Small Hydropower

Global Small Hydropower Market to Reach US$2.9 Billion by 2030

The global market for Small Hydropower estimated at US$2.5 Billion in the year 2024, is expected to reach US$2.9 Billion by 2030, growing at a CAGR of 2.0% over the analysis period 2024-2030. Civil Construction, one of the segments analyzed in the report, is expected to record a 1.8% CAGR and reach US$1.1 Billion by the end of the analysis period. Growth in the Electromechanical Equipment segment is estimated at 2.5% CAGR over the analysis period.

The U.S. Market is Estimated at US$669.7 Million While China is Forecast to Grow at 2.0% CAGR

The Small Hydropower market in the U.S. is estimated at US$669.7 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$462.2 Million by the year 2030 trailing a CAGR of 2.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 1.8% and 1.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 1.6% CAGR.

Global Small Hydropower Market – Key Trends & Drivers Summarized

Why Is Small Hydropower Gaining Popularity As A Renewable Energy Source?

Small hydropower (SHP) is emerging as a vital component of the renewable energy mix, providing a clean, reliable, and sustainable source of electricity. Unlike large-scale hydroelectric projects, SHP facilities, typically generating up to 10 megawatts (MW), have minimal environmental impact and can be developed in remote and rural areas without the need for extensive infrastructure. This makes SHP an attractive option for regions with untapped water resources and limited access to other forms of energy. Additionally, SHP projects are scalable, cost-effective, and can operate in conjunction with other renewable energy sources, contributing to the global transition towards low-carbon energy solutions.

How Are Technological Advancements Driving Efficiency In Small Hydropower?

Technological innovations are significantly enhancing the efficiency and feasibility of small hydropower projects. Advanced turbine designs, such as Kaplan and cross-flow turbines, are improving energy capture in low-flow or variable water conditions. Additionally, innovations in control systems and automation allow for more precise monitoring and optimization of hydropower generation, reducing maintenance costs and improving reliability. The integration of hybrid systems, where SHP is combined with solar or wind power, is also becoming more common, allowing for continuous energy generation even in variable weather conditions. These advancements are making small hydropower a more competitive option in the renewable energy landscape.

What Role Do Government Policies Play In Promoting Small Hydropower?

Government policies and incentives play a crucial role in promoting the development of small hydropower projects. Many countries have introduced feed-in tariffs, tax credits, and grants aimed at encouraging investment in renewable energy, including SHP. Additionally, international agreements such as the Paris Agreement are pushing governments to reduce carbon emissions and increase their reliance on clean energy sources, further driving demand for small hydropower. In developing nations, SHP is often supported by government-led initiatives to expand rural electrification and provide off-grid communities with reliable energy access, making it an essential part of national energy strategies.

What Factors Are Driving Growth In The Small Hydropower Market?

The growth in the small hydropower market is driven by several factors, including increasing demand for renewable energy, technological advancements in turbine efficiency, and supportive government policies. As countries strive to meet their renewable energy targets and reduce greenhouse gas emissions, SHP projects are being developed to provide clean and reliable electricity. Technological improvements that enhance energy capture and reduce operational costs are making SHP more attractive to investors. Additionally, government incentives and international climate commitments are creating favorable conditions for the expansion of small hydropower, particularly in rural and remote areas with abundant water resources.

SCOPE OF STUDY:

The report analyzes the Small Hydropower market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Civil Construction, Electromechanical Equipment, Power Infrastructure, Other Components); Type (Micro Hydropower, Mini Hydropower)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe (France; Germany; Italy; UK; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 43 Featured) -

• African Infrastructure Investment Managers
• Agder Energi
• Alstom SA
• ANDRITZ AG
• Artelia
• BC Hydro
• Electricidade de Moçambique (EDM) (Mozambique)
• Eskom Holdings SOC Ltd.
• Fortum Corporation
• Lesotho Electricity Company (Pty) Ltd. (Lesotho)
• Mecamidi
• Ontario Power Generation, Inc.
• Practical Action
• RusHydro
• Siemens AG
• Statkraft AS
• Voith GmbH
• ZESCO Ltd. (Zambia)

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

To our valued clients, we say, we have your back. We will present a simplified market reassessment by incorporating these changes!

APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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