The global hydropower market size was estimated at USD 257.1 billion in 2024 and is projected to reach USD 280.20 billion by 2030, growing at a CAGR of 1.5% from 2025 to 2030. This moderate but consistent growth reflects the energy sector’s increasing shift toward sustainable and renewable energy sources, largely driven by the depletion of traditional fossil fuel reserves.

The rising global population continues to place significant pressure on energy demand worldwide. This growing demand, combined with the urgent need to reduce dependency on conventional power generation methods that rely heavily on fossil fuels, has accelerated the industry’s transition toward renewable energy solutions. Among the various renewable technologies, hydropower stands out as one of the most widely adopted methods due to its clean energy generation process, which produces electricity without emitting greenhouse gases or generating toxic waste products.

The decreasing availability of fossil fuels like petroleum and coal, which have historically dominated the power generation landscape, has heightened awareness about the urgent need to adopt renewable alternatives. Furthermore, rapid urbanization and increasing automation across industries have elevated the importance of reliable and continuous power supply. Critical infrastructure sectors such as transportation, water utilities, healthcare, and other essential services depend heavily on uninterrupted energy to function efficiently.

Technological advancements have also contributed to making hydropower systems more efficient and reliable, further strengthening their appeal. As these factors converge, they collectively create a favorable environment for the expansion of the hydropower market. The combination of rising energy demand, environmental considerations, and the essential need for dependable power supply is expected to drive sustained growth in the hydropower industry in the coming years.

Key Market Trends & Insights:

• In 2024, the Asia Pacific region emerged as the dominant player in the global hydropower market, holding a substantial 37.38% share of the total revenue. This strong market position reflects the region’s extensive investment in hydropower infrastructure and its strategic focus on renewable energy development as part of broader efforts to meet growing energy demands sustainably.

• Within the Asia Pacific, China stands out as the leading contributor to the regional hydropower market, accounting for an impressive 42.72% share of the revenue in 2024. China’s dominance is largely driven by its large-scale hydropower projects, government support, and ongoing efforts to expand renewable energy capacity to reduce reliance on fossil fuels and lower carbon emissions.

• When the market is analyzed by components, the civil construction segment took the lead, accounting for a significant 33.24% share of the hydropower industry’s revenue in 2024. This segment encompasses essential activities such as the design and building of dams, reservoirs, tunnels, and powerhouses, which are critical for the successful operation and efficiency of hydropower plants.

• Looking at the market by capacity, the large and medium capacity hydropower segment held the largest revenue share in 2024. These plants, typically characterized by their ability to generate significant amounts of electricity, form the backbone of the hydropower industry by supplying consistent and reliable renewable energy to meet both regional and national power needs.

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Market Size & Forecast:

• 2024 Market Size: USD 257.1 Billion

• 2030 Projected Market Size: USD 280.20 Billion

• CAGR (2025-2030): 1.5%

• Asia Pacific: Largest market in 2024

Key Companies & Market Share Insights:

Several major companies play a pivotal role in the global hydropower market, including prominent industry leaders such as China Three Gorges Corporation, ABB Ltd., and Tata Power Corporation. As the demand for renewable energy continues to rise, driven by environmental concerns and the depletion of fossil fuels, these key players are placing a growing emphasis on the adoption of advanced technologies that enhance power generation from sustainable sources. To maintain and strengthen their market positions, companies in the hydropower industry are implementing various strategic initiatives. These include ramping up research and development (R&D) efforts, fostering innovation, and forming collaborations and partnerships with other corporations and government bodies. Such collaborations aim to facilitate the development of new hydropower projects across diverse geographic locations, thereby expanding their operational footprint and contributing to the global transition to cleaner energy.

Among these companies, ABB Ltd. stands out as a global leader in power and automation technologies, with operations spanning over 100 countries. ABB provides a comprehensive range of integrated electrical and automation solutions specifically tailored for the hydropower sector. Their product portfolio includes sophisticated technologies such as advanced Supervisory Control and Data Acquisition (SCADA) systems, medium and high-voltage switchgear, and generator circuit breakers. These solutions are designed to optimize the efficiency, reliability, and safety of hydropower plants, enabling operators to effectively manage and control power generation processes while meeting stringent environmental and operational standards.

Key Players

• Siemens

• Stakraft Sweden

• ANDRITZ

• China Three Gorges Corporation

• Voith GmbH & Co. KGaA

• ALFA LAVAL

• ABB

• ENGIE

• Tata Power

• Norsk Hydro ASA

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Conclusion:

The global hydropower market is experiencing steady growth, driven by the increasing demand for renewable energy sources and the need to reduce reliance on fossil fuels. Hydropower offers a sustainable solution, providing clean electricity without greenhouse gas emissions or toxic waste. The Asia Pacific region, particularly China, plays a significant role in the market, contributing to its expansion through large-scale projects and investments. Key components such as civil construction and electromechanical equipment are essential to the development and efficiency of hydropower plants. The market is also witnessing a shift towards small and medium-capacity hydropower systems, catering to localized energy needs and promoting decentralized power generation. Overall, hydropower remains a crucial element in the global transition to sustainable energy systems.