Small Hydropower Market Size, Share & Trends Analysis Report By Capacity (Up To 1 MW, 1 - 10 MW), By Type (Micro Hydropower, Mini Hydropower), By Component, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global small hydropower market size was valued at USD 2.07 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 2.8% from 2022 to 2030. Strong growth in the use of renewable sources for energy production is likely to propel market growth over the coming years. Growing investments in smart “energy-saving” across various end-uses are expected to provide an impetus to the adoption of small hydropower energy for electricity generation. In addition, an increase in greenhouse gas emissions due to growing power consumption has fueled the United Nations Industrial Development Organization (UNIDO) and Federal Energy Regulatory Commission (FERC) to adopt certain renewable energy measures. Policies by the Federal Energy Regulatory Commission in order to encourage renewable sources of energy, coupled with the need to deliver energy in rural locations, are expected to foster market growth.

Small hydropower in the U.S. accounted for 60%-70% of the overall consumption in the North American hydropower market in 2021. In the U.S., small hydropower installed revenue was 304.51 million by 2021 and is expected to have the potential of 363.21 million by 2030. Thus, such a high increase in potential, is expected to bolster the growth of the market during the forecast period. According to the International Renewable Agency, the cost of setting up hydropower plants to 1 MW varies in the range of USD 3,400/kW to USD 10,000/kW or more, which is significantly higher compared to larger plants due to depending on-site electricity requirements and location. The rising electricity distribution costs, power outages caused by faults in the main grid, and incentive programs introduced by the U.S. government are expected to propel end-users to shift towards setting up mini-hydropower systems up to 1 MW over the forecast period.

Type Insights

The micro hydropower type segment dominated the share with a revenue share of over 55.0% in 2021. Micro hydropower projects range from less than 1 MW that can provide power for a rural industry or small community in remote areas away from the grid area. Based on type, the market for small hydropower has been segmented into micro hydropower and mini hydropower.

The micro hydropower systems consist of essential components including water conveyance channels or pipelines, turbines, pumps, alternators, regulators, and electricity distribution wiring. Commercially available turbines and generators are being sold as a package and require only the assembling of components, which makes the systems easy to manage and replace. Therefore, low maintenance and easy replacement are expected to result in increased market opportunities for micro hydropower.

Capacity Insights

Up to 1 MW led the market and accounted for over 55.0% share of the global revenue in 2021. They are set up in geographical areas having flowing water through great mountain ranges and their foothills. They are either used as stand-alone systems or, more often, as systems feeding into the grid. The hydropower system of 100 kW capacity is used to power the rural industries, small communities, or remote areas away from the grid. On the basis of capacity, the global market has been divided into Up to 1 MW and 1-10 MW.

The 1 MW to 10 MW capacity hydropower plant is ideally used to generate power fed into the main grid. The negative environmental impact and cost savings offered in distribution and running costs provided by the small hydropower plants are expected to result in positive market growth for 1-10 MW capacity hydropower plants over the forecast period.

Component Insights

The civil construction segment led the market and accounted for a revenue share of more than 30.0% in 2021. Civil construction accounted for a substantial share of project costs across all small hydropower projects (SHPPs). Therefore, to correctly led the water onto the turbines and raise the water head level, civil constructions such as weirs (dams) are being built. Hence, these simple constructions are more economical than large hydropower plant projects. On the basis of components, the global market has been divided into civil construction, power infrastructure, electromechanical equipment, and others.

The market is anticipated to witness steady growth in all segments as the amount of electricity resources increases. The electromechanical equipment segment is expected to expand at a CAGR of 2.7% over the forecast period. Major small hydropower plants have a trash rack cleaning machine, which removes material from water in order to avoid it entering plant waterways and damaging the electromechanical equipment or reducing hydraulic performance. In small hydropower, the electromechanical equipment costs vary from country to country depending upon the requirements affecting the investment costs that differ not only from country to country but also from region to region. In addition, the cost of various components of electro-mechanical equipment has been worked out as per prevailing rates based on runner diameter and capacity of the plant for different types of turbines and generators.

Regional Insights

Asia Pacific dominated the global market in 2021 and accounted for a revenue share of over 35.0%. The market in this region is led by China, Japan, and India. The reduction in renewable energy costs and the decrease in infrastructure costs promote the rapid production of small hydropower plants in the region, leading to the increasing adoption by mini and micro small hydro facilities in the Asia Pacific. The Asia Pacific market is expected to grow during the projected period owing to the investments in off-grid energy generation and rural electrification.

Europe accounted for the second-largest revenue share in 2021. Russia held the largest share in the European market in 2021. Factors including growing concerns over greenhouse gas (GHG) emissions and increasing generation costs through non-renewable resources are projected to drive the adoption of small hydropower over the forecast period. The rising population, coupled with the increasing demand for efficient and clean energy, is expected to propel market growth. The availability of funding in the European Union for energy conservation and energy efficiency projects has been one of the major factors driving the regional market growth.

Key Companies & Market Share Insights

The market is characterized by the presence of several key players and a few medium and small-scale regional players. Many of the companies have their own sector that they focus on and have a very high penetration in that sector. For instance, on October 22, 2021, Voith Group and Siemens Energy mutually agreed that Voith Group will buy the stake of Siemens in the former Voith Siemens Hydro Power Generation GmbH & Co. KG. This is expected to give Voith Group complete ownership of Voith Hydro and strengthen its core business in the field of renewable energy technologies owing to the growing role of hydroelectric power in the renewable energy market. The complete transfer of the stake is expected to close by the end of the first quarter of 2022. Some prominent players in the global small hydropower market include:

• ANDRITZ

• Bharat Heavy Electricals Limited

• FLOVEL Energy Private Limited

• General Electric

• Gilkes

• Natel Energy

• Siemens Energy

• SNC Lavalin Group

• TOSHIBA CORPORATION

• Voith GmbH & Co. KGaA

Small Hydropower Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For the purpose of this study, Grand View Research has segmented the global small hydropower market report based on capacity, component, type, and region:

• Capacity Outlook (Revenue, USD Million, 2019 - 2030)

  • Up to 1 MW

  • 1-10 MW

• Component Outlook (Revenue, USD Million, 2019 - 2030)

  • Civil Construction

  • Power Infrastructure

  • Electromechanical Equipment

  • Others

• Type Outlook (Revenue, USD Million, 2019 - 2030)

  • Micro Hydropower

  • Mini Hydropower

• Regional Outlook (Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

    • Spain

    • Italy

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

    • Colombia

    • Paraguay

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE

    • Egypt