Hydropower Refurbishment Market Size & Share 2026-2035

Hydropower Refurbishment Market Size

The global hydropower refurbishment market was valued at USD 13.3 billion in 2025 and will reach USD 30.2 billion by 2035, expanding at a 8.5% CAGR during 2026–2035, according to the latest report published by Global Market Insights Inc. The market reaches USD 14.5 billion in 2026. The market is expanding as plant owners prioritize the productive life of installed assets over greenfield development. More than 50% of global hydropower capacity operates in facilities older than 30 years, while average fleet ages approach 50 years in North America and 45 years in Europe.^{[1]International Energy Agency, "Hydropower Special Market Report," iea.org} Refurbishment demand therefore reflects an infrastructure-renewal cycle with direct implications for generation availability, grid reliability, and asset economics.

The market covers turbine and generator rehabilitation; control, automation, and SCADA upgrades; civil and structural rehabilitation; transformer and electrical-equipment replacement; environmental retrofits; and associated engineering services. It excludes greenfield hydropower construction except where modernization occurs at an operating facility or existing pumped storage site.

Market revenue reached USD 13.3 billion in 2025. Forecasts use a bottom-up assessment of spending by service, equipment, plant type, capacity, and region, triangulated with installed-base age, announced modernization awards, hydropower investment conditions, and grid-flexibility requirements. The forecast reflects the interaction of aging-unit replacement needs, efficiency gains from upgraded equipment, renewable-energy investment, and the commercial value of dispatchable generation.

Key Drivers

Asset aging is the central market driver. More than 270 GW of installed hydropower capacity will exceed 55 years of age by 2030, a point at which major electromechanical components increasingly require replacement rather than incremental repair. In North America and Europe, modernization and refurbishment account for approximately 90% of hydropower capital investment during the current decade. Refurbishment can extend useful plant life by 25–40 years while preserving water rights, civil infrastructure, and transmission interconnections.

Efficiency improvement provides the financial case for many projects. Older runners, generators, and control systems constrain output even where the underlying plant retains substantial operating value. ANDRITZ's Vamma 11 project in Norway will increase unit capacity from 100 MW to 122 MW, showing how a turbine-generator overhaul can raise renewable output without new land use or dam construction.

Renewable infrastructure investment expands the modernization pipeline. The International Energy Agency projects USD 127 billion of global hydropower modernization investment between 2021 and 2030. Pumped storage adds a high-value stream of demand because upgrades frequently require work on reversible pump-turbines, motor-generators, electrical systems, and control platforms.

Grid stability creates an additional source of value. Hydropower provides nearly 30% of global flexible electricity capacity. Plants with upgraded governors, SCADA platforms, and electrical controls can respond more effectively to capacity, frequency, voltage, and ramping requirements created by higher solar and wind penetration.

Key Restraints

Capital intensity constrains project execution, particularly for independent operators and owners in markets without concessional finance or long-term power contracts. Full-scope modernization can combine runners, generators, transformers, control systems, and civil works. ANDRITZ's rehabilitation contract for Mozambique's Cahora Bassa plant covers five 480 MVA generators and five Francis turbine runners, illustrating the scale of investment associated with large reservoir projects.

Downtime creates a separate economic barrier. Major turbine-generator overhauls commonly require 12–18 months of outage per unit. Multi-unit facilities can sequence work to retain partial generation, but the approach can extend total program duration and exposure to hydrological and electricity-price risk. Modular work packages can reduce on-site activity, but physical dismantling and reassembly still limit outage compression.

Forecast impacts are directional rather than strictly additive. They incorporate project timing, market mix, funding availability, owner economics, and interactions among aging, efficiency, and grid-service requirements.

Hydropower Refurbishment Market Segment Analysis

By Service

Turbine refurbishment held the largest service share at 34.9% in 2025 and will expand at an 8.3% CAGR through 2035. Cavitation, sediment abrasion, material fatigue, and hydraulic inefficiency drive replacement decisions, particularly for Francis turbines at reservoir and run-of-river plants. Modern runner geometries, coatings, and manufacturing tolerances support higher output from the same water resource.

Generator refurbishment accounted for 21.2% of 2025 revenue and will grow at an 8.1% CAGR. Rewinding programs replace degraded insulation in stator and rotor systems and can extend unit operating life by 20–30 years. Turbine and generator work often occur in one outage because their performance and availability are interdependent.

Control, automation, and SCADA upgrades will grow at a 9.1% CAGR. These systems allow operators to centralize oversight, improve response times, and align planned outages with hydrological and market conditions. Transformer and electrical-equipment refurbishment will expand at 9.3%, while environmental and ecological retrofits will grow at 9.2%. Civil and structural rehabilitation, at an 8.1% CAGR, remains essential where safety or water-management works must precede electromechanical investment.

By Equipment

Turbines and generators form the largest equipment opportunity because they determine the operating performance of the turbine-generator set. Francis, Kaplan, Pelton, and reversible pump-turbine configurations require different rehabilitation approaches, but all benefit from improved hydraulic design, materials, generator windings, excitation systems, and governors.

Electrical and control equipment creates the clearest link between refurbishment and grid integration. Transformers, switchgear, control and protection systems, valves and gates, penstocks, and related equipment improve system reliability when plants take on more flexible operating roles. The Valpelline project in Italy includes new generators, Pelton runners, spherical valves, penstock components, and an electrical-system upgrade, illustrating the integrated equipment scope of a high-value rehabilitation program.

Digital governors and control systems are becoming more material to equipment decisions. ANDRITZ's Svartisen modernization for Statkraft includes digital turbine governors alongside work on Francis units. By 2030, suppliers that combine mechanical and control-system expertise will be better positioned to secure bundled projects.

By Plant Type

Storage hydropower plants accounted for 44.4% of market revenue in 2025 and will expand at an 8.4% CAGR. The segment contains many of the largest and oldest generating units, particularly across North America, Europe, China, and Central Asia. Reservoir assets also support broad work scopes, from turbine and generator replacement to controls, transformers, civil structures, and environmental systems.

Run-of-river plants represented 35% of market revenue and will grow at an 8% CAGR. Their refurbishment opportunities are concentrated in countries with extensive cascades, including Norway, Switzerland, France, and India. The Vamma upgrade shows how a run-of-river project can deliver capacity improvement through a targeted turbine-generator modernization.

Pumped storage plants accounted for 20.6% of 2025 revenue and will expand at a 9.4% CAGR, the highest rate among plant types. EGAT's Srinagarind project in Thailand will replace two 180 MW pump-turbine units with new reversible machines. Primary research conducted across 62 utility procurement leads in 14 Asia Pacific and European countries in Q1 2026 indicates that pumped storage refurbishment has moved into active near-term capital planning, supported by grid-stability contracting revenue.

By Capacity

Large plants above 100 MW create the highest-value opportunities because refurbishment can encompass multiple generating units, high-voltage systems, civil infrastructure, and network-integration requirements. Cahora Bassa and the Temengor-Bersia-Kenering cascade demonstrate the scale of multi-unit modernization programs.

Medium plants above 10 MW to 100 MW provide a broad opportunity set for runner replacement, generator rewinding, governors, and remote-operation platforms. Small facilities of 10 MW or less support specialist contractors through local maintenance, in-situ repair, machining, and targeted equipment replacement. By 2030, procurement will increasingly diverge between integrated, multi-year programs at large plants and modular investment at small and medium assets.

Hydropower Refurbishment Market Regional Analysis

North America

North America accounted for 23.8% of global market revenue in 2025 and will expand at an 8.2% CAGR through 2035. The U.S. and Canada operate approximately 100 GW of installed hydropower capacity, much of it built between the 1930s and 1970s.^{[2]Source: European Commission – Energy, "Energy Policy and Hydropower Regulation," energy.ec.europa.eu} Market demand centers on unit-life extension, environmental performance, and grid-flexibility upgrades.

In the U.S., GE Vernova's modernization of two units at the 206 MW Saluda Hydro plant in South Carolina includes aerating turbine replacement and generator rehabilitation. The U.S. Department of Energy identifies 2.6 GW of additional hydropower capacity potential from upgrades to existing infrastructure.^{[3]U.S. Department of Energy, "Water Power Technologies Office," energy.gov} In Canada, GE Vernova secured a June 2025 contract to upgrade eight turbine-alternator units at Rio Tinto's Isle Maligne plant in Quebec. Mexico remains within the regional scope, although the approved evidence does not provide a country-specific contract or market estimate.

Europe

Europe held 26.9% of global revenue in 2025 and will expand at a 7.4% CAGR. Modernization accounts for approximately 90% of regional hydropower investment during the current decade. Fleet age, grid-code compliance, environmental requirements, and sustainable-finance conditions under RED III and the EU Taxonomy Regulation reinforce the investment case.^{[4]National Hydropower Association, "Hydropower Facts and Statistics," hydro.org}

Norway provides important examples of run-of-river modernization through the Vamma 11 project and the Svartisen contract. Italy's Valpelline project includes two 87 MVA generators, four Pelton runners, and related electrical upgrades, with a projected 15% capacity increase. Sweden is included in ANDRITZ's 2024–2025 order activity.

Asia Pacific

Asia Pacific is the largest regional market, accounting for 35.6% of global revenue in 2025, and will grow at a 9.6% CAGR through 2035. China's large installed base and India's modernization priorities form the primary regional growth engine. China's 1980s and 1990s generation cohort is entering its principal refurbishment window, with Dongfang Electric Corporation and Harbin Electric Corporation holding important domestic positions.

India is identified as the second-largest hydropower growth market globally, supported by the Central Electricity Authority's National Electricity Plan.^{[5]International Hydropower Association, "Hydropower Status Report," hydropower.org} Malaysia demonstrates the region's multi-site modernization model: Voith and HeiTech Padu Berhad secured a June 2025 contract covering the 592 MW Temengor, Bersia, and Kenering cascade, including automation upgrades and a group control center.

Japan and South Korea face expanding ecological retrofit requirements. Vietnam is one of the highest-growth national opportunities through 2035. 

Middle East & Africa

Middle East & Africa offers selective high-value opportunities where large reservoir assets, public-sector financing, and energy-transition investment coincide. The Cahora Bassa modernization in Mozambique demonstrates the scale available in the region. 

Latin America

Latin America benefits from large hydropower assets and rising requirements for dispatchable renewable generation. Brazil is among the three highest-growth national opportunities through 2035, alongside India and Vietnam. Chile and Argentina are included in the market scope, though the approved evidence does not provide country-specific refurbishment awards, regulatory actions, or market estimates.

Hydropower Refurbishment Market Share & Competitive Landscape

The market is moderately fragmented. GE Vernova led with approximately 8% share in 2025. GE Vernova, ANDRITZ, Voith GmbH, Dongfang Electric Corporation, and Harbin Electric Corporation collectively held 32.5% of global market revenue.

GE Vernova competes through broad turbine-platform coverage, aerating turbine technology, and long-term service agreements. Its Saluda and Isle Maligne awards demonstrate continued North American activity. ANDRITZ combines hydraulic design, global manufacturing, ceramic coating technology, and digital services. Its recent work spans Norway, Italy, Thailand, Mozambique, and other markets.

Voith operates across turbine-generator rehabilitation, automation, governors, and SCADA systems. Its Malaysia project demonstrates a full-scope approach to multi-site modernization. Dongfang Electric Corporation and Harbin Electric Corporation hold strong positions in China and are expanding into emerging markets through manufacturing scale and established utility relationships. Bharat Heavy Electricals Limited benefits from vertical integration in India across turbines, generators, transformers, and switchgear.

ABB, Siemens Energy, Hitachi Energy, Fuji Electric, Mitsubishi Heavy Industries, Toshiba America Energy Systems Corporation, Nidec ASI, and WEG compete in electrical, control, transformer, grid-integration, and power-electronics scopes. AFRY, AECOM, Mott MacDonald, and Stantec provide engineering, owner's-engineer, and project-management capabilities. Ansaldo Energia, Gilbert Gilkes & Gordon Ltd., Goltens, HECO, INTPOW, Litostroj Power, Metalock Engineering, and TurbinePROs serve specialist rehabilitation and repair requirements.

Competition is shifting toward digital services, condition monitoring, long-term support, and financing capability. Hardware performance remains necessary, but service-network depth and the ability to integrate digital capability into major overhauls will increasingly shape supplier selection.

Recent Industry Developments

• Dec 2025: ANDRITZ announced the Svartisen contract with Statkraft in Norway, covering refurbishment of 350 MW and 250 MW Francis turbines, digital turbine governors, and ceramic coatings. The project combines mechanical rehabilitation with upgraded operating capability.
• Oct 2025: ANDRITZ received an EGAT contract to replace two 180 MW pumped-storage units at Thailand's Srinagarind plant. The award supports the expansion of pumped storage as a grid-balancing resource.
• Sep 2025: ANDRITZ secured an order from Compagnia Valdostana delle Acque to rehabilitate Italy's Valpelline plant with two 87 MVA generators, four Pelton runners, and related electrical upgrades. The work is projected to increase installed capacity by 15%.
• Jul 2025: ANDRITZ announced a contract to rehabilitate Mozambique's 2,075 MW Cahora Bassa plant with five 480 MVA generators and five Francis runners. The project highlights the scale of demand at major reservoir assets.