Hydropower Plant Construction Market Report 2026

The hydropower plant construction market size has grown strongly in recent years. It will grow from $20.8 billion in 2025 to $21.91 billion in 2026 at a compound annual growth rate (CAGR) of 5.3%. The growth in the historic period can be attributed to increasing global investment in renewable energy, early development of hydropower infrastructure, expansion of large-scale reservoir projects, rising demand for reliable baseload power, government initiatives supporting hydroelectric development.

The hydropower plant construction market size is expected to see strong growth in the next few years. It will grow to $26.87 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to growing focus on low-carbon power generation, modernization of aging hydropower plants, increasing adoption of digital monitoring systems, expansion of pumped storage capacity, rising investment in small and micro-hydropower technologies. Major trends in the forecast period include increasing adoption of renewable energy infrastructure, rising use of automated turbine inspection technologies, advancements in precision engineering for hydropower equipment, expansion of digital monitoring and control platforms, growing deployment of smart grid-integrated hydropower systems.

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. For example, in December 2023, the Department for Energy Security and Net Zero, a UK-based government agency, reported that the Energy Company Obligation (ECO) remained the largest energy efficiency scheme, representing 83% of all measures installed in 2023. During the year, ECO delivered 265,000 measures, reflecting a 61% increase compared to 2022, as activity under ECO4 grew following its launch in April 2022 after the conclusion of ECO3. 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 focusing on developing innovative solutions, such as advanced run-of-river power plants, to improve renewable energy generation efficiency and support sustainable regional power supply. Advanced run-of-river power plants harness the natural flow and elevation of rivers to produce electricity without the need for large reservoirs, minimizing environmental impact while ensuring continuous renewable energy production. For example, in September 2025, Verbund AG, an Austria-based electricity company, partnered with Salzburg AG, an Austrian multi-utility company, to inaugurate the Stegenwald Hydropower Plant on the Salzach River. Completed after two and a half years of construction, the project employs advanced turbine technology to optimize water flow and maximize renewable energy output. This collaboration enhances Austria’s clean energy infrastructure and contributes to the country’s carbon neutrality goals through sustainable hydropower development.

In November 2024, Endesa S.A., a Spain-based multinational electric utility company, acquired a 100% stake in Corporación Acciona Hidráulica from Acciona Energía for approximately $1.05 billion. Through this acquisition, Endesa aims to strengthen its renewable energy portfolio by expanding its hydropower capacity and enhancing its integrated value-chain presence in the renewables sector. Corporación Acciona Hidráulica S.L., based in Spain, provides hydropower plant construction services.

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.

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.

Tariffs are influencing the hydropower plant construction market by increasing the cost of imported turbines, generators, control systems, and specialized construction materials, resulting in higher project expenses and extended construction timelines, particularly in regions dependent on foreign technology such as Asia-Pacific and South America. Large hydropower and pumped storage projects are most affected due to their heavy reliance on imported components. However, tariffs are also encouraging local manufacturing, technology partnerships, and regional supply chain development, which may support long-term market stability.

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.Asia-Pacific was the largest region in the hydropower plant construction market in 2025. 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).

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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