Increasing demand for renewable energy over conventional energy is expected to drive global hydropower market over the next eight years. Fossil fuels are being used on a large scale for power generation over the past decade, which are responsible for emitting greenhouse gases polluting environment. Various industries are considering more natural resources usage owing to excessive fossil fuel application globally has polluted environment badly. Increasing renewable implementation as a source to reduce carbon footprint also helps industries to earn carbon credit. Various nations are also supporting other countries towards developing green economy. Fossil fuel reserves depletion and uncertain supply has shifted industries towards renewable sources usage.
Growing population led to increasing energy demand along with reduction in dependency on conventional energy sources has prompted industry to shift towards renewable energy sources. Hydropower market is expected to gain popularity over the next eight years on account of reduction in hazardous gases emission.
Hydropower plant fulfills approximately 20% of the global energy demand. Hydropower market is anticipated to grow over the forecast period due to some key advantages such as flood control ability, water retention and energy demand fluctuation management. Global hydropower market is projected to foster the growth owing to the cleanest source of energy which can be renewed. Various national government favorable supports such as financial incentives and tax benefits are anticipated to witness a rapid growth over the forecast period. Worldwide stringent regulations regarding fossil fuel usage have also pumped hydropower market growth. Growing awareness towards usage of unconventional resources and future threat of global warming impacts are anticipated to boost hydropower market over the forecast period. Limitation of abundant potential water sources availability is expected to hinder global hydropower market. Hydropower plant requires huge initial investment which may hamper the market growth. However, long run operating cost is lower than other conventional source based plants owing to approximately zero raw material cost which is free water.
Hydropower market can be segmented as residential, commercial and industrial. Industrial application was the largest application market for hydropower in 2013 accounting for over 25% on account of rapid industrialization. Industrial market is projected as the fastest growing market over the next eight years followed by residential and commercial.
China dominated hydropower market across the world accounting for over 24% in 2013. It is expected to follow the same trend over the forecast period owing to increasing demand and rapid industrialization. China emerged as major hydropower market due to more capacity addition in this sector. Favorable government instruments as FIT and RPS are expected to bolster hydropower market growth over the forecast period. Stringent environmental regulatory board regulations on conventional sources of energy have shifted industries towards hydropower generation in North America and Europe Introduction of favorable norms for renewable resources in the region is anticipated to witness rapid growth in the foreseeable future. The U.S. president passed bills for optimum utilization of unexploited market potential which is also projected to drive hydropower market growth over the forecast period. Asia Pacific is expected to witness fastest growth over the forecast period owing to increasing demand for energy due to growing population. Emerging economies such as India, China, Indonesia and Malaysia are expected to spur the hydropower market growth on account of volatile crude oil prices.
Major players in the global hydropower market include GE Energy, Andritz AG, Alstom Hydro, CPFL Energia S.A., China Hydroelectric Corporation, IHI Corporation, China Three Gorges Corporation and ABB Ltd., The Tata Power Company and EDP Energias do Brazil.
Research Support Specialist, USA