Hydropower generation utilizes turbines to convert kinetic energy of flowing or falling water into mechanical energy, which is then converted into electricity. It provides a clean, renewable and reliable source of electricity. Rapid industrialization and urbanization have boosted the demand for electricity leading to increasing investments in renewable energy projects including hydropower plants across the globe.
The global hydropower generation market is estimated to be valued at US$ 251.99 billion in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing investments in renewable energy projects is one of the key trends driving the growth of the hydropower generation market. Governments of various countries are heavily investing in renewable energy projects to reduce dependence on conventional sources to meet rising energy demands in a sustainable manner. For instance, China has set an aggressive target to increase its renewable energy capacity to 1,200 GW by 2030, up from 530 GW in 2020. Likewise, India has set a target to achieve 175 GW of renewable power capacity by 2022, which includes 100 GW of solar power and 60 GW of wind power. This target also includes 10 GW of biomass power and 5 GW of small hydropower. Such rising investments in renewable energy infrastructures including hydropower plants are expected to boost the market growth over the forecast period.
SWOT Analysis
Strength: Hydropower provides a renewable source of energy and helps avoid greenhouse gas emissions. It can also provide stable base-load electricity.
Weakness: Hydropower plants require large initial investments and have long construction periods. They are also vulnerable to changes in rainfall patterns due to climate change.
Opportunity: Growing emphasis on renewable and clean energy sources provides an opportunity to expand hydropower generation. Emerging technologies allow hydropower to be combined with other renewables.
Threats: Changing environmental regulations can increase costs. Hydropower is also threatened by droughts and reduced water flows due to climate change.
Key Takeaways
The Global Hydropower Generation Market Share is expected to witness high growth over the forecast period of 2023 to 2030. Regional analysis Asia Pacific currently dominates the global market with the largest share, mainly driven by high investments in hydropower projects and expansion plans in major hydropower generating countries like China and India. The region is expected to continue its dominance during the forecast period as well.
Key players operating in the hydropower generation market are General Electric (GE) Co., Turbine Generator Maintenance Inc., Toshiba Corporation, Siemens AG, Arani power systems, Elliott Group, TURBOCAM, Doosan Å koda Power, Chola Turbo Machinery International Pvt. Ltd., and Mitsubishi Hitachi Power Systems Americas Inc. These companies are focusing on new product launches and partnerships to strengthen their market position. For instance, in 2022 GE Renewable Energy partnered with Toshiba Energy Systems & Solutions Corporation to jointly develop Floating Offshore Wind technologies.
The global hydropower generation market size for 2023 is estimated to be US$ 251.99 Bn. Rapid urbanization and rising electricity demand are expected to drive the growth of the market during the forecast period. Emerging economies in Asia and South America offer significant growth opportunities for key players in the hydropower generation market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it