The hydropower market is expected to register a CAGR of more than 2.5% over the period of 2020-2025 (Mordor Intelligence 2020).
Factors, such as efforts to reduce reliance on fossil fuel-based power generation, coupled with a large number of upcoming projects particularly in the Asia-Pacific region, are expected to drive the market during the forecast. The large hydropower segment is expected to hold the major market share in 2019, and it is likely to dominate the market during the forecast period. More than 81% of the large dams across the globe are single-purpose dams. Converting these dams into hydropower dams is expected to create a huge opportunity for the EPC and hydropower plant operators in the near future. Many countries, such as Canada, Vietnam, and others, have placed hydropower at the forefront of their energy transformation. This, in turn, is likely to create a significant amount of opportunities for the players engaged in the hydropower market in the near future. Asia-Pacific has dominated the hydropower market, with the majority of the demand coming from China, India, Japan, and other Southeast Asian countries, and is expected to continue its dominance in the coming years. Hydropower installed capacity grew by 3.96 GW across South and Central Asia in 2018, continuing a similar growth trend from the year before. Similarly, the East Asia and Pacific region continued to be the leader of the world's hydropower sector, having added 9.2 GW of installed capacity, more than any other regions. Factors, such as upcoming hydropower projects, along with plans to modernize the hydropower infrastructure across the region are expected to drive the market (Mordor Intelligence 2020).
However, factors, such as requirement of high capital and operational expenditures, along with long gestation periods, are expected to hinder the growth of the hydropower market in the coming years. This is where VIHK plays a crucial role. VIHK's objective is to champion and advance hydropower project implementation by helping project developers seek and secure the best possible funding platform.