Small Hydropower Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Small Hydropower Market grew at a CAGR of 4.8% between 2017-2021 and is estimated to be US$ 1,746.5Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 5.2% and is expected to reach a valuation of US$ 2,899.5Mn by 2032 end.

Over the future years, a significant increase in the utilization of renewable energy sources for energy production is projected to drive market growth. It is anticipated that increasing expenditures on “energy-saving” technologies for a range of end users will encourage using small hydropower to generate electricity.

Additionally, the Federal Energy Regulatory Commission (FERC) and the United Nations Industrial Development Organization (UNIDO) have adopted specific renewable energy regulations in response to rising greenhouse gas emissions by expanding electricity demand. Market expansion is anticipated due to Federal Energy Regulatory Commission policies that promote renewable energy sources and address the need for energy delivery in remote areas.

Market Dynamic

RISE IN NEED FOR ECONOMICAL ENERGY SOURCES AUGMENTING THE GLOBAL SMALL HYDROPOWER MARKET

One of the most eco-friendly and cleanest sources of renewable energy is hydroelectricity. It is one of the least expensive energy sources because it costs little to operate and maintain. Mini hydropower plants are highly effective and valuable renewable energy sources because they have efficiency above 90%. Mini hydro generators may generate around 100 KW of electricity.

At any temperature and wind speed, they can run constantly. Small hydropower plants are a dependable and affordable source of energy conversion since they have a longer lifespan of up to 50 years. The capacity utilization factor of small hydropower plants is high, reaching up to 50%. Compared to wind and solar electricity, which account for 25% and 20%, respectively, this leads to increased output.

INCREASE IN AWARENESS ABOUT GREEN ENERGY DRIVING THE GLOBAL SMALL HYDROPOWER MARKET

Growing consumer interest in green energy is predicted to present profitable opportunities for small hydropower market operators. Companies are looking for more efficient alternatives to traditional energy sources due to the implementation of strict restrictions to minimize greenhouse gas and carbon dioxide emissions.

Small hydropower facilities are good substitutes for electricity produced from fossil sources. When energy is produced using fossil fuels, greenhouse gases are released into the atmosphere. These gases have the potential to seriously harm the environment, including air and land pollution and global warming.

Market Segments Covered in Report

By Capacity:

• Up to 1 MW
• 1–10 MW

By Type:

• Micro Hydropower
• Mini Hydropower

By Component:

• Electromechanical Equipment
• Turbine
• Generator
• Other Equipment (includes inlet valves gates, penstock, governors, and auxiliaries)
• Electric Infrastructure
• Civil Construction
• Others ( includes engineering, structural, management, environmental mitigation, and project development)

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why is the civil construction segment expected to hold the largest share of the small hydropower market?

All small hydropower plants’ major portion of project costs is devoted to civil construction. Civil constructions like weirs are built to appropriately direct the water onto turbines and raise the water head. These straightforward public structures are less expensive than those in large hydropower plants, but they account for a sizable portion of the total project cost in small hydropower plants.

Why is micro hydropower increasing in demand in the anticipated period?

The micro hydropower type segment commanded most of the market, with a revenue share of more than 55.0% in 2021. Micro hydropower projects, which range in size from less than 1 MW, can supply electricity to a small village or rural industry in off-grid locations. The small hydropower market has been divided into micro hydropower and mini hydropower based on type.

Micro hydropower systems are made up of crucial parts, including water pipes or channels for transportation, turbines, pumps, alternators, regulators, and wiring for electricity distribution. Commercially available turbines and generators come as a package and must be put together, making the systems simple to maintain and replace. Consequently, more market opportunities are anticipated due to inexpensive maintenance and simple replacement.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• With a market share of 42.3%, the Asia Pacific region is thought to be the largest market worldwide. China, Vietnam, and India are the three economies with the quickest growth rates in the Asia Pacific.
• Another important market for modest hydropower in Europe. The area had the second-largest market share worldwide. Due to the shift in the trend toward the development of renewable technologies for the production of power to meet the rising demand for electricity throughout the region, this trend is anticipated to continue during the projection period.

Competition Analysis

The small hydropower market is consolidated globally, with a few key vendors controlling most of the market share. Major players invest heavily in thorough research and development projects to increase their market share.

The recent developments in the Global Small Hydropower Market:

• In September 2020, a contract to update a total of five pump turbines for the Spanish hydroelectric power facilities Torrejón and Valdecaas located on the River Tajo was signed by Voith GmbH and Iberdrola, a corporation established in Spain that produces electricity.
• In August 2020, to provide electromechanical Equipment for the Kutehr hydroelectric plant (240 MW) situated on the river Ravi in the Chamba district of Himachal Pradesh in India, Andritz AG entered into a contract with JSW Energy (Kutehr) Limited, an independent power producer with headquarters in India.

A list of some of the key suppliers present in the market are:

• Siemens AG
• Voith GmbH
• Agder Energi AS
• Ontario Power Generation Inc.
• General Electric
• Andritz AG
• StatKraft
• BC Hydro
• RusHydro
• Fortum

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.

• Report Includes

  Market Size Data

  • Global market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and region
  • Regional level market size data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment and country
  • Country level market share data, historical (2018 to 2022) and forecast (2023 to 2033), by each segment
  • Market attractiveness analysis based on market share index and CAGR index for each of the segments and regions
  • Incremental dollar opportunity generated in the forecast period would be indicated
  • Key Takeaways, Recommendations, and key investment pockets for the relevant segments would be highlighted

  Market Background

  • Macroeconomic factors that impact the market developments
  • Market dynamics (Drivers, Restraints, Opportunities) that positively or negatively influence market growth
  • Supply Side and Demand Side trends – trends witnessed from buyers and suppliers side
  • Production and Consumption Gap Analysis – analysis of gap between production and consumption in any geography to fulfil unmet demand
  • Trade analysis and analysis of key supply and demand hubs
  • Identification of hotbed opportunities existing in the market
  • Porter’s and PEST analysis to understand the business environment of the geography
  • Regulatory scenario – Identification of key sector specific and trade regulations, and assessment of whether it helps or hinder market development & growth

  Pricing Analysis

  • Regional-level product pricing analysis to set and benchmark your current or future product offerings across each product type
  • Historical and projected pricing trends of the product which helps in determining the product’s price and/or services beneficial for companies product lifecycle
  • Cost teardown analysis and key factors impacting pricing

  Value Chain Analysis

  • Country-wise list of raw material suppliers
    • Raw material price trends and buyers’ sentiment
    • Overview of Intelligent Sourcing Technique
    • Raw material procurement requirements
    • Vendor selection criteria
  • Country-wise list of product manufacturers
  • Country-wise list of distributors/traders
  • Country-wise list of end-users
    • End-Users/Customers consumption mapping
    • Key End-Users/Customers client list
  • Country-wise list of other key channel partners
  • Average profitability margins
  • Regional value chain dynamics

  Competition Analysis

  • Market shares and production capacities of key players
  • Tier structure analysis of market
  • Comprehensive competition dashboard representing the top 10-15 players in the market
  • Individual company profiles of top 15 to 20 manufacturers
    • Business Overview
    • Product Portfolio
    • Key Financials
    • Recent Developments
    • SWOT Analysis
    • Strategies

Country Coverage
North America: U.S., Canada
Latin America: Brazil, Mexico, Argentina, Central America, Rest of Latin America
Western Europe: Germany, Italy, France, UK, Spain, Poland, Romania, Rest of Western Europe
Eastern Europe: Russia & Belarus, Balkan Countries, Baltic Countries, Central Asia, Rest of Eastern Europe
Middle East & Africa: KSA, UAE, Turkey, Israel, Northern Africa, South Africa, Rest of Middle East & Africa
East Asia: China, Japan, South Korea
South Asia & Pacific: India, ASEAN, Australia & New Zealand, Rest of South Asia & Pacific

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