by The global hydropower market is estimated to be valued at US$ 201.4 billion in 2021 and is projected to grow at a CAGR of 5.9% during the forecast period 2022-2030, according to a new report published by Coherent Market Insights.
A) Market Overview:
Hydropower is a clean and renewable source of energy that utilizes the power of water to generate electricity. It is an environmentally friendly alternative to fossil fuels and plays a crucial role in reducing greenhouse gas emissions. The hydropower market offers numerous advantages, such as low operational and maintenance costs, long lifespan of hydropower plants, and the ability to serve as a backup power source. The increasing global demand for electricity and the need to reduce reliance on fossil fuels are driving the growth of the hydropower market.
B) Market Key Trends:
One key trend in the hydropower market is the increasing focus on small-scale hydropower projects. Small-scale hydropower plants have a capacity of less than 10 MW and are gaining popularity due to their ability to provide electricity to remote areas and communities. These projects can be easily installed in rivers, streams, and canals, making them a sustainable solution for decentralized power generation. Additionally, small-scale hydropower projects contribute to local economic development and provide employment opportunities. The trend of developing small-scale hydropower projects is expected to continue in the coming years, driven by the growing demand for clean and affordable energy solutions.
Porter’s Analysis:
Threat of New Entrants: The hydropower market poses a moderate threat of new entrants. While the barriers to entry in terms of capital requirements and expertise are high, the market offers attractive long-term prospects, which may incentivize new players to enter the industry.
Bargaining Power of Buyers: The bargaining power of buyers in the hydropower market is relatively low. The demand for hydropower is driven by the need for clean and renewable energy sources, and buyers have limited alternative options. As a result, they have little power to negotiate favorable terms with suppliers.
Bargaining Power of Suppliers: The bargaining power of suppliers in the hydropower market is high. The construction and maintenance of hydroelectric power plants require specialized equipment and technologies, which are provided by a limited number of suppliers. This gives suppliers significant leverage in negotiating prices and terms with industry operators.
Threat of New Substitutes: The threat of new substitutes in the hydropower market is low. Hydropower is a well-established and widely recognized source of renewable energy, with limited alternatives that can match its scale and reliability. Therefore, the market is relatively insulated from the emergence of new substitute technologies.
Competitive Rivalry: The competitive rivalry in the hydropower market is moderate. While there are a few dominant players in the industry, such as General Electric Company, Siemens AG, and Andritz AG, there is still a degree of competition among them. Additionally, the market presents opportunities for collaboration and joint ventures, which can help mitigate fierce competition.
Key Takeaways:
The global Hydropower Market Growth is expected to witness high growth, exhibiting a CAGR of 5.9% over the forecast period of 2022-2030. The market is driven by the increasing global demand for clean and renewable energy sources, as governments and organizations aim to reduce reliance on fossil fuels and minimize carbon emissions. Hydropower offers a reliable and sustainable solution, making it a preferred choice for many countries.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the hydropower market. Rapid economic growth, population expansion, and increasing electricity demand in countries like China, India, and Southeast Asian nations are driving the growth of the market in this region. Furthermore, governments in these countries are actively supporting the development of hydropower infrastructure, providing favorable policies and incentives.
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 have established a strong presence in the market and are actively involved in the development, construction, and operation of hydroelectric power plants worldwide. With their technological expertise and financial capabilities, these key players contribute significantly to the growth and advancement of the hydropower industry.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
