Hydropower Market Outlook:
Hydropower Market size was over USD 274.54 billion in 2025 and is anticipated to cross USD 426.35 billion by 2035, witnessing more than 4.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of hydropower is estimated at USD 285.66 billion.
The market growth is driven by increasing demand for renewable energy. As public awareness about environmental issues and greenhouse gas emissions grows, so does the demand for renewable energy sources. Hydropower is one of the most dependable and cost-effective renewable energy sources, making it an appealing option for energy providers and governments trying to lower their environmental impact. For instance, according to the U.S. E.I.A (Energy Information Administration), renewable energy accounted for about 12.4% of total energy consumed in the U.S. in 2021.
In addition, growing government interest in clean energy sources will impel the market revenue. Numerous countries throughout the globe have put laws and incentives in place to encourage the use of sources of clean energy such as hydropower. Some governments, for instance, provide tax benefits or subsidies for the building of new hydropower facilities, whereas others have set renewable power objectives that include hydropower. Additionally, the growing number of awareness campaigns focusing on the benefits of clean energy is predicted to boost the market growth.
