Pumped Hydro Storage Market Size (2024 - 2029)

The pumped hydro storage market is anticipated to experience growth driven by the integration of variable renewable energy sources and the need for grid stability, alongside increasing government efforts to phase out fossil fuels. Despite challenges such as environmental concerns and competition from other energy storage technologies, advancements in pumped hydro storage technology are expected to reduce costs and environmental impacts, offering new opportunities for market expansion. The Asia-Pacific region, particularly China, has emerged as a significant contributor to the market's capacity growth.

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Market Size of Pumped Hydro Storage Industry

Pumped Hydro Storage Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 5.87 %
Fastest Growing Market Middle-East and Africa
Largest Market Asia-Pacific
Market Concentration Medium

Major Players

Pumped Hydro Storage Market Major Players

*Disclaimer: Major Players sorted in no particular order

Pumped Hydro Storage Market Analysis

Pumped hydro storage market installations totaled 165 GW in 2021 and are likely to register a CAGR of 5.87% during the forecast period.

Due to supply chain disruptions, COVID-19 hurt the pumped hydro storage market. However, the market rebounded in 2022.

  • During the forecast period, the PHS market is expected to be driven by the integration of variable renewable energy sources and the need to keep the grid stable. Furthermore, increasing government targets to phase out fossil fuels will likely aid the market's growth during the forecast period.
  • However, during the forecast period, the market studied is likely affected by the environmental and social effects of PHS projects and the growing competition from other energy storage technologies.
  • Several new PSH technologies are being worked on right now. This is expected to speed up the development and use of PSH technology for energy storage while lowering costs and negative effects on the environment in the future, creating several opportunities. Further, as per the International Hydropower Association, nearly 240 GW of PSH projects will likely come online by 2030.
  • Asia-Pacific turned out to be the largest market for pumped hydro storage, as it achieved the highest annual increase in capacity during 2020, continuing the growth trajectory primarily driven by China.

Pumped Hydro Storage Industry Segmentation

Pumped storage hydropower (PSH) is a type of hydroelectric energy storage. It is a configuration of two water reservoirs at different elevations that can generate power as water moves from one to the other (discharge), passing through a turbine. The system also requires power to pump water back into the upper reservoir (recharge). The pumped hydro storage market is segmented by type and geography. By type, the market is segmented into open-loop and closed-loop. The report also covers the market size and forecasts for the pumped hydro storage market across the major regions. For each segment, market sizing and forecasts have been done based on installed capacity (gigawatts).

Type
Open-loop
Closed-loop
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa
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Pumped Hydro Storage Market Size Summary

The pumped hydro storage market is poised for significant growth, driven by the increasing integration of variable renewable energy sources and the necessity to maintain grid stability. The market is experiencing a resurgence following the disruptions caused by the COVID-19 pandemic, with a notable rebound in 2022. The transition away from fossil fuels, supported by government initiatives, is expected to further bolster market expansion. However, the sector faces challenges from environmental and social concerns associated with pumped hydro storage projects, as well as competition from alternative energy storage technologies. Innovations in pumped hydro storage technologies are anticipated to enhance development and adoption, reducing costs and environmental impacts, thereby creating new opportunities for market players.

Asia-Pacific emerges as the largest market for pumped hydro storage, with China leading the charge in capacity expansion. The region's shift towards renewable energy and hydropower, particularly in China, Japan, and the ASEAN countries, is driving the market's growth. Closed-loop systems, which offer high flexibility and reduced environmental impact, are expected to see substantial growth due to their regulatory advantages. The market is moderately fragmented, with key players like General Electric Company, Siemens AG, and Duke Energy Corporation actively participating. Significant investments and projects, such as those in India and South Korea, underscore the region's commitment to expanding its pumped hydro storage capacity, positioning Asia-Pacific as a leader in the market over the coming years.

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Pumped Hydro Storage Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Pumped Hydro Installed Capacity and Forecast in GW, till 2028

    3. 1.3 Hydro Power Installed Capacity and Forecast in GW, till 2028

    4. 1.4 Hydroelectricity Generation in TWh, 2013-2021

    5. 1.5 Recent Trends and Developments

    6. 1.6 Government Policies and Regulations

    7. 1.7 Market Dynamics

      1. 1.7.1 Drivers

      2. 1.7.2 Restraints

    8. 1.8 Supply Chain Analysis

    9. 1.9 Porter's Five Forces Analysis

      1. 1.9.1 Bargaining Power of Suppliers

      2. 1.9.2 Bargaining Power of Consumers

      3. 1.9.3 Threat of New Entrants

      4. 1.9.4 Threat of Substitutes Products and Services

      5. 1.9.5 Intensity of Competitive Rivalry

    10. 1.10 Cost of Pumped Hydro Energy Storage System

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Open-loop

      2. 2.1.2 Closed-loop

    2. 2.2 Geography

      1. 2.2.1 North America

      2. 2.2.2 Europe

      3. 2.2.3 Asia-Pacific

      4. 2.2.4 South America

      5. 2.2.5 Middle-East and Africa

Pumped Hydro Storage Market Size FAQs

The Pumped Hydro Storage Market is projected to register a CAGR of 5.87% during the forecast period (2024-2029)

Siemens AG, Enel SpA, Duke Energy Co., Voith GmbH & Co. KGaA and General Electric Company are the major companies operating in the Pumped Hydro Storage Market.

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