Hydrogenerators Market Size, Share, and Industry Analysis By Type (On-Site Generation and Portable), By Size (Small, Medium, and Large), and Regional Forecast, 2024-2032

Hydrogenerators convert mechanical energy or the rotary energy of the turbine to electric energy using the exciter-regulator mechanism. The turbine attached to the hydrogenerator determines the power output of the hydrogenerator. The growing energy demand worldwide and the rising industrialization have raised the need for hydrogenerators in all industries.

The global hydrogenerator market is primarily driven by the growing global demand for clean energy. Rapid industrialization and urbanization, particularly in developing countries such as China and India, have led to a surge in the demand for electricity. To reduce the dependence on fossil fuels for power generation, the carbon footprint reduction initiatives launched by governments of various countries such as the U.S., Germany, India, Japan, and China have increased the demand for renewable energy sources. For this reason, various hydroelectric power generation projects have been set up worldwide.

• According to the International Energy Agency, hydropower generation increased by 124 TWh (+3%) in 2020, reaching 4 418 TWh and remaining the largest renewable source of electricity, generating more than all other renewable technologies combined. After five consecutive years of decline, hydropower capacity additions rebounded in 2020 and reached 21 GW, and with new hydropower projects sanctioned and growing demand for clean energy, the generation and demand for hydropower are expected to surge during the estimated period.                             

The key market restraint is the high initial cost of installations and the maintenance cost of the huge hydropower dams. Furthermore, rising concerns about the disruption of wildlife due to hydropower projects restrain the market growth. 

The COVID-19 outbreak hit economies and industries in various countries with the resultant lockdowns, travel bans, supply chain disruptions, technology events cancellations, office closures, and other business closures in rice fields. In addition, widespread uncertainty and liquidity constraints have jeopardized the financing and refinancing of some hydropower projects. Greenfield development and critical modernization projects have also been halted due to supply chain disruptions during lockdown due to the outbreak of the COVID-19 pandemic. In addition, planned or existing government programs to support the sector have been postponed, negatively impacting the market.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements Hydrogenerators Market


• Key Industry Trends


• Regulatory Landscape for Hydrogenerators Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY TYPE

Based on type, the global hydro generator market is segmented into on-site generation and portable. The on-site generation segment is anticipated to dominate the market owing to its installation in large hydropower plants. The expansion of hydroelectric projects across the globe to limit dependence on fossil fuels is expected to drive the installation of on-site generation hydro generators. On the other hand, portable generators are also projected to grow considerably over the forecast period due to their ability to generate electricity from flowing water in remote or off-grid locations. Additionally, the portable generators' compact, lightweight, and easy-to-transport characteristics find their application in areas requiring power for short-term periods and less volume.

ANALYSIS BY SIZE

Based on size, the global market is classified into small, medium, and large. The large segment accounted for a significant share of the market. Large hydrogenerators having larger capacities are associated with hydropower projects. Moreover, improved efficiency, long life span, less maintenance and operation cost, and high reliability are expected to drive the demand for large hydropower plants during the forecast period. In addition, upcoming hydropower projects, along with plans to modernize the hydropower infrastructure across developing countries, are likely to drive the growth of the hydropower generator market in the near future.

The small hydrogenerators segment is witnessing considerable growth in the market. This is due to lower initial investment compared to larger counterparts, which find them suitable in smaller water bodies and micro-hydro applications.

The medium hydrogenerators segment is projected to experience notable demand over the coming years due to hydro-projects' rising set-up generating mid-scale power generation. Its application is substantially visible in regional power grids.

REGIONAL ANALYSIS

Based on region, the global hydro generators market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The Asia Pacific accounted for the largest share of the global market, with most hydropower projects being constructed in countries such as China and India. The Three Gorges Dam of China is the largest hydropower project in the world, with a capacity of 22,500 MW. The plant has 34 hydrogenerators, of which 32 are main generators, with 700 MW each, and the remaining two with a capacity of 50 MW each. In 2018, the plant generated approximately 101 TWh of electricity.

North America is the fastest-growing region for the global hydrogenerators market, owing to the rising adaptation of environment-friendly energy alternatives in countries such as the U.S. and Canada. The U.S. has committed to a net-zero carbon footprint by 2050, driving the adoption of hydrogenerators.

In Europe, the U.K. dominates the hydrogenerator market. The growth of the hydroelectric power generation business in the region is fueled by strict and beneficial government regulations imposed by the European Union and the government. Rapid urbanization and industrialization drive the need for hydroelectric power generation in Europe.

In Latin America, the increase in hydropower installation capacity is expected to directly influence the regional hydrogenator market growth. Hydrogenerators are the most important component of hydroelectric projects and they are connected to a turbine to convert mechanical energy into electrical energy.

The Middle East and Africa market is set to expand owing to the launch of notable hydro projects in the developing nations of Africa, such as Nigeria, Kenya, and others.

KEY PLAYERS COVERED

The report provides the profiles of key players such as Mitsubishi Heavy Industries, Cummins Inc., Ingeteam S.A., ANDRITZ, Pentaflo Hydro Pvt. Ltd., Toshiba Corporation, GE, Arizona Hydrogen Manufacturing, Inc., Wärtsilä, Kirloskar Electric Co. Ltd., Kohler Co., Tamar Hydro Pty Ltd, Epoch Energy Technology Corporation, Mitsubishi Power, and Voith Hydro.

KEY INDUSTRY DEVELOPMENTS

• In March 2024, the Valdecanas pumped storage project in Caceres, Spain, received approval from the Ministry for Ecological Transition and Demographic Challenge. It would include a combined capacity of 275 MW, integrating a hybrid system comprising hydro generator units and a 15 MW battery. This battery can store 7.5 MWh of energy when charged fully. The battery and hydro units would also offer an energy reserve totaling 210 GWh.


• In March 2021, according to the State Hydroelectric Power Plant developer of Uzbekistan, the Zarkhob small hydroelectric power plant was successfully implemented. The initiative is part of Uzbekistan's national energy policy, which envisages the country would produce all its electricity from renewable sources by 2030. The project is also aimed at generating 5 gigawatts of solar power, 3.8 gigawatts of hydroelectric power, and 3 gigawatts of wind power.