Global Hydropower Market Overview
The Global Hydropower Market Size is expected to reach USD 2.41 Billion by 2033. The Global Hydropower Market industry size accounted for USD 1.40 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 1.02% from 2023 to 2033. The Global Hydropower Market refers to the collective economic activities associated with the production, distribution, and consumption of hydropower, which is electricity generated by harnessing the energy of flowing water. This market encompasses various stakeholders, including hydropower plant developers, equipment manufacturers, service providers, investors, policymakers, and consumers. It involves the construction and operation of hydroelectric power plants, as well as the trade of hydropower-related technologies, equipment, and services on a global scale. The market dynamics of the global hydropower sector are influenced by factors such as government policies, environmental regulations, technological advancements, energy demand, and investment trends.
Global Hydropower Market Synopsis
COVID-19 Impact Analysis
The COVID-19 pandemic had various impacts on the global hydropower market. Restrictions on movement and trade disruptions caused delays in the supply of equipment and materials needed for the construction and maintenance of hydropower plants. This affected project timelines and increased costs. Lockdowns and social distancing measures led to delays in the construction of new hydropower projects as well as the refurbishment of existing facilities. Labor shortages and logistical challenges also contributed to these delays. Changes in energy demand patterns due to lockdowns, remote working arrangements, and economic slowdowns affected the demand for electricity, including hydropower. Decreased industrial activity in some regions resulted in lower electricity consumption, impacting hydropower revenues. Hydropower plants faced operational challenges due to reduced staffing levels, maintenance backlogs, and changes in water flow patterns resulting from altered precipitation and river runoff patterns during the pandemic.
Global Hydropower Market Dynamics
The major factors that have impacted the growth of Global Hydropower Market are as follows:
Drivers:
Ø Technological Advancements
Advances in hydropower technology, such as improved turbine designs, digital monitoring and control systems, and innovations in dam construction techniques, have increased the efficiency, flexibility, and environmental sustainability of hydropower projects. These technological advancements make hydropower more competitive compared to other forms of energy generation. Hydropower projects often require careful management of water resources, including river flows and reservoir levels. Growing awareness of the importance of water conservation and sustainable water management practices has led to increased interest in hydropower as a means of harnessing renewable energy while ensuring responsible stewardship of freshwater resources.
Restraint:
- Perception of High Capital Costs
Hydropower projects often involve the resettlement of communities and the loss of livelihoods for people living in affected areas. Social conflicts, cultural heritage concerns, and inadequate consultation with local communities can lead to opposition and resistance to hydropower development, resulting in project delays or cancellations. The upfront capital costs of building hydropower infrastructure, including dams, turbines, and transmission lines, can be substantial. Financing hydropower projects may be challenging, particularly for smaller developers or in regions with limited access to investment capital, due to the long payback periods and perceived investment risks associated with large-scale infrastructure projects. The availability of suitable sites for hydropower development is limited by geographic factors such as topography, hydrology, and proximity to demand centers. In densely populated or environmentally sensitive regions, finding suitable locations for new hydropower projects that minimize social and environmental impacts can be challenging.
Opportunity:
⮚     Hydropower Modernization and Upgrades
Many existing hydropower plants around the world are aging and in need of modernization and upgrades to improve efficiency, reliability, and environmental performance. Opportunities exist for investments in refurbishment projects, equipment upgrades, and the adoption of advanced technologies to optimize the operation and maintenance of existing hydropower infrastructure. Hydropower provides grid stability and reliability through its ability to ramp up or down quickly in response to changes in electricity demand or fluctuations in renewable energy generation. As the share of intermittent renewable energy sources in the energy mix grows, hydropower can play a crucial role in balancing supply and demand and ensuring the stability of electricity grids. There is increasing recognition of the interconnectedness between water and energy systems, known as the water-energy nexus. Hydropower projects can be designed to optimize water use efficiency, improve water resource management, and enhance ecosystem services while generating clean electricity. Opportunities exist for integrated planning and management approaches that maximize the co-benefits of hydropower development for water, energy, and the environment.
Global Hydropower Market Segment Overview
By Capacity
Based on Capacity, the market is segmented based on Small Hydropower, Large Hydropower and Others. The Large Hydropower segment is dominant the market. Large hydropower projects typically have installed capacities exceeding 30 megawatts (MW), with many projects having capacities in the hundreds or even thousands of megawatts. Large hydropower projects are distributed across various regions worldwide, with concentrations in countries with abundant water resources and a history of hydropower development. Large hydropower plants provide a stable and reliable source of electricity, often serving as baseload power plants that operate continuously to meet the minimum electricity demand. Their ability to generate electricity consistently makes them valuable assets for grid stability and energy security.
By Application
Based on Application, the market segment has been divided into the Residential, Commercial and Industrial. The Industrial segment is anticipated to dominant the market. Industrial operations, such as manufacturing, mining, and chemical processing, often require significant amounts of energy to power machinery, equipment, and production processes. Hydropower provides a reliable and cost-effective source of electricity to meet the energy demands of these industrial activities. Many large industrial facilities have their dedicated hydropower plants or access electricity from nearby hydropower facilities. These industrial power plants may vary in size and capacity depending on the energy requirements of the facility and the availability of water resources.
Global Hydropower Market Regional Analysis
Based on region, the global Hydropower Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Global Hydropower Market followed by the Asia-Pacific and Europe regions.
Hydropower North America Market
North America holds a dominant position in the Global Hydropower Market. The United States and Canada are major players in the global hydropower market, with significant installed capacity primarily in the form of large-scale dams and hydroelectric power plants. In recent years, there has been a renewed interest in small-scale and run-of-river hydropower projects, as well as the potential for integrating hydropower with other renewable energy sources like wind and solar to reduce greenhouse gas emissions and enhance energy security.
Hydropower Asia-Pacific Market
The Asia-Pacific region has indeed emerged as the fastest-growing market for the Global Hydropower Market industry. This region accounts for a significant share of global hydropower capacity, driven by countries like China, India, and Southeast Asian nations. Rapid economic growth, rising energy demand, and abundant water resources make hydropower an attractive option for electricity generation. China, in particular, has the world’s largest installed hydropower capacity and continues to invest in new projects, both domestically and through international collaborations like the Belt and Road Initiative.
Competitive Landscape
The global Hydropower Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.
Prominent Players:
- GE Energy
- Andritz AG
- China Three Gorges Corporation
- IHI Corporation
- The Tata Power Company
- Alstom Hydro
- Sinohydro Corporation
- ABB Ltd
- Alfa Laval
- Voith GmbH
Key Development
In October 2023, CTG’s Baihetan hydropower station has won the 2023 FIDIC Outstanding Project Award, marking the 5th time CTG has received the prestigious FIDIC award. Baihetan’s commissioning marked the completion of the world’s largest clean energy corridor, which consists of 6 major hydropower plants developed by CTG along the Yangtze River with a total installed capacity of 16GW.
In April 2023, Tata Power Co. Ltd’s distribution arm has signed a 200-MW medium-term hydro power purchase agreement with NTPC Vidyut Vyapar Nigam Ltd (NVVNL) to meet the projected peak demand.
Scope of the Report
Global Hydropower Market, by Capacity
- Small Hydropower
- Large Hydropower
- Others
Global Hydropower Market, by Application
- Residential
- Commercial
- Industrial
Global Hydropower Market, by Region
- North America
- US
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Benelux
- Nordic
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- Indonesia
- Austalia
- Malaysia
- India
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- South Africa
- Rest of Middle East & Africa
| Parameters | Indicators |
|---|---|
| Market Size | 2033: $2.41 Billion |
| CAGR | 1.02% CAGR (2023-2033) |
| Base year | 2022 |
| Forecast Period | 2023-2033 |
| Historical Data | 2021 |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Key Segmentations | Capacity, End User |
| Geographies Covered | North America, Europe, Asia-Pacific, Latin America, Middle East, Africa |
| Key Vendors | GE Energy, Andritz AG, China Three Gorges Corporation, IHI Corporation, The Tata Power Company, Alstom Hydro, Sinohydro Corporation, ABB Ltd, Alfa Laval and Voith GmbH. |
| Key Market Opportunities | • Hydropower Modernization and Upgrades • Hydropower as Grid Support |
| Key Market Drivers | • Technological Advancements • Water Resource Management |
REPORT CONTENT BRIEF:
- High-level analysis of the current and future Global Hydropower Market trends and opportunities
- Detailed analysis of current market drivers, restraining factors, and opportunities in the future
- Global Hydropower Market historical market size for the year 2021, and forecast from 2023 to 2033
- Global Hydropower Market share analysis at each product level
- Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
- Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
- To identify and understand the various factors involved in the global Global Hydropower Market affected by the pandemic
- To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
