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2021

Hydropower Generation Market

Hydropower Generation Market Size, Share, Competitive Landscape and Trend Analysis Report by Capacity (Small Hydro Power Plant (Up to 1MW), Medium Hydro Power Plant (1MW-10MW), and Large Hydro Power Plant (Above 10MW)): Global Opportunity Analysis and Industry Forecast, 2020-2027

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Author's: Anil Chaudhary | Eswara Prasad
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Hydropower Generation Market Statics – 2027

Global hydropower generation market was valued at $202.4 billion in 2019, and is projected to reach $317.8 billion by 2027, growing at a CAGR of 5.9% from 2020 to 2027. Hydropower is a renewable energy source that harnesses the power of moving water to produce electricity. Large scale hydropower projects typically involve dams. Run-of-river and tidal projects also harness the power of moving water to generate renewable electricity. A hydropower dam converts the potential energy stored in a water reservoir behind a dam to mechanical energy—mechanical energy is also known as kinetic energy. As the water flows down through the dam its kinetic energy is used to turn a turbine. The generator converts the turbine’s mechanical energy into electricity. This electric energy then goes through various transmission processes before it reaches to the consumer.

The global hydropower generation market is primarily driven by growing demand for clean energy across the globe. Rapid industrialization and urbanization, especially in the developing countries such as China and India, has led to surge in demand for electricity. In order to reduce the dependency on fossil fuels for the power generation and the initiatives launched by the government of various countries such as the U.S., Germany, India, Japan, and China to reduce the carbon footprint has led to surge in demand for renewable energy sources for power generation. Owing to this, various hydropower generation projects have been established across the globe especially in Asia-Pacific to meet the growing renewable power demand. In addition, rise in need for cleaner technologies for power generation and stringent emission policy targets are expected to drive the growth of the market. Moreover, according to the International Energy Agency, hydropower is the largest source of renewable electricity generation, accounting for 60.7% of global renewable power generated in 2019, and with new hydro power projects sanctioned and growing demand for clean energy, the generation and demand of hydropower is expected to surge during the forecast period.

Hydropower-Generation-Market-2020-2027

However, requirement of high capital and operational expenditures along with long gestation periods restrains the global hydropower generation market growth. Furthermore, rise in demand for renewable power and surge in hydropower install capacity across the developing economies such as China and India are expected to provide new growth opportunities for the market during the forecast period.

The global hydropower generation market size is segmented on the basis of capacity and region. Based on capacity, the market is fragmented into small hydro power plant (up to 1MW), medium hydro power plant (1MW - 10MW), and large hydro power plant (above 10MW). Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

The major key players operating in the global hydropower generation market include Andritz Hydro, GE Energy, CPFL Energia S.A., Sinohydro Corporation, IHI Corporation, Alstom Hydro, China Hydroelectric Corporation, China Three Gorges Corporation, ABB Ltd, and Gerdau S.A. Other players operating in this market are The Tata Power Corporation, OJSC Bashkirenergo, EDP Energias do Brasil SA, Companhia Energetica De Minas Gerais, and Ertan Hyropower Development Company, Ltd. These major key players adopt strategies, such as agreement and business expansion, to stay competitive in the global market.

Global Hydropower Generation Market, By Region

Asia-Pacific accounted for a major share in 2019. Rapid industrialization and urbanization across the region have surged the energy demand significantly. In addition, rise in demand for renewable energy and to reduce the dependency on conventional fossil fuels for energy generation has led to set up various hydropower generation projects across the region, especially in the countries such as China and India. For instance, in May 2018, the Government of India initiated the 1000 MW Pakal Dul hydropower generation project and the 330 MW Krishnaganga hydropower generation project in Jammu and Kashmir’s Kishtwar district. Moreover, countries such as Japan, Vietnam, and South Korea have been investing in hydro power sector, which is expected to drive the growth of the hydropower generation market across the region during the forecast period.

Hydropower Generation Market
By Region
2027
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific would exhibit an CAGR of 6.2% during 2020-2027.

Global Hydropower Generation Market, By Capacity

The large hydro power plant (above 10MW) segment accounted for a major hydropower generation market share in 2019. Factors such as improved efficiency, long life span, less maintenance & operation cost, and high reliability are expected to drive the demand for large hydro power plant (above 10MW) during the forecast period. In addition, upcoming hydropower projects, along with plans to modernize the hydropower infrastructure across the developing countries are likely to drive the growth of the hydropower generation market in near future.

Hydropower Generation Market
By Capacity
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Large Hydropower Plant (Above 10MW) is projected as the most lucrative segment.

COVID-19 analysis:

Widespread uncertainty and liquidity shortages have put financing and refinancing of some hydropower projects at risk. Greenfield development and critical modernization projects have also been halted due to supply chain disruptions amid lockdown due to Covid-19 pandemic outbreak. In addition, proposed or existing government programs aimed at supporting the sector have been postponed. While operations have been less affected due to the high level of automation found in modern facilities, significant falls in electricity demand and prices has had an impact. In some markets both demand and prices have contracted by up to 20.0% and remain extremely volatile. Those projects covered by long-term power purchase agreements have remained largely insulated from these impacts.

Key benefits for stakeholders

  • The global hydropower generation market analysis covers in-depth information of major industry participants.
  • Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
  • Major countries have been mapped according to their individual revenue contribution to the regional market.
  • The report provides in-depth analysis of the global hydropower generation market forecast for the period.
  • The report outlines the current global hydropower generation market trends and future scenario of the global market hydropower generation from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets. 
  • Key drivers, restraints, & opportunities and their detailed impact analysis are explained in the global hydropower generation industry study.

Hydropower Generation Market Report Highlights

Aspects Details
Hydropower Generation Market By Capacity
By Capacity
  • Small Hydro Power Plant (Up to 1MW)
  • Medium Hydro Power Plant (1MW - 10MW)
  • Large Hydro Power Plant (Above 10MW)
Hydropower Generation Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, Italy, Spain, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, South Korea, India, Australia, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
Key Market Players
Key Market Players

Sinohydro Corporation, Tata Power Corporation, China Three Gorges Corporation, Andritz Hydro USA Inc., GE Energy, Alstom Hydro, IHI Corporation, ABB Ltd, CPFL Energia S.A., China Hydroelectric Corporation

Analyst Review

Growth in demand for clean energy is expected to rise over the course of the next few years, owing to which the demand for hydro power is expected to increase considerably. In addition, rapid urbanization and industrialization across the Asia-Pacific region has led to surge in demand for energy coupled with stringent emission policy targets that are expected to drive the growth of the market. Moreover, according to the International Energy Agency, hydropower is the largest source of renewable electricity generation, accounting for 60.7% of global renewable power generated in 2019, and with new hydro power projects sanctioned and growing demand for clean energy, the generation and demand of hydropower is expected to surge during the forecast period. Furthermore, countries such as the U.S., Japan, India, and China have shut down their various coal power stations to reduce the carbon emission. This has led these countries to invest heavily in setting up new hydropower project plant and this trend is expected to continue during the forecast period.

However, requirement of high capital and operational expenditures along with long gestation periods restrains the growth of the global hydropower generation market. Furthermore, growing demand for renewable power and surge in hydropower install capacity across the developing economies such as China and India are expected to provide new growth opportunities for the market during the forecast period.
 

Author Name(s) : Anil Chaudhary | Eswara Prasad
Frequently Asked Questions?

Surge in demand for electricity across the developing countries such as China and India and the government initiatives to reduce the carbon footprint and the dependency on the fossil fuels for the power generation has led to surge in demand for renewable energy sources for power generation. Owing to this, various hydropower generation projects have been established across the globe especially in the Asia-Pacific region to meet the growing renewable power demand.

The global hydropower generation market was valued at $202.4 billion in 2019, and is projected to reach $317.8 billion by 2027, growing at a CAGR of xxxx% from 2020 to 2027.

To get latest version of hydropower generation market report can be obtained on demand from the website.

Top companies in the hydropower generation industry are Andritz Hydro USA Inc., GE Energy, CPFL Energia S.A., Sinohydro Corporation, IHI Corporation, Alstom Hydro, China Hydroelectric Corporation, China Three Gorges Corporation, ABB Ltd, and Gerdau S.A.

Large Hydro Power Plant (Above 10MW) segment accounted for the largest hydropower generation market share.

The top ten market players are selected based on two key attributes - competitive strength and market positioning

The global hydropower generation market is primarily driven by growing demand for clean energy across the globe

Widespread uncertainty and liquidity shortages have put financing and refinancing of some hydropower projects at risk. Greenfield development and critical modernization projects have also been halted due to supply chain disruptions amid lockdown due to Covid-19 pandemic outbreak. In addition, proposed or existing government programmes aimed at supporting the sector have been postponed.

Asia-Pacific dominated the global hydropower generation market

Requirement of high capital and operational expenditures along with long gestation periods restrains the global hydropower generation market growth

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Hydropower Generation Market

Global Opportunity Analysis and Industry Forecast, 2020-2027