Hydropower Generation Market Size & Growth Analysis by 2030

Hydropower Generation Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Plant Type [Small Hydro (Less than 30 MW), Large Hydro (Greater than 30 MW), and Pumped Storage Hydro] and End User [Residential, Commercial, and Industrial]

Publication Month : Feb 2024

  • Report Code : TIPRE00020652
  • Category : Energy and Power
  • Status : Data Released
  • No. of Pages : 150
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[Research Report] The hydropower generation market size was valued at US$ 274.6 billion in 2022 and is projected to reach US$ 368.7 billion by 2030; it is expected to grow at a CAGR of 3.8% during 2022–2030.

Analyst Perspective:

The scope of the global hydropower generation market report focuses on five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). The report includes hydropower generation market forecast by plant type, end user, and regions/countries from 2022 to 2030. Hydropower is currently the world's largest source of renewable energy, but climate change is threatening energy production through droughts, shrinking glaciers, and rapid evaporation. Over 35 countries in the world rely on hydropower for at least half of their national electricity needs. In addition, as many countries seek to reduce their dependence on fossil fuels, hydropower use is increasing by 2.1% each year. The rise in demand for clean electricity, along with the carbon emission reduction targets by individual governments across the globe, is expected to fuel the hydropower generation market growth from 2022 to 2030.

Market Overview:

Hydropower or water energy is a form of renewable energy that uses water stored in dams and flowing in rivers to generate electricity at hydroelectric power plants. The falling water spins the blades of a turbine, which then drives a generator that converts the rotating turbine's mechanical energy into electrical energy. Hydropower is an essential part of electricity generation worldwide. Hydropower is one of the most widely used renewable energy sources in the world. According to the International Energy Agency (IEA), hydropower generation accounts for 17% of the total power generation in the world.

The flexibility and storage capacity of pumped storage hydroelectric power plants is significantly different from any other technology. Higher shares of variable renewable energy will transform and increase the electricity system's flexibility needs which in turn is expected to rise the importance of hydropower. With low operating costs and large storage capacities available, reservoir power plants are considered the cheapest source of power generation flexibility.

New hydroelectric power plants can be a crucial source of cost-effective and efficient energy that supplies flexible low-CO2 electricity. Before the massive cost declines of solar PV and wind, hydropower was the most competitive renewable source of electricity worldwide for decades. Compared to other renewable options and fossil fuels, the development of new large hydroelectric power plants remains attractive to many developing and emerging countries in Asia, Africa, and Latin America. There is still significant untapped hydropower potential for the provision of flexible electricity and to meet increasing demand. New pumped hydroelectric power plants offer the most cost-effective option for storing electricity, ensuring the security of electricity supply and reliable and cost-effective integration of cultivation levels of solar PV and wind. Key hydropower generation market trends include the modernization of hydropower plants, energy transition, and small hydropower plant deployments.

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Hydropower Generation Market: Strategic Insights

hydropower-generation-market
Market Size Value inUS$ 274.6 billion in 2022
Market Size Value byUS$ 368.7 billion by 2030
Growth rateCAGR of 3.8% from 2022 to 2030
Forecast Period2022-2030
Base Year2022
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Market Driver:

Growing Establishment of Hydro Power Plants

The global growth in energy demand, driven by population growth and industrialization, necessitates the expansion of energy production. Hydropower can provide a significant portion of the electricity needed to support this demand, contributing to a reliable energy supply. In addition, energy security is a fundamental factor driving the global expansion of hydropower. Nations seek diverse and reliable energy sources to reduce their dependence on fossil fuels, ensuring a stable energy supply for economic growth and national security. Hydropower provides a steady and consistent energy source, less susceptible to price fluctuations and supply disruptions compared to fossil fuels.

In North America and European countries, growth in electricity generation, especially hydropower energy, has been limited for many years. On the other hand, a few Asian countries are planning and constructing new hydropower plants to meet their increasing needs for clean electricity. China, India, Pakistan, and Nepal are engaged in the construction of hydropower plants, including small hydro, large hydro, and PSH, to ensure reliable electricity for the consumers in the region. In addition, the Chinese firm’s such as (Sinohydro Corporation, China Three Gorges Corporation, and others) role in the construction of hydropower projects in Sub-Saharan Africa, Latin America, and Southeast Asia plays an important role in the hydropower generation market. It accounts for approximately more than 50% of new hydropower projects in the above-mentioned regions by 2030.

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Segmental Analysis:

Based on plant type, the hydropower generation market is segmented into small hydro, large hydro, and pumped storage hydro plants. The Large hydro segment is expected to dominate the hydropower generation market during the forecast period. The ongoing construction of large-scale hydropower projects in regions such as Asia Pacific and Latin America is anticipated to boost the hydropower generation market growth during the forecast period. In addition, an increase in investment and government support toward the construction of hydropower plants in India is anticipated to bolster the market in the coming years. Financial support, such as grants to enable this infrastructure and flood protection and policies that allow cross-border trade. The Indian states such as Uttarakhand, Punjab, West Bengal, and others also support the expansion of hydropower. In addition, regulations apply for timely dispute resolution to address land access and permitting issues.

Regional Analysis:

According to The Insight Partners’s hydropower generation market analysis, in 2022, Asia Pacific registered the highest hydropower generation market share of 38.5% and is expected to grow at a CAGR of 3.7% during the forecast period, owing to planned and ongoing hydropower plant additions in the coming years. Moreover, Europe and South America accounted for 24.8% and 16.8% of the total hydropower generation market share in 2022. Countries in Asia Pacific are engaged in adopting key strategies toward carbon reduction goals and energy security. To meet the carbon emission reduction goals for 2050, many countries in the region are moving toward carbon-free energy generation and utilization. India is the second-largest country in the hydropower generation market in Asia Pacific, with a total installation of more than 47 GW in 2022. The rising demand for clean power generation in the country is anticipated to fuel the growth of the market in the coming years.

With the rapid growth of renewable energy in Asia Pacific, hydropower and pumped storage hydropower will play an increasingly important role in integrating variable renewable energy and ensuring the reliability of the power system. In many developing countries in the region, energy storage markets are still emerging, but there is enormous potential for development. Installed hydropower capacity is expected to continue region's growing electricity demand, explore electricity export opportunities and to maximize the benefits of a cost-effective and flexible low-carbon energy source.

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Key Player Analysis:

RusHydro, Hydro-Quebec, BC Hydro, StatKraft, NHPC, EDF SA, China Yangtze Power, A Energi, Enel SpA, Centrais Eletricas Brasileiras SA Andritz Hydro USA Inc, GE Energy, CPFL Energia S.A., Sinohydro Corporation, IHI Corporation, Alstom Hydro, China Hydroelectric Corporation, China Three Gorges Corporation, ABB Ltd, and Tata Power Corporation are among the key players profiled in the hydropower generation market report.

Recent Developments:

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the global hydropower generation market. A few recent developments by key the hydropower generation market players are listed below:

Year

News

Country

2022

The Land Bank of the Philippines signed a loan agreement with Cabanglasan Hydropower Corporation for US$ 47.2 million. This loan agreement aimed at partially financing the construction of a 15 MW small hydropower plant in the Province of Bukidnon.

Asia Pacific

2020

PJSC Masdar collaborated with IRENA to triple the renewable energy by 2030. The main objective of the project is to create a baseline for renewable energy sources such as solar, wind, hydropower, etc.

Middle East

Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Plant Type, and End User

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

Frequently Asked Questions


What are reasons behind the hydropower generation market growth?

Rise in demand for power generation from less carbon emitting sources, rise in establishment of hydro power plants, rise in awareness towards renewable energy resources are contributing to the growth of the hydropower generation market.

What are market opportunities for the hydropower generation market?

Ongoing research and innovation on advanced hydropower turbine technologies in potential countries such as Brazil, U.S., India, Japan, and China where the adoption of the above-mentioned technology is maturing at a significant rate is expected to be the key opportunity in the market.

Which region to dominate the hydropower generation market in the forecast period?

Regions such as Europe, North America and Asia-Pacific will boost the growth of the hydropower generation market during the forecast period. This growth is owing to the rise in investment on construction of hydro power plant facilities in the regions.

What is the future trend for the hydropower generation market?

Key role of hydro power in future energy transition is anticipated to stimulate the hydropower generation market growth in the coming years.

Who are the major vendors in the hydropower generation market?

Andritz Hydro USA Inc, GE Energy, CPFL Energia S.A., Sinohydro Corporation, IHI Corporation, and Alstom Hydro are the key market players operating in the global hydropower generation market.

The List of Companies - Hydropower Generation Market

  1. Andritz Hydro
  2. GE Energy
  3. CPFL Energia S.A.
  4. Sinohydro Corporation
  5. IHI Corporation
  6. Alstom Hydro
  7. China Hydroelectric Corporation
  8. China Three Gorges Corporation
  9. RusHydro
  10. EDF SA

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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