Small Hydropower Market Overview:

The market for small hydropower worldwide was valued at USD 2,109 million in 2021. This market is expected to expand at a CAGR of 2.3% between 2023-2032.

The market is expected to grow due to strong growth in renewable energy production. The adoption of small hydropower power for electricity generation will be encouraged by the increasing investments in smart energy-saving measures across different end-uses.

Global Small Hydropower Market Analysis

Type Analysis

Micro hydropower was the dominant segment with a revenue share of over 54.0% in 2021. The micro hydropower projects can produce power for small rural communities in remote areas. The components of the micro hydropower system include turbines, pumps, and alternators as well as regulators and wiring for electricity distribution.

Request Covid - 19 Impact

It is possible to purchase commercially available generators or turbines as a complete package. The only thing that you need to do is assemble the components. This makes them easy and simple to replace and manage. This will increase market opportunities for micro-hydro power because they are easy to replace and require little maintenance.

Capacity Analysis

The 1 MW segment accounted for a significant revenue share in 2021. They are placed in areas where water flows through the great mountains and their foothills. They can be used as either standalone systems or systems feeding into the grid. A 100 kW hydropower system is used to supply power to rural areas, small communities, and remote locations that are not connected.

Ideal for power generation, the 1 MW-10MW hydropower plant can be used. Small hydropower plants will have a negative impact on the environment and provide cost savings in running costs and distribution. This is expected to lead to positive market growth in the 1-10MW capacity hydropower plant segment over the forecast period.

Component Analysis

In 2021, one of the largest contributors was civil construction. The cost of all small hydropower plants was dominated by civil construction. Civil constructions such as dams or weirs are needed to lead water properly onto turbines and raise water heads. This makes these constructions more cost-effective than large hydropower plant projects. Based on components, the market can be divided into power infrastructure, electromechanical equipment, and civil construction.

As the supply of electricity increases, market growth is expected to be steady in all segments. The market for electromechanical equipment will grow at 2.5% over the forecast period. A trash rack cleaning device is used in major small hydropower plants. This removes water from the plant to prevent it from entering waterways, causing damage to electromechanical equipment or reducing hydraulic performance.

Small hydropower has different costs from electromechanical equipment. This is due to differences in the needs of the country and the region. Aside from the above, the cost of components of electro-mechanical gear has been calculated using prevailing rates. These rates are based on the size and power of the plant for different types of generators and turbines.

Key Market Segments

By Type

• Micro Hydropower
• Mini Hydropower

By Capacity

• Up to 1 MW
• 1-10 MW

By Component

• Civil Construction
• Electromechanical Equipment
• Power Infrastructure
• Other Components

Market Dynamics

The Federal Energy Regulatory Commission and United Nations Industrial Development Organization have adopted certain renewable energy measures, due to rising greenhouse gas emissions from growing power consumption. The Federal Energy Regulatory Commission's policies are intended to encourage renewable energy and provide energy to rural areas. These measures will foster market growth.

In the U.S., the installed hydropower revenue for small hydropower was 303.88 Million in 2021. This figure is expected to rise to 380.71 Million by 2032. The market is expected to grow by boosting this high potential growth over the forecast period. According to the International Renewable Agency, the cost of setting up Hydropower plants for 1MW is between US$ 3,400/kW and US$ 10,000/kW. However, this price range is considerably higher than larger plants because of the location and electricity requirements of the site.

Over the forecast period, end-users will shift to mini-hydropower systems, which can be as small as 1 MW, due to rising electricity distribution costs and power failures caused by faults within the main grid.

Region Analysis

The Asia Pacific dominated 2021's global market and had a revenue share of 37.0%. China, Japan, and India lead the market in the Asia Pacific. The rapid production of small hydropower stations in the region and the lower costs of infrastructure has facilitated the adoption of mini and micro-small hydro facilities throughout the Asia Pacific.

The investment in rural electrification, off-grid power generation, and rural electrification is expected to lead to a significant increase in the Asia Pacific market.

Europe was second in revenue share in 2021. Russia held the largest European market share in 2021. Over the forecast period, small hydropower adoption will be driven by factors such as growing concerns over greenhouse gas emissions and rising generation costs due to non-renewable resource depletion.

Market growth will be driven by a rising population and increased demand for energy efficiency and cleanliness. One of the main factors behind regional market growth is the availability of funding from the European Union to finance energy conservation and energy-efficient projects.

Key Regions and Countries covered іn thе rероrt:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia-Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• MEA
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Market Share & Key Players Analysis:

The market is characterized in part by several large players, but also a few smaller regional and medium-sized players. Many of these companies are very active in their particular sector. Voith Group, Siemens Energy, and Voith Group agreed on 22 October 2021 that Voith Group would buy the Siemens stake at the Voith Siemens Hydraulic Power Generation GmbH & KG.

The purchase of Voith Hydro by Voith Group will allow it to take full control of the company and increase its business in the area of renewable energy technologies due to the growing importance of hydroelectricity in the market. The final transfer of the stake should be completed by end of the first trimester of 2022.

Маrkеt Кеу Рlауеrѕ:

• Siemens Energy AG
• ANDRITZ AG
• FLOVEL Energy Pvt. Ltd.
• Bharat Heavy Electricals Ltd.
• General Electric
• Natel Energy
• Gilbert Gilkes & Gordon Ltd.
• SNC-Lavalin Group Inc.
• Other Key Players

For the Small Hydropower Market research study, the following years have been considered to estimate the market size: