Hydropower aka hydroelectric power is one of the most reliable and affordable renewable energy sources which utilizes the power of flowing water to generate electricity. Hydropower plants capture the kinetic energy of flowing or falling water and convert it into electric power. The growing awareness about environmental issues caused by fossil fuels and global warming has boosted the adoption of renewable energy power plants including hydropower across many countries.
The global Hydropower Market is estimated to be valued at US$ 225.87 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The adoption of renewable energy power plants has been propelling the hydropower market significantly. Many countries are investing heavily in hydropower projects to meet their renewable energy generation targets and transition away from fossil fuels to reduce carbon emissions. For instance, China leads the world in hydropower capacity addition and has set a target of achieving ~1,000GW of non-fossil fuel energy capacity by 2030 including significant expansion of hydropower generation. Growing focus on developing sustainable and clean energy infrastructure is expected to further drive the hydropower market during the forecast period.
Strength: Hydropower is a renewable and reliable source of energy. It produces zero direct greenhouse gas emissions.
Weakness: Hydropower plants require large initial investments and have long construction periods. They are also dependent on water availability.
Opportunity: Increasing demand for clean and sustainable energy sources is driving the growth of hydropower capacity globally. Advances in technologies are making small-scale hydropower more viable.
Threats: Extreme weather events due to climate change can reduce the productive capacity of hydropower stations. Delays in obtaining regulatory approvals for new projects are a challenge.
The Global Hydropower Market Size is expected to witness high growth. The global Hydropower Market is estimated to be valued at US$ 225.87 Bn in 2023 and is expected to exhibit a CAGR of 18% over the forecast period 2023 to 2030.
Regional analysis: North America dominates current hydropower generation and will remain the largest market during the forecast period driven by capacity additions in the US. The Asia Pacific region is expected to grow at the fastest pace on account of substantial planned investments in China, India, Vietnam, and Cambodia.
Key players operating in the hydropower market are MHI Vestas, Siemens AG, General Electric, ABB, Ltd., EEW Group, Nexans, and A2SEA A/S. Hydropower contributes to climate change mitigation by displacing fossil fuel-based electricity generation. Leading players are expanding their offerings and focusing on innovative technologies to improve operational efficiency of hydropower plants.
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it