Hydropower Market - By Capacity, Analysis, Share, Growth Forecast 2025 – 2034

Hydropower Market Size

The global hydropower market size was calculated at 1.43 TW in 2024 and is anticipated to witness a CAGR of 1.8% from 2025 to 2034. The market is experiencing steady growth as countries increasingly turn to renewable energy sources to meet their sustainability targets. Hydropower, with its ability to generate clean, reliable electricity, is one of the most established forms of renewable energy.
 

The ongoing demand for carbon-free power generation solutions, coupled with government incentives and environmental policies, is boosting investment in hydropower infrastructure. While the market has traditionally been dominated by large-scale hydropower projects, there is a growing focus on smaller, decentralized plants, particularly in developing regions, to provide localized energy solutions and enhance grid stability.
 

Technological advancements in hydropower are driving innovation and improving efficiency across the market. New developments in turbine design, automation, and digitalization are increasing the performance of existing plants while also reducing maintenance costs. The integration of advanced monitoring systems, artificial intelligence, and machine learning is also helping operators optimize energy production and ensure more reliable operation. Additionally, the push for pumped storage systems, which allow for energy storage and grid balancing, is gaining momentum, further boosting the role of hydropower in the energy mix and supporting intermittent renewable sources like wind and solar.
 

Hydropower Market Trends

The global shift towards decarbonization is a key driver for market expansion. As countries work to reduce their carbon emissions and achieve net-zero targets, hydropower is increasingly seen as a crucial part of the energy transition. Many governments are prioritizing renewable energy sources, and hydropower plays a vital role in reducing dependency on fossil fuels. Furthermore, hydropower’s ability to provide base-load power and its flexibility in adjusting to peak demand makes it an ideal complement to other renewable sources, such as solar and wind, helping to stabilize energy grids and ensure reliable electricity supply. Moreover, governments are also working on policies to incentivize eco-friendly hydropower projects, with some countries offering grants, tax incentives, and favorable financing conditions to encourage the construction of more environmentally conscious plants.
 

Hydropower Market Analysis

The market is divided by capacity into mini, micro & pico, small, and large. The large hydropower capacity is expected to expand at a CAGR of over 0.8% by 2034. The large-scale market continues to grow as nations seek to meet renewable energy targets and reduce carbon emissions. These projects, often involving the construction of massive dams and reservoirs, provide reliable, base-load power and play a critical role in stabilizing energy grids. Technological advancements in turbine efficiency and automation are enhancing the performance of these plants, while environmental concerns are driving the development of more eco-friendly solutions.
 

The U.S. hydropower market is forecasted to surpass 106 GW by 2034. The U.S. market is experiencing steady growth, driven by increasing demand for renewable energy and government initiatives to reduce carbon emissions. Hydropower remains a key player in the nation’s renewable energy mix, providing a reliable and stable source of electricity. While large-scale projects dominate, there is a growing interest in small and micro-hydropower plants, particularly in rural areas and for distributed generation.
 

The Asia Pacific hydropower market is expanding rapidly due to increasing energy demand and a strong focus on renewable energy sources. Countries like China, India, and Southeast Asian nations are leading in hydropower investments, driven by the need for sustainable and reliable power generation. Technological innovations, such as enhanced turbine designs and smart grid integration, are improving plant efficiency and environmental impact.
 

Hydropower Market Share

Andritz Hydro has established itself as a leading provider of hydropower solutions worldwide. The company fosters innovation by leveraging advanced technologies and analytical tools to enhance performance and operational efficiency. These initiatives play a key role in advancing the hydropower industry, driving its growth and technological progress.
 

Hydropower Market Companies

Some of the key market players operating across the hydropower industry are:

• ABB
• Agder Energy
• Alfa Laval
• Andritz Hydro
• China Three Gorges
• China Yangtze Power
• Duke Energy
• General Electric
• Georgia Power
• Hydro-Quebec
• Metso
• Ontario Power Generation
• RusHydro
• Statkraft
• Voith
   

Hydropower Industry News:

• In September 2023, Furnas and Voith have joined forces to renovate the Porto Colombia hydropower plant, situated on the Grande River between the Brazilian states of São Paulo and Minas Gerais. Originally constructed in 1970 and operational by 1973 with a capacity of 320 MW, the plant is set for major upgrades. This project is particularly significant for Furnas, as it represents their first major contract since privatization. The modernization efforts will focus on enhancing the plant's infrastructure and optimizing its performance, ensuring its continued role as a vital energy source for the region.
   

Hydropower market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume in GW from 2021 to 2034, for the following segments:

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Market, By Capacity (GW)

• Mini
• Micro & Pico
• Small
• Large

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico 
• Europe
  • UK
  • France
  • Germany
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • Australia
  • India
  • Japan
• Rest of World
  • Brazil
  • Iran