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Hydropower Market Size - By Capacity (Mini, Micro & Pico, Small, Large), Industry Analysis report, Regional Outlook & Forecast, 2023 – 2032

  • Report ID: GMI1602
  • Published Date: Jun 2023
  • Report Format: PDF

Hydropower Market Size

Hydropower Market size surpassed 1,385.7 GW in 2022 and is projected to grow at a CAGR of 1.7% from 2023 to 2032. There is a growing emphasis on sustainable hydropower development, focusing on minimizing environmental and social impacts. Retrofitting and modernization efforts aim to optimize power generation, improve safety features, and comply with evolving regulations, which will stimulate the deployment of new hydropower installations.

Hydropower Market

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Moreover, decentralized hydropower projects, including micro-hydropower, are being implemented to provide clean electricity to remote communities. These systems often use small-scale turbines and are designed to be environmentally friendly and socially beneficial, which is further set to bolster the industry growth globally.

Large-scale hydropower projects can have significant environmental impacts, including habitat alteration, disruption of aquatic ecosystems, and the potential for greenhouse gas emissions from the decomposition of organic matter in reservoirs. The construction of dams, reservoirs, and associated infrastructure involves substantial costs, making it financially challenging for some countries or investors. High capital costs can also lead to project financing difficulties and longer payback periods. However, international cooperation and investment in hydropower market continue to play a significant role in increasing the product deployment.

COVID-19 Impact

Many hydropower projects experienced delays in construction and commissioning due to lockdown measures, travel restrictions, and supply chain disruptions. The inability to transport equipment and mobilize personnel to project sites resulted in postponed timelines and increased project costs. The economic uncertainty caused by the pandemic led to difficulties in securing project financing. Investors and financial institutions became more cautious, leading to delays or cancellations of hydropower projects.

The volatility in financial markets and reduced investment appetite for long-term infrastructure projects added additional challenges to project financing. The pandemic and associated lockdowns affected electricity demand patterns. With restrictions on industrial and commercial activities, the overall electricity demand decreased in many regions. This decline in demand, coupled with reduced economic activity, impacted the hydropower industry revenues.

Hydropower Market Trends

Global Hydropower Market Size, By Region,

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The hydropower market is increasingly emphasizing sustainable development practices. This includes minimizing the environmental impact of hydropower projects, considering ecological factors during project planning, and implementing measures to mitigate the effects on aquatic ecosystems and local communities. Many existing hydropower facilities are undergoing modernization and upgrades to enhance efficiency, reliability, and output.

Advances in hydropower turbine technology, control systems, and automation are being implemented to optimize the performance of aging hydropower infrastructure. There is a growing interest in micro and small-scale hydropower projects, particularly in rural and remote areas. These projects provide localized power generation, promote energy independence, and contribute to rural electrification efforts. Hydropower market is being increasingly integrated with other renewable energy sources, such as wind and solar, to create hybrid power systems. This integration helps to balance the intermittency of renewable energy sources and provide a more stable and reliable power supply.

Hydropower Capacity Market Analysis

Global Hydropower Market Share, By Capacity,  

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Hydropower market from mini scale hydropower installations segment is set witness 6.1% growth rate till 2032. There is an increasing demand for decentralized energy solutions, particularly in rural and remote areas where grid access is limited. Mini-scale hydropower projects play a vital role in providing clean and reliable electricity to these communities, fostering rural development and improving energy access. Many countries have implemented supportive policies and incentives to promote mini-scale hydropower development.

These measures include feed-in tariffs, grants, tax incentives, and simplified permitting processes. Such policies help attract investments and create a favorable environment for mini-scale hydropower market. Advances in turbine technology, including small-scale and low-head turbines, have made mini-scale hydropower more economically viable and technically feasible. Improved turbine efficiency, fish-friendly designs, and modular systems have increased the range of potential sites suitable for product installations.

Asia Pacific Hydropower Market Size,

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Asia-Pacific region has a high potential for hydropower development, driven by its abundant water resources and growing energy demands. Many countries in the region are actively expanding their hydropower capacity, leading to increased installed capacity and generation. Several large-scale hydropower projects are being developed in the province. Countries such as China, India, and Vietnam have implemented ambitious plans to construct mega-dams and large-scale hydropower plants to meet their growing energy needs. These projects aim to provide a significant contribution to their energy mix and support economic development.

With increasing awareness of environmental and social impacts, there is a growing emphasis on sustainable hydropower market development in the region. Governments and project developers are adopting measures to mitigate environmental concerns, ensure proper resettlement and compensation for affected communities, and implement balanced practices in project planning and operation. In addition to large-scale projects, there is a strong focus on small-scale and mini and small-scale hydropower installations in the Asia-Pacific region. Governments and international organizations are promoting these projects to improve energy access, foster local development, and reduce reliance on fossil fuels.

Hydropower Market Share

Some of the key players operating across the hydropower market landscape are

  • Voith
  • General Electric
  • China Three Gorges Corporation
  • Alfa Laval
  • Metso
  • China Yangtze Power
  • Hydro-Québec
  • RusHydro
  • Agder Energi
  • Duke Energy
  • Georgia Power
  • Ontario Power Generation
  • Stat Kraft
  • ABB

Increasing focus on the deployment of renewables across the globe along with various technological innovations by these players will enhance the overall market outlook.

Hydropower Industry News:

  • In September 2022, Voith Hydro and Furnas have recently entered into an agreement to undertake the modernization of the Porto Colombia hydropower plant. The plant is situated on the Grande River, spanning the border between the Brazilian states of São Paulo and Minas Gerais. Originally constructed in 1970, the hydropower plant commenced operations in 1973 with an installed capacity of 320 MW. This project holds significant importance for Furnas as it represents their first major contract following privatization. The modernization efforts aim to upgrade the plant's infrastructure and enhance its overall performance.

This hydropower market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume in GW from 2019 to 2032, for the following segments:

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Market, By Capacity

  • Mini
  • Micro & Pico
  • Small
  • Large

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Russia
    • Turkey
    • Norway
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia 
  • Rest of World
    • Brazil
    • Iran 


Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

The market size of hydropower exceeded 1,385.7 GW in 2022 and is projected to register 1.7% CAGR during 2023 to 2032. Constant rretrofitting and modernization efforts which aim to optimize power generation, improve safety features, and comply with evolving regulations will stimulate the industry growth.

The hydropower industry from mini capacity segment is anticipated to observe 6.1% growth rate from 2023-2032, backed by an increasing demand for decentralized energy solutions, particularly in rural and remote areas where grid access is limited.

Asia-Pacific region has a high potential for hydropower development, driven by its abundant water resources and growing energy demands. With increasing awareness of environmental and social impacts, there is a growing emphasis on sustainable regional development.

Voith, ANDRITZ HYDRO, General Electric, China Three Gorges Corporation, Alfa Laval, Metso, China Yangtze Power, Hydro-Québec, RusHydro, Agder Energi, Duke Energy, Georgia Power, Ontario Power Generation, Stat Kraft, and ABB.

Hydropower Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 185
  • Countries covered: 33
  • Pages: 120
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