Small Hydropower Global Market Report 2026

Small hydropower refers to the generation of electricity using hydropower systems with a capacity typically less than 10 megawatts (MW). These systems utilize the energy from flowing or falling water to generate electricity on a smaller scale compared to larger hydropower plants.

Small hydropower encompasses micro hydropower, mini hydropower (with a capacity of up to 1 MW), and small hydropower (1-10 MW). Microhydropower, specifically, is a hydroelectric power category generating 5 kW to 100 kW of electricity by harnessing the natural flow of water. Business applications for small hydropower include deployment in civil construction, power infrastructure, and various commercial and utility-scale projects.

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 hydro turbines, electrical components, and construction materials increase capital costs for small hydropower projects, particularly affecting regions dependent on imported equipment such as Europe, South Asia, and Africa. Higher tariffs slow project development timelines and reduce financial viability for micro and mini hydro installations. However, tariffs also incentivize domestic manufacturing of hydro components, strengthen supply chain localization, and support long term development of regional small hydro capabilities.

The small hydropower market research report is one of a series of new reports from The Business Research Company that provides small hydropower market statistics, including small hydropower global market size, regional shares, competitors with a small hydropower market share, detailed small hydropower market segments, market trends and opportunities, and any further data you may need to thrive in the small hydropower industry. This small 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 small hydropower market size has grown steadily in recent years. It will grow from $3.13 billion in 2025 to $3.23 billion in 2026 at a compound annual growth rate (CAGR) of 3.2%. The growth in the historic period can be attributed to early development of decentralized hydro systems, rising demand for rural electrification, government support for small hydro programs, increasing need for reliable local energy sources, advancements in small turbine manufacturing.

The small hydropower market size is expected to see steady growth in the next few years. It will grow to $3.7 billion in 2030 at a compound annual growth rate (CAGR) of 3.5%. The growth in the forecast period can be attributed to expansion of microgrid installations, rising investments in eco friendly hydropower, increasing demand for energy resilience in remote areas, growth in hybrid renewable small hydro systems, rising interest in community based hydropower projects. Major trends in the forecast period include growing adoption of small scale renewable power solutions, increasing demand for off grid and remote area electrification, rising focus on low impact and environmentally friendly hydropower, expansion of rural electrification projects using micro hydro systems, advancements in turbine efficiency and mini hydro technologies.

The rising demand for clean energy is expected to drive the growth of the small hydropower market going forward. Clean energy refers to energy sources and technologies that have minimal or no negative environmental impact, particularly in terms of greenhouse gas emissions and air pollution. Small hydropower systems generate electricity without producing greenhouse gases or air pollutants during operation, helping reduce carbon footprints and improve air quality. For example, in April 2025, the International Renewable Energy Agency (IRENA), a UAE-based intergovernmental organization, reported that global renewable power capacity increased by 585 GW in a single year, marking a record 15.1% annual growth and surpassing the 14.3% growth recorded in 2023. Therefore, the rising demand for clean energy is fueling the growth of the small hydropower market.

Major companies operating in the small hydropower market are focusing on developing innovative products, such as mini hydropower systems, to strengthen their market position. A mini hydropower system is a small-scale hydropower solution that generates electricity from flowing water, typically with a capacity ranging between 100 kW and 1 MW. For example, in September 2025, Elis Co., Ltd., a Japan-based provider of mini-hydropower systems and renewable energy solutions, introduced its advanced WaterWeco mini hydropower generation system. This system includes an automatic load-following mechanism that adjusts the turbine inflow angle and weir configuration in response to varying water conditions, and it is optimized for installation in low-head, low-flow agricultural waterways and irrigation channels, making it highly suitable for distributed renewable power generation.

In April 2023, Kejuruteraan Asastera Berhad (KAB), a Malaysia-based provider of engineering and renewable energy solutions, acquired PT Inpola Mitra Elektrindo for an undisclosed sum. Through this acquisition, KAB aims to enhance its sustainable energy portfolio and broaden its presence in the renewable energy sector by adding a dependable mini-hydropower asset that generates recurring revenue under a long-term power purchase agreement. PT Inpola Mitra Elektrindo is an Indonesia-based provider operating an 11 MW mini-hydropower plant under a 20-year Power Purchase Agreement.

Major companies operating in the small hydropower market are General Electric, Siemens Energy, Toshiba Corporation, ANDRITZ, SNC Lavalin Group, Voith GmbH & Co. KGaA, Mavel, a.s., Flowserve Corporation, BHEL, Kolektor Turboinstitut, FLOVEL Energy Private Limited, Mannvit Engineering, VAPTECH, Canyon Hydro, Ganz EEM, ATB Riva Calzoni, Natel Energy, Inc., Canadian Hydro Components, Hitachi Mitsubishi Hydro, B Fouress, HydroCoil Power, Hydro Green Energy, Rentec Renewable Energy Technologies, Gilkes Hydro

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

The small hydropower market includes revenues earned by entities by providing services such as clean electricity generation, rural electrification, engineering and design, monitoring and optimization and installation and project management. 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 small hydropower market also includes sales of turbines, generators, penstocks, weirs, and control systems. 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.

Small 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 small 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 small 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 small 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: Micro Hydropower; Mini Hydropower
• 2) By Capacity: Up To 1 MW; 1-10 MW
• 3) By Application: Civil Construction; Power Infrastructure; Other Applications
• 4) By End-User: Commercial; Utility-Scale
• Subsegments:
• 1) By Micro Hydropower: Up To 100 Kw Capacity; Off-Grid Systems
• 2) By Mini Hydropower: 101 Kw To 1 MW Capacity; Grid-Connected Systems
• Companies Mentioned: General Electric; Siemens Energy; Toshiba Corporation; ANDRITZ; SNC Lavalin Group; Voith GmbH & Co. KGaA; Mavel, a.s.; Flowserve Corporation; BHEL; Kolektor Turboinstitut; FLOVEL Energy Private Limited; Mannvit Engineering; VAPTECH; Canyon Hydro; Ganz EEM; ATB Riva Calzoni; Natel Energy, Inc.; Canadian Hydro Components; Hitachi Mitsubishi Hydro; B Fouress; HydroCoil Power; Hydro Green Energy; Rentec Renewable Energy Technologies; Gilkes Hydro
• 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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