The global hydropower market is estimated to garner a substantial revenue by growing at a ~6% CAGR over the forecast period, i.e., 2022–2030. The growth of the market can be attributed to the increasing awareness amongst people for adoption of renewable form of energy. Hydropower is the electricity generated using water, and the abundance of water is a major factor estimated to boost the growth of the hydropower market.
According to a report by the International Environment Agency (IEA), hydropower generates more than half of the world’s low-carbon electricity, while its contribution is 55% higher than nuclear energy. In 2020, hydropower supplied 17% of global electricity, which is third‑largest after coal and natural gas. Hydropower has massive potential to fulfil the global need for energy as a primary source, if utilized efficiently, which is estimated to boost the market growth. Moreover, major market players are investing in hydro power plants, which is expected to further support the market growth. CLICK TO DOWNLOAD SAMPLE REPORT
The global hydropower market is segmented by capacity into large hydropower, small hydropower, and others, out of which, the small hydropower segment is anticipated to hold the largest share in the market during the forecast period on account of increasing installation of small hydropower plants on rivers to supply electricity in the rural areas. Moreover, small hydropower requires less capital investment, infrastructure, and resources, which is estimated to boost the growth of the segment.
On the basis of components, the market is segmented into electromechanical, electric, infrastructure, civil, and others, out of which, the civil segment is anticipated to gain largest revenue share over the forecast period, owing to the high cost involved in the structural development and management, along with the necessity of building weirs and dams as per standard quality.
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
Regionally, the global hydropower market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market in Asia Pacific region is estimated to garner largest share over the forecast period on the back of presence of multiple waterbodies favorable for setting up hydropower plants, favorable climatic conditions, and mounting demand for electricity for the rural development in nations, such as, India, Vietnam, and China. According to the International Hydropower Association, China is the world’s biggest producers of hydroelectricity, generating 1,302.00 TWh power in 2019. Moreover, growing economic development and environmental awareness amongst the informed population are also expected to boost the market growth.
The market in the Europe region is estimated to witness significant CAGR over the forecast period on the back of adoption of renewable energy in the region, along with high public awareness regarding the conservation of environment. Moreover, government initiatives to go carbon-free in countries, such as, Norway, France, The Netherlands, Germany, and others, are estimated to drive the market growth in the region.
The global hydropower market is further classified on the basis of region as follows:
Our in-depth analysis of the global hydropower market includes the following segments:
FREQUENTLY ASKED QUESTIONS
Rising demand for renewable energy and immense unused potential of hydropower are the key factors driving market growth.
The market is anticipated to attain a ~6% CAGR over the forecast period, i.e., 2022-2030.
High capital investment is the major challenge that is estimated to hamper the market growth.
The market in the Asia Pacific region will provide ample growth opportunities owing to the increasing demand for energy along with presence of large water bodies in the region.
The major players dominating the hydropower market are Siemens AG, Bharat Heavy Electricals Limited, Voith GmbH & Co. KGaA, ANDRITZ AG, ALSTOM Holdings, The Vattenfall Group, Gilbert Gilkes & Gordon Ltd. and others.
The company profiles are selected on the basis of revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by capacity, components, end-user, and by region.
The civil segment is anticipated to hold the largest market share owing to the high cost of planning, building, and maintaining the hydropower plants.
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