Hydropower Market Size & Share, by Capacity {Large (Above 100 MW), Small (Under 10 MW)}; Components (Electromechanical, Electric, Infrastructure, Civil); End-user (Industrial, Utility) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 3284
  • Published Date: Mar 31, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2035

Hydropower Market size is projected to surpass USD 470 billion by the end of 2035, growing at a CAGR of 5% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of hydropower was over USD 250 billion. The growth of the market can be attributed to the increasing demand for renewable energy. As public awareness about environmental issues and greenhouse gas emissions grows, so does the demand for renewable energy sources. Hydropower is one of the most dependable and cost-effective renewable energy sources, making it an appealing option for energy providers and governments trying to lower their environmental impact. For instance, according to the U.S. E.I.A (Energy Information Administration), renewable energy accounted for about 12.4% of total energy consumed in the U.S. in 2021.

In addition to these, factors that are believed to fuel the market growth of irritable bowel syndrome drugs include growing government interest in clean energy sources. Numerous countries throughout the globe have put laws and incentives in place to encourage the use of sources of clean energy such as hydropower. Some governments, for instance, provide tax benefits or subsidies for the building of new hydropower facilities, whereas others have set renewable power objectives that include hydropower. Additionally, the growing number of awareness campaigns focusing on the benefits of clean energy is also predicted to boost the growth of the market.


Hydropower Market
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Hydropower Sector: Growth Drivers and Challenges

Growth Drivers

  • Rising Global Energy Needs –As per the expected data, the world population is expected to reach 9.8 Billion by the end of 2050, energy needs are rising globally. Hydropower is a dependable form of energy that can deliver a consistent supply of electricity even when other energy sources are disrupted. As a result, it is an appealing alternative for countries seeking to improve their energy security.
  • Rising Demand for Alternative Source of Energy– Hydropower may be utilized to preserve energy by preserving water uphill (as in dams) when energy demand is low and discharging it to create electricity when demand is high. This can assist to solve the periodic nature of other alternative power sources such as wind and solar, rendering hydropower as an essential component of power systems. For instance, hydropower systems generated over 4400 TWh of energy in 2020 globally.
  • Increasing Reliance on Clean Energy Sources –With rising global warming and focus on sustainable development by governments globally, hydropower has been a strong pillar in supporting the clean energy transition. In fact, hydropower units produce more electricity than other form of renewable energy (except nuclear) such as wind and solar combined. Furthermore, the other source of energy based on fossil fuels emits large amount of carbon dioxide, that is further expected to boost the growth of the market.  According to the International Energy Agency, coal accounted for more than 40 percent of the overall growth in the global carbon dioxide emissions in the year 2021.
  • Boost to the Economy – Hydropower projects are often major projects that require intensive capital and human effort to be completed. Such projects often attract investment from many sources, as well as provide employment to many people who help in its construction and upkeep. Hence, they provide jobs and investment opportunities to the people. According to the estimates, nearly USD 2000 to 5000 million is required to build a dam that can serve many purposes.
  • Increasing Need for Cheaper Cost of Energy: Hydropower generation rates have been falling in recent years as a result of technical advances, efficiency gains, and economies of scale. It has allowed hydropower to become an affordable source of energy. Moreover, in terms of upkeep and operations, hydropower is cheaper than other sources of electricity. Although expenses are bound to be there in any huge energy producing facility, the long-term nature of hydropower plants makes expenses bearable by reducing huge one-time expenses and spreading them over a longer spam of time. Hydropower does not get affected by changes in fuel prices and hence remains stable in terms of power generation costs. As per the International Hydrogen Association, the world’s average cost of electricity from hydrogen projects in the year 2018 accounted to only USD 0.047 per Kwh.

Challenges

  • Environmental and Social Consequences: Major hydropower projects can have considerable ecological as well as social consequences, such as community displacement, biodiversity loss, and ecosystem disturbance. These effects may be reduced by diligent project design and administration, yet they may also increase the cost and complexities of hydropower projects. Therefore, it is anticipated to restrain the growth of the global hydropower market in the upcoming years.
  • High Capital Investment
  • Geographically Limited as it Requires Large Water Bodies to Be Constructed

Hydropower Market : Key Insight

Base Year

2022

Forecast Year

2023-2035

CAGR

~5%

Base Year Market Size (2022)

~ USD 250.0 Billion

Forecast Year Market Size (2035)

~ USD 470.0 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Hydropower Segmentation

Capacity {Large (Above 100 MW), Small (Under 10 MW)}

The global hydropower market is segmented and analyzed for demand and supply by capacity into large hydropower (above 100 MW), small hydropower (under 10 MW), and others. Amongst these three segments, the large hydropower segment is expected to garner a significant share of around ~52% by the year 2035. Large hydropower projects often need major financial investment and take longer to complete than smaller projects, and they have the potential to generate massive amounts of energy and offer substantial cost savings. Small hydropower projects, on the other hand, are frequently more adaptable and may be built faster, although they may have limited capability and may not be suited for all places. For instance, most large projects are government owned, since they require a significant investment to be built, along with the proper management of communities and environments impacted by such projects. For instance, the Three Gorges Dam in China is the largest hydroelectric plant in the world, with a capacity of over 2200 MWh.

Components (Electromechanical, Electric, Infrastructure, Civil)

The global hydropower market is also segmented and analyzed for demand and supply by components into electromechanical, electric, infrastructure, civil, and others. Amongst these three segments, the infrastructure segment is expected to garner a significant share of around ~45% by the year 2035. The majority of the expense of a hydropower project is often spent on expensive construction activities such as excavation work, drilling, and dam & powerplant building. Moreover, the major costs include electromechanical gear, which includes turbines, generators, and other support equipment. Since, many of these parts and equipment are tailor-made to be case-specific, they can be quite expensive, thus they cannot be mass produced. As the size of the projects increase, the total cost of construction can go down. For very large-scale projects, the cost per kilowatt can be as low as 800-900 USD/kW and can go as high as 9000-11000 USD/kW for smaller sized projects.

Our in-depth analysis of the global market includes the following segments:

   By Capacity

  • Large Hydropower (Above 100 MW)
  • Small Hydropower (Under 10 MW)
  • Others

    By Components

  • Electromechanical
  • Electric
  • Infrastructure
  • Civil
  • Others

    By End User

  • Industrial
  • Utility
  • Others

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Hydropower Industry - Regional Synopsis

APAC Market Statistics

The market share of hydropower in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~60% by the end of 2035. The growth of the market can be attributed majorly to the presence of China, the largest producer of hydroelectricity in the world. For instance, China produces more than 850 billion kilowatt hours of energy every year. The second major player in the region is India, which produces about 120 billion kilowatt hours of energy every year. India is also aiming to bolster its share in the market in the coming years. The third major player is Pakistan, with many hydroelectric plants running in the country. The region is currently aiming to meet its sustainability as well as energy objectives, with a steady growth in population as well as rise in living standards.

North American Market Forecast

The North American hydropower market is estimated to be the second largest, registering a share of about ~20% by the end of 2035. With over 100 GW of installed capacity, the US has the biggest hydropower market in North America. The country has a lengthy history of hydropower production, with several current facilities originating from the early twentieth century. The hydropower market in the United States is dominated by large-scale plants, which account for more than 90% of installed capacity. With over 80 GW of generation capacity, Canada is another key hydropower market in North America. Moreover, Canada, such as the United States, has a long history of hydropower production and has numerous large-scale facilities. Yet, there is a large quantity of small and medium-sized hydropower in Canada, particularly in rural and off-grid regions.

Europe Market Forecast

Further, the market in Europe, amongst the market in all the other regions, is also projected to hold a major share by the end of 2035. Several of Europe's extant hydroelectric plants date back to the early twentieth century, revealing how the region has a lengthy history of hydropower development. As part of its aim to decrease greenhouse gas emissions and promote energy security, the European Union (EU) is aggressively pushing the growth of clean energy sources, including hydropower. The EU has set a target of 32% renewable energy by 2030, and hydroelectricity is likely to play a critical role in meeting this aim.

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Hydropower Market Size
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Companies Dominating the Hydropower Landscape

top-features-companies
    • GE Group
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Siemens AG
    • Bharat Heavy Electricals Limited
    • Voith GmbH & Co. KGaA
    • ANDRITZ AG
    • ALSTOM Holdings
    • The Vattenfall Group
    • Gilbert Gilkes & Gordon Ltd.
    • HYDROCHINA International Engineering Co., Ltd.
    • JSC RusHydro

In-the-news

In The News

  •  GE Group announced that they have chosen to renovate two hydropower units at Pakistan's Mangla Hydropower Project.

  • Siemens AG was chosen as the exclusive solution provider for the completely electric Woodfibre LNG project in British Columbia, Canada, near Squamish

Author Credits:  Payel Roy, Dhruv Bhatia


  • Report ID: 3284
  • Published Date: Mar 31, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Rising demand for renewable energy and increasing reliance on clean energy sources are the key factors driving market growth.

The market size of hydropower is anticipated to attain a CAGR of 5% over the forecast period, i.e., 2023-2035.

High capital investment is the major challenge that is estimated to hamper the market growth.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.

The major players in the 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 infrastructure segment is anticipated to hold the largest market share owing to the high cost of planning, building, and maintaining the hydropower plants.
Hydropower Market Report Scope
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