Table of Contents
Overview
New York, NY – August 11, 2025 –The Global Hydropower Generation Market is projected to reach USD 413.3 billion by 2034, rising from USD 235.2 billion in 2024, at a CAGR of 5.8% from 2025 to 2034. Asia-Pacific alone contributed USD 84.8 billion in growth, supported by strong demand and abundant water resources. Hydropower generation uses the energy of flowing or falling water—via dams or river-based turbines—to spin blades connected to generators, producing reliable, low-carbon electricity.
The market covers infrastructure, equipment, services, and technologies for large-scale, small-scale, and pumped storage projects. Notable developments include the World Bank’s USD 350 million funding for the Mpatamanga project in Malawi, Kotak funds’ Rs 2,000 crore investment in Alaknanda Hydro, and Mozambique securing USD 5 billion from the World Bank for a major project. Growth is fueled by rising electricity demand, clean energy adoption, and government investments in renewables to cut fossil fuel reliance.
Hydropower’s long operational life, low per-kWh cost, and ability to provide both base-load and peak-load supply make it attractive for public and private investors. Its flexibility to adjust output helps balance grids with variable sources like wind and solar, making it essential for supporting urbanization, industrial expansion, and global decarbonization efforts.
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Key Takeaways
- The Global Hydropower Generation Market is expected to be worth around USD 413.3 billion by 2034, up from USD 235.2 billion in 2024, and is projected to grow at a CAGR of 5.8% from 2025 to 2034.
- In 2024, large- and medium-capacity projects held a 56.30% share in the hydropower generation market.
- Utilities accounted for a 71.90% share in the hydropower generation market due to large-scale energy demands.
- The hydropower generation market in Asia-Pacific reached USD 84.8 billion in 2024.
Report Scope
| Report Features | Description |
|---|---|
| Market Value (2024) | USD 235.2 Billion |
| Forecast Revenue (2034) | USD 413.3 Billion |
| CAGR (2025-2034) | 5.8% |
| Segments Covered | By Capacity (Mini, Micro, and Pico, Small, Large and Medium), By End-User (Utility, Industrial, Others) |
| Competitive Landscape | 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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Key Market Segments
By Capacity Analysis
In 2024, the Large and Medium capacity segment led the Hydropower Generation Market, holding a 56.30% share. This dominance stems from extensive use of high-capacity hydro plants positioned along major river systems and strategic dam sites, enabling substantial electricity generation for both base-load and peak-load needs.
Significant infrastructure investments are driving this segment’s growth, aligning with long-term energy security and sustainability targets. These plants combine high efficiency with low maintenance costs over long operational lifespans, making them cost-effective. Rising demand for dependable renewable power further underscores their role in ensuring grid stability as nations move away from fossil fuels.
By End-User Analysis
In 2024, the utility segment dominated the Hydropower Generation Market, accounting for 71.90% of the share. This leadership highlights utilities’ pivotal role in developing, operating, and maintaining large-scale hydropower infrastructure to meet regional and national electricity needs. Backed by strong financial resources, technical expertise, and regulatory clearances, utilities drive long-term projects that enhance grid stability.
Their dominance reflects the continued reliance on centralized power generation, enabling wide-scale energy distribution to urban, industrial, and rural areas. With growing carbon reduction targets, utilities are expanding renewable portfolios and upgrading existing hydro plants for greater efficiency and reliability.
Regional Analysis
In 2024, the Asia-Pacific led the hydropower generation market with a 36.10% share, valued at USD 84.8 billion. This leadership stems from abundant water resources, favorable terrain, and rising demand for dependable, low-emission power. The region continues to expand hydro infrastructure to support industrial growth and clean energy targets.
North America and Europe hold strong positions through established facilities and modernization projects, while the Middle East & Africa and Latin America are gradually increasing capacity via new small- and medium-scale projects. Ongoing investments ensure Asia-Pacific remains the global hydropower leader.
Top Use Cases
Grid Balancing and Fast Backup Power: Hydropower plants—especially pumped-storage ones—can swiftly ramp up or down to meet sudden electricity demand, acting as a powerful buffer during outages or peak usage. They’re essential for stabilizing modern power grids, filling the gap when supply dips or demand spikes. This fast response helps integrate intermittent sources like wind and solar seamlessly.
Flood Control & Water Regulation: Beyond producing electricity, hydropower facilities help manage water flow by storing and releasing it in a controlled manner. This capability mitigates flood risks during heavy rains and ensures a steady water supply during dry spells—protecting communities and ecosystems.
Irrigation and Water Supply: Reservoirs created for hydropower often serve multiple purposes, such as supplying clean irrigation water to farms and drinking water to communities. This dual use makes hydropower infrastructure valuable not just for energy but also for supporting agriculture and daily life.
Support for Clean Energy Transitions: Hydropower remains the single largest source of renewable electricity globally. It plays a critical role in backing up intermittent green sources like wind and solar, offering dispatchable (on-demand) power and helping countries shift away from fossil fuels toward lower-carbon energy systems.
Recent Developments
- In May 2025, Statkraft began building the Svean hydropower plant in Norway, a key project within its large-scale capacity upgrade program. Valued at around NOK 1.2 billion, this initiative marks a major step in the company’s hydropower modernization strategy.
- In October 2024, ANDRITZ secured a contract to refurbish a turbine-generator unit at Norway’s Vamma run-of-river plant, increasing its output from 100 MW to 122 MW with a new oil-free Kaplan runner and enhanced electrical components.
Conclusion
The Hydropower Generation Market plays a vital role in delivering reliable, renewable, and low-emission electricity to meet growing global energy needs. With its ability to provide both base-load and peak-load supply, hydropower supports grid stability while complementing other renewable sources like wind and solar.
Advancements in modernization, storage solutions, and sustainable project development are further enhancing its efficiency. As nations work toward carbon reduction and energy security, hydropower remains a cornerstone of clean and dependable power generation worldwide.
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