The increasing need for clean energy around the world largely drives the global hydropower plant market. Rapid urbanization and industrialization, particularly in developing nations like China and India, have increased the power demand. The demand for renewable energy sources for power generation has increased due to efforts made by governments of many nations, including the U.S., Germany, India, Japan, and China, to reduce their dependence on fossil fuels to create electricity. In order to meet the rising need for renewable energy, several hydropower-producing projects have been developed worldwide, particularly in Asia-Pacific. Additionally, the market is anticipated to grow as a result of increased demand for greener power production technologies and stricter emission regulation targets.
Widespread apprehension and a lack of money have made it difficult to finance and refinance several hydroelectric projects. Due to supply chain issues during the lockdown caused by the COVID-19 pandemic outbreak, greenfield development and crucial modernization projects have also been put on hold. Additionally, government initiatives to support the sector have been delayed, whether new or already in place. Due to modern facilities' high levels of automation, operations have been less affected, but there have been effects due to huge drops in electricity demand and pricing. Demand and prices in some areas have decreased by up to 20.0% while being highly volatile.
Rising Demand for Renewable Energy will Propel Market Expansion
Due to the massive number of new industries and manufacturing facilities that are entering the worldwide market and necessitating a large supply of energy to continue operating, the overall electricity demand is fast rising. Due to the numerous electrical equipment used daily, the household sector has witnessed a significant increase in electricity usage. In addition, rising electricity demand has boosted interest in renewable energy sources, which contributes to a decrease in the amount of fossil fuels used to produce electricity. People have been utilizing renewable energy sources more widely in an effort to slow down global warming and the rapid change in the climate. These factors are driving the global hydropower plant market over the forecast period.
Hydropower Plant Capital Costs are High, which will Restrain Market Expansion
There are numerous resources needed to build up the hydropower producing plants. Some of these resources have a high price tag. The area is needed for the plant setup, and most of this land should be along a river. Government consent is required for this. This can occasionally cost a considerable sum of money. Additionally, labor costs are included in the plant's overhead expenses. High capital expenditures for hydropower plant facilities are impeding the expansion of the hydropower plant market globally as a result.
By Product Type
Based on product type, the hydropower plant market is segmented into Large Hydropower, Small Hydropower and Other Sizes. The large hydropower category dominated the market in 2022. The market for large hydropower plants (over 10MW) is anticipated to be driven by increased efficiency, long life, low maintenance and operation costs, and high dependability during the projected period. In addition, the development of the large hydropower plant market in the near future is projected to be fueled by upcoming hydroelectric projects and plans to update the hydropower infrastructure throughout developing nations.
By End Users/Application
Based on end users/application, the hydropower plant market is segmented into city power supply, industrial power supply, military power supply and others. The industrial power supply category dominated the market in 2022. The energy demand has increased as a result of the rapid industrialization of developing regions. Governments worldwide are seeking alternatives to lessen the reliance on fossil fuels for the industrial sector's electricity generation. This is encouraging the construction of hydropower plants in developing areas..
The Asia Pacific is projected to hold the largest share of the hydropower plant market over the forecast period. The region's rapid urbanization and industrialization have considerably increased the region's energy demand. Additionally, the establishment of numerous hydropower-producing projects throughout the region—particularly in nations like China and India—has been prompted by the rise in demand for renewable energy and the need to lessen reliance on traditional fossil fuels for energy generation. Furthermore, nations like Japan, Vietnam, and South Korea have been investing in the hydropower industry, which is anticipated to fuel the expansion of the hydropower plant market throughout the region throughout the projected period. On the other hand, Europe hydropower plant market is anticipated to grow significantly. Over the forecast period, factors like as growing concerns about greenhouse gas (GHG) emissions and rising generation costs from non-renewable resources are anticipated to boost the adoption of hydropower plants. The growing population and the rising demand for effective and sustainable energy are anticipated to drive market expansion. Another key reasons influencing the expansion of the regional industry has been the funding options for energy efficiency and conservation projects in the European Union.
LIST OF KEY COMPANIES PROFILED:
- Itaipu Dam
- Longtan Dam
- Xiaowan Dam
- Laxiwa Dam
- Grand Coulee
- Ust Ilimskaya
- Three Gorges Dam
- Churchill Falls
- In June 2020, India and Bhutan concluded the Concession Agreement for the 600 MW Kholongchhu Hydroelectric Project. The two nations had never worked together on a hydropower plant prior to this one. Bhutan is the location of the 600 MW project. A 95-meter-high concrete gravity dam is required to hold back the water, and the proposal plans for an underground power facility with four 150 MW turbines.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Product Type, By End Users/Application, and By Geography|
|By Product Type||
|By End Users/Application||