Small Hydropower Market Analysis Report By 2030

Small Hydropower Industry Overview

The global small hydropower market size is expected to reach USD 2.56 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 2.8% from 2022 to 2030. 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. Moreover, an increase in greenhouse gas emissions due to the 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 Market Segmentation

Grand View Research has segmented the global small hydropower market based on capacity, component, type, and region:

Based on the Type Insights, the market is segmented into Micro Hydropower and Mini Hydropower

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.

Based on the Capacity Insights, the market is segmented into Up to 1 MW, 1 - 10 MW

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.

Based on the Component Insights, the market is segmented into Civil Construction, Power Infrastructure, Electromechanical Equipment, Others

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.
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.

Small Hydropower Regional Outlook

North America
Europe
Asia Pacific
Central South America
Middle East Africa

Key Companies Profile 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.

Some prominent players in the global small hydropower market include: