June 22, 2024
Pumped Hydro Storage Market

Pumped Hydro Storage Market Advances with Energy Storage Optimization

The pumped hydro storage market involves converting energy from renewable sources like solar and wind into potential energy by pumping water to a higher reservoir and converting it back to electricity by passing it through turbines during peak demand periods. Pumped hydro storage offers large-scale energy storage capabilities with power outputs ranging from a few megawatts to multiple gigawatts. The technology helps balance energy supply and demand by absorbing excess electricity generated during off-peak hours and feeding it back to the grid whenever needed.

Global pumped hydro storage market is estimated to be valued at US$ 401.19 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period of 2024 to 2031.

Key Takeaways

Key players operating in the pumped hydro storage market are AbbVie Inc. (Allergan), Terumo Corporation, GlaxoSmithKline PLC, Novartis AG, Medtronic PLC, Abbott Laboratories, Boston Scientific Corp., W L Gore and Associates Inc., Stryker Corporation, and Becton, Dickinson and Company. The increasing demand for reliable power availability along with the need to efficiently integrate sustainable energy resources is driving market growth. Pumped hydro storage players are expanding globally as many countries focus on transitioning to cleaner sources of energy production.

Market Key Trends

One key trend gaining traction in the Pumped Hydro Storage Market Size hydro storage market is the integration of artificial intelligence and advanced analytics. Technologies like machine learning and predictive algorithms help optimize system performance, reduce electricity wastage, and improve maintenance practices. AI-powered digital twins of pumped hydro storage plants enable remote monitoring and “what-if” scenario modeling to enhance efficiencies. This drives down costs and boosts returns on investment for utilities and independent power producers.

Porter’s Analysis

Threat of new entrants: High capital costs for infrastructure and the time spent developing projects create significant barriers to entry.

Bargaining power of buyers: Most Pumped Hydro Storage Market Size facilities are designed to provide wholesale power to the grid, limiting the ability of individual buyers to influence prices.

Bargaining power of suppliers: The primary input for pumped hydro projects is water, which has no substitute and is available to all projects in a given geographic area, limiting supplier bargaining power.

Threat of new substitutes: Technologies like battery storage provide competition but cannot substitute for the bulk energy storage capability of pumped hydro at this point in time.

Competitive rivalry: Established operators enjoy significant economies of scale in operation and maintenance, creating high barriers for new market entrants to compete on cost.

The geographical region where the pumped hydro storage market is currently concentrated in terms of value is Asia Pacific. Countries such as China, Japan and India dominate pumped hydro capacity globally due to favorable geographic conditions and supportive government policies.

The fastest growing region for the pumped hydro storage market during the forecast period from 2024 to 2031 will be Europe. Driven by ambitious renewable energy and decarbonization targets, many European nations are exploring ways to strengthen their electric grid infrastructure through energy storage technologies like pumped hydro. Countries with suitable sites available for new projects will see significant growth.

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