February 25, 2024
Hydropower Market

Hydropower Market Set for Rapid Growth

The global hydropower market is estimated to be valued at US$ 213.1 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:

The hydropower market involves generating electricity from hydropower or hydroelectricity, which uses the energy from flowing or falling water to generate electricity. Hydropower electricity generation provides clean, renewable, and affordable energy to power homes and businesses. It has benefits over fossil fuel electricity generation as it emits no greenhouse gases and air pollutants. Hydropower generation is also flexible and can respond quickly to changing electricity demands.

Market Key Trends:

One of the key trends witnessed in the global hydropower market is increasing investment in pumped storage hydropower projects globally. Pumped storage hydropower produces electricity to balance the variability of renewable energy sources like solar and wind. It involves pumping water from a lower reservoir to an upper reservoir during off-peak hours when electricity is inexpensive and releasing the stored water to lower reservoir through turbines to generate electricity during peak hours when power demand is high. With growing share of variable renewable energy, pumped storage hydropower plays a crucial role in stabilizing electricity grids. Various countries are undertaking pumped storage project development to support renewable energy integration.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in Hydropower Market is low due to high initial capital requirements and long break-even periods involved in setting up new hydropower plants.

Bargaining power of buyers: The bargaining power of buyers is high in hydropower market as there are numerous global players operating in the market providing buyers with alternate options.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as switching costs are low for suppliers and suppliers have limited differentiating power.

Threat of new substitutes: Threat of substitutes such as solar, wind and natural gas is moderate as all energy sources are complementary to each other in fulfilling various needs.

Competitive rivalry: High as the players compete on the basis of innovation, quality, and pricing.

Key Takeaways

The global hydropower market is expected to witness high growth, exhibiting CAGR of 5.9% over the forecast period, due to increasing focus towards renewable sources of energy and favorable government policies promoting hydropower generation.

Regionally, Asia Pacific dominates the global hydropower market and is expected to continue its dominance during the forecast period. Countries such as China, India, and Japan are witnessing considerable hydropower generation capacity additions. In China, hydropower plants generate around 30% of country’s total electricity.

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, Électricité de France SA (EDF), and Iberdrola SA. These key players are focusing on new product launches and strategic partnerships to strengthen their foothold in the market. For instance, in 2020, Siemens Energy partnered with Hydro-Québec to create microgrid solutions for isolated communities.


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