Small Hydropower Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)
Small Hydropower Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)
Small Hydropower Market is segmented By Capacity (Up to 1 MW, 1-10 MW), By Type (Micro Hydropower, Mini Hydropower), By Plant (Run-of-River Plants, Reservoir-Based Plants), By Component (Electromechanical Equipment, Electric Infrastructure, Civil Works, Others), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa). The report offers the value (in USD billion) for the above-mentioned segments.
Small Hydropower Market is segmented By Capacity (Up to 1 MW, 1-10 MW), By Type (Micro Hydropower, M...
Small Hydropower Market Size - Analysis
The small hydropower market is estimated to be valued at USD 2.26 billion in 2024 and is expected to reach USD 2.75 billion by 2031, growing at a compound annual growth rate (CAGR) of 2.8% from 2024 to 2031. The small hydropower market is driven by the growing demand for renewable energy sources across the world.
Market Size in USD Bn
CAGR2.8%
Study Period
2024 - 2031
Base Year of Estimation
2023
CAGR
2.8%
Market Concentration
High
Major Players
Andritz AG, Bharat Heavy Electricals Limited, FLOVEL Energy Private Limited, GE Renewable Energy, Gilbert Gilkes & Gordon Ltd and Among Others
*Disclaimer: Major players are listed in no particular order.
*Source: Coherent Market Insights
Want to purchase customized report? please let us know !
Small Hydropower Market Trends
Market Driver - Rising Demand for Renewable Energy Technologies, Reducing Dependence on Fossil Fuels
The global energy landscape is undergoing a massive transformation driven by the imperatives of energy security, energy access and environmental sustainability. Countries around the world are making concerted efforts to shift towards cleaner energy sources to reduce their carbon footprint as well as diversify their energy mix away from expensive and volatile oil imports.
Small hydropower is emerging as an important part of this energy transition being a renewable, carbon-free source of energy. Many countries, especially in the developing world, still have large untapped hydropower potential which can be harnessed through small hydropower projects.
Growing emphasis on clean energy future bodes well for technologies like small hydropower which can seamlessly integrate into the grid and fulfill energy needs in a sustainable manner. Overall, the rising global momentum to transition to low carbon growth trajectory is a positive driver augmenting growth of the small hydropower market.
Market Driver - Government Policies Supporting Clean Energy and Funding for Hydropower
Many countries have formulated conducive regulatory mechanisms and rolled out attractive incentives to attract private sector investments into clean technologies. Small hydropower has been a direct beneficiary of such enabling initiatives.
Many governments offer a range of fiscal incentives for small hydropower projects such as tax breaks, subsidies, capital grants, low interest loans, feed-in-tariffs etc. This helps mini/micro hydropower achieve price competitiveness compared to conventional fuels. In addition, some nations have also instituted mandatory renewable purchase obligations which create a guaranteed market for renewable power producers.
Recognizing the immense unharnessed hydropower potential in their territories, several countries have also instituted regulatory policies reserving a certain proportion of hydropower development for small-scale projects. Some governments have gone a step further through intervention programs focused on capacity building, R&D, market intelligence, and awareness generation. These multi-pronged policy thrusts are expected to provide continued impetus to growth of affordable, scalable and environment-benign small hydropower market globally.
Market Challenge - Environmental Impact and High Investment Costs
Small hydropower projects can negatively impact local aquatic ecosystems during construction and operations. Dams disrupt the natural flow of rivers, which can harm fish populations that rely on upstream and downstream migration patterns.
The sediment build-up from damming can degrade water quality and damage habitats over time. Addressing these environmental factors requires extensive research and mitigation plans that increase initial costs.
Installing small hydropower infrastructure also has significant capital expenses for building weirs, pipes, turbines, and electrical connections. Retrofitting an existing dam for power generation still demands sizeable investment in hydroelectric equipment. Initial feasibility studies, permits, and equipment also contribute to high upfront costs.
Given the scale of individual small hydropower projects, the levelized cost of electricity generated can be comparable to large conventional power plants. High capital expenditures present a major financial challenge for companies in the small hydropower market.
Market Opportunity - Utilizing IoT Technology to Enhance Productivity and Maintenance
The small hydropower market could leverage Internet of Things (IoT) technology to optimize productivity and reduce long-term maintenance costs. Sensors installed on turbines, generators, and other critical components can remotely monitor performance data in real-time. Machine learning algorithms could then analyze operational patterns to detect any abnormal function or deterioration. This predictive monitoring capability allows issues to be identified early before major repairs are needed.
Remote asset management powered by IoT further cuts costs by decreasing unnecessary site visits. Field technicians do not need to constantly inspect equipment in-person when digital twin models provide virtual oversight. Automatic notifications of any sensor readings outside normal parameters ensures proactive maintenance.
When integrated into small hydropower infrastructure, IoT has the potential to dramatically enhance long-term productivity and reduce overall electricity costs. This will produce lucrative opportunities for players in the small hydropower market.
Key winning strategies adopted by key players of Small Hydropower Market
Strategic Partnerships and Collaborations: Forming strategic partnerships has been a major strategy for small hydropower players to enter new markets and gain expertise. For example, in 2018, Voith partnered with China Three Gorges Corporation to develop small hydropower projects in Southeast Asia.
Focus on Emerging Markets: With saturated markets in developed nations, players have focused on high growth emerging economies in Asia Pacific, Latin America, and Africa.
Cost Leadership: Given the smaller scale of projects, controlling costs is critical. Players like Voith and Andritz have leveraged their large project experience and supply chain to offer standardized, pre-engineered solutions at lower prices.
Customer Focus: Strong localized customer support helps players better understand projects and customers' needs. For example, Gilkes focuses heavily on after-sales services through regional teams.
Segmental Analysis of Small Hydropower Market
Insights, By Capacity: Up to 1 MW - Reliance on Indigenous Resources
In terms of capacity, up to 1 MW contributes 58.2% share of the small hydropower market in 2024, owning to their reliance on indigenous resources. Plants with capacity up to 1 MW tend to use smaller streams and rivers which are abundant locally. This allows them to avoid significant investments in civil infrastructure like large dams and pipelines to divert water from faraway places.
Depending on locally available water resources also ensures the project risks are relatively lower compared to large projects. These plants are suitable for decentralized power generation in remote off-grid rural communities which lack access to national power grids. Their small scale of operations also means lower environmental impacts and quicker construction times.
As many countries aim to boost rural electrification, segment Up to 1 MW is expected to grow steadily in the small hydropower market.
Insights, By Type: Viability in Off-Grid Areas
In terms of type, micro hydropower contributes 57.4% share of the small hydropower market in 2024, owing to their high viability in serving off-grid rural areas. Micro plants with capacities below 100 kW are well-suited for distributed energy applications far from existing infrastructure. Their modular designs allow flexible installation near water resources in remote mountainous villages.
The lower investment requirements of micro plants compared to other renewables make them affordable even for poorer communities. With higher energy security and lower costs than diesel generators, they effectively meet the lighting and appliance needs of off-grid households.
In the small hydropower market, the micro hydropower segment is poised for growth through its ability to deliver clean power to unelectrified areas with minimal dependence on external infrastructure.
Insights, By Plant: Run-of-River Plants Show Consistency in Flow
In terms of plant, run-of-river plants contributes the highest share of the small hydropower market owing to their advantages in terms of consistency in flow. Run-of-river hydropower harnesses the kinetic energy of free-flowing rivers without the need for large reservoirs to store water. This ensures a steady supply of electricity throughout the year as long as the river is flowing, even during dry seasons.
The absence of huge reservoirs also reduces environmental footprints and social impacts associated with submergence of inhabited lands. Compared to reservoir-based facilities, run-of-river projects have shorter construction periods and lower capital investments. They can be conveniently set up on smaller rivers with lesser storage requirements.
With more emphasis on sustainable technologies, run-of-river plants will continue capture a major share of the small hydropower market in the future through their consistency in energy generation without disturbing natural river flows.
Additional Insights of Small Hydropower Market
Global Renewable Energy Contribution: Small hydropower accounts for approximately 4.5% of the world's renewable energy generation.
Regional Growth: Asia Pacific dominates the small hydropower market with over 40% share, driven by significant investments in China and India.
Environmental Impact: Small hydropower plants have a lower ecological footprint compared to large dams, making them favorable under strict environmental regulations.
Community-Driven Projects: In regions like Africa and Southeast Asia, local communities are initiating small hydropower projects to gain energy independence and support sustainable development.
Retrofitting Existing Dams: There's a growing trend of adding power-generating equipment to non-powered dams, optimizing existing infrastructure for energy production without additional environmental impact.
Competitive overview of Small Hydropower Market
The major players operating in the small hydropower market include Andritz AG, Bharat Heavy Electricals Limited, FLOVEL Energy Private Limited, GE Renewable Energy, Gilbert Gilkes & Gordon Ltd, Natel Energy, Siemens Energy, SNC Lavalin Group, Toshiba Energy Systems & Solutions Corporation, Voith GmbH & Co. KGaA, Bharat Heavy Electricals Limited (BHEL), Canadian Hydro Components Ltd., Mavel, a.s., and Canyon Hydro.
Small Hydropower Market Leaders
Andritz AG
Bharat Heavy Electricals Limited
FLOVEL Energy Private Limited
GE Renewable Energy
Gilbert Gilkes & Gordon Ltd
*Disclaimer: Major players are listed in no particular order.
Small Hydropower Market - Competitive Rivalry
Small Hydropower Market
Market Consolidated (Dominated by major players)
Market Fragmented (Highly competitive with lots of players.)
*Source: Coherent Market Insights
Recent Developments in Small Hydropower Market
In June 2023, Voith GmbH & Co. KGaA launched a new high-efficiency micro turbine designed for low-flow water streams. This innovation allows for energy generation in previously non-viable locations, potentially increasing global small hydropower capacity.
In May 2023, China's National Development and Reform Commission (NDRC) approved the construction of a hydropower plant in the Xizang (Tibet) Autonomous Region. The project, with an investment of approximately 58.38 billion yuan (about $8.43 billion), is expected to have a total capacity of 2.6 million kilowatts and generate over 11.28 billion kilowatt-hours of electricity annually.
In April 2023, GE Renewable Energy entered into a contract with PGE Odnawialna S.A. to modernize the 500 MW Porąbka-Żar pumped hydro storage plant in Poland. The project involves replacing four 125 MW pumped turbines and generators, aiming to extend the plant's operational life by several decades.
In January 2023, the Ganol Hydro Power Project in Meghalaya, India, was inaugurated, adding 22.5 MW of capacity to the state's power supply. The project, valued at over ₹560 crore (approximately USD 67 million), is expected to significantly enhance the local power infrastructure.
Small Hydropower Market Report - Table of Contents
RESEARCH OBJECTIVES AND ASSUMPTIONS
Research Objectives
Assumptions
Abbreviations
MARKET PURVIEW
Report Description
Market Definition and Scope
Executive Summary
Small Hydropower Market, By Capacity
Small Hydropower Market, By Type
Small Hydropower Market, By Plant
Small Hydropower Market, By Component
Coherent Opportunity Map (COM)
MARKET DYNAMICS, REGULATIONS, AND TRENDS ANALYSIS
Market Dynamics
Impact Analysis
Key Highlights
Regulatory Scenario
Product Launches/Approvals
PEST Analysis
PORTER’s Analysis
Merger and Acquisition Scenario
Global Small Hydropower Market, By Capacity, 2024-2031, (USD Bn)
Introduction
Market Share Analysis, 2024 and 2031 (%)
Y-o-Y Growth Analysis, 2019 - 2031
Segment Trends
Up to 1 MW
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
1-10 MW
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Global Small Hydropower Market, By Type, 2024-2031, (USD Bn)
Introduction
Market Share Analysis, 2024 and 2031 (%)
Y-o-Y Growth Analysis, 2019 - 2031
Segment Trends
Micro Hydropower
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Mini Hydropower
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Global Small Hydropower Market, By Plant, 2024-2031, (USD Bn)
Introduction
Market Share Analysis, 2024 and 2031 (%)
Y-o-Y Growth Analysis, 2019 - 2031
Segment Trends
Run-of-River Plants
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Reservoir-Based Plants
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Global Small Hydropower Market, By Component, 2024-2031, (USD Bn)
Introduction
Market Share Analysis, 2024 and 2031 (%)
Y-o-Y Growth Analysis, 2019 - 2031
Segment Trends
Electromechanical Equipment
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Turbines
Generators
Electric Infrastructure
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Transformers
Switchgears
Civil Works
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Dams
Canals
Others
Introduction
Market Size and Forecast, and Y-o-Y Growth, 2019-2031, (USD Bn)
Control Systems
Monitoring Equipment
Global Small Hydropower Market, By Region, 2019 - 2031, Value (USD Bn)
Introduction
Market Share (%) Analysis, 2024,2027 & 2031, Value (USD Bn)
Market Size and Forecast, By Capacity, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Type, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Plant, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Component, 2019 - 2031, Value (USD Bn)
U.S.
Canada
Latin America
Introduction
Market Size and Forecast, By Capacity, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Type, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Plant, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Component, 2019 - 2031, Value (USD Bn)
Brazil
Argentina
Mexico
Rest of Latin America
Europe
Introduction
Market Size and Forecast, By Capacity, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Type, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Plant, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Component, 2019 - 2031, Value (USD Bn)
Germany
U.K.
Spain
France
Italy
Russia
Rest of Europe
Asia Pacific
Introduction
Market Size and Forecast, By Capacity, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Type, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Plant, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Component, 2019 - 2031, Value (USD Bn)
China
India
Japan
Australia
South Korea
ASEAN
Rest of Asia Pacific
Middle East
Introduction
Market Size and Forecast, By Capacity, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Type, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Plant, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Component, 2019 - 2031, Value (USD Bn)
GCC Countries
Israel
Rest of Middle East
Africa
Introduction
Market Size and Forecast, By Capacity, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Type, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Plant, 2019 - 2031, Value (USD Bn)
Market Size and Forecast, By Component, 2019 - 2031, Value (USD Bn)
South Africa
North Africa
Central Africa
COMPETITIVE LANDSCAPE
Andritz AG
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Bharat Heavy Electricals Limited
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
FLOVEL Energy Private Limited
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
GE Renewable Energy
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Gilbert Gilkes & Gordon Ltd
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Natel Energy
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Siemens Energy
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
SNC Lavalin Group
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Toshiba Energy Systems & Solutions Corporation
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Voith GmbH & Co. KGaA
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Bharat Heavy Electricals Limited (BHEL)
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Canadian Hydro Components Ltd.
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Mavel, a.s.
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Canyon Hydro
Company Highlights
Product Portfolio
Key Developments
Financial Performance
Strategies
Analyst Recommendations
Wheel of Fortune
Analyst View
Coherent Opportunity Map
References and Research Methodology
References
Research Methodology
About us
Small Hydropower Market Segmentation
By Capacity
Up to 1 MW
1-10 MW
By Type
Micro Hydropower
Mini Hydropower
By Plant
Run-of-River Plants
Reservoir-Based Plants
By Component
Electromechanical Equipment
Turbines
Generators
Electric Infrastructure
Transformers
Switchgears
Civil Works
Dams
Canals
Others
Control Systems
Monitoring Equipment
Would you like to explore the option of buying individual sections of this report?
About author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
Frequently Asked Questions :
How big is the small hydropower market?
The Small Hydropower Market is estimated to be valued at USD 2.26 Bn in 2024 and is expected to reach USD 2.75 Bn by 2031.
What are the key factors hampering the growth of the small hydropower market?
Environmental impact on aquatic systems, fixed high investment costs, and variability in power generation due to seasonal water flow changes are the major factors hampering the growth of the small hydropower market.
What are the major factors driving the small hydropower market growth?
Rising demand for renewable energy technologies, reducing dependence on fossil fuels, and government policies supporting clean energy and funding for hydropower are the major factors driving the small hydropower market.
Which is the leading capacity in the small hydropower market?
The leading capacity segment is up to 1 MW.
Which are the major players operating in the small hydropower market?
Andritz AG, Bharat Heavy Electricals Limited, FLOVEL Energy Private Limited, GE Renewable Energy, Gilbert Gilkes & Gordon Ltd, Natel Energy, Siemens Energy, SNC Lavalin Group, Toshiba Energy Systems & Solutions Corporation, Voith GmbH & Co. KGaA, Bharat Heavy Electricals Limited (BHEL), Canadian Hydro Components Ltd., Mavel, a.s., Canyon Hydro are the major players.
What will be the CAGR of the small hydropower market?
The CAGR of the small hydropower market is projected to be 2.8% from 2024-2031.
Missing comfort of reading report in your local language? Find your preferred language :
