The hydropower or hydroelectricity generation refers to the conversion of kinetic energy of flowing water into electricity. Hydropower plants or hydropower dams utilize the gravitational force of flowing or falling water to spin turbines and generators to produce electricity. The electricity is used for various purposes including residential, commercial, and industrial applications. Hydropower projects also provide benefits such as reservoir-based recreational activities, flood control, and water supply.
The global Hydropower Market is estimated to be valued at US$ 260.21 Bn in 2023 and is expected to exhibit a CAGR of 18.% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing investment in renewable energy projects especially in emerging economies is expected to drive the hydropower market growth over the forecast period. Governments across the globe are offering various incentives and subsidies to promote renewable energy adoption and reduce dependence on conventional fossil fuels. Moreover, favorable government policies and regulations regarding green energy projects will also augment the hydropower industry expansion. However, high initial investment cost associated with the installation of hydropower plants is a major restraint. Long timeframe required for completion of hydropower projects further challenges the market growth.
Rising investment in renewable energy projects including hydropower capacity addition is one of the key drivers highlighted in the heading. Governments are promoting renewables to meet rising energy demand in a sustainable way and address climate change issues. This growing investment flows will boost the hydropower systems deployment globally.
Segment Analysis
Global Hydropower Market Demand is dominated by the large hydropower plants segment which accounts for over 60% share. Large hydropower plants refer to plants with a generation capacity of more than 50 MW. They are preferred for their high power generation capabilities to meet large scale power demands of utility grids and industries. Moreover, they have high plant load factors enabling constant power supply.
PEST Analysis
Political: Favorable government policies promoting renewable energy and setting hydropower targets have encouraged investments and development of new hydropower projects. Economic: Hydropower being a renewable source produces electricity at low marginal costs, helping reduce power costs. Social: Hydropower has low green house gas emissions and is considered more environment friendly compared to fossil fuel based power generation. Technological: Advancements in design and engineering have improved hydropower plant efficiencies. New design concepts allow effective hydropower integration into existing dams.
Key Takeaways
The global hydropower market is expected to witness high growth.
Regional analysis comprises Regional analysis the Asian Pacific region dominates the global hydropower market and is expected to maintain its leading position over the forecast period. Key countries include China, Japan and India.
Key players related content comprises Key players operating in the hydropower market are MHI Vestas, Siemens AG, General Electric, ABB, Ltd., EEW Group, Nexans, and A2SEA A/S.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it