Hydropower Plant Global Market Report 2026

A hydropower plant is a facility designed to generate electricity by capturing the kinetic energy of moving water, utilizing it to rotate turbines and generators. The energy generated is directly influenced by the volume of water flow and the elevation difference, referred to as the head, between two points. Hydroelectric plants harness the kinetic energy of flowing water in rivers, streams, or canals, and are commonly located on or near a water body to maximize their efficiency.

The primary types of hydropower plants include impoundment power plants, diversion power plants (run-of-river), and pumped storage power plants. Impoundment power plants, also referred to as impoundment hydropower plants, are a specific type of hydroelectric facility that utilizes a dam to store river water in a reservoir. These plants encompass various components, including solutions and services, catering to diverse end users such as city power supply, industrial power supply, military power supply, and others.

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 structures, turbines, generators, and electro mechanical components have increased capital costs for hydropower plant construction, especially in regions reliant on imported equipment such as Asia Pacific and parts of Europe. Run of river and pumped storage facilities are particularly affected due to their heavy machinery requirements. However, tariffs have encouraged domestic manufacturing, strengthened regional supply chains, and promoted local innovation in turbine and storage technologies, partially offsetting the financial burden on long term hydropower development.

The hydropower plant market research report is one of a series of new reports from The Business Research Company that provides hydropower plant market statistics, including hydropower plant industry global market size, regional shares, competitors with a hydropower plant market share, detailed hydropower plant market segments, market trends and opportunities, and any further data you may need to thrive in the hydropower plant industry. This hydropower plant 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 plant market size has grown steadily in recent years. It will grow from $256.09 billion in 2025 to $264.61 billion in 2026 at a compound annual growth rate (CAGR) of 3.3%. The growth in the historic period can be attributed to early development of large hydropower reservoirs, rising industrial electricity demand, expansion of national grid infrastructure, adoption of run of river systems, increased reliance on water based energy production.

The hydropower plant market size is expected to see steady growth in the next few years. It will grow to $300.97 billion in 2030 at a compound annual growth rate (CAGR) of 3.3%. The growth in the forecast period can be attributed to growth of pumped storage projects, rising investments in renewable energy security, expansion of city level smart grid systems, increasing modernization of hydro turbines, development of multi stage hydropower technologies. Major trends in the forecast period include increasing construction of impoundment and run of river hydro plants, growing deployment of pumped storage hydropower systems, expansion of hydropower for city level grid support, rising use of hydropower in industrial power supply, modernization and upgrading of existing hydropower infrastructure.

The increasing demand for renewable energy sources is expected to drive the growth of the hydropower plant market going forward. Renewable energy sources refer to energy derived from natural resources that are replenished on a human timescale, typically within a human lifetime or less. Hydropower plants use renewable energy from water resources to generate electricity without depleting finite resources or significantly contributing to greenhouse gas emissions, ensuring long-term sustainability. For example, in 2023, according to the International Energy Agency (IEA), a France-based intergovernmental organization, global energy investment increased from approximately US $2.4 trillion in 2022 to around US $2.8 trillion in 2023. Therefore, the increasing demand for renewable energy sources is driving the growth of the hydropower plant market.

Leading companies in the hydropower plant market are strategically focusing on developing innovative technology products to optimize the management and performance of hydropower assets, reduce unplanned downtime, and simplify operations. Notably, in June 2023, The Voith Group, a Germany-based machine industry company, collaborated with Ray Sono, a Germany-based digital specialist, to launch Hydro Pocket. This cloud-based solution caters to station management in the small hydropower sector, providing real-time data from small and medium-sized hydropower plants directly on mobile devices. Hydro Pocket enables investors and operators to enhance asset performance through intelligent digitalization, covering monitoring, analysis, and management of hydropower plants. The system offers advantages such as increased efficiency, flexibility, and security, with adaptability to individual needs and user requirements, quick installation, and easy configuration.

In December 2023, Ardian, a France-based private investment firm specializing in infrastructure and renewable energy assets, acquired 100% of a Peru-based hydropower company for an undisclosed amount. Through this acquisition, Ardian aimed to expand its clean energy portfolio in Latin America by adding a fully operational run-of-river hydropower portfolio and securing long-term revenue contracts indexed to inflation. The acquired company is a Peru-based operator of six run-of-river hydroelectric plants with a total capacity of 73.4 MW and long-term U.S. dollar-denominated power purchase agreements.

Major companies operating in the hydropower plant market are Siemens Energy AG, ABB Ltd., Toshiba Corporation, China Three Gorges Corporation, Alstom Hydro, GE Renewable Energy, Hydro-Quebec, CPFL Energia S.A, SNC-Lavalin Group, Tata Power Company Limited, Alfa Laval AB, Voith GmbH & Co. KGaA, PJSC RusHydro, IHI Corporation, Bharat Heavy Electricals Limited, KOLEKTOR GROUP, Innergex Renewable Energy Inc., Flovel Energy Private Limited, Canadian Hydro Components, Natel Energy Inc., Andritz AG, Hitachi Mitsubishi Hydro Corporation, The British Columbia Hydro, Sinohydro Corporation, China Hydroelectric Corporation

Asia-Pacific was the largest region in the hydropower plant market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the hydropower plant 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 plant market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hydropower plant market includes revenues earned by entities by constructing reservoir hydropower plant, tide and wave hydropower plant, micro hydropower plant. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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 Plant 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 plant 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 plant ? 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 plant 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: Impoundment Power Plants; Diversion Power Plants (Run-Of-River); Pumped Storage Power Plants
• 2) By Component: Solutions; Services
• 3) By End-User: City Power Supply; Industrial Power Supply; Military Power Supply; Other End-Users
• Subsegments:
• 1) By Impoundment Power Plants: Reservoir-Based Power Plants; Storage-Based Power Plants
• 2) By Diversion Power Plants (Run-Of-River): Low-Head Run-Of-River Plants; High-Head Run-Of-River Plants
• 3) By Pumped Storage Power Plants: Single Pumped Storage Plants; Multi-Stage Pumped Storage Plants
• Companies Mentioned: Siemens Energy AG; ABB Ltd.; Toshiba Corporation; China Three Gorges Corporation; Alstom Hydro; GE Renewable Energy; Hydro-Quebec; CPFL Energia S.A; SNC-Lavalin Group; Tata Power Company Limited; Alfa Laval AB; Voith GmbH & Co. KGaA; PJSC RusHydro; IHI Corporation; Bharat Heavy Electricals Limited; KOLEKTOR GROUP; Innergex Renewable Energy Inc.; Flovel Energy Private Limited; Canadian Hydro Components; Natel Energy Inc.; Andritz AG; Hitachi Mitsubishi Hydro Corporation; The British Columbia Hydro; Sinohydro Corporation; China Hydroelectric Corporation
• 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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