On a global level, construction of hydropower dams is anticipated to reach unparalleled rates in the coming years, specially in countries with developing economies. The above-mentioned factors are likely to drive the demand for hydropower turbine in the coming years.
With tightening government regulations to curb greenhouse gas emissions and rising electricity demand from the manufacturing sector, the hydropower turbine market is estimated to record substantial gains over the forthcoming time period. Hydropower has been encouraged as a climate-friendly alternative to meet the globe's increasing electricity demand. On a global level, construction of hydropower dams is anticipated to reach unparalleled rates in the coming years, specially in countries with developing economies. The above-mentioned factors are likely to drive the demand for hydropower turbine in the coming years.
As per a research report by Global Market Insights, Inc., hydropower turbine market is estimated to surpass a $2 billion valuation by 2025.
Rising investment toward development of different non-conventional resources, which includes hydro, for improving environmental conditions and reducing dependence on fossil fuels will fuel the market growth. For example, in 2019, the NWT and federal governments of Canada had announced to invest around $1.2 million towards the preliminary study for a planned expansion of Taltson Hydroelectricity Project.
The project is expected to reduce carbon emissions by nearly 240 kilo tons on an annual basis. Increasing efforts toward energy security, in combination with volatility in fossil fuel prices, will further encourage the product adoption.
Below is a brief overview of key trends that are stimulating the market growth:
Growing demand for high head turbines
The high head segment is estimated to reach approximately $600 million by the end of the analysis period. Ongoing paradigm shift away from coal as well as nuclear power plants, in accordance to the new initiative toward sustainable energy use, will boost the product demand.
Adoption of renewable generation technologies in France
Hydropower turbine market in France is anticipated to grow at a substantial rate owing to the increasing adoption of renewable generation technologies to complement the nuclear baseload of the country. The French government has set an ambitious aim of improving the utilization of hydropower capacity by more than 3 GW by 2020.
Moreover, rising focus towards improving energy security and minimizing the reliance on import coupled with shifting trends towards improving the living standards will further supplement the market dynamics.
Adoption of hydropower turbine in Ethiopia
Growing demand for electricity in combination with rising efforts to diversify the sustainable energy mix will encourage the hydropower turbine market of Ethiopia.
Citing an example, the Sustainable Energy Fund for Africa, in 2019, invested approximately $995 thousand to enhance the investments towards hydropower projects.
Growing product demand across Germany
The hydropower turbine market in Germany will grow tremendously owing to rising electricity prices and increasing focus towards reducing the impact of climate change. In 2018, for instance, electricity prices across Germany went up to $33.5 per kWh from the $26.9 per kWh it was in 2010.
Various regulations and acts have been rolled out by policymakers to increase the adoption of renewable technologies in the region. In fact, the German government has set a target to meet around 60% of its overall energy consumption through renewable sources by 2050.
Increasing development of hydro projects across APAC
Presently, hydropower accounts for nearly 39% of the overall electricity generated in the Asia-Pacific. However, only 20% of the region's overall hydropower potential has effectively been realized. These numbers are projected to go up since a number of enterprises are actively working towards the development of hydro projects across the region.
Notable industry players operating in the market include Canyon Hydro, Voith, Wartsila, Capstone Turbine, WWS Wasserkraft GmbH, Canadian Hydro Components, NTN Corporation, Andritz, Siemens AG, Toshiba, IMPSA, General Electric, and Cornell Pump among others. Overall, the market is likely to grow in a significant manner owing to increasing government regulations on GHG emissions, development of hydro projects in APAC, and growing demand for electricity in Europe and Africa.