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Rising Demand For Electricity Fuels Growth Of The Hydropower Market: Critical Driver Shaping the Hydropower Market in 2025
Hydropower
Hydropower Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
In recent years, the hydropower market has experienced a significant expansion. It is projected to increase from a size of $245.91 billion in 2024 to $261.7 billion in 2025, registering a compound annual growth rate (CAGR) of 6.4%. This substantial growth during the historic period can be linked to the industrial revolution, governmental regulations, environmental considerations, and concerns about energy security.
Hydropower Market Size Forecast: What's the Projected Valuation by 2029?
The size of the hydropower market is predicted to experience robust growth in the coming years, with a projected value of $318.48 billion by 2029 and a Compound Annual Growth Rate (CAGR) of 5.0%. This growth in the forecast period is associated with factors such as the transition towards renewable energy, green energy policies, adaption to climate change, and effective water resource management. The future trends identified include the upgrading of current infrastructure, the development of hybrid hydropower systems, the proliferation of small-scale and micro hydropower systems, and the integration of digitalisation and smart grids.
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What Are the Drivers Transforming the Hydropower Market?
The surging need for electricity is predicted to accelerate the development of the hydropower market in the future. Electricity, generated from the motion of charged subatomic particles, specifically electrons, is a type of energy. As several sectors such as communication, IT, and smart technologies become increasingly digital, there's an elevated requirement for electricity to run servers, data centres and communication networks. As a renewable energy form, hydropower fundamentally depends on the constant water flow, refilled through natural occurrences like rain or snow melting. This attribute renders hydropower as a green, sustainable alternative for generating electricity. For instance, data published in 2022 by the UK's scientific online publishing entity, Our World in Data, stated that the demand for electricity in the US grew to 4,338.1 TWh (terawatt-hour). Thus, it's clear that the escalating need for electricity is fuelling the expansion of the hydropower market.
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What Long-Term Trends Will Define the Future of the Hydropower Market?
Leading corporations in the hydropower sector are focusing their efforts on creating novel products like VETT-in-a-Box to meet the demand for affordable, deployable, and eco-friendly microhydropower solutions. This product is a microhydropower system specifically designed for ease of installation, capable of generating electricity from small rivers, wastewater streams, lock gates, or canals with a two-meter head drop. For example, VerdErg Renewable Energy Limited, a UK-based renewable energy firm, unveiled VETT-in-a-Box, a new microhydropower system, in February 2022. This new system, which delivers clean, decentralized energy with high load factors, reinforces its innovative and influential nature. VETT-in-a-Box constitutes a comprehensive mini-hydropower system in a portable setup, ensuring simple installation and user-friendliness. It can be installed directly into or alongside the watercourse, accommodating flow rates between 500 and 2,000 liters per second. Furthermore, this system is certified as safe for fish, with zero fish mortality. It generates clean, decentralized, predictable energy from water, causing no environmental damage.
Which Segments in the Hydropower Market Offer the Most Profit Potential?
The hydropower market covered in this report is segmented -
1) By Type: Large Hydropower, Small Hydropower
2) By Component: Civil Construction, Electromechanical Equipment, Electric, Power Infrastructure, Others Components
3) By Application: Residential, Commercial, Industrial
Subsegments:
1) By Large Hydropower: Reservoir-Based Hydropower, Run-Of-River Hydropower (Large-Scale)
2) By Small Hydropower: Micro Hydropower (Up To 100 KW), Mini Hydropower (100 KW To 1 MW), Small Hydropower (1 MW To 10 MW)
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Which Firms Dominate the Hydropower Market by Market Share and Revenue in 2025?
Major companies operating in the hydropower market are Électricité de France S.A., Siemens AG, General Electric Company, Iberdrola S.A., ABB Ltd., Georgia Power Company, Duke Energy Corporation, Vattenfall AB, ALSTOM Holdings, Statkraft AS, Hydro-Québec, Verbund AG, China Yangtze Power Co. Ltd., Andritz AG, China Three Gorges Corporation, Tata Power Company Limited, Ontario Power Generation Inc., Alfa Laval AB, BC Hydro and Power Authority, Brookfield Renewable Partners L.P., Voith GmbH & Co. KGaA, Bharat Heavy Electricals Limited (BHEL), Agder Energi AS, Gilbert Gilkes & Gordon Limited, HydroChina International Engineering Co. Ltd.
Which Regions Offer the Highest Growth Potential in the Hydropower Market?
Asia-Pacific was the largest region in the hydropower market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the hydropower market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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