Hydropower Turbines Market Expected to Reach $5.2 Billion by 2033

According to a new report published by Allied Market Research, titled, “Hydropower Turbines Market," The hydropower turbines market was valued at $3.2 billion in 2023, and is estimated to reach $5.2 billion by 2033, growing at a CAGR of 4.9% from 2024 to 2033.

Introduction

Hydropower turbines are mechanical devices designed to convert the kinetic energy of flowing water into mechanical energy, which can then be further converted into electricity. These turbines are essential components of hydroelectric power generation systems and are typically installed within dams or waterways where there is a significant flow of water. They come in various designs and types, including francis, pelton, kaplan, and crossflow turbines, each suited for specific water flow and head conditions. Hydropower turbines play a crucial role in harnessing renewable energy from water resources, contributing to global electricity generation while minimizing environmental impact as compared to fossil fuel-based power generation.

Market Dynamics

Technological advancements in hydropower turbine design and efficiency serve as pivotal drivers for the hydropower turbines market. These innovations result in higher turbine efficiency, improved performance, and reduced operational costs, ultimately enhancing the overall viability of hydroelectric power generation. With optimized turbine designs, operators can extract more energy from flowing water, increasing the output of hydropower plants while maintaining reliability under varying flow conditions. Moreover, advanced turbines often incorporate features that minimize environmental impacts, supporting sustainable hydropower development. By offering greater adaptability to site conditions and lowering maintenance requirements, these technological advancements enable the expansion of hydroelectric capacity in diverse geographic locations. As a result, they contribute significantly to the hydropower turbines market growth and adoption of hydropower as a clean and renewable energy source.

The hydropower turbines industry faces significant challenges due to environmental concerns and regulatory hurdles. These issues can hinder the development and expansion of hydroelectric power generation projects, impacting the demand for turbines. Environmental concerns about dam construction's potential negative impacts on aquatic ecosystems, wildlife habitats, and local communities can lead to stringent regulations and permitting processes. These risks can cause delays in obtaining necessary approvals, leading to increased costs and delays in turbine deployment. Regulatory hurdles related to dam safety and compliance with environmental regulations can also pose significant barriers to the market growth. Governments and regulatory authorities impose strict requirements for hydroelectric facilities, requiring substantial investments in engineering, monitoring systems, and compliance measures. Addressing these concerns and effectively navigating regulatory requirements is crucial for unlocking the full potential of hydropower generation and sustaining the market growth.

Retrofitting and modernization initiatives for existing hydropower plants represent a pivotal opportunity for the hydropower turbines market. By upgrading turbines with advanced technology, these projects enhance plant efficiency, thereby maximizing electricity generation without necessitating new infrastructure. This approach proves cost-effective as compared to constructing new facilities, prolonging the operational lifespan of hydropower plants while optimizing returns on investment. Moreover, modernized turbines contribute to environmental sustainability by minimizing habitat disruption and improving water quality. They also bolster grid stability by providing consistent renewable energy output. Integration of innovative solutions like digital monitoring systems and automation further enhances operational efficiency. These projects stimulate economic growth by creating job opportunities and supporting local communities which have positive impact on hydropower turbines market trends. As global emphasis on renewable energy intensifies, the demand for retrofitting and modernization projects is expected to grow, presenting a significant avenue for market expansion during the forecast period.

Segments Overview

The hydropower turbines market is segmented into type, application, and region. On the basis of type, the market is bifurcated into reaction turbines and impulse turbines. On the basis of application, the market is segmented into power generation, power storage, marine, and aeronautics. On the basis of region, the hydropower turbines market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The below is given the hydropower turbines market overview related to region and major countries.

Regional Analysis

Across different regions, the hydropower turbines market is witnessing dynamic developments. In North America, the U.S. approved its largest-ever hydropower project in the northeastern region, aiming to address rising power demands in 2023. Canada's Muskrat Falls Hydroelectric Generating Station, part of the Lower Churchill Project, commenced operations in 2021, adding 824 MW to the country's capacity. In Europe, countries such as Germany are modernizing aging hydropower plants, with an average age of approximately 45 years, while France and Italy focus on maintaining and integrating hydropower with other renewables. Spain aims to enhance the efficiency of its hydropower infrastructure, and the UK is committed to bolstering its hydropower capacity to support clean energy goals.

In the Asia-Pacific region, China leads with over 370 GW of installed hydropower capacity, exemplified by projects such as Wudongde adding 6.8 GW. Japan and India are investing in small-scale projects to diversify their energy mixes, with India's Kameng Hydropower Station adding 300 MW in 2021. South Korea and Australia are also exploring optimization and sustainable development in the hydropower sectors. In Latin America and the Middle East (LAMEA), Brazil stands out with a significant installed capacity of 109 GW, driven by substantial capacity additions. South Africa is investing in small hydropower projects to bolster energy security. These developments underscore the global momentum towards harnessing hydropower as a crucial component of the renewable energy transition.

Competitive Analysis

The major players operating in the hydropower turbines market analysis include Siemens AG, General Electric CO., ANDRITZ AG, Cornell Pump CO., Gilbert Gikes & Gordon Ltd., Toshiba Energy, Harbin Electric Machinery, WWS Wasserkraft GmbH, Canyon Industries Inc., and Kirloskar Brothers Ltd.

Recent Developments of Hydropower in the Major Countries

The presence of increase in the consumption of hydropower has a positive impact on the demand for the hydropower turbines market.

Brazil: Brazil experienced a remarkable surge in hydropower consumption, with figures escalating from -91.63 TWh in 2021 to 164.16 TWh in 2022, indicating a substantial growth of 27.9%. According to IREA. This surge can be attributed to increased investments in hydropower infrastructure and favorable weather conditions for hydroelectric generation.

Canada: Canada showcased significant growth in hydropower consumption, rising from -13.53 TWh in 2021 to 37.13 TWh in 2022, representing an impressive increase of 374% according to IREA. This growth could be influenced by ongoing efforts to enhance renewable energy sources, including hydropower, to meet sustainability goals.

China: Despite starting from a negative consumption of -69.51 TWh in 2021, China saw a notable upswing in hydropower consumption to -4.26 TWh in 2022, resulting in a growth of 94% according to IREA. This increase can be attributed to China's continued investments in renewable energy projects, including hydropower plants, to reduce reliance on fossil fuels.

India: India exhibited significant growth in hydropower consumption, rising from -10.39 TWh in 2021 to 36.51 TWh in 2022, reflecting a substantial increase of 451% according to IREA. This surge could be driven by government initiatives to promote renewable energy sources and address energy security concerns.

UK: The UK witnessed an increase in hydropower consumption from -3.65 TWh in 2021 to -0.52 TWh in 2022, representing a growth of 86% according to IREA. This growth is influenced by ongoing efforts to diversify the energy mix and reduce carbon emissions through the expansion of renewable energy sources like hydropower.

U.S.: The U.S, exhibited growth in hydropower consumption, with figures rising from -91.21 TWh in 2021 to 22.62 TWh in 2022, showing an increase of 125% according to IREA. This growth could be attributed to various factors, including favorable weather conditions for hydropower generation and efforts to modernize existing infrastructure.

However, the presence of a decrease in the consumption of hydropower a investment in alternative renewable energy hinders the demand for the hydropower turbines market.

Australia: Australia experienced a decrease in hydropower consumption from 3.84 TWh in 2021 to 2.93 TWh in 2022, marking a decline of 24% according to IREA. This decline is influenced by factors such as drought conditions impacting hydroelectric output or shifts in energy policies.

France: France registered a decrease in hydropower consumption from -8.57 TWh in 2021 to -37.28 TWh in 2022, showing a decline of 335% according to IREA. This decline could be due to factors like changes in energy demand patterns, maintenance activities on hydropower facilities, or increased reliance on other energy sources.

Germany: Germany experienced a decline in hydropower consumption, with figures dropping from 3.32 TWh in 2021 to -5.81 TWh in 2022, marking a decrease of 275% according to IREA. This decline is influenced by factors such as changes in hydrological conditions or shifts in energy policies favoring other renewable energy sources.

Italy: Italy witnessed a decrease in hydropower consumption from -6.33 TWh in 2021 to -45.35 TWh in 2022, indicating a decline of 616% according to IREA. This decline could be attributed to factors such as changes in energy demand, maintenance activities on hydropower infrastructure, or shifts in energy policies.

Japan: Japan experienced a decline in hydropower consumption from 4.93 TWh in 2021 to -13.02 TWh in 2022, marking a decrease of 364% according to IREA. This decline is influenced by factors such as changes in energy demand patterns, hydrological conditions, or shifts in energy policies favoring other sources.

Key Findings of the Study

• By type, the reaction turbine segment dominated the market accounting for nearly two-thirds of the hydropower turbines market share in 2023.
• By application, the power generatin segment dominate the market accounting for nearly three-fifths of the hydropower turbines market size in 2023.
• By application, the  others segment is expected to be the fastest growing segment growing with a CAGR of 6.2% from 2024-2033.
• By region, Asia-Pacific is expected to dominate the market during the forecast period.