Hydro Turbine Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Turbine (Impulse Turbine, Reaction Turbine), By Head (Low Head Turbine, Medium Head Turbine, High Head Turbine), By Installation Site (Small Hydro Power Plant, Medium Hydro Power Plant, Large Hydro Power Plants), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.82 Billion
CAGR (2026-2031)	5.14%
Fastest Growing Segment	Large Hydro Power Plants
Largest Market	Asia Pacific
Market Size (2031)	USD 3.81 Billion

Market Overview

The Global Hydro Turbine Market will grow from USD 2.82 Billion in 2025 to USD 3.81 Billion by 2031 at a 5.14% CAGR. A hydro turbine is a rotary mechanical device that converts the kinetic and potential energy of flowing water into mechanical work, serving as the essential prime mover for electricity generation in hydropower facilities. The growth of this market is fundamentally supported by the rising global imperative to transition toward low-carbon energy systems and the increasing requirement for reliable baseload power to stabilize electrical grids. Furthermore, the expansion is fueled by the necessity to integrate intermittent renewable resources, such as wind and solar, where hydropower provides critical flexibility and dispatchable storage capabilities.

Despite these positive indicators, the market faces a significant impediment regarding the substantial upfront capital expenditure and protracted regulatory approval processes required for large-scale infrastructure projects. These financial and bureaucratic hurdles can frequently delay project commissioning and deter investment in otherwise viable sites. Notwithstanding these challenges, the sector continues to demonstrate measurable expansion through ongoing development. According to the International Hydropower Association, in 2024, the global hydropower sector successfully added 24.6 GW of new installed capacity.

Key Market Drivers

The modernization and refurbishment of aging hydropower infrastructure operates as a primary catalyst for market demand, necessitating the replacement of electromechanical equipment to extend facility lifespans and enhance performance. As effective operational decades pass, operators are compelled to retrofit existing plants with advanced turbine technologies that offer improved hydraulic efficiency and reduced environmental impact. This trend is heavily supported by government funding aimed at optimizing asset utilization without the environmental complexities of new construction. According to the U.S. Department of Energy, September 2024, in the 'Maintaining and Enhancing Hydroelectricity Incentives' announcement, the administration selected 293 hydroelectric projects across 33 states to receive over $430 million in incentive payments specifically for capital improvements related to grid resilience and dam safety. Such capital injections directly drive the procurement of modern turbine runners and associated control systems required to meet evolving regulatory standards.

Simultaneously, the rapid expansion of Pumped-Storage Hydropower is reshaping the turbine landscape, driven by the critical need for large-scale energy storage to balance intermittent renewable generation. These facilities utilize reversible pump-turbines to stabilize grid frequency and provide dispatchable power during peak demand, effectively acting as rechargeable water batteries. This sub-sector is witnessing substantial growth as nations strive to integrate variable wind and solar outputs while maintaining grid reliability. According to the International Hydropower Association, December 2024, in the '2024 World Hydropower Outlook', the global sector successfully installed 6.5 GW of new pumped storage hydropower capacity in the preceding year. This specific growth within the storage segment is part of a broader regional expansion trend. According to the National Energy Administration of China, in January 2025, the country's hydropower sector continued its upward trajectory by adding approximately 13.78 GW of new capacity throughout 2024.

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Key Market Challenges

The Global Hydro Turbine Market faces considerable constraints driven by substantial upfront capital expenditures and protracted regulatory approval processes. Large-scale hydropower projects necessitate significant initial funding for civil works, environmental mitigation, and equipment procurement long before electricity generation begins. This capital intensity renders projects highly sensitive to financing terms and economic volatility, often deterring private investment. Additionally, navigating complex permitting requirements across multiple jurisdictions leads to extended development timelines. These delays frequently result in project postponements or cancellations, which directly restricts the volume of new turbine orders and hampers manufacturing momentum.

The impact of these barriers is evident in the widening gap between required capacity and actual deployment. According to the International Hydropower Association, in 2024, the sector fell short of the estimated 45 GW of annual capacity additions needed to stay on track for global net-zero goals. This significant shortfall highlights how financial and regulatory bottlenecks prevent the market from realizing its full potential, limiting the expansion opportunities for turbine manufacturers despite the clear demand for clean energy solutions.

Key Market Trends

The adoption of small-scale and modular hydropower systems is accelerating as nations prioritize decentralized energy generation and rural electrification with minimal environmental disruption. Unlike large dams, these systems require limited civil works and can be rapidly deployed in remote locations, making them a preferred solution for off-grid communities and industrial clusters seeking reliable baseload power. This shift is further enabled by standardized turbine designs that reduce manufacturing lead times and installation costs, allowing for quicker project realization compared to traditional large-scale infrastructure. The scale of this deployment is evident in emerging markets; according to the Ministry of New and Renewable Energy, January 2025, India’s small hydropower sector reached a cumulative installed capacity of 5.10 GW by the end of 2024, driven by targeted state development programs.

Simultaneously, the market is witnessing the advancement of fish-friendly and eco-restoration turbine designs aimed at mitigating the ecological impact of hydropower operations on aquatic biodiversity. Manufacturers are engineering innovative runner geometries and aeration mechanisms that improve dissolved oxygen levels and ensure safe fish passage without compromising hydraulic efficiency. This technological evolution addresses stringent environmental regulations and licensing requirements that mandate the protection of riverine ecosystems during power generation. Highlighting this focus on ecological sustainability, according to GE Vernova, December 2024, the company secured an order to install advanced aerating turbines at the Saluda Hydro power plant in South Carolina, specifically designed to increase dissolved oxygen concentrations in the release water.

Segmental Insights

The Large Hydro Power Plants segment is projected to be the fastest-growing category within the global hydro turbine market. This trajectory is largely attributed to the unmatched capacity of these facilities to provide consistent baseload power and essential grid stabilization services compared to intermittent renewable sources. Leading energy authorities, including the International Energy Agency, advocate for the expansion of large-scale hydropower to meet rising electricity demand while supporting decarbonization mandates. Consequently, significant capital is being directed toward developing new high-capacity reservoirs and modernizing existing infrastructure to ensure long-term energy security.

Regional Insights

Asia Pacific commands the leading position in the Global Hydro Turbine Market, fueled largely by aggressive capacity expansion in China and India. As these nations undergo rapid industrialization and urbanization, the escalating demand for stable electricity has necessitated robust energy solutions. In response, national governments are enforcing stringent renewable energy mandates, resulting in substantial investments toward new large-scale hydroelectric plants and advanced pumped-storage projects. This strategic focus on infrastructure, aimed at reducing carbon emissions and ensuring energy security, solidifies the region's status as the epicenter for hydro turbine demand and deployment.

Recent Developments

• In July 2025, Andritz Hydro secured a major contract from Hidroelectrica de Cahora Bassa to rehabilitate the Cahora Bassa hydropower plant in Mozambique, one of the largest hydroelectric facilities in Southern Africa. The scope of the agreement includes the design, manufacturing, and supply of five new Francis turbine runners and generators, along with updated control and protection systems. This comprehensive modernization project aims to increase the plant's total generating capacity by over four percent, ensuring long-term reliability and efficiency for the station’s critical role in the regional electricity market.
• In May 2025, Toshiba Energy Systems & Solutions Corporation announced the completion of the delivery and installation of major hydropower equipment for the Ninghai Pumped-Storage Power Plant in China. The project involved the deployment of four 350 MW reversible pump-turbines and associated balance-of-plant systems, which were executed by the company’s local subsidiary. The full commissioning of this facility marks a critical development in the region's energy infrastructure, providing essential energy storage capabilities that help balance supply and demand fluctuations and facilitate the integration of renewable energy sources into the grid.
• In January 2025, Harbin Electric Corporation achieved a significant engineering breakthrough with the successful manufacturing of the world's largest impulse turbine runner for the Zala Hydropower Station in Tibet. The massive component, developed for a 500 MW hydroelectric generating unit, was fabricated using cutting-edge welding techniques to withstand the demands of high-head and large-capacity operations. This milestone positions the company at the forefront of global hydropower technology, as the new runner is expected to substantially improve the station's energy conversion efficiency and contribute to the stability of the regional power grid.
• In December 2024, GE Vernova announced a strategic collaboration with Dominion Energy South Carolina to modernize two hydropower units at the Saluda Hydro power plant. The project focuses on extending the operational life of the facility while enhancing environmental stewardship through the installation of advanced aerating turbine technology. This innovative equipment is designed to increase dissolved oxygen levels in the Saluda River, thereby supporting aquatic biodiversity downstream. The modernization effort highlights the company's commitment to upgrading established infrastructure with sustainable solutions that balance reliable power generation with ecological preservation.

Key Market Players

• Voith Group
• GE Renewable Energy
• Andritz AG
• Siemens Energy AG
• Harbin Electric International Company Limited
• Dongfang Electric Corporation. Ltd
• Hitachi Ltd
• Mitsubishi Heavy Industries Ltd
• Toshiba Corporation
• Alstom Holdings

By Turbine	By Head	By Installation Site	By Region
Impulse Turbine Reaction Turbine	Low Head Turbine Medium Head Turbine High Head Turbine	Small Hydro Power Plant Medium Hydro Power Plant Large Hydro Power Plants	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Hydro Turbine Market, By Turbine:

• Impulse Turbine
• Reaction Turbine

• Hydro Turbine Market, By Head:

• Low Head Turbine
• Medium Head Turbine
• High Head Turbine

• Hydro Turbine Market, By Installation Site:

• Small Hydro Power Plant
• Medium Hydro Power Plant
• Large Hydro Power Plants

• Hydro 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