Hydropower Market Size

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.

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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.