Hydropower Plant Construction Market Report 2025

The hydropower plant construction market size has grown strongly in recent years. It will grow from $19.6 billion in 2024 to $20.8 billion in 2025 at a compound annual growth rate (CAGR) of 6.2%. The growth in the historic period can be attributed to rural electrification, government policies, environmental concerns, environmental concerns, water management.

The hydropower plant construction market size is expected to see strong growth in the next few years. It will grow to $25.55 billion in 2029 at a compound annual growth rate (CAGR) of 5.3%. The growth in the forecast period can be attributed to renewable energy policies, climate change mitigation, grid modernization, energy storage integration, water resource management. Major trends in the forecast period include run-of-river installations, hybrid systems, repowering and upgrading, public-private partnerships, climate resilience.

The forecast of 5.3% growth over the next five years reflects a slight reduction of 0.1% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. The US could face direct impact due to tariffs on turbines, generators, and electrical components sourced from Germany and Asia, which may slow project progress and raise expenses. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The increasing interest in clean energy is poised to drive the growth of the hydropower plant construction market in the coming years. Clean energy, derived from sources that do not emit greenhouse gases, such as nuclear power, hydroelectric power, solar, geothermal, wind, and tidal energy, is gaining prominence due to heightened awareness of climate change, environmental degradation, and advancements in energy storage and grid integration capabilities. Hydropower plant construction plays a pivotal role in harnessing sustainable energy by utilizing the movement of water to generate electricity, resulting in zero greenhouse emissions. Notably, in June 2023, the Energy Information Administration reported that the usage of renewable energy in the United States reached an all-time high of 13.2 quads in 2022, up from 12.1 quads in 2021. The burgeoning interest in clean energy is a key driver fueling the hydropower plant construction market.

Leading companies in the hydropower plant construction market are strategically focusing on digitization and automation to fortify their market position. Digital solutions, encompassing devices and applications leveraging digital technology for data analysis, processing, and operations, are central to this approach. In June 2022, Voith Group, a Germany-based hydropower plant construction company, in collaboration with Ray Sono AG, a Germany-based digital solutions company, introduced Hydro Pocket, a cloud-based application designed to monitor, analyze, and optimize hydropower stations. Hydro Pocket serves as a comprehensive solution for small to medium-sized hydropower facilities, enhancing operator efficiency, flexibility, and security. The cloud-based tool efficiently manages system data, optimizing maintenance and repair planning and eliminating unexpected downtime through sophisticated analytical techniques. This simplifies system management and reduces communication needs.

In March 2022, Voith Group further strengthened its position in the digital solutions domain for hydropower plants by acquiring Voith Hydro Group from Siemens Energy AG for an undisclosed amount. This acquisition positioned Voith Group as the exclusive owner of the Voith Hydro Group Division, formerly a joint venture. Siemens Energy AG, a Germany-based company offering solutions for small hydropower plants up to 30-megawatt unit capacity, played a crucial role in this strategic move.

Major companies operating in the hydropower plant construction market are PowerChina Group, Bouygues Construction SA, Sinohydro Corporation, Vinci Construction, Siemens Energy AG, ABB Group, Duke Energy Corporation, Toshiba Corporation, China Three Gorges Corporation, Strabag SE, Statkraft AS, Skanska Group, Hydro-Québec, Verbund AG, Enel Green Power, Webuild SpA, Dongfang Electric Corporation, Andritz AG, Suez Group, RusHydro, SNC-Lavalin Group Inc., BC Hydro, Voith Group, GE Renewable Energy, Astaldi S.p.A., Bharat Heavy Electricals Limited (BHEL), Alstom SA, Innergex Renewable Energy Inc., Voimaosakeyhtiö SF.

Asia-Pacific was the largest region in the hydropower plant construction market in 2024. The regions covered in the hydropower plant construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hydropower plant construction market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hydropower plant construction market includes revenues earned by entities by conventional hydroelectric power plants, pumped storage hydroelectric plants, run-of-river hydroelectric plants, tidal hydroelectric plants, and micro-hydroelectric plants. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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).

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the resulting trade tensions in spring 2025 are having a considerable impact on the construction sector, particularly in the areas of material procurement and overall project expenses. Increased duties on imported steel, aluminum, lumber, and machinery have raised costs for builders, contractors, and infrastructure developers, resulting in higher project bids and delays in execution. Manufacturers of construction equipment are also facing challenges, as tariffs on key components and raw materials are driving up production costs and compressing profit margins. Furthermore, retaliatory tariffs from major export markets have reduced demand for U.S.-made construction equipment and materials, putting additional pressure on revenue streams. In response, the sector is increasingly focusing on local sourcing, adopting modular construction methods, and diversifying supply chains to better manage rising costs and maintain project feasibility amid ongoing trade instability.

The hydropower plant construction market research report is one of a series of new reports that provides hydropower plant construction market statistics, including hydropower plant construction industry global market size, regional shares, competitors with a hydropower plant construction market share, detailed hydropower plant construction market segments, market trends and opportunities, and any further data you may need to thrive in the hydropower plant construction industry. This hydropower plant construction market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Hydropower plant construction encompasses the process of building facilities that leverage the energy of flowing or falling water to generate electricity. These facilities, commonly referred to as hydropower plants or hydroelectric power plants, are strategically constructed in proximity to rivers, streams, or other bodies of water characterized by a substantial water flow.

Hydropower plant construction encompasses various types, including water storage, diverted, and pumped storage. Water-storage hydropower plants, specifically pumped-storage hydropower (PSH), are facilities that harness the potential energy of gravity to store and generate electricity for distribution within electric power systems. These plants are designed with various capacities, ranging from large hydropower plants to medium and small hydropower plants, and are applied in diverse settings such as city power supply, industrial power supply, military power supply, and others.

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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