Hydro Electricity Global Market Report 2024

The hydro electricity market size has grown strongly in recent years. It will grow from $318.98 billion in 2023 to $336.28 billion in 2024 at a compound annual growth rate (CAGR) of 5.4%. The growth observed in the historic period can be attributed to various factors, including early industrialization and power generation, extensive construction of large-scale dams, rural electrification initiatives, increased energy demands during world wars, and the effects of deregulation and market reforms.

The hydro electricity market size is expected to see steady growth in the next few years. It will grow to $400.49 billion in 2028 at a compound annual growth rate (CAGR) of 4.5%. Forecasted growth hinges on renewable energy targets, storage integration, hydropower in climate resilience, infrastructure investment, and policy support. Anticipated trends include hydropower in climate mitigation, community engagement, baseload power usage, grid modernization, and expansion in developing nations.

The hydroelectricity market is anticipated to experience growth driven by favorable laws in emerging countries. Governments worldwide are implementing policies to support and foster the expansion of the hydroelectricity market. A notable example is from January 2021, where the Government of India approved eight hydropower projects with a combined capacity of 144 MW, as reported by the Business Standard newspaper. The introduction of such supportive and favorable laws is expected to contribute to an increased demand for hydropower, consequently boosting the overall growth of the hydroelectricity market.

The hydroelectricity market is poised for expansion due to the escalating global demand for electricity. This demand refers to the quantity of electricity consumed by a country, region, or sector within a specified timeframe. Hydroelectricity, derived from harnessing the energy of flowing water, often from rivers or dams, serves as a sustainable, clean, and reliable source of power to meet growing electricity needs. As an illustration, data from 2022 published by Our World in Data, a UK-based scientific online publication organization, indicates that U.S. electricity demand increased from 4,192.9 TWh (terawatt-hour) in 2021 to 4,338.1 TWh (terawatt-hour) by 2022. This surge in global electricity demand is a key driver propelling the growth of the hydroelectricity market.

Companies in the hydroelectricity market are actively engaged in upgrading their technologies to enhance sustainability, with a particular focus on increasing the efficiency of hydropower plants to align with environmental considerations. A case in point is the initiatives taken by hydroelectricity companies such as EPCG and ERS in 2021, where the construction of a hydropower plant (HPP) in Sutorina was introduced to improve performance and enhance environmental friendliness.

Major players in the hydroelectricity market are strategically investing in initiatives to develop key projects, exemplified by the 480 MW Phukot hydro project. For instance, in June 2023, NHPC Ltd., an India-based hydropower company, collaborated with Vidhyut Utpadan Company Ltd., a Nepal-based hydropower company, to undertake the development of the 480 MW Phukot Karnali hydroelectric project. Utilizing the flow of the Karnali River, the project aims to generate power that will be supplied to Nepal's integrated power system. The project's installed capacity is targeted at 480 MW, with an estimated average annual generation of about 2,448 GWh. This strategic collaboration underscores the industry's commitment to increasing productivity and sustaining a strong market position while contributing to the growth and development of the hydroelectricity sector.

In August 2021, ReNew Power, an India-based renewable energy company, completed the acquisition of Larsen & Toubro for $13.25 million (INR 985 crores). This strategic move enhances ReNew Power's capability to provide consistent, 24/7 power to the grid, supplementing its existing solar and wind assets and addressing a crucial gap in its portfolio. Larsen & Toubro, the acquired entity, is an India-based company specializing in hydroelectricity.

Major companies operating in the hydro electricity market report are Midea Group, Hitachi Ltd., Panasonic Corporation, Haier Group, Specialty Refrigeration and Equipment, Daikin Global, Gree Electric Appliances Inc., Johnson Controls International PLC, Carrier Corporation, Whirlpool Corporation, Illinois Tool Works Inc., Electrolux AB, Snow River Chillers, Fukushima Galilei Co. Ltd., Lotte Engineering & Machinery Mfg. Co., Dover Corporation, Ingersoll-Rand PLC, GEA Group AG, Hoshizaki Corporation, Blue Star Limited, Standex International Corporation, Arneg S.p.A, Paul Mueller Company, Bitzer, Innovative DisplayWorks, Baltimore Aircoil Company, Structural Concepts Corporation, Zhongshan Aochi Refrigeration Equipment Co. Ltd., Mokon Chillers, Blue Air, Frigoglass SAIC, Cold Shot Chillers, RTF Manufacturing.

Asia-Pacific was the largest region in the hydroelectricity market in 2023. Western Europe was the second-largest region in the global hydroelectricity market share. The regions covered in the hydro electricity market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hydro electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Varieties in hydroelectricity include dike type, diversion stations, mixed type, tide, and pumped storage. Diversion or "run-of-river" facilities redirect a river section through canals or penstocks to generate energy from natural riverbed drops. Capacities vary between large, medium, and small scales, catering to residential, commercial, and industrial sectors.

The hydroelectricity market research report is one of a series of new reports that provides hydroelectricity market statistics, including hydroelectricity industry global market size, regional shares, competitors with a hydroelectricity market share, detailed hydroelectricity market segments, market trends and opportunities, and any further data you may need to thrive in the hydroelectricity industry. This hydroelectricity market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The hydroelectricity market consists of sales of Run-of-river hydropower and storage hydropower. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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