194.8 million, renewable energy generation has grown.

Key Companies in the Hydropower market include

Voith GmbH (Germany)
General Electric Company (U.S.)
China Three Gorges Corporation (China)
Alfa Laval (Sweden)
Metso Corporation (Sweden)
Hydro-Québec (Canada)
ABB Ltd (Switzerland)
Engie (France)
Tata Power Corporation (India)

Hydropower Industry Developments

  • March 2021 Around USD 370 million was committed by Artistic Milliners in two river-based hydropower plants in Pakistan. The two hydropower units owned by the firm, Hydro I and Artistic Hydro II, will produce 521 GWh annually.

  • May 2020 Together, Voith and Landsvirkjun, Iceland's national power provider, started a pilot study on cutting-edge cavitation monitoring in hydropower facilities. At the Budarhals hydropower facility in Iceland, the technology firm implemented the creative system, an add-on feature for its OnCare Health Hydro conditioning monitoring.

  • June 2020 Bhutan and India will sign the Concession Agreement for the 600 MW Kholongchhu (Joint Venture) Hydroelectric Project. The two nations have never worked together on a hydropower project before. The 600 MW run-of-the-river plant is situated on the lower channel of the Kholongchhu River in the Trashiyangtse District in Eastern Bhutan. The concept is for a 95-meter-high concrete gravity dam to hold water and a subsurface power plant with four 150 MW turbines.

Hydropower Market Segmentation

Hydropower Capacity Outlook

  • Mini Hydropower

  • Micro And Pico Hydropower

  • Small Hydropower

  • Large Hydropower

Hydropower Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

Report Scope:

Report Attribute/Metric Details
Market Size 2021 USD 238 billion
Market Size 2022 USD 245.14 billion
Market Size 2030 USD 301.49billion
Compound Annual Growth Rate (CAGR) 3.00% (2022-2030)
Base Year 2021
Market Forecast Period 2022-2030
Historical Data 2018 & 2020
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Product Type, Operating Platforms, and Region
Geographies Covered North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered The U.S, Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Voith GmbH (Germany), ANDRITZ HYDRO GmbH (Austria),  General Electric Company (U.S.),  China Three Gorges Corporation (China), Alfa Laval (Sweden),  Metso Corporation (Sweden),  Hydro-Québec (Canada),  ABB Ltd (Switzerland),  Engie (France), Tata Power Corporation (India)  
Key Market Opportunities Initiatives worldwide to use more renewable Alternative energy sources
Key Market Dynamics High capacity use Minimal Levelized cost Safety

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Frequently Asked Questions (FAQ) :

The Hydropower market size was valued at USD 238 Billion in 2021.

The market is projected to grow at a CAGR of 3.0% from 2022-2030.

Asia Pacific had the largest share of the hydropower market

The key players in the market are Voith GmbH (Germany), ANDRITZ HYDRO GmbH (Austria),  General Electric Company (U.S.),  China Three Gorges Corporation (China), Alfa Laval (Sweden),  Metso Corporation (Sweden),  Hydro-Québec (Canada),  ABB Ltd (Switzerland),  Engie (France), Tata Power Corporation (India).

The micro and pico hydropower category dominated the market in 2021.

Renewable, Low emissions, Reliable and Safe

Hydropower plants capture the energy of falling water to generate electricity. A turbine converts the kinetic energy of falling water into mechanical energy. Then a generator converts the mechanical energy from the turbine into electrical energy.

Because hydropower plants can generate power to the grid immediately, they provide essential back-up power during major electricity outages or disruptions. In addition to a sustainable fuel source, hydropower efforts produce a number of benefits, such as flood control, irrigation, and water supply.