Pumped Hydro Storage Market Trends

Growth Drivers

Renewable Energy Integration – The increasing penetration of green energy sources, such as solar and wind, into the power grid requires efficient energy storage solutions to balance supply and demand.

According to the International Renewable Energy Agency (IRENA), global renewable energy capacity reached 2,799 GW in 2020, with hydroelectric power accounting for a significant portion of it.

Grid Stability and Flexibility - Pumped hydro storage provides grid stability and enhances flexibility by storing excess electricity during periods of low demand and releasing it during peak demand.

Challenges

Negative Impact on the Environment - Construction of large-scale pumped hydro storage infrastructure leads to various environmental impacts, such as displacement of existing communities, destruction of natural habitats, and changes to water flow and quality. This harms the livelihood of local people living there and thus leads to opposition from local communities and environmental groups. This makes it difficult to receive approvals and permits for the construction and is likely to hamper the pumped hydro storage market growth.
Lack of Suitable Sites for Hydro Storage
High Cost of Constructing Dams

Pumped Hydro Storage Market: Key Insights

Base Year	2024
Forecast Year	2025-2037
CAGR	10.1%
Base Year Market Size (2024)	USD 401.01 billion
Forecast Year Market Size (2037)	USD 1.4 trillion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Frequently Asked Questions (FAQ)

In the year 2025, the industry size of pumped hydro storage is assessed at USD 433.41 billion.

The pumped hydro storage market size was valued at USD 401.01 billion in 2024 and is expected to reach USD 1.4 trillion by 2037, registering around 10.1% CAGR during the forecast period i.e., between 2025-2037. Rising initiatives to increase the pumped hydro storage capacity and the growing technological developments will drive the market growth.

North America industry is set to dominate majority revenue share of 38% by 2037, impelled by rising production of electricity from pumped hydro storage in the region.

The major players in the market are Nevada Hydro Corporation, GE Renewable Energy, Siemens Energy, Enel SpA, Duke Energy Corporation, Voith GmbH & Co. KGaA, Genex Power Limited, Toshiba Energy System & Solutions Corporation, Greenko Energy, Eskom Holdings SOC Ltd.

Pumped Hydro Storage Market Trends