Global Small Hydropower Market by Capacity (1 - 10 MW, Up To 1 MW), by Type (Mini Hydropower, Micro Hydropower) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global small hydropower market was valued at USD 2.98 Billion in 2019. It is expected to increase at a compound annual rate (CAGR of 2.0%) between 2020 and 2027. Market growth can be attributed to factors like financial investments, rural electrification and policy initiatives in small-scale hydropower projects as a response to climate change. A method of generating electricity using small hydropower (SHP), is one that uses moving water to create electricity. These plants are usually installed in existing water supply networks, small streams, or rivers. With minimal ecological impact on the environment, small hydropower plants are possible to be installed. Fossil fuel-based power is the most common form of power generation around the globe. The industry has begun to look for renewable energy sources due to the loss of fossil fuel resources.

The industry has been influenced by the increasing energy demand due to the growing population and the need to reduce dependence on conventional power sources. Small hydropower is one example of renewable power sources. Because of its versatility, low investment cost, and renewable nature, it's an attractive option to provide affordable energy for rural and emerging areas.

The United Nations Industrial Development Organization and the Federal Energy Regulatory Commission (FERC) have been forced to adopt renewable energy measures due to rising greenhouse gas emissions from growing power consumption. The small hydropower market was dominated by the United States and will see significant growth between 2020-2027. The Federal Energy Regulatory Commission's policies to promote renewable energy and the need for energy delivery in rural areas are two of the factors that can foster market growth.

Hydropower plants that produce less energy are small and built for remote areas. These plants can be either grid-connected or off-grid. Off-grid is best suited for areas without grid connectivity. There are a variety of energy policies that governments have implemented to reduce the capital cost of total electricity generation, communities' resettling and safety, as well as to increase the human resources required to build and maintain power plants. The purpose of small hydropower plants is to reduce capital costs and minimize the environmental impact. Another profitable factor that can influence market growth is the abandoned Hydropower site operation.

The levelized cost for electricity (LCOE), varies between USD 0.02 to USD 0.10/kWh for small hydropower plants in emerging countries. This makes small hydropower projects an economically viable option to supply electricity to off-grid electrification schemes or the grid rural electrification scheme. Mini-hydropower projects have lower costs, while micro hydropower projects have an average cost of $ 0.27/kWh.

Capacity Insights

The segment can be divided into two groups based on its capacity: up to 1 MW or 1 to 10 MW. With a market share of 57.6%, the segment up to 1MW dominated global markets in 2019. The segment of up to 1MW is expected to have the highest amount of small hydropower over the forecast period. This is due to small-scale, decentralized projects that are being built in emerging countries, particularly in APAC for rural electrification.

Asia Pacific was the dominant market for the 1 MW segment. A significant share of small hydropower projects installed in the region was accounted for by Australia, India, China, and India. These economies are investing in rural electrification, which drives the growing demand for small hydropower.

From 2020 to 2027, the 1-10 MW segment will grow at a 2.7% annual rate. This can be attributed to the increasing use of small hydropower in different countries around the globe.

Application Insights

By application, the market is divided into electromechanical equipment and power infrastructure, civil construction and other, including structural engineering, project development and environmental mitigation. In 2019, the market's largest share was 32.2%, and it is expected to maintain its lead in the forecast period.

All small hydropower projects (SHPPs) had significant amounts of costs incurred through civil construction. To properly lead water onto turbines and raise water head levels, civil constructions like dams (weirs) are being constructed. These simple structures are much more cost-effective than large hydropower plants.

From 2020 to 2027, the power infrastructure segment should show the fastest CAGR at 3.1%. Modernization of small hydropower plants is becoming more important to increase electricity generation and prolong the asset life to meet the rising demand.

Type Insights

The market can be divided into two types based on its type: micro-hydropower or mini-hydropower. The market was dominated by micro hydropower, which accounted for 57.6% of the total market in 2019. It is expected to continue its dominance in the future. Micro hydropower projects can produce power for small communities or rural industries in remote locations away from the grid. They range in size from 5 kW to 100 kW.

Mini-hydropower is expected to experience the fastest CAGR at 2.6% between 2020 and 2027. Rural electrification is the driving force behind mini-hydropower installation. China was the leader in the APAC region for small hydropower projects to rural electrification. The installation capacity in various countries, including the U.S. and Norway, is expected to increase the country's renewable energy share.

Regional Insights

Asia Pacific was responsible for more than 33.0% of the total revenue in 2019. Australia, India, China and China are three of the fastest-growing countries in the world, which is a major contributor to the Asia Pacific market's growth. Investments in rural electrification and off-grid energy generation are expected to drive the Asia Pacific market to expand during the forecast period.

India is a developing country in small hydropower, with an almost 17-19% share. The Indian government has taken some steps to increase SHP, including the Small Hydropower Programme (Ministry of New and Renewable Energy) and Rajiv Gandhi Grameen Vidyutikaran Yojana. Rajiv Gandhi Grameen Vidyutikaran Yojana in India is used to electrify rural areas, and encourage the use of small hydropower for off-grid or mini-grid types segments.

Promising government regulations are expected to lead to significant growth in Europe. The Renewable Energy Directive of the European Union States was updated in November 2016 to meet the minimum target of 27% renewable energy consumption by 2030. This directive also requires that each member state produce 20% of its energy from renewable sources by 2020.

South Africa's small hydropower potential is five times greater than the country's current installed capacity. Africa's small hydropower plants can be used in a combination with other renewable energy sources or as a standalone unit. South Africa's large hydropower sector has a lot of potential, which will allow the market to expand in the future.

Market Share Insights & Key Companies

Global industry consolidation is moderately. To increase their market presence, companies are taking various strategic initiatives. Voith, for example, opened a Nepali branch office and a sales office in Kathmandu in September 2019. The company also opened a new manufacturing plant in Balakovo (Russia) in June 2019. This facility was designed to produce and supply products for small and large hydropower plant. Emrgy Inc and GE Renewable Energy entered into an agreement in July 2019. This partnership will allow both companies to explore the potential for hydro-kinetic energy around the globe. The following are some of the most prominent players in small hydropower markets:

• Voith GmbH & Co. KGaA

• ANDRITZ

• GENERAL ELECTRIC

• TOSHIBA CORPORATION

• Siemens Gas and Power GmbH & Co. KG

• BHEL

• Gilkes Hydro

• Natel Energy, Inc.

• FLOVEL Energy Private Limited

• SNC-Lavalin Group

• HNAC Capacity Co. Ltd.

• MavelAS

• Kolektor

• Canyon Industries, Inc.

Up Market Research published a new report titled “Small Hydropower Market research report which is segmented by Capacity (1 - 10 MW, Up To 1 MW), by Type (Mini Hydropower, Micro Hydropower), By Players/Companies Voith GmbH & Co KGaA, MavelAS, ANDRITZ, HNAC Capacity Co Ltd, SNC-Lavalin Group, GENERAL ELECTRIC, Kolektor, FLOVEL Energy Private Limited, Canyon Industries Inc, Siemens Gas and Power GmbH & Co KG, TOSHIBA CORPORATION, Gilkes Hydro, Natel Energy Inc, BHEL”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Small Hydropower Market Report Segments:

The market is segmented by Capacity (1 - 10 MW, Up To 1 MW), by Type (Mini Hydropower, Micro Hydropower).

Small Hydropower Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Small Hydropower Market

Overview of the regional outlook of the Small Hydropower Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Small Hydropower Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Small Hydropower Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. 1 - 10 MW

                2. Up To 1 MW

                1. Mini Hydropower

                2. Micro Hydropower

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Small Hydropower Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Small Hydropower Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.