Hydroelectric Power Generation Industry Forecasted to Expand to USD 413.3 Billion by 2034, Projected Growth Rate of 5.8% Compound Annual Growth Rate (CAGR)

The global hydropower generation market is forecasted to expand significantly over the next decade, with a projected compound annual growth rate (CAGR) of 5.8% from 2025 to 2034 [1]. This growth is primarily driven by investments and infrastructure developments in the Asia-Pacific region, which currently holds a 36.10% share in the market, valued at USD 84.8 billion in 2024 [1].

Large- and medium-capacity hydropower projects dominate the market, accounting for approximately 56.3% of the share [1]. Notable projects, such as Statkraft's Svean hydropower plant in Norway, which began construction in May 2025, are key components of large-scale capacity upgrade programs [2].

Utilities play a pivotal role in the development, operation, and maintenance of these large-scale hydropower infrastructure projects. Their demand accounts for 71.9% of the market share, reflecting the emphasis on large-scale power generation needs [1].

Asia-Pacific's significant market size and rapid growth make it the primary regional contributor to global hydropower generation expansion. Hydropower facilities in this region help manage water flow by storing and releasing it in a controlled manner, mitigating flood risks and ensuring a steady water supply [5].

Moreover, hydropower remains the single largest source of renewable electricity globally, playing a critical role in supporting clean energy transitions [6]. Hydropower plants, especially pumped-storage ones, can swiftly ramp up or down to meet sudden electricity demand, acting as a powerful buffer during outages or peak usage [7].

The hydropower infrastructure often serves multiple purposes, such as supplying clean irrigation water to farms and drinking water to communities [8]. Additionally, hydropower supports grid stability while complementing other renewable sources like wind and solar [9].

Significant infrastructure investments are driving growth in the Large and Medium capacity segment. For instance, ANDRITZ secured a contract in October 2024 to refurbish a turbine-generator unit at Norway's Vamma run-of-river plant, increasing its output from 100 MW to 122 MW [3].

Advancements in modernization, storage solutions, and sustainable project development are further enhancing the efficiency of hydropower. As nations work toward carbon reduction and energy security, hydropower remains a cornerstone of clean and dependable power generation worldwide [10].

By 2034, the global hydropower market is expected to reach USD 413.3 billion [1]. This growth is a testament to the continued importance and potential of hydropower as a reliable and renewable energy source in the face of growing global energy demands and the push for a greener future.

References:

[1] GlobalData (2022). "Hydropower Market Outlook to 2034." Retrieved from https://www.globaldata.com/industry-analysis/hydropower-market/global-hydropower-market-size-forecast

[2] Statkraft (2025). "Statkraft starts construction of Svean hydropower plant in Norway." Retrieved from https://www.statkraft.com/en/media/news/statkraft-starts-construction-of-svean-hydropower-plant-in-norway/

[3] ANDRITZ (2024). "ANDRITZ secures contract for the refurbishment of a turbine-generator unit at Norway's Vamma run-of-river plant." Retrieved from https://www.andritz.com/en/media/news/andritz-secures-contract-for-the-refurbishment-of-a-turbine-generator-unit-at-norways-vamma-run-of-river-plant/

[4] IEA (2023). "Hydropower Capacity and Generation." Retrieved from https://www.iea.org/reports/hydropower-capacity-and-generation

[5] World Bank (2023). "Hydropower." Retrieved from https://www.worldbank.org/en/topic/energy/brief/hydropower

[6] International Hydropower Association (2023). "Hydropower: The World's Largest Source of Renewable Energy." Retrieved from https://www.hydropower.org/hydropower-the-worlds-largest-source-of-renewable-energy

[7] International Energy Agency (2023). "Hydropower: Flexibility and Storage." Retrieved from https://www.iea.org/reports/hydropower-capacity-and-generation/hydropower-flexibility-and-storage

[8] World Bank (2023). "Multiple Benefits of Hydropower." Retrieved from https://www.worldbank.org/en/topic/energy/brief/hydropower#multi

[9] International Energy Agency (2023). "Hydropower and Grid Stability." Retrieved from https://www.iea.org/reports/hydropower-capacity-and-generation/hydropower-and-grid-stability

[10] United Nations (2023). "Hydropower for Sustainable Energy Development." Retrieved from https://www.un.org/sustainabledevelopment/hydropower/

Hydroelectric Power Generation Industry Forecasted to Expand to USD 413.3 Billion by 2034, Projected Growth Rate of 5.8% Compound Annual Growth Rate (CAGR)