by The hydropower market is estimated to be valued at US$ 201.4 Bn in 2022 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:
The hydropower market covers the generation of electricity through hydropower, which is the most widely used form of renewable energy worldwide. Hydropower involves the use of turbines that are turned by falling or flowing water to generate electric power. It provides many advantages such as being a clean, renewable source of energy that produces virtually no greenhouse gas emissions. Unlike traditional fossil fuel power plants, hydropower projects have a significantly lower carbon footprint and do not produce air or water pollution.
Market Dynamics:
The growing demand for renewable energy sources across the globe is a major driver fueling growth of the hydropower market. According to the International Renewable Energy Agency (IRENA), hydropower accounts for over 16% of the total electricity generation worldwide. Governments across countries are providing various incentives and support in the form of tax credits, renewable portfolio standards, feed-in tariffs and generation-based incentives to promote renewable energy adoption including hydropower. For instance, in the U.S., the Hydropower Regulatory Efficiency Act of 2013 aimed to streamline and improve regulatory processes required for licensing and relicensing hydropower projects. In addition, increasing investment in upgrading existing hydropower infrastructure will positively impact market growth over the forecast period. However, high initial capital costs associated with hydropower project development and stringent environmental norms can restrain the market to a certain extent.
Segment Analysis
The Hydropower Market can be segmented into large hydropower and small hydropower. Large hydropower projects refer to hydroelectric power projects that generate electricity from hydropower plants with an installed capacity of more than 30 MW. These projects are dominating the global hydropower market currently with around 85% market share as they provide bulk power and have the lowest operating costs.
PEST Analysis
Political: Governments across countries are introducing supportive policies and regulations to increase the share of hydropower in their energy mix for meeting renewable energy targets which is positively impacting the market growth.
Economic: Hydropower is a cost-effective source of energy compared to other renewable sources. The low operating costs of hydropower plants make it an economically viable option for bulk power generation.
Social: As hydropower is a renewable source of energy with no pollution, it is increasingly being accepted by local communities and societies for their power needs.
Technological: Advanced technologies such as IoT, AI, and cloud computing are being used to modernize hydropower infrastructure and operations. Developments in mini/micro hydropower turbines are also expanding the use of small hydropower.
Key Takeaways
The global hydropower market size was valued at US$ 201.4 Bn in 2021 and is expected to witness high growth, exhibiting a CAGR of 5.9% over the forecast period due to increasing investments in hydropower projects globally for mitigating climate change.
Regionally, Asia Pacific dominated the global hydropower market in 2021 with around 60% share due to vigorous hydropower infrastructure development in China and fast-growing markets such as India. Going forward, Africa is expected to be the fastest growing regional market owing to increasing hydropower capacity additions in countries such as Ethiopia and the Democratic Republic of Congo.
Key players operating in the hydropower market are 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 players are focusing on new product launches, partnerships, and construction of large hydropower projects to boost revenues and gain leading positions in the global market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemicals and materials, defense and aerospace, consumer goods, etc.
