As per MRFR analysis, the US Hydropower Market Size was estimated at 32.45 (USD Billion) in 2023. The US Hydropower Market Industry is expected to grow from 33.83(USD Billion) in 2024 to 50 (USD Billion) by 2035. The US Hydropower Market CAGR (growth rate) is expected to be around 3.615% during the forecast period (2025 - 2035).
Key US Hydropower Market Trends Highlighted
The US hydropower market is experiencing significant trends driven by various factors. A key market driver is the increasing focus on renewable energy sources as the nation aims to transition away from fossil fuels. Hydropower is recognized for its ability to provide a stable and reliable source of energy, contributing to energy security while supporting efforts to combat climate change. Additionally, state and federal policies are increasingly promoting the enhancement and modernization of existing hydropower installations, with incentives for efficiency upgrades and environmental improvements. Opportunities are emerging in the realm of small-scale and run-of-river hydropower projects.These types of systems have lower environmental impacts compared to traditional large dams and can appeal to communities seeking local energy solutions. This shift toward smaller systems provides a route for enhancing regional energy independence and harnessing local water resources.
Furthermore, advancements in technology present new possibilities for hydrokinetic energy extraction, tapping into the potential of flowing water without requiring large-scale dams. In recent times, public awareness regarding sustainable energy solutions has grown significantly. There is a rising demand for clean energy sources among consumers and businesses alike, pushing utilities to consider hydropower as part of their renewable portfolios.Additionally, climate resilience has become an important topic, with hydropower viewed as a flexible resource that can adapt to varying grid conditions while providing backup during peak demand. The ongoing trend of environmental regulations is encouraging hydropower developers to invest in eco-friendly practices, ensuring projects meet biodiversity and ecological standards. Overall, the convergence of these elements creates a dynamic landscape for the US hydropower market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
US Hydropower Market Drivers
Government Support and Policy Incentives
The United States government has shown a strong commitment to renewable energy through various policies and financial incentives aimed at promoting hydropower. Initiatives such as the Hydropower Regulatory Efficiency Act of 2013 streamline the licensing process for small hydropower projects, encouraging investments in the sector. Additionally, according to the Energy Information Administration (EIA), hydropower accounted for approximately 31% of renewable electricity generation in 2020, emphasizing its critical role in the national energy grid.The increased focus on clean technologies by the Biden Administration, particularly in achieving a 100% clean electricity standard by 2035, aims to boost hydropower by further integrating it into the energy mix. This proactive stance from the government is expected to enhance the growth of the US Hydropower Market Industry significantly.
Rising Demand for Renewable Energy
The increasing public and environmental awareness around climate change has driven the demand for renewable energy sources, with hydropower being one of the most viable options. The U.S. has set ambitious goals to reduce greenhouse gas emissions, which is reflected in the commitment to reach net-zero emissions by 2050 as outlined by the Environmental Protection Agency (EPA). The hydropower generation capacity in the U.S. is projected to expand significantly to meet this demand.According to the National Hydropower Association (NHA), enhancing existing hydropower facilities can result in an estimated additional 20,000 MW of capacity without new dams, facilitating the transition to cleaner energy sources and boosting the US Hydropower Market Industry.
Technological Advancements
Ongoing innovation and technological advancements in hydropower technology are expected to contribute significantly to the growth of the US Hydropower Market Industry. The advancement in turbine designs, such as the development of smaller and more efficient turbines for low-head hydropower sites, has opened up new opportunities for harnessing energy. For instance, the U.S. Department of Energy's (DOE) Water Power Technologies Office is investing in research projects that aim to increase the efficiency of hydropower plants by over 10% by 2030.This technological innovation not only improves the overall efficiency and output of existing facilities but also encourages the construction of new ones, ultimately driving market growth.
Climate Resilience and Water Management
Hydropower plants play a vital role in water management and climate resilience strategies in the United States. The U.S. Army Corps of Engineers, which manages many hydropower projects, emphasizes the dual role of hydropower in generating electricity while providing critical flood control and irrigation services. As climate change impacts weather patterns and water availability, the ability of hydropower systems to adapt to changing conditions, such as increased storm frequency and droughts, positions them as vital infrastructure investments.Enhanced water management systems through hydropower can support agriculture and city water supply needs, driving further investments into the US Hydropower Market Industry for sustainable growth.
US Hydropower Market Segment Insights:
Hydropower Market Capacity Insights
The Capacity segment of the US Hydropower Market serves as a crucial aspect of renewable energy production, reflecting the potential output from various sizes of hydropower projects. As the nation moves towards more sustainable energy practices, understanding the different classifications within hydropower capacity offers significant insights into the overall market structure. The market is divided into several categories including Mini Hydropower, Micro and Pico Hydropower, Small Hydropower, and Large and Medium Hydropower. Mini Hydropower systems play an essential role, often utilizing a lower head or flow in comparison to larger plants, and are popular for their lower environmental impact.Micro and Pico Hydropower, while often generating less energy, caters to off-grid applications, making them vital in remote communities or for individual energy needs, thus facilitating localized energy solutions.
Small Hydropower systems contribute effectively to generating clean energy while utilizing existing water channels, thereby minimizing the need for new dam constructions and the resultant ecological disruption. Meanwhile, Large and Medium Hydropower facilities dominate a significant portion of the Hydropower Market capacity, benefiting from economies of scale and producing a substantial share of the nation's hydropower output.The growth of the US Hydropower Market is fueled by increasing demand for renewable energy sources, with the government actively supporting hydropower initiatives as a part of broader energy policies aimed at cutting greenhouse gas emissions. Despite their advantages, these projects face challenges including regulatory hurdles and environmental concerns, which can affect their development timelines. Overall, the US Hydropower Market segmentation around Capacity reflects a diverse landscape that is evolving to meet the energy demands while addressing environmental stewardship and sustainability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Hydropower Market Component Insights
The Component segment of the US Hydropower Market plays a crucial role in the overall delivery of hydropower energy, which is a key renewable resource for the country. This segment encompasses vital categories such as Electromechanical Equipment, Electric and Power Infrastructure, Civil Construction, and Others, each contributing uniquely to the efficiency and sustainability of hydropower systems. Electromechanical Equipment is significant as it includes turbines and generators essential for converting kinetic energy into electrical energy, making it a focal point of innovation and improvement.Meanwhile, Electric and Power Infrastructure ensures reliable electricity distribution, vital for meeting increasing energy demands across the US, which faces challenges to upgrade and maintain aging grid systems. Civil Construction is equally important as it involves the design and construction of dams and facilities that support hydropower generation. The landscape of opportunities is further shaped by advancements in technology that enhance operational efficiencies and reduce environmental impacts. With a continued focus on clean energy generation, the US Hydropower Market industry is poised to leverage these components for sustainable growth and resilience in the energy landscape.The data suggests that these areas of focus will accommodate the growing trend towards renewable resources, making hydropower a cornerstone in the US energy portfolio.
Hydropower Market End User Insights
The US Hydropower Market is significantly driven by its End User segment, encompassing Industrial, Utility, and Other applications. Hydropower plays a crucial role in providing renewable energy, with utilities being the largest customers, leveraging this clean energy to power residential and commercial sectors. The Industrial segment is also noteworthy, as many industries are seeking sustainable solutions to reduce carbon footprints and enhance energy efficiency, which hydropower uniquely offers. Additionally, Other applications, including recreational and agricultural uses, underscore the versatility of hydropower in serving diverse energy needs.With the increasing focus on lowering emissions and transitioning to renewable sources, the importance of these End Users is projected to grow. Overall, the US Hydropower Market demonstrates a robust potential to expand and innovate, catering to various consumer needs while reinforcing energy security for the nation. Market trends indicate a shift towards integrating advanced technologies in hydropower operations, further optimizing efficiency across all End User categories. The adoption of these technologies creates numerous opportunities, enhancing the US's commitment to renewable energy sources and leading to a more sustainable future.
US Hydropower Market Key Players and Competitive Insights:
The US Hydropower Market has witnessed significant developments and competitive dynamics, characterized by an evolving landscape of renewable energy sources. As one of the largest producers of hydropower in the world, the United States relies heavily on this energy source to meet its electricity demands while addressing environmental concerns. Competition in the market is shaped by various factors, including regulatory frameworks, technological advancements, and the growing emphasis on sustainability. The push for cleaner energy solutions has led many companies to enhance their hydropower capabilities, creating an environment where innovation and operational efficiency are key drivers of success. Ongoing investments and collaborations in hydropower infrastructure reflect a strategic direction towards maximizing energy generation while minimizing ecological impacts, positioning the US as a leader in renewable energy adoption.HydroQuébec has established a notable presence within the US Hydropower Market, leveraging its extensive expertise in hydroelectric power generation. Recognized for its commitment to sustainability and operational excellence, HydroQuébec has developed projects that not only supply renewable energy but also ensure reliability and efficiency in the grid.
The company’s strengths lie in its robust infrastructure and technological advancements, which enable it to harness hydroelectric potential effectively. Moreover, HydroQuébec engages in strategic partnerships and collaborations, enhancing its footprint in the US and reinforcing its dedication to environmentally responsible energy solutions. This approach effectively complements local and regional energy needs while contributing to the overarching goal of a more sustainable energy landscape.Avangrid, a prominent player in the US Hydropower Market, focuses on the development and management of electrical infrastructure that emphasizes renewable energy generation.
The company offers a range of services that include the generation and distribution of energy, with a significant emphasis on hydropower conversion and optimization. Avangrid is known for its strengths in creating strategically located hydropower plants that capitalize on existing water resources while adhering to regulatory requirements. The company's commitment to sustainability and innovation has led to various mergers and acquisitions aimed at expanding its hydropower capabilities and market presence. By integrating advanced technologies into its operations and remaining agile in a competitive market, Avangrid is well-positioned to compete while ensuring that its initiatives align with broader environmental goals in the US energy sector.
Key Companies in the US Hydropower Market Include:
HydroQuébec
Avangrid
Duke Energy
Xcel Energy
Rochester Gas and Electric
Pacific Gas and Electric Company
Consolidated Edison Inc
Alabama Power
Los Angeles Department of Water and Power
NextEra Energy
Seattle City Light
Puget Sound Energy
Brookfield Renewable Partners
Tennessee Valley Authority
US Hydropower Market Industry Developments
Recent developments in the US Hydropower Market indicate a growing focus on renewable energy and sustainability as environmental regulations tighten and demand for cleaner energy sources rises. Notably, in September 2023, Duke Energy announced an investment strategy aimed at enhancing its renewable energy portfolio, including significant hydropower initiatives. Meanwhile, Avangrid emphasized its commitment to integrating innovative technologies to improve efficiency in its hydropower operations. On the acquisition front, Brookfield Renewable Partners completed its acquisition of a portfolio of hydropower assets from a regional developer, further strengthening its position in the US renewables market, a development reported in August 2023. Market valuations for major players such as NextEra Energy and Xcel Energy have increased significantly due to their aggressive investment plans in the hydropower sector, which are expected to yield substantial returns given the growing emphasis on green energy. Additionally, the Tennessee Valley Authority has been actively working to upgrade its existing hydropower facilities to meet increased energy demands, reflecting a broader trend of modernization within the industry. These developments illustrate the dynamic nature of the US Hydropower Market as stakeholders navigate the challenges and opportunities presented by the transition to a clean energy future.
US Hydropower Market Segmentation Insights
Hydropower Market Capacity Outlook
Mini Hydropower
Micro & Pico Hydropower
Small Hydropower
Large & Medium Hydropower
Hydropower Market Component Outlook
Electromechanical Equipment
Electric & Power Infrastructure
Civil Construction
Others
Hydropower Market End User Outlook
Industrial
Utility
Others
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 32.45(USD Billion) |
| MARKET SIZE 2024 | 33.83(USD Billion) |
| MARKET SIZE 2035 | 50.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.615% (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 | HydroQuébec, Avangrid, Duke Energy, Xcel Energy, Rochester Gas and Electric, Pacific Gas and Electric Company, Consolidated Edison Inc, Alabama Power, Los Angeles Department of Water and Power, NextEra Energy, Seattle City Light, Puget Sound Energy, Brookfield Renewable Partners, Tennessee Valley Authority |
| SEGMENTS COVERED | Capacity, Component, End User |
| KEY MARKET OPPORTUNITIES | Infrastructure upgrades and modernization, Expansion of micro-hydropower systems, Integration with renewable energy sources, Innovative turbine technologies development, Federal and state funding incentives |
| KEY MARKET DYNAMICS | Renewable energy policies, Investment in infrastructure, Environmental regulations, Climate change impact, Technological advancements |
| COUNTRIES COVERED | US |
Frequently Asked Questions (FAQ) :
The US Hydropower Turbine Market is expected to be valued at 317.5 million USD in 2024.
By 2035, the market is projected to reach a value of 417.3 million USD.
The expected compound annual growth rate for the market between 2025 and 2035 is 2.516%.
The Impulse type is anticipated to dominate, valued at 120.0 million USD in 2035.
Reactive turbines are valued at 80.0 million USD in the year 2024.
Key players include HydroQuébec, KL Energy, Statkraft, Voith Hydro, and Toshiba among others.
The Gravity type is projected to contribute 90.0 million USD to the market by 2035.
Emerging trends such as technological advancements and sustainability initiatives present growth opportunities.
Regulatory challenges and competition from alternative energy sources may impact market growth.
The 'Others' category is expected to be valued at 107.3 million USD in 2035.
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