by The global Hydropower Market is estimated to be valued at US$ 201.4 Bn in 2021 and is expected to exhibit a CAGR of 5.9% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Hydropower refers to the electricity generated by utilizing the force of flowing or falling water. It is a renewable and clean source of energy that offers various advantages such as low operational and maintenance costs, minimal greenhouse gas emissions, and high reliability. The increasing demand for renewable energy sources to reduce dependency on fossil fuels and mitigate climate change is driving the growth of the hydropower market. Additionally, the need for a consistent power supply in remote areas and the government support in the form of favorable regulations and incentives further contribute to the market growth.
Market Key Trends:
One key trend observed in the hydropower market is the growing focus on small-scale hydropower projects. Small-scale hydropower plants have lower environmental impacts, as they require less land and have a smaller ecological footprint compared to large-scale projects. Moreover, these projects can be implemented in rural and remote areas, providing clean and reliable electricity to underserved communities. The trend towards small-scale hydropower is driven by the increasing emphasis on decentralized power generation and the need to promote sustainable energy solutions at a local level.
Hydropower Market: Porter’s Analysis
Threat of New Entrants: The Hydropower Market requires significant investments in infrastructure and technology, making it a high barrier for new entrants. Additionally, obtaining the necessary permits and licenses can also be challenging, further reducing the threat of new entrants.
Bargaining Power of Buyers: The bargaining power of buyers in the hydropower market is relatively low. Due to the limited availability of alternative energy sources, buyers have limited options to choose from. This allows hydropower companies to maintain stable pricing and negotiate favorable terms with their customers.
Bargaining Power of Suppliers: Suppliers in the hydropower market, such as turbine manufacturers, have a moderate bargaining power. While there are several suppliers in the market, there is a high degree of specialization required for the equipment used in hydropower generation. As a result, suppliers can exert some influence over prices and terms.
Threat of New Substitutes: The threat of new substitutes in the hydropower market is low. Hydropower is a mature and well-established renewable energy source, with limited viable substitutes. The high costs and environmental impacts associated with other renewable energy options, such as solar or wind power, make hydropower an attractive choice for governments and energy companies.
Competitive Rivalry: The hydropower market is highly competitive, with several key players vying for market share. General Electric Company, Siemens AG, Andritz AG, Voith GmbH & Co. KGaA, China Yangtze Power Co. Ltd, PJSC RusHydro, Électricité de France SA (EDF), and Iberdrola SA are some of the major players operating in the market. These companies compete based on factors such as technological advancements, project execution capabilities, and geographical presence.
Hydropower Market: Key Takeaways
The global hydropower market is expected to witness high growth, exhibiting a CAGR of 5.9% over the forecast period. This growth can be attributed to the increasing demand for clean and renewable energy sources to reduce greenhouse gas emissions. Hydropower offers a sustainable and reliable option for electricity generation, making it an attractive choice for governments and energy companies worldwide.
In terms of regional analysis, Asia-Pacific is expected to be the fastest-growing and dominating region in the hydropower market. The region has vast untapped hydropower potential, driven by countries such as China, India, and Southeast Asian nations. These countries are investing heavily in hydropower infrastructure to meet their growing energy demands and reduce reliance on fossil fuels.
Key players operating in the hydropower market include General Electric Company, Siemens AG, Andritz AG, Voith GmbH & Co. KGaA, China Yangtze Power Co. Ltd, PJSC RusHydro, Électricité de France SA (EDF), and Iberdrola SA. These companies possess significant expertise and experience in the hydropower sector, allowing them to secure major contracts and projects globally. Their strong technological capabilities, financial stability, and established market presence position them as key players in the industry.
In conclusion, the hydropower market is poised for substantial growth, driven by increasing global energy demands and the focus on renewable energy sources. With its established market presence, limited threat of substitutes, and strong regional potential, the hydropower industry offers numerous opportunities for key players to expand their operations and contribute to a more sustainable energy future.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
