Hydropower Turbine Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Reactive, Impulse, Gravity, Others), By Capacity (Less than 1 MW, Between 1 - 10 MW, Above 10 MW), By Application (Power Generation, Power Storage, Marine, Aeronautics), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.92 Billion
CAGR (2026-2031)	4.40%
Fastest Growing Segment	Power Storage
Largest Market	Asia Pacific
Market Size (2031)	USD 3.78 Billion

Market Overview

The Global Hydropower Turbine Market will grow from USD 2.92 Billion in 2025 to USD 3.78 Billion by 2031 at a 4.40% CAGR. Hydropower turbines are mechanical devices engineered to convert the kinetic energy of flowing water into rotational energy to drive electrical generators. The market is primarily propelled by the intensifying global mandate for renewable energy transitions and the imperative to decarbonize national power grids. Additionally, the growing necessity for grid stability and energy storage solutions, particularly pumped storage hydro, supports the demand for these components to balance the integration of intermittent renewable sources.

However, the market faces substantial impediments due to high initial capital expenditures and lengthy regulatory approval processes which significantly prolong project timelines. According to the International Hydropower Association, in 2024, the global hydropower sector added 24.6 GW of new capacity. This statistic illustrates that while the industry continues to expand to meet rising energy demands, the rate of deployment is often moderated by these significant financial and logistical barriers inherent in large-scale infrastructure development.

Key Market Drivers

The global transition toward renewable energy and decarbonization serves as the foremost accelerator for the hydropower turbine market. As nations dismantle fossil fuel dependencies, the requirement for dispatchable, low-carbon baseload power drives substantial procurement of advanced turbine systems. This momentum is sustained by the urgent need to close the capacity gap required for climate goals. According to the International Hydropower Association, June 2024, in the '2024 World Hydropower Outlook', global hydropower capacity needs to approximately double to 2,500 GW by 2050 to align with net-zero pathways. This ambitious target necessitates a sustained surge in manufacturing and installation, as hydropower remains the largest source of renewable electricity. Furthermore, according to the International Energy Agency, in 2024, global electricity demand is projected to grow by 4%, the highest rate since 2007, further compelling utilities to expand their hydropower fleets to meet rising consumption without compromising emission targets.

Simultaneously, the expansion of pumped storage hydropower for grid stabilization is reshaping market dynamics by increasing the demand for reversible pump-turbines. As intermittent generation from solar and wind sources penetrates national grids, pumped storage provides critical energy arbitrage and ancillary services, effectively functioning as a vast water battery to ensure supply continuity. This sub-sector is witnessing a renaissance, driven by the necessity to store excess renewables. According to the International Energy Agency, April 2024, in the 'Batteries and Secure Energy Transitions' report, pumped storage hydropower currently accounts for more than 90% of total global electricity storage capacity. This dominance underscores the reliance on hydraulic turbine technology to balance frequency and voltage, thereby securing steady order volumes for manufacturers specializing in high-flexibility pumped storage equipment.

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Key Market Challenges

The Global Hydropower Turbine Market faces significant impediments arising from high initial capital expenditures and lengthy regulatory approval processes. These financial and logistical barriers directly hamper market growth by making large-scale projects difficult to finance and execute. The construction of hydropower facilities involves immense upfront costs for civil works and turbine installation, which creates a high barrier to entry for private investors. Consequently, developers often struggle to secure the necessary funding, leading to a reliance on limited public sector financing and frequently causing promising projects to be abandoned or indefinitely delayed before construction can commence.

Furthermore, the extensive time required to navigate complex environmental assessments and permitting procedures prolongs the gestation period of these projects, often spanning over a decade. This extended timeline introduces substantial risk and uncertainty, further discouraging investment and inflating overall project costs. The magnitude of this financial challenge is evident in the investment shortfall facing the industry. According to the International Hydropower Association, in 2024, the sector required an estimated annual investment of approximately USD 130 billion to stay on track with global net-zero goals, a sum significantly exceeding actual funding levels. This substantial investment gap highlights how financial and regulatory hurdles severely restrict the pace of turbine deployment and overall market expansion.

Key Market Trends

The strategic modernization and refurbishment of aging turbine fleets has become a primary avenue for market activity, distinct from the construction of new capacity. As the global installed base of hydropower assets matures, operators are increasingly prioritizing life-extension projects that enhance efficiency and output without the extensive permitting delays and civil engineering costs associated with greenfield developments. This trend is characterized by the replacement of obsolete runners and electro-mechanical components with modern, high-performance designs that can operate under wider hydraulic ranges. The financial magnitude of this shift is evident in recent industry financial results. According to Andritz, March 2025, in the 'Annual Report 2024', order intake in the company's Hydropower business area surged by 54% to EUR 942 million in the fourth quarter of 2024, a growth trajectory driven significantly by securing major rehabilitation and modernization contracts.

Concurrently, the integration of Industrial Internet of Things (IIoT) and Digital Twin technologies is transforming operational and maintenance strategies across the sector. Utilities are moving beyond reactive repairs to predictive maintenance models by deploying sensors and virtual replicas of physical turbine systems. These digital twins allow operators to simulate various flow conditions and stress scenarios, thereby optimizing dispatch schedules and preventing costly unplanned outages in real-time. This digital pivot is stimulating substantial capital allocation toward software and analytics platforms. According to GE Vernova, February 2025, in the '2024 Annual Report', the company committed to doubling its internal investment in artificial intelligence programs, a strategic move designed to accelerate the digitization and operational efficiency of its power generation portfolio, including hydropower assets.

Segmental Insights

The Power Storage segment is currently emerging as the fastest-growing category within the Global Hydropower Turbine Market, primarily driven by the accelerating global transition toward renewable energy. According to insights from the International Hydropower Association, this rapid expansion is necessitated by the increasing integration of intermittent power sources, such as wind and solar, which creates a critical need for grid stability and load balancing. Pumped hydropower facilities serve as essential large-scale water batteries, storing excess energy to ensure consistent supply during peak demand. Consequently, this capability to manage variability is stimulating substantial investment in turbine technologies dedicated to storage applications.

Regional Insights

Asia Pacific commands the Global Hydropower Turbine Market, driven by rapid industrial expansion and escalating energy demands in key economies like China and India. The region prioritizes hydroelectricity to ensure grid stability and meet aggressive renewable energy targets. Data from the International Hydropower Association indicates that this area consistently leads in new capacity additions, fueled by significant investments in pumped-storage hydropower projects. Furthermore, government mandates aiming to upgrade aging infrastructure support a sustained demand for efficient turbine technologies, reinforcing the region's status as the central hub for market activity.

Recent Developments

• In September 2025, Voith Hydro successfully commissioned the second upgraded turbine unit at the Roxburgh Hydropower Station in New Zealand. This milestone marked the halfway point of a modernization program for Contact Energy, which involved replacing four of the facility's original 1950s-era turbines. The new stainless-steel runners, each weighing 28.5 tonnes, were engineered to deliver higher energy output using the same water flow due to significant efficiency improvements. The project team managed to reduce the on-site implementation time by over a month compared to the first unit, ensuring the station remained on track to support the country's grid stability.
• In August 2025, Gilbert Gilkes & Gordon Ltd successfully completed the installation of a new compact 55kW Turgo turbine for a small-scale run-of-river hydropower project in Japan. The installation process was led by the company's expert fitting supervisor working in close coordination with a skilled local technical team, highlighting the manufacturer's growing footprint in the Asian renewable energy sector. This specific deployment utilized specialized impulse turbine technology optimized for the site's unique flow conditions. The successful commissioning of the equipment underscored the effectiveness of the company's engineering solutions in supporting decentralized, sustainable power generation infrastructure across international markets.
• In July 2025, Andritz received a major contract from Hidroeléctrica de Cahora Bassa to rehabilitate the Cahora Bassa hydropower plant in Mozambique. The project, valued in the mid-three-digit million-euro range, was designed to increase the facility's total generation capacity by replacing five Francis turbine runners and associated generators. Upon completion, the comprehensive upgrade was expected to boost the output of each turbine by approximately 4 percent, reaching 433 MW per unit. This strategic initiative was launched to ensure the long-term reliability and efficiency of the plant, which serves as a critical energy backbone for the surrounding region.
• In December 2024, GE Vernova secured a significant order from Dominion Energy South Carolina to modernize two hydropower units at the Saluda Hydro power plant. The scope of the project involved the deployment of the company's patented aerating turbine technology, which is specifically designed to increase dissolved oxygen levels in the Saluda River. This technical innovation aimed to support local aquatic ecosystems while simultaneously extending the operational lifespan of the facility. The modernization effort, located near Columbia, South Carolina, was established to enhance the plant's performance, with the first retrofitted unit scheduled to be fully operational by 2027.

Key Market Players

• General Electric Company
• Voith Group
• Andritz AG
• Siemens Energy AG
• Harbin Electric Corporation
• Dongfang Electric Machinery Co. Ltd
• Hitachi Ltd
• Mitsubishi Heavy Industries Ltd
• Toshiba Corp.
• GE Renewable Energy

By Type	By Capacity	By Application	By Region
Reactive Impulse Gravity Others	Less than 1 MW Between 1 - 10 MW Above 10 MW	Power Generation Power Storage Marine Aeronautics	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Hydropower Turbine Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Hydropower Turbine Market, By Type:

• Reactive
• Impulse
• Gravity
• Others

• Hydropower Turbine Market, By Capacity:

• Less than 1 MW
• Between 1 - 10 MW
• Above 10 MW

• Hydropower Turbine Market, By Application:

• Power Generation
• Power Storage
• Marine
• Aeronautics

• Hydropower Turbine Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE