Hydropower Global Market Report 2026

Hydropower, or hydroelectric power, is a renewable energy source that harnesses the energy of flowing or falling water to generate electricity. This process involves converting the kinetic energy of water into mechanical energy, which is then transformed into electrical energy using generators. Hydropower can be derived from various sources, including rivers, streams, dams, or the tidal movements in oceans.

The primary types of hydropower are categorized as large hydropower and small hydropower. Large hydropower involves the generation of electricity utilizing dams and reservoirs, leveraging the force of substantial bodies of water to turn turbines and produce electricity on a significant scale. This encompasses diverse components, including civil construction, electromechanical equipment, electricity, power infrastructure, and others, applied in various settings such as residential, commercial, and industrial applications.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on steel, turbines, generators, and electrical components have increased construction and equipment costs across large and small hydropower projects, affecting developing regions in Asia Pacific, Latin America, and Africa where infrastructure imports are high. These tariffs slow deployment timelines and increase capital expenditure, particularly for electromechanical systems, although they also incentivize growth of domestic manufacturing and localized supply chains, supporting long term cost optimization and technology innovation in the hydropower market.

The hydropower market research report is one of a series of new reports from The Business Research Company that provides hydropower market statistics, including hydropower industry global market size, regional shares, competitors with a hydropower market shares, detailed hydropower market segments, market trends and opportunities, and any further data you may need to thrive in the hydropower industry. This hydropower market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The hydropower market size has grown steadily in recent years. It will grow from $258.04 billion in 2025 to $270.16 billion in 2026 at a compound annual growth rate (CAGR) of 4.7%. The growth in the historic period can be attributed to availability of abundant water resources, expansion of national electrification programs, government investments in large hydropower projects, early adoption of reservoir based hydropower, increasing demand for low cost baseload power.

The hydropower market size is expected to see steady growth in the next few years. It will grow to $324.08 billion in 2030 at a compound annual growth rate (CAGR) of 4.7%. The growth in the forecast period can be attributed to growing focus on climate resilient power systems, rising investments in small scale hydropower, increasing integration of smart monitoring technologies, demand for decentralized renewable power solutions, modernization of hydropower plants for higher efficiency. Major trends in the forecast period include rising adoption of run of river hydropower projects, growing investments in small and micro hydropower installations, increasing shift toward hybrid renewable power systems, rising modernization of aging hydropower infrastructure, expansion of environmentally friendly turbine technologies.

The rising demand for electricity is expected to drive the growth of the hydropower market going forward. Electricity is a form of energy produced by the movement of charged particles, typically electrons. The increasing digitization of various sectors, including communication, information technology, and smart technologies, has led to a greater need for electricity to power servers, data centers, and communication networks. Hydropower is a renewable energy source that depends on the continuous flow of water, which is naturally replenished through processes such as rainfall and snowmelt. This makes hydropower a sustainable and environmentally friendly method of generating electricity. For example, in March 2025, according to Statistique Canada, a Canada-based statistical agency, Canadian electricity consumption increased by 3.8% year over year, reaching 63.6 million MWh in January. Therefore, the rising demand for electricity is driving the growth of the hydropower market.

Major companies operating in the hydropower market are focusing on developing innovative products, such as VETT-in-a-Box, to meet the demand for cost-effective, easily deployable, and environmentally friendly micro-hydropower solutions. This product is a microhydropower system designed for simple installation and can produce electricity from small rivers, wastewater outflows, lock gates, or canals with a two-meter head drop. For example, in April 2023, Ricoh Company Ltd., a Japan-based imaging and electronics firm, introduced its micro hydroelectric power generation system for sewage treatment plants, featuring 3D-printed biomass-derived turbine blades, a dual-generator setup within a single unit, and compatibility with factory drainage or canal flow integration.

In July 2024, TotalEnergies, a France-based provider of integrated energy solutions including oil, gas, renewables, and electricity, acquired 100% of SN Power (via a joint venture) for an undisclosed amount. Through this acquisition, TotalEnergies aimed to strengthen its hydropower presence in Africa by adding operational assets and development pipelines to support its multi-energy transition strategy. SN Power is a Norway-based developer and investor in hydropower projects, offering both operational and under-construction hydropower assets across the African region.

Major companies operating in the hydropower market are Electricite de France S.A., Siemens AG, General Electric Company, Iberdrola S.A., ABB Ltd, Georgia Power Company, Duke Energy Corporation, Vattenfall AB, ALSTOM Holdings, Statkraft AS, Hydro-Quebec, Verbund AG, China Yangtze Power Co. Ltd, Andritz AG, China Three Gorges Corporation, Tata Power Company Limited, Ontario Power Generation Inc., Alfa Laval AB, BC Hydro and Power Authority, Brookfield Renewable Partners L.P., Voith GmbH & Co. KGaA, Bharat Heavy Electricals Limited (BHEL), Agder Energi AS, Gilbert Gilkes & Gordon Limited, HydroChina International Engineering Co. Ltd.

Asia-Pacific was the largest region in the hydropower market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the hydropower market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the hydropower market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hydropower market consists of revenues earned by entities by providing services, such as project development consulting, engineering and design services, operation and maintenance (O&M) services, asset management and optimization, and hydropower training and education. The market value includes the value of related goods sold by the service provider or included within the service offering. The hydropower market also includes sales of products such as turbines, generators, control systems, hydropower monitoring and measurement systems, and energy storage. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Hydropower Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses hydropower market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for hydropower ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The hydropower market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Type: Large Hydropower; Small Hydropower
• 2) By Component: Civil Construction; Electromechanical Equipment; Electric; Power Infrastructure; Others Components
• 3) By Application: Residential; Commercial; Industrial
• Subsegments:
• 1) By Large Hydropower: Reservoir-Based Hydropower; Run-Of-River Hydropower (Large-Scale)
• 2) By Small Hydropower: Micro Hydropower (Up To 100 KW); Mini Hydropower (100 KW To 1 MW); Small Hydropower (1 MW To 10 MW)
• Companies Mentioned: Electricite de France S.A.; Siemens AG; General Electric Company; Iberdrola S.A.; ABB Ltd; Georgia Power Company; Duke Energy Corporation; Vattenfall AB; ALSTOM Holdings; Statkraft AS; Hydro-Quebec; Verbund AG; China Yangtze Power Co. Ltd; Andritz AG; China Three Gorges Corporation; Tata Power Company Limited; Ontario Power Generation Inc.; Alfa Laval AB; BC Hydro and Power Authority; Brookfield Renewable Partners L.P.; Voith GmbH & Co. KGaA; Bharat Heavy Electricals Limited (BHEL); Agder Energi AS; Gilbert Gilkes & Gordon Limited; HydroChina International Engineering Co. Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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