Hydro Electricity Market Report 2025

The hydro electricity market size has grown steadily in recent years. It will grow from $319.18 billion in 2024 to $333.82 billion in 2025 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to growth in early industrialization and power generation, large-scale dam construction, rural electrification programs, world wars and energy demands, deregulation and market reforms.

The hydro electricity market size is expected to see steady growth in the next few years. It will grow to $380.78 billion in 2029 at a compound annual growth rate (CAGR) of 3.3%. The growth in the forecast period can be attributed to renewable energy targets, storage solutions integration, hydropower in climate resilience strategies, investment in infrastructure, policy support and incentives. Major trends in the forecast period include hydropower in climate mitigation strategies, community and stakeholder engagement, hydropower as baseload power, grid modernization and integration, hydropower expansion in developing countries.

Supportive legislation in emerging countries is anticipated to drive growth in the hydroelectricity market. Governments worldwide are implementing policies that facilitate the expansion of the hydroelectricity sector. For instance, in 2022, according to the International Energy Agency (IEA), a France-based government organization, the United States passed the Inflation Reduction Act in August 2022, which extended tax credits for hydropower technologies, demonstrating a growing commitment to renewable energy sources. The enactment of favorable laws is expected to increase demand for hydropower, thereby driving growth in the hydroelectricity market.

The increasing global demand for electricity is expected to support the expansion of the hydroelectricity market. Electricity demand refers to the amount of power consumed by a country, region, or sector over a specific period. Hydroelectricity generates power by harnessing the energy of flowing water, usually from rivers or dams, providing a sustainable, clean, and reliable energy source to meet electricity needs. For example, according to data published by Our World in Data, a UK-based scientific online publication, U.S. electricity demand rose from 4,192.9 TWh (terawatt-hours) in 2021 to 4,338.1 TWh by 2022. Consequently, the growing global electricity demand is driving the hydroelectricity market forward.

Leading companies in the hydroelectricity market are focused on developing innovative self-powered hydropower cellular base stations to enhance connectivity in remote areas, minimize dependence on traditional power sources, and support sustainable energy infrastructure in off-grid locations. A self-powered hydropower cellular base station is a telecommunications site that generates electricity from a nearby hydropower source, such as a river or stream, to power cellular network equipment. For example, in May 2024, NTT Docomo Inc., a Japan-based mobile operator, launched Japan's first demonstration project of a self-powered hydropower cellular base station. This groundbreaking initiative seeks to examine the viability of using hydropower from irrigation canals to sustainably power mobile networks, especially in rural areas where traditional power sources may be less feasible.

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 July 2024, TotalEnergies SE, a U.S.-based company specializing in petroleum products, acquired SN Power AS for an undisclosed sum. This acquisition aims to bolster TotalEnergies SE’s renewable energy portfolio, particularly in the hydropower sector, to accelerate its shift towards cleaner energy solutions and advance its carbon emissions reduction goals while also expanding its footprint in emerging markets. SN Power AS, a Norway-based company, specializes in hydroelectricity.

Major companies operating in the hydro electricity market include Andritz Hydro, BC Hydro, China Yangtze Power Co. Ltd., EDF (Électricité de France), Engie SA, General Electric Power, Iberdrola SA, Manitoba Hydro, National Hydroelectric Power Corporation (NHPC), RusHydro, Statkraft AS, Tata Power, Voith Hydro, Brookfield Renewable Partners, Innergex Renewable Energy, Sembcorp Industries, Duke Energy Corporation, Pacific Gas and Electric Company (PG&E), Hydro-Québec, Fortum Oyj, Itaipu Binacional, Ontario Power Generation, Pacific Hydro, Enel Green Power, Tokyo Electric Power Company (TEPCO), Sinohydro Group Ltd., Scottish Power, Kansai Electric Power.

Asia-Pacific was the largest region in the hydroelectricity market in 2024. 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.

Hydroelectricity harnesses renewable energy from altered river flow using dams or diversion structures. Hydropower stations convert water's kinetic energy into electrical power for transmission systems.

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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