July 14, 2024
Hydropower Market

Growing Adoption of Renewable Energy Sources to Drive the Hydropower Market Growth

The hydropower market is estimated to be valued at US$ 208.1 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:

Hydropower harnesses the energy of falling or flowing water to generate electricity and is considered one of the most widely used forms of renewable energy. It offers clean, sustainable, and cost-effective electricity. Hydropower plants generate power through turbines turned by falling or flowing water.

Market Dynamics:

Increasing deployment of hydropower plants owing to supportive government policies promoting the adoption of renewable energy sources across the globe is a key factor driving the growth of the hydropower market. Further, growing emphasis on development of sustainable and clean energy solutions to reduce dependence on conventional power generation technologies is also fueling the demand for hydropower.

Market Key Trends:

One of the key trends in the Hydropower Market is the increasing adoption of modular hydropower solutions. Modular hydropower projects are small-scale hydropower solutions that can be deployed modularly to maximize efficiency. They offer benefits such as lower upfront investments, shorter lead times, and reduced environmental impact compared to large-scale hydropower projects. With growing focus on renewable and distributed energy generation, modular hydropower is gaining traction worldwide.

SWOT Analysis

Strength: Hydropower is a mature and cost-effective renewable energy technology. It offers low operating costs and long asset lifespan.
Weakness: Large hydropower projects require huge upfront investments and can impact local ecosystems. They also have long development periods.
Opportunity: Increasing focus on replacing fossil fuels with clean energy worldwide is driving hydropower capacity additions. Growing investments in distributed hydropower present new opportunities.
Threats: Hydropower projects face risks related to unpredictable river flows due to climate change. They also face threats from public protests over social and environmental issues.

Key Takeaways

The global hydropower market size was valued at US$ 201.4 Bn in 2021 and is expected to reach US$ 321.2 Bn by 2030, expanding at a CAGR of 5.9% during the forecast period. rapid population growth and urbanization are driving the demand for sustainable and reliable energy worldwide.

Asia Pacific dominated the global market in 2021 and is expected to retain its position throughout the forecast period. This can be attributed to flourishing manufacturing sector, growing industrialization and presence of highly populated economies such as China and India in the region. China accounts for the major hydropower capacity in the Asia Pacific region.

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, √Člectricit√© de France SA (EDF), and Iberdrola SA. These players are focusing on new product launches, partnerships, and strengthening of distribution networks to remain competitive in the market. For instance, in 2022, Voith partnered with China Three Gorges Corporation to jointly promote renewable hydropower business in global markets.

*Note:

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