Small Hydropower Market Outlook:
Small Hydropower Market size was over USD 3.06 billion in 2025 and is poised to exceed USD 3.92 billion by 2035, witnessing over 2.5% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of small hydropower is estimated at USD 3.13 billion.
The small hydropower market is expanding at a stable rate as countries try to increase the share of renewable energy sources in their electric power generation mixes and improve rural electrification. Small hydropower systems generally refer to those systems that do not exceed 10 MW, and are well suited for the countries that are endowed with adequate water supplies. To increase their net-zero targets and bolster energy security, governments, and private sectors are turning to small hydropower adoption. In March 2024, two projects were inaugurated in Nigeria by the European Union in the energy sector, including a small hydropower project launched under a USD 9.49 million contract aimed at helping Nigeria switch to green energy.
Another factor that is proving influential in small hydropower market is technology which is making the process more efficient and cutting costs at the same time. In April 2023, Shizen Energy of Japan commissioned a 2.2 MW Pelton turbine to the Kuroda Hydroelectric Power Plant in cooperation with GUGLER. This was the first megawatt-class turbine installation in Japan for GUGLER, and showed how innovation played a crucial part in increasing the power of hydropower. The given developments have pointed out the significance of partnership and technology in the improvement of small hydropower plants internationally.
