The global hydropower generation market is witnessing significant growth in recent times attributed to increasing demand for clean and renewable sources of energy to generate electricity. Hydropower, also known as hydroelectric power, utilizes the power of flowing or falling water to generate electricity and is considered one of the most efficient and cost-effective renewable sources of energy. Hydropower plants capture the kinetic energy of moving water or falling water using turbines that drive electric generators to produce electricity. Hydropower provides clean energy without carbon emissions and also helps regulate water resources, offering advantages over conventional power sources. The market consists of various hydroelectric power plant equipment and components required for the generation, transmission, distribution, and monitoring of hydropower such as turbines, generators, sensors, controls, and cables. Countries around the world are showing high interest in hydropower projects to reduce carbon footprint from electricity generation.

The Global Hydropower Generation Market is estimated to be valued at US$ 290.3 Mn in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the hydropower generation market are Adeka Corporation, BASF SE, Chitec Technology Co. Ltd, Clariant, Evonik Industries AG, PMC Group, Polyvel Inc., SABO SpA, SK Capital Partners, Solvay, and Songwon. The growing demand for renewable sources of energy across both developed and developing nations is driving the hydropower generation market. Countries worldwide are increasingly investing in large as well as small-scale hydropower projects to provide clean and affordable electricity through sustainable means. Furthermore, many companies engaged in the hydropower business are exploring new market opportunities and expanding their geographic footprint to capitalize on the prospects of global hydropower capacity additions over the coming years.

Market key Trends

One of the key trends currently being witnessed in the Hydropower Generation Market Demand is the increased focus on small hydroelectric power projects. Globally, small hydropower plants with a capacity of less than 10 MW account for over 50% of total hydropower capacity. Developing countries especially in Asia Pacific and Latin America regions are leveraging small hydro to provide reliable off-grid power supply to remote areas. Furthermore, such small hydropower projects help minimize environmental and social impacts associated with large dams. The market is also witnessing technological advancements in turbine designs that improve plant efficiency across a wide range of flows. New hydropower equipment featuring advanced digital monitoring and controls also aid in optimized power production.

Porter’s Analysis

Bargaining power of buyers: Large utilities and independent power producers have significant bargaining power

Bargaining power of suppliers: Specialized components like turbines require significant investment limiting the threat from new suppliers.

Threat of new substitutes: Other renewable energy sources like solar and wind power gaining popularity posing a threat.

Competitive rivalry: Intense competition exists between existing players to gain new project contracts and expand capacity.

Geographical Regions
Asia Pacific accounts for the largest share currently in terms of hydropower generation market value led by China, India and Japan. Abundant freshwater resources and growing electricity demand fuels expansion in the region.

Africa is expected to be the fastest growing regional market during the forecast period due to increasing investments to develop untapped hydropower potential especially in countries like Ethiopia, DR Congo and Tanzania to meet rising energy

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it