Hydro Electricity Market Report 2026

The hydro electricity market size has grown steadily in recent years. It will grow from $318.43 billion in 2025 to $327.86 billion in 2026 at a compound annual growth rate (CAGR) of 3%. The growth in the historic period can be attributed to early construction of large dams, growth of residential and industrial electricity demand, government investment in hydropower, advancements in turbine technologies, use of rivers for energy generation.

The hydro electricity market size is expected to see steady growth in the next few years. It will grow to $375.28 billion in 2030 at a compound annual growth rate (CAGR) of 3.4%. The growth in the forecast period can be attributed to increasing focus on renewable energy adoption, modernization of existing hydropower plants, integration with smart grid systems, rising demand for pumped storage solutions, government incentives for sustainable hydropower projects. Major trends in the forecast period include expansion of pumped storage hydropower stations, growth of run-of-river hydropower projects, adoption of hybrid hydropower solutions, integration of smart grid and monitoring systems, increasing utilization of low-head diversion systems.

The rising global demand for electricity is expected to drive the growth of the hydroelectricity market. Electricity demand refers to the total amount of electricity consumed by a country, region, or sector over a specific period. Hydroelectricity generates power by harnessing the energy of flowing water, typically from rivers or dams, providing a sustainable, clean, and reliable source of energy to meet electricity needs. For example, in December 2025, the U.S. Energy Information Administration (EIA), a government agency based in the United States, projected that total U.S. electricity consumption would reach 4.19 trillion kilowatt‑hours (kWh) in 2025, up from 4.11 trillion kWh in 2024, representing a 2.1% increase driven by higher residential, commercial, and industrial usage. Consequently, the growing global electricity demand is fueling the expansion of the hydroelectricity market.

Leading companies in the hydroelectricity market are focused on developing innovative self-powered hydropower cellular base stations to enhance connectivity in remote areas, minimize dependence on traditional power sources, and support sustainable energy infrastructure in off-grid locations. A self-powered hydropower cellular base station is a telecommunications site that generates electricity from a nearby hydropower source, such as a river or stream, to power cellular network equipment. For example, in May 2024, NTT Docomo Inc., a Japan-based mobile operator, launched Japan's first demonstration project of a self-powered hydropower cellular base station. This groundbreaking initiative seeks to examine the viability of using hydropower from irrigation canals to sustainably power mobile networks, especially in rural areas where traditional power sources may be less feasible.

In July 2024, TotalEnergies SE, a U.S.-based company specializing in petroleum products, acquired SN Power AS for an undisclosed sum. This acquisition aims to bolster TotalEnergies SE’s renewable energy portfolio, particularly in the hydropower sector, to accelerate its shift towards cleaner energy solutions and advance its carbon emissions reduction goals while also expanding its footprint in emerging markets. SN Power AS, a Norway-based company, specializes in hydroelectricity.

Major companies operating in the hydro electricity market are Andritz Hydro, BC Hydro, China Yangtze Power Co. Ltd., EDF (Électricité de France), Engie SA, General Electric Power, Iberdrola SA, Manitoba Hydro, National Hydroelectric Power Corporation (NHPC), RusHydro, Statkraft AS, Tata Power, Voith Hydro, Brookfield Renewable Partners, Innergex Renewable Energy, Sembcorp Industries, Duke Energy Corporation, Pacific Gas and Electric Company (PG&E), Hydro-Québec, Fortum Oyj, Itaipu Binacional, Ontario Power Generation, Pacific Hydro, Enel Green Power, Tokyo Electric Power Company (TEPCO), Sinohydro Group Ltd., Scottish Power, Kansai Electric Power.

Asia-Pacific was the largest region in the hydroelectricity market in 2025. Western Europe was the second-largest region in the global hydroelectricity market share. The regions covered in the hydro electricity market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hydro electricity market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hydroelectricity market consists of sales of Run-of-river hydropower and storage hydropower. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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