Hydropower Market To Grow At 3.9% CAGR Till 2020

The global installed capacity for hydropower is anticipated to reach nearly 1,524 GW by 2020. The worldwide hydropower market anticipated to grow at a CAGR over 3.9 % during the forecast period (from 2013 to 2020). Hydropower is one of the most popular sources of renewable energy. It is environment-friendly because it does not cause toxic waste and emissions of greenhouse gases. High demand for energy, population explosion and rising pressure on traditional power generation propel adoption of renewable power sources. This trend is expected to propel worldwide market in the forthcoming years.

Hydropower-based electricity production is cost effective. Hydro energy does not contribute to emission of toxic fumes. Focus on reducing carbon emission levels may drive the overall market during the forecast period. Encouraging regulatory frameworks for sustainable energy in the European Union & United States are also anticipated to positively impact the market demand.

Hydropower Market

Introduction of supportive government regulations may create growth opportunities in the global market over the forecast period. For instance, the Hydropower Regulatory Efficiency Act in the U.S. and various funding programs for renewable energy in the developed countries like Canada and Italy.

The global hydropower market is categorized as per applications and regions. On the basis of applications, the segments are residential, industrial, and commercial. Industrial applications led the overall market in terms of demand in 2013. It occupied nearly 44.8 % of the overall installed capacity. Rapid industrialization in China & India fueled this dominance. The segment is anticipated to reach over 694.41 GW on account of installed capacity till 2020.

Geographically, the worldwide market is divided into Europe, Asia-Pacific (APAC), North America, and Rest of the World (RoW). APAC is anticipated to dominate the global market from 2013 to 2020. Growing at a decent CAGR of over 6.2 %, China is expected to be the fastest-growing region over the forecast period. It is anticipated to reach the installed capacity of over 400 GW by 2020. Presence of a high number of under construction hydropower projects can further propel the regional growth. Wudongde, Xiangjiaba dam, the Xiluodo project, and the Baihetan dam are some of the major hydropower plants operating in China.

Driven by positive government initiatives towards renewable energy, North America is expected to witness lucrative growth in the forthcoming years. These initiatives are anticipated to boost hydropower capacity in the region. Focus on developing new and existing hydropower plants to discover untapped market potential in North America during the forecast period. In addition, introduction of various acts in the region including Rural Jobs & Small Conduit Hydropower Development Acts are also projected to boost the capacity of hydropower across the region.

Ertan Hydropower Development Company, Ltd., Companhia Energetica de Minas Gerais, Alstom Hydro, China Hydroelectric Corp.; The Tata Power Company; and China Three Gorges Corp. are some of the key companies operating in the global hydropower energy market. Applications of hydropower in various modern technologies like computer models, phone apps, and Unmanned Aerial Vehicles (UAVs) or drones provide business opportunities to hydro project operators & owners.

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