July 14, 2024

Hydropower Generation Market Driven By Increasing Demand For Renewable Energy Sources

Hydropower generation utilizes the potential energy of water and converts it into electricity, using turbines and generators. It provides clean and renewable source of energy, which is vital for various industries and residential areas. Hydropower plants offer advantages such as low operating costs and no pollution hazards. As the demand for reliable and sustainable power grows globally, hydropower is playing an increasingly important role in meeting energy needs. The global hydropower generation installs multiple turbines connected to generators providing low-carbon electricity on a massive scale.

The global hydropower Generation Market is estimated to be valued at US$ 251.99 Bn 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:
One of the major trends in the hydropower generation market is the increasing focus on small hydropower projects. Small hydropower plants typically refer to projects having a capacity below 10 MW. They are gaining popularity due to their minimal environmental impact and flexible installation at existing dams, irrigation systems or in river currents. These small plants can power remote, off-grid communities and increase energy access. Countries like China, Canada, Brazil and India are actively investing in small hydropower projects. New technologies are also making these projects more viable by reducing costs. This growing emphasis on small hydro schemes will support the expansion of the global market during the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate due to high capital requirements needed to build infrastructure for hydropower generation like dams and turbines.

Bargaining power of buyers: The bargaining power of buyers is low since hydropower is an established source of renewable energy for utilities and industrial consumers.

Bargaining power of suppliers: The bargaining power of suppliers is also low as key equipment for hydropower generation like turbines and generators have global suppliers.

Threat of new substitutes: Alternatives like solar and wind power pose a moderate threat as substitutes due to their declining costs and supportive government policies promoting renewable energy adoption.

Competitive rivalry: The hydropower generation industry has moderate competition due to dominance of large utilities and OEMs controlling majority of market share globally.

Key Takeaways

The Global Hydropower Generation Market Share is expected to witness high growth over the forecast period of 2023 to 2030. Asia Pacific region currently dominates the market owing to high investments in hydropower projects mainly in China. Countries like India are also boosting their renewable energy capacity including hydropower plants.

Regional analysis comprising Asia Pacific region accounts for over 50% of global hydropower generation led by China, India, Japan, and Indonesia increasing investments to meet rising electricity demand through sustainable sources. Europe and North America are also expanding their hydropower capacity though growth will be moderate compared to Asia Pacific.

Key players operating in the hydropower generation market are General Electric (GE) Co., Toshiba Corporation, Siemens AG, Chola Turbo Machinery International Pvt. Ltd., and Mitsubishi Hitachi Power Systems Americas Inc. These players are focusing on developing advanced technology and equipment to improve efficiency of hydropower projects worldwide.

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