Hydroelectric Power Generation Market Report 2026

The hydroelectric power generation market size has grown steadily in recent years. It will grow from $332.46 billion in 2025 to $346.52 billion in 2026 at a compound annual growth rate (CAGR) of 4.2%. The growth in the historic period can be attributed to increasing reliance on renewable power, early development of large scale hydropower stations, rising electrification needs, expanding industrial power demand, adoption of water resource based power projects.

The hydroelectric power generation market size is expected to see steady growth in the next few years. It will grow to $407.77 billion in 2030 at a compound annual growth rate (CAGR) of 4.2%. The growth in the forecast period can be attributed to growth of pumped storage systems, rising focus on grid stability solutions, expansion of rural electrification programs, increasing investments in hybrid renewable plants, development of tidal and small hydro technologies. Major trends in the forecast period include growing expansion of low impact small hydro projects, increasing development of tidal and pumped storage systems, rising adoption of hydropower for rural electrification, modernization of aging hydropower infrastructure, growing use of hybrid hydro renewable systems.

The anticipated increase in clean energy consumption is set to drive the growth of the hydroelectric power generation market. Clean energy consumption involves the utilization of renewable energy sources and energy efficiency measures to reduce environmental impact and decrease reliance on fossil fuels. This upward trend in clean energy consumption is attributed to factors such as technological advancements, supportive policies, climate change concerns, energy security benefits, corporate sustainability initiatives, public support, and investor interest. Hydroelectric power generation emerges as a reliable, renewable, and low-carbon source of electricity, offering a range of economic, environmental, and social benefits to support clean energy consumption. As of Quarter 3 in 2023, reports from the UK-based Department for Energy Security and Net Zero indicated that renewable electricity generation reached 30.1 terawatt-hours (TWh), reflecting a 6.8% increase compared to the same period in 2022. The growing shift towards clean energy consumption is a key driver propelling the hydroelectric power generation market.

Major companies operating in the hydroelectric power generation market are focusing on technological advancements such as mini hydropower systems for remote areas that can be paired with solar plus storage. This advanced system produces electricity by harnessing the energy of flowing water. Such systems typically generate up to 100 kilowatts of power and are suitable for homeowners, small businesses, farms, and ranches. For example, in October 2023, Hydrobox, a Kenya-based small run-of-river hydropower developer, launched the Gitwamba Hybrid Solar + Hydro Power Plant - a 170 kW combined system that includes a 50 kW hydro unit and a 150 kWp solar array - featuring year-round baseload capability, seasonal flow adaptability, and built-in storage readiness.

In December 2023, Nexif Ratch Energy Investments Pte. Ltd., a Singapore-based power generation company, successfully acquired the Minh Luong hydroelectric plant from Nam Tien Group for an undisclosed amount. This strategic acquisition marks a significant expansion of Nexif Ratch Energy's operational portfolio in Vietnam, leveraging its proven track record in small hydro projects within the country. Nam Tien Group, a Vietnam-based enterprise, specializes in hydroelectric power generation.

Major companies operating in the hydroelectric power generation market are Enel S.p.A., Électricité de France Group, Engie Energy International, Iberdrola S.A., Duke Energy Corporation, Ørsted A/S, Statkraft AS, General Electric Renewable Energy, American Electric Power (AEP), Hydro-Québec Corp., Siemens Gamesa Renewable Energy SA, Korea Hydro & Nuclear Power (KHNP) Corp., Tennessee Valley Authority (TVA), Andritz AG, Sinopec Engineering Group, Eletrobras - Centrais Elétricas Brasileiras S.A., Brookfield Renewable Partners LP, British Columbia Hydro and Power Authority, PJSC RusHydro, Voith Hydro AG, Agder Energi, Innergex Renewable Energy Inc., National Hydroelectric Power Corporation (NHPC), China Three Gorges Corporation, Tokyo Electric Power Company Holdings (TEPCO) Inc.

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 on turbines, generators, structural steel, and electrical components have raised installation and maintenance costs for hydropower projects, with the largest impact felt in Asia Pacific and Europe where imports form a major share of equipment supply. Pumped storage and tidal systems, which rely heavily on advanced machinery, face the greatest cost pressures. However, tariffs have supported domestic manufacturing, encouraged regional sourcing, and boosted investment in localized hydropower technology development, partially offsetting negative impacts on project economics.

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

Hydroelectric power generation involves harnessing the energy of flowing or falling water to rotate turbines, thereby converting kinetic energy into mechanical energy. This method is both renewable and eco-friendly, as it operates without emitting greenhouse gases and relies on the natural water cycle as its sustainable energy source.

Hydroelectric power generation encompasses various types, including dike type, diversion hydropower station, mixed type, tide, and pumped storage. In dike type hydroelectric power generation, a dike or embankment is employed to control or confine water. The reservoir functions as a substantial water storage system, facilitating the regulation of water flow to ensure a consistent supply for power generation, particularly during periods of peak demand. Capacities are categorized as small hydropower plants (up to 1 MW), medium hydropower plants (1 MW-10 MW), and large hydropower plants (above 10 MW), catering to applications in residential, commercial, and industrial sectors.Asia-Pacific was the largest region in the hydroelectric power generation market in 2025. The regions covered in the hydroelectric power generation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the hydroelectric power generation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The hydroelectric power generation market consists of revenues earned by entities by providing engineering and design services, construction services, maintenance and operation services, consulting services, and regulatory compliance services. The market value includes the value of related goods sold by the service provider or included within the service offering. The hydroelectric power generation market also includes sales of turbines, generators, control systems, transmission equipment, and environmental mitigation products. 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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