Europe Small Hydropower Market Size (2024 - 2029)

The Europe small hydropower market is poised for growth, driven by increased investments and supportive government policies, despite challenges such as technical drawbacks of string inverters. The market has rebounded to pre-pandemic levels and is expected to expand further, with Norway leading in growth potential due to its favorable investment climate. The forecast period is anticipated to see a rise in new small hydropower projects, creating significant opportunities for market expansion.

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Market Size of Europe Small Hydropower Industry

Europe Small Hydropower Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 4.00 %
Market Concentration Medium

Major Players

Europe Small Hydropower Market Major Players

*Disclaimer: Major Players sorted in no particular order

Europe Small Hydropower Market Analysis

The Europe small hydropower market is expected to register a CAGR of over 4% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently, the market reached pre-pandemic levels.

  • Over the medium term, increased investments and ambitious hydropower targets are expected to drive the market's growth.
  • On the other hand, technical drawbacks of the string inverters are expected to hamper the growth of Europe's small hydropower market during the forecast period.
  • Nevertheless, in the forecast period, an increasing number of new small hydropower projects backed by government support will likely create lucrative growth opportunities for the Europe small hydropower market.
  • Norway dominates the market and would likely witness the highest CAGR during the forecast period. This growth is attributed to the increasing investments, coupled with supportive government policies in the country.

Europe Small Hydropower Industry Segmentation

Small hydro is the development of hydroelectric power on a scale suitable for local communities and industry or contributing to distributed generation in a regional electricity grid. The small hydro project has less than 10 megawatts (MW) of installed capacity. 

The Europe small hydropower market is segmented by capacity and geography. By capacity, the market is segmented into up to 1 MW and 1-10 MW. The report also covers the market size and forecasts for the Europe small hydropower market across major countries. For each segment, the market sizing and forecasts have been done based on installed capacity (GW).

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Europe Small Hydropower Market Size Summary

The Europe small hydropower market is poised for growth, driven by increased investments and ambitious targets in the sector. Despite the initial setbacks due to the COVID-19 pandemic, the market has rebounded to pre-pandemic levels. The growth trajectory is supported by government-backed initiatives and the development of new small hydropower projects, which are expected to create significant opportunities. However, technical challenges associated with string inverters may pose obstacles to market expansion. Norway stands out as a dominant player in this market, benefiting from substantial investments and favorable government policies, which are anticipated to propel its growth further.

The 1-10 MW capacity segment is expected to be the most prevalent in Europe's small hydropower market, largely due to the deployment of small-scale decentralized projects aimed at rural electrification. Countries like Norway, France, and Italy are leading in installations within this segment. Notable projects, such as the European Investment Bank's funding for small run-of-river hydroelectric plants in Italy and Voltalia's development in French Guiana, underscore the region's commitment to expanding its hydropower capacity. Norway, with its extensive hydropower fleet and timely completion of projects, remains the largest producer in Europe, further solidifying its leadership position in the market. The market is moderately fragmented, with key players including Voith GmbH & Co. KGaA, Siemens Energy AG, Andritz AG, GE Renewable Energy, and Electricite de France SA (EDF).

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Europe Small Hydropower Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Small Hydropower Installed Capacity and Forecast in GW, till 2027

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.7.1 Bargaining Power of Suppliers

      2. 1.7.2 Bargaining Power of Consumers

      3. 1.7.3 Threat of New Entrants

      4. 1.7.4 Threat of Substitute Products and Services

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

Europe Small Hydropower Market Size FAQs

The Europe Small Hydropower Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)

Voith GmbH & Co. KGaA, Siemens Energy AG, Andritz AG , GE Renewable Energy and Electricite de France SA (EDF) are the major companies operating in the Europe Small Hydropower Market.

Europe Small Hydropower Report Snapshots

Europe Small Hydropower Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)