In 2016, an estimated 31.5 GW of hydropower capacity became operational, including pumped storage, thus increasing the total global installed hydro power capacity to 1,246 GW. The hydro turbine market is strongly driven by several factors, such as increasing demand for energy on a global scale, rise in the demand for cleaner technologies for power production, stringent emission policy targets, etc. China, the world's largest hydro power country, in its 13th five-year plan on energy development, aims to have an additional 60 GW of hydropower by 2020. However, the market faces certain drawbacks, such as design challenges of the turbine, ecological concerns related to dams, difficulties in relocation and rehabilitation of affected stakeholders, long gestation periods, high installation cost of dams, and others. These factors may act as roadblocks for the growth of the market studied.
Global Hydro Power Capacity Addition Driving the Market
In 2016, an estimated 31.5 GW of hydropower capacity became operational, including pumped storage, bringing the total global installed hydro power capacity to 1,246 GW. This capacity addition is mainly driven by the demand for reliable, clean, and affordable power from countries that seek to meet the carbon reduction goals prescribed in the Paris Agreement. Moreover, the rapid growth of variable renewable energies (VRE) in the recent years is increasing the need for rapid-response energy storage technologies. The landscape for grid-scale energy storage is evolving, from being almost exclusively supplied by pumped-hydropower storage, to include various new technologies. Of these, battery storage is evolving and growing at a rapid pace, even as pumped hydropower storage continues to supply over 95% of energy storage requirements worldwide. In 2016, about 6.4 GW of pumped storage capacity came online, nearly twice the quantity installed in 2015. The above-mentioned factors are responsible for the growth in the global hydro-power sector. The hydro-power industry, being the biggest end user of hydro turbines, has witnessed a significant growth in the recent years. Further, the development of innovative technologies is expected to help reduce costs and improve both hydro power production efficiencies and environmental performance.
South America among the Fastest Growing Regions
With more than 9.7 GW of new hydropower installed in 2016, South America has more than tripled the capacity commissioned in 2015. This has boosted the demand for hydro turbines in the region. This robust growth can primarily be attributed to the vast water resources in the region and various hydro power projects that got commissioned in the year. For instance, Brazil completed the commissioning of the 3,750 MW Jirau project on Madeira River. Ecuador’s 1,500 MW Coca Coda Sinclair plant became fully operational in November 2016. Peru commissioned the Cerro de Águila (510 MW) and Chaglla (456 MW) projects. Colombia reached a total capacity of 11,606 MW, which represents 70% of the national electricity grid, after the commissioning of the 820 MW Hidrosogamoso hydroelectric project, and the 10 MW Bajo Tuluá in 2015 and 20 MW Tunjita stations in 2016. Further, several countries in the region have set hydro power development targets for the near future, thereby bolstering the hydro turbine market. For example, Brazil has set a target to increase its installed hydro capacity to 116,700 MW by 2019. Ecuador has plans to accomplish 86% of electricity demand to be covered by hydropower by 2020. Hydropower is key to South America’s development, and thus it is at the core of the national energy strategies of various countries, including Bolivia, Ecuador, Paraguay, Chile, and Brazil. Therefore, the ongoing surge in hydro power activities and its vast untapped hydro potential make South America a lucrative and one of the fastest growing segments of the hydro turbine market.
China Poised to Lead the Hydro Turbine Market
China alone accounts for almost one-third of the global hydropower capacity, and added approximately 11.74 GW of new capacity in 2016, including 3.74 GW of pumped storage, boosting its total installed capacity to 331 GW, including 26.7 GW of pumped storage. The most notable of China’s hydropower fleet under construction is the Wudongde project on the Jinsha River in the southwest, which will provide 10.2 GW installed capacity, when complete. The project will have 12 turbines of 850 MW installed. The project began the construction phase in 2014, with the first generator scheduled to be commissioned in 2018. It is expected to be completed in 2020, and will be the sixth-largest hydropower project in the world, in terms of installed capacity. In December 2016, China’s Ministry of Water Resources adopted ‘Guidelines on Promoting the Development of Small Hydropower Plants’, which is further expected to create opportunities for the companies engaged in the hydro turbine supply chain.
Key Developments in the Market
- June 2017: GE Renewable Energy entered an agreement to provide three aerating turbines to Cube Hydro Partners, for its High Rock plant in North Carolina. The first of three units will be delivered in the fall of 2018 and become operational in the spring of 2019.
Major Players: General Electric Co., Siemens AG, Andritz AG, Canyon Industries Inc., Cornell Pump Company, Gilbert Gilkes & Gordon Ltd, Kirloskar Brothers Limited, Nautilus LLC, Norcan Hydraulic Turbine Inc., Waterwheel Factory, and WWS-Wasserkraft GmbH, among others.
Reasons to Purchase this Report
- Current and future hydro turbine market outlook in the developed and emerging markets.
- Analyzing various perspectives of the market, with the help of Porter’s five forces analysis.
- The segment that is expected to dominate the market.
- The regions that are expected to witness the fastest growth during the forecast period.
- Identify the latest developments and strategies employed by the major market players.
- 3 months analyst support along with the Market Estimate sheet (in excel).
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1. Executive Summary
2. Research Methodology
3. Market Overview
3.2 Market Size and Demand Forecast until 2023 (in USD billion)
3.3 Government Policies and Regulations
3.4 Recent Trends and Developments
4. Market Dynamics
5. Value Chain Analysis
6. Industry Attractiveness - Porter’s Five Forces Analysis
6.1 Bargaining Power of Suppliers
6.2 Bargaining Power of Consumers
6.3 Threat of New Entrants
6.4 Threat of Substitute Products and Services
6.5 Intensity of Competitive Rivalry
7. Market Segmentation and Analysis (Overview, Market Size, and Demand Forecast until 2023)
7.1 By Technology
7.2 By Capacity
7.2.1 Small (Less than 1 MW)
7.2.2 Medium (1 MW to 10 MW)
7.2.3 Large (10 MW and above)
7.3 By Configuration
7.3.1 Spiral Casing
8. Regional Market Analysis (Overview, Market Size, and Demand Forecast until 2023)
8.2 North America
8.4 Middle East & Africa
8.5 South America
9. Key Company Analysis* (Overview, Products & Services, Financials**, Recent Developments, and Analyst View)
9.1 General Electric Co.
9.2 Siemens AG
9.3 Andritz AG
9.4 Canyon Industries Inc.
9.5 Cornel Pump Company
9.6 Gilbert Gilkes & Gordon Ltd
9.7 Kirloskar Brothers Limited
9.8 Nautilus LLC
9.9 Norcan Hydraulic Turbine Inc.
9.10 Waterwheel Factory
9.11 WWS-Wasserkraft GmbH
10. Competitive Landscape
10.1 Mergers & Acquisitions
10.2 Joint Ventures, Collaborations, and Agreements
10.3 Strategies Adopted by Leading Players
11.1 Contact Us