by A) Market Overview:
The global Hydropower Generation Market is estimated to be valued at USD 237.95 Bn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2023-2030. Hydropower generation refers to the production of electricity through the use of water flow and gravity, making it a clean and renewable energy source. The advantages of hydropower generation include low greenhouse gas emissions, reliable and consistent power production, and the ability to store excess energy. With the increasing global energy demand and the need for sustainable power sources, the hydropower generation market is expected to witness high growth in the coming years.
B) Market Key Trends:
One key trend in the hydropower generation market is the shift towards small-scale hydropower projects. Small-scale hydropower refers to installations with a capacity of less than 10 MW. This trend is driven by the growing emphasis on decentralized power generation, increased focus on rural electrification, and the potential to utilize small rivers and streams for power production. For example, India has set a target to achieve 5,000 MW of small hydropower capacity by 2022. This trend is expected to create opportunities for technology providers and equipment manufacturers catering to the small-scale hydropower segment.
C) Porter’s Analysis:
– Threat of New Entrants: Low to moderate. The Hydropower Generation Market requires significant investment in infrastructure and regulatory approvals, which acts as a barrier to entry for new players. However, the growing market potential and government incentives may attract new entrants.
– Bargaining Power of Buyers: Moderate. Buyers in the hydropower generation market, such as utility companies and governments, have moderate bargaining power due to the availability of multiple suppliers and the need for ongoing maintenance and servicing.
– Bargaining Power of Suppliers: Low. Suppliers in the hydropower generation market, including equipment manufacturers and construction companies, have low bargaining power due to intense competition and the presence of multiple suppliers.
– Threat of New Substitutes: Low. The unique advantages of hydropower generation, such as its renewable nature and long life cycle, make it difficult for substitutes to compete on a large scale.
– Competitive Rivalry: Moderate. The hydropower generation market is moderately competitive, with key players focusing on technological advancements, partnerships, and mergers to gain a competitive edge.
D) Key Takeaways:
The global hydropower generation market is expected to witness high growth, exhibiting a CAGR of 5.9% over the forecast period, due to increasing global energy demand. Hydropower generation offers a sustainable and clean energy solution, making it an attractive option for governments and utility companies. For example, the United States has set a target to achieve 100% clean energy by 2035, which is expected to drive the demand for hydropower generation.
Asia Pacific is the fastest-growing and dominating region in the hydropower generation market. This growth can be attributed to the presence of countries like China, India, and Vietnam, which are investing heavily in hydropower projects to meet their growing energy demands. The region also offers favorable geographic conditions and water resources for hydropower generation.
Key players operating in the global hydropower generation market include General Electric (GE) Co., Turbine Generator Maintenance Inc., Toshiba Corporation, Siemens AG, Arani Power Systems, Elliott Group, TURBOCAM, Doosan Škoda Power, Chola Turbo Machinery International Pvt. Ltd., and Mitsubishi Hitachi Power Systems Americas Inc. These key players are focusing on research and development activities, strategic collaborations, and geographic expansion to maintain their market position and cater to the growing demand for hydropower generation.
In conclusion, the hydropower generation market is poised for significant growth due to the increasing global energy demand and the need for sustainable power sources. The shift towards small-scale hydropower projects, favorable government policies, and technological advancements are driving the market’s growth.
