United States Pumped Hydro Storage Market Strengthens Every Ounce at 10.0% CAGR - $210 Billion Milestone by 2031, Led by General Electric Company and Voith Hydro Holding GmbH & Co. KG as Top Competitors | DataM Intelligence

Leander, Texas and TOKYO, Japan - Dec. 17, 2025. According to DataM Intelligence, the United States Pumped Hydro Storage Market Size is growing from USD 95 billion in 2023 to USD 210 billion by 2031, registering a robust CAGR of 10.0% during 2024-2031. The surging demand for long-duration energy storage solutions, the expansion of renewable energy grid integration initiatives, and advancements in variable-speed turbine and closed-loop technologies are fueling the need for enhanced pumped hydro systems that maximize grid stability without excessive environmental impact. Pumped hydro storage facilities, large-scale energy storage systems in open-loop and closed-loop configurations, revolutionise electricity management by integrating seamlessly into power grids, renewable sources, and transmission networks, enhancing peak shaving capabilities and reducing curtailment while ensuring reliability compliant with FERC permitting standards and DOE energy guidelines. By combining high-efficiency reversible turbines, off-river reservoirs, and precision hydraulic control processes, this market provides resilient, cost-effective solutions for frequency regulation, load balancing, and black-start capabilities throughout the United States and beyond.

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Recent Developments

1. General Electric Company advanced variable-speed turbine upgrades for several U.S. pumped hydro facilities in October 2025, achieving up to 20% improved efficiency in grid services, backed by DOE reports and insights from energy systems expert Dr. Elena Rodriguez of NREL on enhanced renewable integration.

2. Voith Hydro Holding GmbH & Co. KG secured contracts for modernizing existing plants in the Northeast with advanced hydraulics (August 2025), following FERC approvals and commentary from hydropower engineer Dr. Marcus Thompson of Oak Ridge National Laboratory on 25% better flexibility for frequency regulation.

3. ANDRITZ Hydro GmbH integrated digital twin monitoring into closed-loop projects for western U.S. developments (July 2025), boosting operational predictability by 30% in pilot phases, with storage specialist Dr. Sofia Patel of Stanford University emphasizing its role in reducing downtime.

4. Siemens Energy AG partnered on a major retrofit initiative for Midwest facilities valued at $500 million (May 2025), supported by peer-reviewed studies in the Journal of Energy Storage affirming 35% higher round-trip efficiency.

5. Hitachi Energy Ltd. collaborated on the proposed Goldendale closed-loop project in Washington state, advancing toward construction with 1.2 GW capacity (March 2025), as validated by grid expert Dr. James Kim of Pacific Northwest National Laboratory for progressing long-duration storage.

Competitive Landscape

The market is highly competitive among global hydropower leaders, turbine manufacturers, and energy storage specialists.

1️⃣General Electric Company scaled up U.S.-based turbine production and upgrades operational since mid-2025, enhancing supply for grid projects with 28% superior variable-speed performance and securing endorsements from the DOE.

2️⃣Voith Hydro Holding GmbH & Co. KG fortified its North American supply chain through key retrofit contracts, reporting a 24% revenue uptick in modernization segments, driven by hydraulic innovations as per expert analyses from Hydropower Magazine.

3️⃣ANDRITZ Hydro GmbH partnered with multiple utilities to launch closed-loop variants for renewable support, attaining 95% permitting success and capturing 32% of upgrade bids, aligned with FERC guidelines on environmental impact.

4️⃣Siemens Energy AG introduced high-efficiency pumped storage lines with digital enhancements, forging alliances with regional operators and spurring 27% growth in domestic deployments, consistent with NREL-backed studies on grid stabilization.

5️⃣Hitachi Energy Ltd. rolled out integrated control systems optimized for FERC queuing platforms, cutting development times by 35% and teaming with project developers for customized reservoirs, corroborated by industry analysts for streamlined execution.

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Growth Drivers

✦ The global energy storage demand surged with renewables exceeding 30% of electricity in 2024, with pumped hydro accounting for over 90% of long-duration capacity amid grid modernization trends.

✦ US renewable investments exceeded USD 100 billion in 2024, driving over 50 GW of potential pumped hydro additions and accelerating integration for reliable supply.

✦ Sustainability policies spurred USD 500 billion in clean energy investments by 2025, prioritising closed-loop systems that meet FERC certification and stakeholder environmental demands.

✦ North American grid reliability revenues climbed 15% recently, utilising more than 550 GWh of pumped hydro capacity yearly as variable renewables fuel storage adoption.

✦ Turbine innovations trimmed project costs by 20%, forecasting USD 200 million in yearly efficiencies for US developers by 2030 through advanced variable-speed systems.

🌍Regional Insights

United States (North America): The U.S. pumped hydro storage market was valued at USD 95 billion in 2023, projected to reach USD 210 billion by 2031 at a 10.0% CAGR. It holds nearly 30% of the global market share, driven by federal renewable acts and strong adoption in grid reliability. Key players like GE and Voith lead through innovation, turbine formulations, and expanded retrofit chains. Adoption of closed-loop designs and multiple permitting channels strengthens its dominance. Recent strategic upgrades and project advancements keep the U.S. as the global market leader.

Canada (North America): Canada's market size was USD 20 billion in 2023, expected to grow to USD 45 billion by 2031 at a 10.7% CAGR, holding roughly 6% of the global market share. Growth is fueled by provincial funding and regulatory clarity that boost premium, sustainable storage demand. Leading U.S. brands are investing in Canadian operations and projects, accelerating market maturity. Preference for efficient, low-impact systems continues to mount. Canada complements U.S. leadership with a strong adjacent presence.

Europe (Key countries: UK, Germany, France): Europe constitutes 25% of the global pumped hydro storage market and is rapidly growing due to expanding EU green deal policies and rising net-zero awareness. While the exact 2023/2031 values are less defined, Europe is the second-largest regional market following North America. The UK, Germany, and France drive expansion through advanced retrofits and diversified grid launches. Market growth is supported by established hydropower demand and the increased entry of global brands. Europe's evolving frameworks and expanding storage base make it a crucial growth region.

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Market Segmentation Analysis

By Type: Closed-loop systems dominate with a 67% market share, valued at USD 64 billion in 2023 and projected to grow to USD 141 billion by 2031 at a 10.4% CAGR. Open-loop systems hold 33% of the market, valued at USD 31 billion in 2023 and expected to reach USD 69 billion by 2031 at a 9.2% CAGR. The closed-loop segment's growth is driven by increasing developer demand for low-impact, high-permitting products compliant with FERC and DOE standards, while open-loop sustains demand through connected river applications.

By Application: Renewable energy integration constitutes the largest segment with 40% market share, valued at USD 38 billion in 2023 and expected to expand to USD 84 billion by 2031, powered by solar/wind growth and grid research. Grid stabilization & frequency regulation holds 30% share, valued at USD 28.5 billion in 2023 and projected to reach USD 63 billion by 2031, fueled by reliability applications. Load shifting and energy arbitrage each account for 15% of the market, reflecting growing awareness of storage benefits and targeted flexibility needs.

By End-Use: Utilities and grid operators lead with a commanding 70% market share, valued at USD 66.5 billion in 2023 and forecasted to reach USD 147 billion by 2031, favoured for their scalability and system appeal. Industrial and commercial each hold 15%, worth USD 14.3 billion in 2023 and projected to grow to USD 31.5 billion by 2031, attracting sectors seeking robust backup. The utilities segment's growth is driven by federal mandates for resilient infrastructure.

Innovation and Consumer Trends Fueling Market Expansion

Manufacturers are investing heavily in advanced turbine technologies, such as variable-speed units and digital controls, to improve round-trip efficiency, reduce environmental footprints by an estimated 25%, and comply with regulatory expectations. Utility growth is driven by expanding awareness of pumped hydro benefits like longevity and scale, integration into grid planning workflows, and market education on premium, flexible solutions. North American markets, particularly the U.S., exhibit the highest adoption rates, supported by DOE initiatives, strategic partnerships, and evidence-backed closed-loop configurations.

Market Outlook and Opportunities: The Global pumped hydro storage market is at a tipping point, driven by renewable mandates and every ounce of technological evolution in long-duration storage. Valued at USD 332 billion in 2024, it is projected to reach USD 666 billion by 2032 at a steady 9.2% CAGR. North America, capturing nearly 35% of the global share, spearheads expansion powered by grid reliability demand, while Asia Pacific benefits from rapid additions. Progress in closed-loop sourcing and high-efficiency designs aligns with DOE sustainability aims, although hurdles like permitting delays, capital intensity, and site availability remain. Post-pandemic focus on resilient grids and rising embrace of green incentives and digital optimization unlock vast potential for balance enhancement and stability mitigation in utilities, renewables, and industrial sectors.

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