by The hydropower generation market is largely driven by the need for cleaner and sustainable energy sources globally. Hydropower plants utilize the kinetic energy of flowing water to generate electric power through turbines connected to generators. Hydropower generation produces no greenhouse gas emissions during operation and involves low operational costs. Hydropower is one of most economical sources of renewable energy and hydropower plants can provide power for several decades with minimal maintenance. The Global hydropower generation market is estimated to be valued at US$ 290.3 Mn in 2024 and is expected to exhibit a CAGR of 7.7% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in the hydropower generation market are Adeka Corporation, BASF SE, Chitec Technology Co. Ltd, Clariant, Evonik Industries AG, PMC Group, Polyvel Inc., SABO SpA, SK Capital Partners, Solvay, and Songwon. These players are focusing on development of advanced polymer solutions to improve efficiency of hydropower turbines.
The increasing global demand for clean energy and government initiatives and investments to add renewable sources to the energy mix present key opportunities in the hydropower generation market.
Technological advancements such as development of composite materials, advanced polymer coatings and alloys are helping manufacturers enhance durability, corrosion resistance and efficiency of critical hydropower plant components such as turbine runners, blades and generators. This is supporting growth of the hydropower generation industry.
Market drivers
Increasing focus on sustainability and environmental protection is a key driver for the hydropower generation market. With rising global energy demand, hydropower provides a cleaner alternative to fossil fuel based power plants. Hydropower generation does not require fuel and has very low operational emissions. This makes hydropower attractive for government’s striving to meet renewable energy production targets. Secondly, evolving government policies and investments in rural electrification are also boosting commissioning of small mini and micro hydropower projects globally.
Current challenges in Hydropower Generation market:
The Hydropower Generation Market Demand is facing various challenges which is hindering its growth. One of the major challenges is huge initial capital requirement for building dams and hydropower plants. It requires massive funds for land acquisition, geological surveys, construction of dams and turbines which increases the project cost. Other challenges include complex approval process for projects which delays the commissioning. Environmental issues related to construction of dams like displacement of people and impact on local ecology is also a concern. Maintaining continuous water flow especially during summer months is a technical challenge. Growing competition from other renewable sources like solar and wind energy is increasing.
SWOT Analysis
Strength: Hydropower is a renewable and reliable source of energy. It provides firm power without fluctuations and can be used for base load power generation. Dams offers multi-purpose usage for irrigation, flood control, tourism etc.
Weakness: High initial capital cost and complex approval process delays projects. Hydropower plants are location specific requiring suitable topography and river system.
Opportunity: Increasing global focus on deploying renewable energy to reduce carbon footprint creates market opportunities. Growing needs for reliable baseload power in developing nations drives demand.
Threats: Environmental protests against dam construction act as a threat. Changing rainfall patterns due to climate change impacts consistent power production. Competition from other emerging cost effective renewable sources.
Geographical regions of focus
The hydropower generation market in Asia Pacific region accounted for largest value share of over 30% in 2024 led by China, India, Japan, Indonesia. This is attributed to presence of suitable river systems, supportive government policies and growing electricity demand in developing economies. According to forecasts, the Asia Pacific region is anticipated to continue dominating the global market during the forecast period.
The hydropower market in North America region is expected register fastest value CAGR of around 9% during 2024-2030. United States hold major market share in the region supported by ongoing investments in hydropower plants and expanding renewable energy portfolio. Favorable policy reforms and technological advancements will further support market growth.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
