Small hydropower is an eco-friendly, clean form of renewable energy. It has been found to incur zero costs as well as reduced operational and maintenance costs, which has led to increased demand in several economies worldwide.
Rising demand for different renewable sources for energy production is the key growth driver for the global small hydropower market.
A key reason behind the increasing need to deploy renewable sources is to reduce the emission of greenhouse gases caused by increased electricity consumption.
Growing concern about climate change in leading economies globally has led to governments making increased investments in small hydropower form of energy which has offered revenue-generating opportunities for prominent small hydropower market players.
The global small hydropower market is expected to grow at a compound annual growth rate (CAGR) of approximately 3% during the forecast period between 2021 and 2031, as per a TMR study.
IoT Integration in Hydropower Technology Fuels Growth in Global Market
IoT market surveys indicate the segment to emerge as the fastest growing one in future. Integration of novel technologies could propel the hydropower industry and in turn, assist the growth in the small hydropower market.
Other factors such as rapid growth in the industrial activities in both developed and developing economies has also contributed to the growth of the small hydropower market.
COVID-19 Dents Growth in Global Small Hydropower Market
The outbreak of the COVID-19 pandemic adversely affected the growth in the overall small hydropower market. With governments imposing social distancing regulations and stringent lockdowns in a bid to contain the spread of the virus, investments in small hydropower projects were postponed owing to fluctuating market prices and late transportation of key raw materials and components.
The delay in projects reduced the demand for small hydropower and lowered the growth in the global small hydropower market.
However with most population sections double vaccinated and approval given to the use of a third dose, it is anticipated that most hydropower projects will resume soon, thereby propelling the small hydropower demand and helping the growth in the overall small hydropower market.
0-10 MW capacity segment has made the largest contribution, in terms of revenue, owing to cost savings provided by small hydropower plants and reduced effect on the environment in leading economies globally.
Asia Pacific Emerges as Leader, North America Offers Substantial Growth Potential for Future
In terms of region, increased availability of hydropower resources and growing electricity demand in Asia Pacific countries such as India has led to the region emerging as the maximum revenue-generator in the global small hydropower market.
North America is expected to witness significant growth in the global small hydropower market during the forecast period because of growing investments to develop river projects, in a bid to meet the electricity demands in countries such as US and Canada.
Growing investments in IoT technology, leading to its integration into small hydropower projects could also help market growth in the region.
R&D undertakings could be a key, revenue-generating growth strategy for prominent small hydropower market players. Establishment of R&D centers in countries offering key resources such as land and labor could also emerge as a revenue-generator for leading small hydropower market players.
Presence of Leading Players Intensifies Competition in Global Small Hydropower Market
The global small hydropower market comprises several well-established market players, who have accounted for a large share for several years, which has led to intense competition. A few leading players include Alstom S.A., Siemens AG, Ontario Power Generation AG, and Voith GmbH.
Well-established small hydropower market players could sign collaborative agreements with smaller players in a bid to expand their market presence and increase their revenue shares.
Small Hydropower Plants Gain Popularity as Large-scale Projects Continue to Attract Criticism
One of the primary factors that are likely to shape the overall development of the global small hydropower market is climate change. In addition, advancements in technology are also likely to have a strong influence on the overall adoption of small hydropower systems in the upcoming years. Over the past few decades, the environmental damage and social displacement linked with large-scale hydropower projects is a major cause of concern due to which, small hydropower projects have garnered considerable attention. For instance, the development of the Three Gorges dam in China caused the displacement of 1.5 million people and led to the submersion of multiple factories, waste dumps, and mines. Similarly, large-scale hydropower projects in Brazil, Turkey, and Ethiopia, among others, have received opposition for displacing a large number of people.
Small Hydropower Market: Overview
Small hydropower plant (SHP) generates electricity by utilizing moving water. The categorization of hydropower plant differs from country to country, as there is no standard consensus among nations and regions. For instance, in the European Union, France, Norway, France, Italy, and Spain accept10 MW as the upper limit for SHP installed capacity, while countries such as China and Canada consider 50 MW as the maximum capacity.The small hydropower plant offers a several benefits such as eco-friendly, cost effective, reliable, and long lifespan. Moreover, setting up these plants require low capital investment, as they require minimum reservoirs and construction facilities. Transparency Market Research (TMR) adds that operational and maintenance cost incurred in any small hydropower plant is seldom over2% to 3% of the overall capital cost.Source Link: https://www.transparencymarketresearch.com/small-hydropower-market.html
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