Hydropower Market Analysis by Capacity {Large Hydropower (Above 100 MW), Small Hydropower (Under 10 MW), and Others}; by Components (Electromechanical, Electric, Infrastructure, Civil, and Others); and by End-User (Industrial, Utility, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3284 | Published Date: Mar 31, 2023
The global hydropower market size is estimated to reach ~USD 470 Billion by the end of 2035 by growing at a CAGR of ~5% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of global hydropower market was ~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.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~5% |
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Base Year Market Size (2022) |
~ USD 250.0 Billion |
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Forecast Year Market Size (2035) |
~ USD 470.0 Billion |
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Regional Scope |
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Growth Drivers
Challenges
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.
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 hydropower market includes the following segments:
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By Capacity |
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By Components |
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By End User |
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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.
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.
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.
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
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: Rising demand for renewable energy and increasing reliance on clean energy sources are the key factors driving market growth.
Ans: The market size of hydropower is anticipated to attain a CAGR of ~5% over the forecast period, i.e., 2023 – 2035.
Ans: High capital investment is the major challenge that is estimated to hamper the market growth.
Ans: 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.
Ans: 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.
Ans: 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.
Ans: The market is segmented by capacity, components, end-user, and by region.
Ans: The infrastructure 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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