Global Hydropower Market Research Report, 2030

The global hydropower market is experiencing robust growth, driven primarily by the increasing global demand for clean and renewable energy sources. As one of the most mature and reliable forms of renewable energy, hydropower plays a crucial role in the transition towards sustainable energy systems. With governments worldwide placing a significant focus on decarbonization and reducing reliance on fossil fuels, hydropower has emerged as a vital component of the solution. Its ability to provide both base-load and peak-load power makes it an essential part of energy mix strategies, ensuring a stable and reliable power supply across various regions. Hydropower's versatility is also evident in its additional roles in water management, such as flood control, irrigation support, and providing water storage in times of scarcity. The capacity of hydropower plants to generate large amounts of electricity from water flows makes it an indispensable asset for national grids, contributing significantly to efforts aimed at achieving energy security. Additionally, hydropower systems are able to respond to grid fluctuations quickly, making them ideal for complementing other intermittent renewable sources like wind and solar. This ability to manage variability, along with its other environmental benefits, positions hydropower as a key player in the global transition to sustainable and resilient energy systems, aligning well with global goals for carbon reduction and climate change mitigation. According to the research report, “Global Hydropower Market Research Report, 2030” published by Actual Market Research, the Global Hydropower market is anticipated to grow at more than 9.17% CAGR from 2025 to 2030 . This growth trajectory is indicative of the increasing global shift towards renewable energy sources as part of broader efforts to combat climate change, reduce greenhouse gas emissions, and ensure long-term energy security. The report highlights the growing importance of hydropower in meeting global energy demands, especially as countries strive to diversify their energy mix and move away from fossil fuels. Hydropower, with its proven reliability, scalability, and environmental benefits, is a key component of these efforts. The demand for renewable energy is being driven by both regulatory pressures and the desire to promote sustainable development. Governments around the world are setting ambitious renewable energy targets and creating favorable policies and incentives to accelerate the adoption of clean energy sources. Hydropower's ability to generate large-scale, consistent, and carbon-free electricity positions it as a foundational element of these strategies. The global expansion of hydropower is not limited to large-scale projects but also includes the development of smaller and medium-sized plants, which are easier to finance and implement in areas with limited infrastructure. The growth of hydropower in developing countries is expected to accelerate as these nations seek affordable and sustainable solutions to meet their growing energy needs.

What's Inside a Actual Market Research`s industry report?

Asia-Pacific dominates the market and is the largest and fastest-growing market in the animal growth promoters industry globally

Download Sample

Market Dynamics Market Drivers

Make this report your own

We're excited to discuss your needs and our solutions. Let's schedule a call.

Ask an Expert

Nikita Jabrela

Business Development Manager

Rising Demand for Renewable Energy to Combat Climate Change The urgent need to mitigate climate change has spurred governments and private entities worldwide to invest heavily in renewable energy projects. Hydropower, being a stable and scalable source of green energy, is receiving substantial attention as a cornerstone of energy transition strategies. Its ability to provide a low-carbon energy solution while supporting grid stability further solidifies its importance in combating climate change. Development of Rural Electrification Programs in Emerging Economies Emerging markets, particularly in Asia, Africa, and Latin America, are leveraging hydropower projects to enhance rural electrification. These regions have abundant untapped hydropower potential, which is being utilized through small-scale hydropower plants to supply electricity to off-grid areas. The dual role of hydropower in generating electricity and supporting regional development underscores its growing appeal. Market Challenges

Don’t pay for what you don’t need. Save 30%

Customise your report by selecting specific countries or regions

Specify Scope Now

Environmental Concerns and Ecosystem Disruption Large-scale hydropower projects are often associated with significant ecological impact, including habitat disruption, alteration of river ecosystems, and displacement of communities. These environmental concerns have led to stricter regulatory scrutiny and public opposition, delaying project approvals and increasing costs. High Initial Capital Investment and Long Payback Periods Hydropower projects require substantial upfront investment for dam construction, equipment, and infrastructure. Coupled with extended timelines for project completion and revenue generation, these financial hurdles deter private investors and limit the feasibility of new projects, particularly in low-income regions. Market Trends Shift Towards Small and Micro-Hydropower Systems Small and micro-hydropower systems are gaining traction due to their lower environmental footprint and ability to serve decentralized power needs. These systems are ideal for rural electrification and can be deployed in remote locations where large-scale projects are not feasible. Additionally, they are often easier to finance and faster to implement. Integration of Digital Technologies for Enhanced Efficiency The integration of IoT, AI, and advanced analytics in hydropower plants is revolutionizing the sector. Digital technologies enable real-time monitoring, predictive maintenance, and optimization of turbine performance, thereby improving operational efficiency and reducing downtime. These advancements also support better water resource management and energy output forecasting. Segmentation Analysis Large hydropower plants remain the dominant segment in the global hydropower market due to their ability to generate vast amounts of electricity, making them a cornerstone of national energy grids. Large hydropower plants remain the dominant segment in the global hydropower market due to their ability to generate vast amounts of electricity, making them a cornerstone of national energy grids. These large-scale plants play a pivotal role in ensuring energy reliability, supplying base-load power and assisting in grid stabilization, particularly during periods of peak demand. With the growing need for consistent and uninterrupted power supply in both developed and emerging economies, large hydropower plants are seen as an efficient and reliable solution. Countries such as China, Brazil, and Canada, which have extensive hydropower infrastructure, contribute significantly to the global electricity supply through these mega-projects. The continued investment in large hydropower projects, including the development of new facilities and upgrades to aging plants, further enhances the efficiency and lifespan of these plants. Technological advancements, including digitalization and the incorporation of modern monitoring systems, are expected to improve the performance and output of large hydropower plants. As environmental concerns and energy security become more urgent, large hydropower plants are also recognized for their ability to store large amounts of water for later use, making them a reliable energy source during times of dry spells or energy shortages. Their contribution to reducing carbon emissions while providing a substantial portion of the global energy supply solidifies their position as a leader in the hydropower market. Hydropower projects with capacities between 1 MW and 10 MW are leading the market segment due to their ability to cater to both industrial and rural applications. Hydropower projects with capacities between 1 MW and 10 MW are leading the market segment due to their ability to cater to both industrial and rural applications. These medium-sized plants offer a balance between scalability and manageable environmental and capital impacts, making them ideal for areas with limited resources or smaller-scale energy needs. The flexibility of these plants makes them suitable for diverse geographic locations, including remote and rural areas where large-scale infrastructure may not be feasible. This segment of hydropower is especially popular in developing economies, where financing for large-scale projects may be limited. However, the need for reliable, decentralized, and sustainable energy sources remains pressing. Medium-sized hydropower projects are also well-suited to support industrial energy requirements, providing consistent power while minimizing operational costs. With lower initial capital costs and shorter payback periods compared to large plants, medium-sized hydropower projects are an attractive option for governments and private investors. Moreover, the ability to implement these projects more rapidly than larger facilities further accelerates the growth of the sector. Small to medium hydropower projects also support rural electrification, improving energy access and quality of life for underserved populations. This dynamic capacity segment is essential in meeting both local energy needs and contributing to broader renewable energy goals. Electricity generation remains the largest application of hydropower, accounting for the majority of market share. Electricity generation remains the largest application of hydropower, accounting for the majority of market share. Hydropower plants are essential in generating clean, renewable electricity by harnessing the energy of flowing water to produce electricity. The stability and reliability of hydropower make it a preferred option for providing consistent, uninterrupted power to national grids. Hydropower offers both base-load and peak-load power, ensuring that the electricity supply meets fluctuating demands. It is highly valued for its ability to balance grid systems, offering ancillary services such as frequency regulation and voltage control, which ensure the stability of the electrical grid. Furthermore, the integration of hydropower into energy systems with other renewables, such as wind and solar, provides grid operators with the flexibility to manage the intermittency of other renewable sources. Hydropower is also recognized for its ability to store large amounts of water for energy production during peak periods, improving grid management during times of high demand. As countries continue to seek clean energy alternatives, hydropower’s role in electricity generation is increasingly vital. Moreover, its ability to support grid resilience and contribute to energy security by diversifying the energy mix positions hydropower as a key enabler of sustainable energy systems. With continued investments in infrastructure and technological upgrades, the electricity generation application will continue to dominate the hydropower market. Regional Analysis Asia-Pacific leads the global hydropower market, driven by substantial investments and robust growth in countries such as China, India, and Vietnam. Asia-Pacific leads the global hydropower market, driven by substantial investments and robust growth in countries such as China, India, and Vietnam. China, the world’s largest producer of hydropower, continues to expand its capacity with ambitious projects such as the Three Gorges Dam and the construction of additional large hydropower plants. The country’s emphasis on renewable energy to meet its growing electricity demands, coupled with efforts to reduce its carbon footprint, positions it as a dominant player in the global hydropower sector. India, with its focus on renewable energy targets and rural electrification, is accelerating the development of medium and small hydropower projects, which provide localized solutions to energy needs in rural regions. Vietnam, with its abundant water resources and commitment to expanding clean energy infrastructure, also plays a crucial role in the region’s hydropower development. The Asia-Pacific region benefits from favorable geographical features, such as river basins, mountains, and waterfalls, which offer significant potential for hydropower generation. Additionally, governments in the region offer substantial incentives and funding for hydropower development, further driving market growth. The region’s hydropower expansion is also supported by increasing collaboration between government agencies, international financial institutions, and private players. Moreover, the rapid urbanization and industrialization in Asia-Pacific continue to boost demand for reliable, renewable energy sources, making hydropower a key solution to power growing cities and industries. With strong government support, favorable natural resources, and continued technological advancements, Asia-Pacific remains a leader in the global hydropower market. Key Developments • January 2025: Voith Hydro announced the launch of its next-generation hydropower turbines designed for enhanced efficiency and reduced ecological impact. • December 2024: GE Renewable Energy secured a contract to modernize a major hydropower plant in Brazil, focusing on improving operational efficiency and extending its lifespan. • November 2024: Andritz signed a partnership agreement with the Government of India to develop small and medium-sized hydropower projects across the country. Considered in this report * Historic year: 2018 * Base year: 2023 * Estimated year: 2024 * Forecast year: 2029 Aspects covered in this report * Hydropower Market with its value and forecast along with its segments * Country-wise Hydropower Market analysis * Various drivers and challenges * On-going trends and developments * Top profiled companies * Strategic recommendation By Plant Type: • Large Hydropower Plants • Small Hydropower Plants • Micro-Hydropower Plants By Capacity: • Below 1 MW • 1 MW to 10 MW • Above 10 MW By Application: • Electricity Generation • Flood Control • Water Supply Management The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Hydropower industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.