Japan Hydropower Market Size (2024 - 2029)

Japan Hydropower Market Size Summary

The Japan hydropower market is poised for modest growth, driven by strong government support for renewable energy and increasing environmental concerns. The government's inclusion of renewable energy in its economic stimulus package during the COVID-19 pandemic underscores its commitment to enhancing the country's renewable energy capacity. Despite the sluggish growth in installed hydropower capacity over the years, hydropower remains a significant component of Japan's renewable energy mix, second only to solar power. The government's ambitious targets to increase the share of renewables in the energy mix by 2030, with a notable portion expected from hydropower, are expected to propel the market forward. Additionally, advancements in technology that support hydropower generation present opportunities for market expansion.

However, the rapid adoption of alternative renewable energy sources, particularly solar power, poses a challenge to the growth of the hydropower market. The significant increase in solar power capacity and the country's focus on diversifying its renewable energy portfolio have led to a stagnation in hydropower capacity. This trend is expected to continue, potentially restraining the hydropower market's growth. Despite these challenges, the market remains moderately fragmented, with key players like Hitachi Mitsubishi Hydro Corporation and General Electric Company actively participating in the sector. Innovations such as pico-hydro systems and renovations of existing plants are indicative of ongoing efforts to enhance hydropower efficiency and sustainability, contributing to the market's development during the forecast period.