Hydro Turbine Market Trends
Growth Drivers
- Growing Installation of Hydro Power Plants to Promote Renewable Energy – The growing demand for electricity worldwide and the increasing experiment of manufacturing techniques to improve the performance and lower the costs of hydropower with growing investment in renewable energy is propelling the erection of hydropower plants. Hence, with the increasing installations of hydropower, as it facilitates benefits beyond electricity generation by delivering potable water, providing flood control, and irrigation support, the hydro turbine market for the hydro turbine is also projected to augment.
- Rising Environmental Concerns – The increasing levels of pollution, global warming, reduction in the availability of fossil fuels, and expanding electricity demand are set to drive market value in the coming years. Many countries have adopted the policy to reduce emissions voluntarily. As hydro turbines use renewable energy sources such as water and convert the kinetic energy into hydroelectric power through a dam or flowing water, there is a surge in investment in hydropower projects which will fuel the hydro turbine market revenue in the near future. According to 2020 projections, hydropower contributed more than 15% of global electricity generation and surpassed coal as the third largest source.
Challenges
- Growing Ecological Concern Related to Dams, and Long Gestational Periods – The plants at the bottom of the reservoir are impacted by hydroelectric energy, which also has an effect on the fish, which are drought-sensitive. Due to typhoons or heavy rain, there is also a high risk of flooding. All these factors together are estimated to hamper the market growth.
- Complexity in Designing Turbines for Hydroelectric Power Plants
- High Cost of Installation for Dams
Hydro Turbine Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.30% |
|
Base Year Market Size (2024) |
USD 2.21 billion |
|
Forecast Year Market Size (2037) |
USD 4.32 billion |
|
Regional Scope |
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