Hydropower Plants Market by Component (Solutions [Electromechanical and Hydraulic Equipment, Electric Infrastructure, Civil Infrastructure], Services), Capacity, Type, and Geography - Global Forecast to 2030

The Hydropower Plants Market is projected to reach $318.3 billion by 2030, at a CAGR of 3% from 2024 to 2030. The growth of this market is driven by the increasing demand for renewable energy sources, rising government support for hydropower generation projects, and growing demand for micro hydropower plants due to the low maintenance and easy replacement. However, the high initial cost of construction may restrain the market’s growth.

The increasing utilization of the kinetic energy of the flowing water for electricity generation and small hydropower projects are expected to offer significant growth opportunities for the stakeholders in the hydropower plant market. Furthermore, international conflicts over water management and uncertainty regarding climate change's impact on local hydrological conditions are expected to challenge the growth of the hydropower plant market.

Rising Government Support For Hydropower Generation Projects to Fuel the Market Growth

Governments across various economies are putting in efforts to implement hydropower generation projects owing to the increasing demand for renewable energy generation, shift towards cleaner energy sources, and increase the share of renewable energy in the total power generation across emerging economies. According to the Department of Energy (U.S.), hydropower and pumped storage continue to play a crucial role in the fight against climate change by providing essential power, storage, and flexibility services. Hydropower provides benefits beyond electricity generation by providing flood control, irrigation support, and clean drinking water. It is affordable and also provides low-cost electricity and durability over time compared to other sources of energy. Considering all these benefits, governments across emerging economies are focusing on developing small and large hydropower generation plants by providing funding or investments for the installations. China, Brazil, the U.S., Canada, India, and Japan are the major economies in the construction of hydropower projects across the world. Government bodies are actively providing funding for installing hydropower plants, which in turn supports the growth of this market.

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Some of the recent developments in this market space are as follows:

• In October 2022, Shri Narendra Modi, the Prime Minister of India, laid the foundation stone of two hydropower projects – the 48 MW Chanju-III Hydro-electric Project and the 30 MW Deothal Chanju Hydro-electric Project. These projects generate over 270 million units of electricity annually, and Himachal Pradesh is expected to generate a revenue of around USD 1100.0 Million (Rs. 110 crores ) from these projects.
• In January 2022, the Japan International Cooperation Agency (JICA), Japan, signed a grant agreement with the Government of the Kingdom of Lesotho in Pretoria, South Africa, to provide grant aid of up to USD 12.9 Million (1.415 billion yen) for the Project for Small Hydropower Improvement. Under this project, small-hydropower generation facilities at Katse Dam will be rehabilitated based on Japanese technologies to supply stable power. This project is expected to contribute to the development of renewable energy in Lesotho and achieve the 7^th Goal of SDG (Energy).

Such developments are expected to support the growth of the hydropower plant market.

Key Findings in the Hydropower Plants Market Study:

Based on Component, the Solutions Segment is Projected to Register the Highest CAGR During the Forecast Period

The growth of this segment is driven by the surge in demand for turbine and power generator solutions for efficient power generation, increasing demand for hydropower generators to ensure enhanced performance for site conditions and customer needs, implementations of predictive maintenance solutions for hydropower plants, and deployments of plant control and protection systems.

Based on Capacity, the Small Hydropower Plants Segment is Projected to Register the Highest CAGR During the Forecast Period

The growth of this segment is driven by the growing application of small hydropower plants for rural electrification, government investments in small hydropower projects, increasing implementations of small hydropower plants in developing economies, reduction in renewable energy costs, and the decrease in infrastructure costs promote the rapid production of small hydropower plants.

Based on Type, the Pumped Storage Powerplants Segment is Projected to Register the Highest CAGR During the Forecast Period

The growth of this segment is driven by the increasing availability of pumped storage technology, which is the most developed large-scale energy storage technology, a surge in demand for multi-functional power plants, and the need for a technically proven and cost-effective form of storing energy on a large scale.

Asia-Pacific: The Fastest-growing Regional Market

Asia-Pacific is projected to register the highest CAGR during the forecast period. The rapid growth of this market is driven by investments by the key market players for generating electricity and supplying rural areas, the growing demand for reliable electricity, and a large number of small hydropower projects in emerging economies. The growing demand for reliable electricity, increasing investments in renewable and small hydropower projects in response to climate change, and the large number of small hydropower projects in China, Japan, and India are some of the other major factors supporting the growth of the hydropower plant market in Asia-Pacific. Furthermore, the cost of production of electricity from hydropower plants has been reduced, which emerges as a major growth factor for the hydropower plant market in this region.

Key Players

The report includes a competitive landscape based on an extensive assessment of the strategic developments by leading market participants in the last 3–4 years. The key players operating in the global hydropower plants market are Bharat Heavy Electricals Limited (India), Flovel Energy Private Limited (India), General Electric Company (U.S.), Natel Energy, Inc. (U.S.), Siemens Energy AG (a subsidiary of Siemens AG) (Germany), SNC-Lavalin Group Inc. (Canada), Toshiba Corporation (Japan), Voith GmbH & Co. KGaA (Germany), KOLEKTOR GROUP d.o.o. (Slovenia), Canadian Hydro Components Ltd. (Canada), Hitachi Mitsubishi Hydro Corporation (a subsidiary of Hitachi, Ltd.) (Japan), ABB Ltd. (Switzerland), China Three Gorges Corporation (China), Tata Power Company Limited (India), and IHI Corporation (Japan).

Scope of the Report:

Hydropower Plants Market, by Component                         

• Solutions
  • Electromechanical and Hydraulic Equipment
    • Turbines
      • Reaction Turbines
      • Impulse Turbines
    • Generators
    • Control and Protection Systems
    • Inlet Valves and Regulators
    • Transformers
    • Testing systems
    • Suction Nozzles
    • Condensers and Switchgears
    • Hydraulic Cylinders
    • Hydraulic, Actuators, Valves, and Pumps
    • Hydraulic and Electromechanical Drives
    • Other Electromechanical Equipment (Circuit Breakers, Electrohydraulic Governors, Propeller Pitch Systems)
  • Electric Infrastructure
  • Civil Infrastructure
    • Reservoirs
    • Artificial Dams
    • Pressure Tunnels
    • Surge Tanks
    • Valve Houses
    • Penstocks
    • Powerhouses
    • Other Civil Infrastructures (Draft Tubes and Bays)
• Services
  • Plant Assessment, Design, and Development Services
  • Extensions, Upgrades, and Retrofits Services
  • Operation and Maintenance Services

Hydropower Plants Market, by Capacity

• Pico Hydropower Plants (Up to 4.99KW)
• Micro Hydropower Plants (From 5KW to 99KW)
• Mini Hydropower Plants (From 100KW-499KW)
• Small Hydropower Plants (From 500KW to 999KW)
• Medium Hydropower Plants (From 1MW to 10MW)
• Large Hydropower Plants (Above 10MW)

Hydropower Plants Market, by Type

• Impoundment Powerplants
• Diversion Powerplants (Run-of-River)
• Pumped Storage Powerplants

Hydropower Plants Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• Latin America
• Middle East & Africa

Key questions answered in the report: