Year | Value |
---|---|
2023 | USD 254.49 Billion |
2032 | USD 388.07 Billion |
CAGR (2024-2032) | 4.3 % |
Note – Market size depicts the revenue generated over the financial year
The global hydropower market is expected to reach $244.49 billion in 2023, with a significant growth forecast to reach $388.07 billion in 2032. This represents a compound annual growth rate (CAGR) of 4.3% from 2024 to 2032. This growth reflects the growing importance of renewable energy sources and the pivotal role of hydropower in the global energy landscape. As countries strive to reduce their carbon emissions and meet their sustainable energy goals, hydropower is ideally placed to help them meet their targets. In addition, the market is also being driven by advances in hydropower technology, the increased efficiency of energy production and the growing demand for clean energy solutions. In particular, innovations in hydropower technology such as small, decentralised, modular hydropower systems and grid-integration have made the technology more accessible and efficient. Also, leading companies in the sector such as GE, Siemens and Andritz Hydro are investing in research and development, entering into strategic alliances and launching new products to enhance their market presence. These activities are not only helping to increase their competitiveness but are also driving the growth and modernization of the hydropower sector.
Regional Market Size
The hydropower market is characterized by the significant role it plays in the global energy landscape, with each region having its own distinctive characteristics. In North America, the market is driven by aging assets and the need for modernization. In Europe, the focus is on the need for greater efficiency and the regulatory framework that supports the development of renewable energies. In the Asia-Pacific region, the rapid growth is a result of the growing demand for energy and the investment in new projects. In the Middle East and Africa, hydropower is becoming an important source of energy, despite the diverse economic conditions, while in Latin America, the development of hydropower is supported by abundant water resources and government support for the development of renewable energies.
“Hydropower accounts for approximately 16% of the world's electricity generation, making it the largest source of renewable energy globally.” — International Hydropower Association
It is the most important source of renewable energy and forms the basis of the world’s energy supply. The main demand drivers are the growing need for sustainable energy, the promotion of clean energy by government policy, and technological advances in wind power that have increased the efficiency of wind power generation. The leading countries in terms of hydropower are China and Brazil, and the Three Gorges Dam and the Belo Monte Dam are prime examples of this. It is used primarily for electricity generation, irrigation, and flood control, especially in areas where flooding is a seasonal occurrence. The main macro-economic trends that will increase hydropower demand are the global climate change initiatives and government support for renewable energy. The evolution of this market is being driven by pumped storage and small, modular hydropower plants that enable more flexible and efficient energy management. The hydropower industry is a key component of the renewable energy landscape.
From 2023 to 2032, the hydropower market is expected to grow at a CAGR of 4.3%. The world's energy needs are growing, and stricter climate policies are being introduced to reduce carbon emissions. It is expected that hydropower will play an increasingly important role in countries with abundant water resources. It is expected that the share of hydropower in the global electricity mix will reach about 16% in 2032, up from about 13% in 2023, which shows that hydropower is becoming more and more important in the energy field. The development of small, light, and efficient hydropower technology will make the cost of hydropower projects more and more attractive. The government's support for hydropower, such as the establishment of a national hydropower development plan, will also promote the construction of hydropower equipment. The trend of combining hydropower and energy storage and the trend of sustainable water resource management will also affect the market. The industry is changing. The industry must be agile and seize the opportunities, but at the same time, it must also address the problems of environment and legal system.
Covered Aspects:Report Attribute/Metric | Details |
---|---|
Market Size Value In 2022 | USD 2,22,839.1 Billion |
Market Size Value In 2023 | USD 2,28,985.0 Billion |
Growth Rate | 5.52% (2023-2030) |
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