Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Hydropower Generation Market size was USD 252.9 billion in 2024 and is estimated to reach USD 559.5 billion by the end of 2037, expanding at a CAGR of 6.3% during the forecast period, i.e., 2025-2037. In 2025, the industry size of hydropower generation is evaluated at USD 268.8 billion.
The clean energy trend and climatic commitments are set to significantly influence the hydropower generation activities globally. The clean energy mix needs are necessitating countries to promote renewables for electricity generation. Storage, run-of-river, pumped storage, and offshore hydropower are the 4 main hydropower generation types deployed worldwide. The majority of the use of hydropower is led by irrigation, followed by water supply, flood control, and other purposes. The International Hydropower Association (IHA) states that hydropower accounts for over 50.0% of global renewable electricity generation. The total hydropower installed capacity across the world amounted to 1416 GW in 2023. To achieve the net-zero emission goals by 2050, the total capacity of hydropower needs to double and range between 2,500 GW to 3,000 GW.
The International Energy Agency (IEA) estimates that hydropower has the biggest scope for renewable energy production. The hydropower generation is expected to expand at a stable growth of 2.2 EJ, a slight increase from 14.2 EJ in 2023 to 16.3 EJ by 2030. The growth capacity is estimated to be dominated by China, India, Africa, and Southeast Asia. Considering the net-zero scenario, the hydropower generation is set to reach 5404 TWh by 2030. Infra upgrades, innovations of new technologies, and green transformation are anticipated to be prime drivers for hydropower generation during the foreseeable period. Hydropower is a lucrative opportunity for investors focusing on long-term gains.
Hydropower Generation Market: Growth Drivers and Challenges
Growth Drivers
- Lucrative scope for innovations: With over 100 years of history, hydropower, being a well-established clean energy offers continuous scope for innovations. This is creating a profitable environment for investors and industry giants. The integration of digital technologies is set to enhance the turbine design and operational patterns of the hydropower plant. The growing demand for modern power systems is leading the innovation trend in hydropower. Artificial intelligence (AI), predictive analysis, advanced sensors, and the Internet of Things (IoT) are gaining traction in hydropower generation. Automation in hydropower plants is expected to advance water resource management and energy production in real time.
- Investments aiming at hydropower expansion: Governments worldwide are focused on encouraging the development of renewables by offering supportive polices and incentives. The rising public-private investments to reduce the financial burden and expedite construction activities are set to propel the hydropower generation in the coming years. Hydropower’s emerging role in energy storage is also uplifting the pumped-storage hydropower plants' role as large-scale batteries. For instance, in February 2024, the U.S. Department of Energy (DOE) revealed the largest single investment of around USD 72.0 million by the government for the expansion of waterpower production. These funds are set to expand 46 projects across 19 states, representing one of the biggest investments to date in hydropower electricity.
Challenges
- Hydropower generation requires high CAPEX: Hydropower generation, a capital-intensive business, poses major challenges to investment opportunities. Right from dam construction to the installation of advanced technologies and machinery requires significant costs, which act as a deterrent for new companies and also restrain small players from expansion. Overall, the construction of the hydropower plant is a time-consuming process, with risks and a lack of patience for long-term gains, investors are expected to show low interest, hindering the hydropower generation market growth to some extent.
- Hydropower generation potentially hampers environmental growth: Even though hydropower generation is a part of the clean energy mix, it creates environmental challenges. Building dams often challenges the surrounding natural environment, creates flooding chances, and social & habitat disruption. In certain regions, the migration of various fish species is also impacted, which sometimes results in protests from environmental activists, leading to delays in plant construction and operations.
Hydropower Generation Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
6.3% |
|
Base Year Market Size (2024) |
USD 252.9 billion |
|
Forecast Year Market Size (2037) |
USD 559.5 billion |
|
Regional Scope |
|
Hydropower Generation Segmentation
Capacity (Small Hydropower Plant (Up to 1 MW), Medium Hydropower Plant (1 MW – 10 MW), Large Hydropower Plant (Above 10 MW))
Large hydropower plant segment is set to account for hydropower generation market share of more than 66.3% by the end of 2037. The hydropower plant above 10 MW dominates the overall generation owing to the growing demand for clean energy and net-zero emission goals. The countries are expanding their budgets for renewables to uplift their position in the global landscape and reduce their dependency on fossil fuel electricity. The increasing prices of conventional electricity are driving attention from public and private entities for investment in hydropower for higher gains. Three Gorges Dam, China (22,500 MW), Itaipu Dam, Brazil (14,000 MW), and Grand Coulee, the U.S. (6,809 MW) are some of the largest hydropower plants across the world.
|
Capacity |
|
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Customize this ReportHydropower Generation Industry - Regional Scope
Asia Pacific Market Forecast
Asia Pacific in hydropower generation market is likely to account for more than 51.5% revenue share by the end of 2037. Expansion of new projects is creating an opportunistic space for key market players in Asia Pacific. Technological advancements and supportive government policies are set to propel the sales of hydropower solutions in the coming years. Collaboration between two countries is likely to drive high investments in hydropower generation. Pumped storage hydropower (PSH) technologies are set to gain traction in China and Australia. Japan, South Korea, and India are also employing strategic moves to push their clean energy mix.
Cross-border collaborations are set to boost the hydropower generation activities in India, offering hefty return opportunities. For instance, Tata Power with Druk Green Power Corporation Ltd. is working on a hydropower plant at the border of India and Bhutan. The supportive government policies of both countries are accelerating the plant expansion and are set to drive positive investments in the coming years. The Ministry of Power, India, states that the country has the hydropower potential of 1,45,000 MW. Furthermore, in August 2024, the Ministry of New and Renewable Energy disclosed the steps taken for small hydropower projects in Odisha, with an estimated potential of 21133 MW from 7133 potential sites.
|
Hydropower Projects with More Than 25 MW Capacity |
|||
|
S. No. |
Name of the Projects |
Capacity (MW) |
District |
|
1. |
Balimela |
510.00 |
Malkangiri |
|
2. |
Hirakud (Burla) |
287.80 |
Sambalpur |
|
3. |
Hirakud (Chiplima) |
72.00 |
Sambalpur |
|
4. |
Rengali |
250.00 |
Angul |
|
5. |
Upper Indravati |
600.00 |
Kalahandi |
|
6. |
Upper Kolab |
320.00 |
Koraput |
|
7. |
Machkund |
114.75 |
Koraput |
|
8. |
Bhimkund |
30.00 |
Keonjhar |
|
9. |
Baljori |
230.00 |
Keonjhar |
|
10. |
Lodani |
64.00 |
Sundergarh |
|
11. |
Tikkarpara |
220.00 |
Angul |
|
12. |
Salki |
70.00 |
Boudh |
|
13. |
Kharag |
63.00 |
Kandhmal |
|
Total |
|
2831.55 |
|
Source: Ministry of New and Renewable Energy, India
|
Pump Storage Projects |
|||
|
S. No. |
Name of the Projects |
Capacity (MW) |
District |
|
1. |
Upper Indravati |
600.00 |
Kalahandi |
|
2. |
Balimela |
500.00 |
Malkangiri |
|
3. |
Upper Kolab |
600.00 |
Koraput |
|
4. |
Greenko OD01 |
1200.00 |
Kalahandi |
|
5. |
Ramial Left |
1500.00 |
Keonjhar |
|
6. |
Tainsar |
675.00 |
Deogarh |
|
Total |
|
5075.0 |
|
Source: Ministry of New and Renewable Energy, India
|
Small Hydropower Projects (up to 25 MW Capacity) |
|||
|
S. No. |
Name of the Projects |
Capacity (MW) |
District |
|
1. |
Dumajorhi SHP |
15.00 |
Koraput |
|
2. |
Kharagpur SHP |
16.50 |
Koraput |
|
3. |
Shaheed Lakhan Nayak SHP |
25.00 |
Koraput |
|
Total |
|
56.50 |
|
Source: Ministry of New and Renewable Energy, India
China is leading the hydropower generation capacities owing to positive government and foreign investment policies. The IHA study highlights that in 2023, the country accounted for 6.7 GW of hydropower capacity. The new integrated capacity in the country is dominated by PSH and aims to increase to 80 GW by 2027. Technological advancements and new policy actions are poised to drive the overall hydropower generation market growth in the coming years. The country is also aiming to construct the world’s largest hydropower dam on the Tibetan plateau. Such moves are driving actions in the hydropower technology sales.
North America Market Statistics
The North America hydropower generation market is expected to register a robust CAGR throughout the forecast period. The continuous development of advanced technologies, positive investment moves by the government, and increasing importance of clean mix are set to promote the hydropower construction activities in the coming years. In February 2024, the U.S. government invested a significant amount in the expansion of its hydropower capacities. This highlights the profitability chances for investors and hydropower technology manufacturers.
Climatic commitments and new hydropower programs are likely to drive the U.S. hydropower generation market growth in the years ahead. DOE estimates that hydropower captures around 27.0% of the total renewable energy production in the country. In terms of type, pumped storage hydropower is a significant contributor to hydropower production and energy storage, underscoring nearly 96.0% of all commercial storage capacity. Between 2010 to 2022, the conventional hydropower capacity of the country surpassed by 2.1 GW. The Infrastructure Investment and Jobs Act Bipartisan Infrastructure Law of 2021, is significantly aiding the hydropower plant construction activities through funds and incentives.
The strong presence of research organizations and heavy dependence on renewables for energy generation are boosting Canada’s position in the global landscape. Nearly 60.0% of the electricity is generated in the country through hydropower plants. The cumulative capacity installations of hydropower stood at 82,232 megawatts in 2021, up from 75,062 megawatts in 2010. With around 595 hydroelectric stations installed in the country, the investments are set to boom in the coming years. Newfoundland and Labrador, Quebec, British Columbia, Manitoba, and Ontario are leading the hydropower generation in the country.
Companies Dominating the Hydropower Generation Market
- Tata Power
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Druk Green Power Corporation Ltd.
- ENERGO-PRO
- General Electric (GE) Co.
- Turbine Generator Maintenance Inc.
- Siemens AG
- Arani Power Systems
- Elliott Group
- TURBOCAM
- Doosan Škoda Power
- Chola Turbo Machinery International Pvt. Ltd.
- Bharat Heavy Electricals Limited
- Voith GmbH & Co. KGaA
- ALSTOM Holdings
- The Vattenfall Group
- Gilbert Gilkes & Gordon Ltd.
- HYDROCHINA International Engineering Co., Ltd.
- JSC RusHydro
The hydropower generation market is mainly dominated by industry giants owing to their high investment capabilities. The hydropower technology producers are employing various marketing strategies such as technological innovations, mergers & acquisitions, new product launches, partnerships and collaborations, and expansion to boost their profit shares and reach. Strategic collaborations with other players are aiding them to expand their operations across regions. Partnerships with public entities are offering them lucrative funds for infrastructure developments and innovations.
Some of the key players include:
In the News
- In March 2025, ENERGO-PRO signed an agreement to purchase the large hydropower plant Baixo Iguaçu in Brazil with a total capacity of 350 megawatts. Through this move, the company becomes the largest Czech investor in Latin America.
- In August 2024, Tata Power announced its strategic partnership with Druk Green Power Corporation Ltd. for developing the 600 MW Khorlochhu Hydropower Project in Bhutan. This strategic collaboration is a step towards strengthening the clean energy collaboration between India and Bhutan
Author Credits: Dhruv Bhatia
- Report ID: 7446
- Published Date: Apr 03, 2025
- Report Format: PDF, PPT
