Hydropower Generation Market Is Estimated To Witness High Growth Owing To Opportunity Of Increasing Energy Demand.

Hydropower generation market 

Hydropower generation uses the energy of flowing water to generate electricity through hydro turbines which converts the kinetic energy of flowing water into electrical energy. Hydropower is a renewable and reliable source of energy and plays a crucial role in reducing greenhouse gas emissions by offsetting fossil fuel-based power generation. It provides numerous advantages such as low operational cost, no fuel cost, high efficiency, and can be used for peak as well as base load power applications. With growing population and rapid industrialization, the demand for energy is increasing exponentially across the globe.

The global hydropower generation market is estimated to be valued at US$ 251.99 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity of increasing energy demand presents a lucrative growth pathway for hydropower generation market. According to estimates, the global energy demand is projected to increase by close to 50% by 2050. As reliance on non-renewable energy sources like coal and oil increases the threat of climate change, there is a growing emphasis on developing renewable sources of energy like hydropower. With advantages such as zero emissions and ability to supplement intermittent renewable sources, hydropower can play a vital role in meeting this rising energy demand sustainably. Governments across countries are promoting hydropower projects to meet climate targets through policy incentives. Furthermore, technological advancements are improving efficiency and reducing costs of hydropower generation, making it competitive against conventional sources. The huge untapped hydropower potential in countries like China, Brazil and DRC indicates scope for significant capacity addition, driving the market growth in forecast period.

Porter’s Analysis

Threat of new entrants: The hydropower generation market requires large investments in dams, turbines, and power generation infrastructures. This increases the entry barriers for new companies.

Bargaining power of buyers: The bargaining power of buyers is moderate as electricity generation from hydropower plants is a necessity. However, buyers can switch to other renewable sources like solar and wind.

Bargaining power of suppliers: Major suppliers for hydropower projects include turbine manufacturers, dam construction companies, and energy equipment providers. Their bargaining power is high since switching costs for clients are high.

Threat of new substitutes: Alternative renewable energy sources like solar and wind provide substitutes. However, hydropower plants have a lower cost of generation compared to other renewable sources.

Competitive rivalry: The market has key global players with large market shares. Intense competition exists in terms of technology, quality, and prices.

SWOT Analysis

Strength: Hydropower generation has least operating costs among renewable energy sources. It also provides electricity during peak hours of demand.

Weakness: Hydropower projects require massive capital investments and have long gestation periods. Their generation is dependent on water availability.

Opportunity: Increasing investments in new hydropower projects across developing nations in Asia and Africa. Also, refurbishment of aging hydropower infrastructure.

Threats: Climate change is reducing rainfall and snowfall in some regions, affecting hydropower output. Stringent environmental norms also increase project costs.

Key Takeaways

The Global Hydropower Generation Market Share is expected to witness high growth during the forecast period of 2023 to 2030. The market size is projected to increase from US$ 251.99 Bn in 2023 to US$ 383.64 Bn by 2030, at a CAGR of 5.9%.

Regional analysis indicates Asia Pacific will dominate the hydropower generation market owing to large hydropower projects in China, India, and Southeast Asian nations. Countries like China, Brazil, Canada, and Russia are also focusing on refurbishing aging hydropower plants.

Key players operating in the hydropower generation market are General Electric (GE) Co., Turbine Generator Maintenance Inc., Toshiba Corporation, Siemens AG, Arani power systems, Elliott Group, TURBOCAM, Doosan Å koda Power, Chola Turbo Machinery International Pvt. Ltd., and Mitsubishi Hitachi Power Systems Americas Inc. GE and Siemens have the largest global market shares.

For more details on the report,  Read- https://www.rapidwebwire.com/hydropower-generation-market-is-expected-to-be-flourished-by-rising-demand-for-renewable-energy-sources