Smart Micro Hydropower Systems Market Overview
The global smart micro hydropower systems market is estimated to grow at a CAGR of is estimated to grow at a CAGR of 5.1% during the forecast period (2024-2031) from its current value of US$ 1,652.25 million in 2023 to reach a value of US$ 2,455.56 million in 2031.
The global smart micro hydropower systems market is experiencing a surge in popularity due to their sustainable and decentralized energy solutions. As the demand for such smart micro hydropower systems is rising, many manufacturing companies in this market are developing different products to expand their market sizes. For instance, in March 2022, Ricoh launched a micro hydropower system for remote locations, usable with solar-plus-storage. The hydropower is made with 3D-printed sustainable materials and can generate electricity even with a small stream of water. Solar and storage may be
linked to the system to ensure a stable power supply.
Electromechanical equipment commanded the largest share in 2023, comprising nearly 49.96% of the global market. Electromechanical equipment accounts for the largest cost in a hydropower project. Upto 10 kW has the largest share in power output segment, comprising 53.02% of the global market in 2023. Micro hydropower stations are mainly used for small-scale power generation and hence generally do not exceed 10 kW output.
Off-grid systems had the largest share in application segment in 2023, comprising 67.48% of the global market. Micro hydropower stations are mainly being used for off-grid renewable energy generation. Optimization is the most preferred application of smart micro hydropower systems, garnering a market share of 34.36% in 2022. Residential end-users had the biggest share for smart micro hydropower systems market, having a market share of 53.52% in the global market in 2023.
Many rural users install micro hydropower systems to reduce their monthly energy bills. Europe retains the largest
regional share, comprising nearly 36.34% of the global market. It is mainly due to the fact that Europe has the geographical makeup most conducive for the development of micro hydropower stations.
Smart Micro Hydropower Systems Market Scope
| Metrics | Details |
| CAGR | 5.1 % |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Component, Power Output, Application, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Smart Micro Hydropower Systems Market Dynamics
Favorable Government Policies and Incentives
Governments globally are implementing supportive policies and incentives to promote the development and deployment of renewable energy technologies, including smart micro hydropower systems. In 2022 U.S. Department of Energy’s (DOE) committed to invest over US$ 8 million in funding to bolster the flexibility of the nations fleet and enhance the reliability of the grid.
Similarly, UK government is providing over US$ 35 million in funding to support energy storage initiatives. In that year U.S. Department of Energy’s (DOE) and Water Power Technologies Office (WPTO) invested over US$ 16 million in new projects aimed at advancing research and development in hydropower and marine energy. Across six laboratories these awards included US$ 5.6 million for projects and US$ 10.5 million for marine energy projects. The investment underscores the government's dedication to advancing the sector and reaping its benefits.
Additionally the Indian government has pledged an investment of US$723 million towards projects. The investments contribute significantly to exploring, developing and implementing energy storage technologies like smart micro hydropower systems that play a role in balancing electricity supply and demand. Alongside these investments, policies such, as feed in tariffs, tax credits, grants and subsidies further encourage individuals, communities and businesses to invest in these systems. Further, Indian government has committed to invest around US$ 723 million for the hydropower project. The investments contribute to the research, development and implementation of energy storage technologies, including smart micro hydropower systems, which can play a crucial role in balancing electricity supply and demand. In addition to these investments, policies such as feed-in tariffs, tax credits, grants and subsidies, also encourage individuals, communities and businesses to invest in these systems.
New Advancements in Micro Hydropower Technology
Micro hydropower has witnessed new technological advancements in recent years, mainly pertaining to the engineering and technology. One of the major engineering advancements has been the advent of flexibility technology, with the growing adoption of adjustable diaphragms and stabilizer fins.
Advancements in energy storage solutions are also being incorporated into smart micro hydropower systems. Specifically, the advancement in lithium-ion battery technology has been instrumental in increasing the adoption of hybrid energy storage solutions for excess hydropower. Given the long lead times in developing new lithium supplies, scientists are also researching lithium free energy storage systems. For instance, in December 2023, Fourth Power, a U.S.-based startup, focused on energy storage systems for hydropower, announced that it had raised US$ 19 million in funding for developing a long duration energy storage solution with molten tin chemistry.
Another emerging micro hydropower technology is the increased adoption of digitization to increase operational efficiency. Research suggests that a total of 42 TWh of cumulative hydropower could be added to present capacity by implementing digitization. Furthermore, it could also lead to an annual savings of US$ 5 billion in overall costs.
New technological advancements will greatly influence the future growth trajectory of the global smart micro hydropower market.
High Initial Cost and Complex regulatory environment and permitting processes
The high initial cost of smart micro hydropower systems presents a significant challenge, as it encompasses capital expenses for site assessment, turbine procurement, civil works, grid integration and control systems. The economies of scale in micro hydropower systems are limited, leading to a higher cost per unit of electricity generated compared to larger hydropower projects.
Additionally, site-specific costs, infrastructure requirements for grid connection and the associated financial and investment risks further contribute to the challenge of affordability and economic viability for potential investors and project developers. Further developing hydropower projects, even on a smaller scale, requires adherence to a range of regulations and obtaining various permits from governmental authorities. Regulations as such aim to ensure environmental protection, water resource management and public safety.
However, navigating through the regulatory landscape can be time-consuming, costly and challenging for project developers. The processes involve conducting environmental impact assessments, obtaining water rights and licenses, complying with fish and wildlife regulations and addressing potential concerns raised by local communities.
Smart Micro Hydropower Systems Market Segmentation
The global Smart Micro Hydropower Systems market is segmented based on component, power output, application, end-user and region.
Significant Market Share and Benefits of Micro Hydro Power Systems in Civil Infrastructure Projects
Global smart micro hydropower systems for civil works market was US$ 325.02 million in 2023 and is expected to reach US$ 452.07 million by 2031, growing with a CAGR of 4.3 % between 2024 and 2031.
Civil works such as building intake structures, penstocks, powerhouse buildings, and water diversion canals are required for smart micro-hydro electric hydropower plants. Infrastructure development for micro hydropower projects is being driven by government initiatives to promote clean energy and increasing demand for renewable energy sources.
Every micro hydropower initiative requires site-specific civil works that are adapted to the local topography, characteristics of the water supply, and ambient factors. The hydropower system will function as efficiently and effectively as possible due to this customization. The need for civil works services to plan and build these projects is growing along with the number of micro hydropower installations across the world.
Smart micro hydropower systems are frequently installed in remote and rural locations with little to no grid access. Building the infrastructure required to extract hydropower resources and provide these underserved villages with energy requires civil work. The focus on electrifying rural areas is pushing investments in civil works for micro hydropower plants, especially in developing nations.
The use of micro hydropower systems in civil infrastructure projects has various advantages. For example, it provides a dependable and sustainable source of electricity, decreasing reliance on traditional grid power and assuring a continuous power supply for civil activities. It is especially useful in remote locations or regions with weak grid infrastructure.
Through the generation of clean electricity from flowing water, the reduction of carbon dioxide emissions, and the encouragement of environmentally friendly practices in civil layout and operation, micro hydropower plants contribute to environmental sustainability. Furthermore, by offering a reliable source of electricity that is less prone to disruptions, micro hydropower improves the energy resilience of civil works, especially in locations that are
vulnerable to disasters.
Furthermore, a wide range of civil engineering applications, including water distribution systems, street lighting, parks, and rural electrification projects, are appropriate for micro hydro power systems due to their scalability and adaptability.
On August 30, 2022, Yumes Frontier, a Japanese startup, produced a 2.7 kW micro-hydropower system that can be installed in some civil buildings. It can also be paired with solar power lights and surveillance cameras. With an increasing emphasis on sustainable development and renewable energy usage, the market for smart microhydropower systems in civil works is expected to rise significantly over the forecast period.
The growing investments for the smart hydropower system projects in the major cities help to boost civil works segment growth over the forecast period. For instance, on December 09, 2022, The U.S. Department of Energy's (DOE) Water Power Technologies Office (WPTO) unveiled more than $16 million in fresh initiatives aimed at advancing research and development in hydropower and marine energy.
This funding comprises $5.6 million allocated for hydropower initiatives and $10.5 million designated for marine energy endeavors across six national laboratories. Currently, hydropower contributes to 31.5% of U.S. renewable electricity generation and constitutes 6.3% of the nation's overall electricity generation.
Global Smart Micro Hydropower Systems Market Geographical Share
Rapid Growth and Market Supremacy in the Smart Micro Hydropower Systems Market
Asia-Pacific smart micro hydropower systems market reached US$ 471.72 million in 2023 and is projected to reach US$ 768.76 million by 2031, growing with a CAGR of 6.4% from 2024-2031.
China ranked at top in terms of consumption of the energy globally, has been actively lowering its dependency on fossil fuels and utilizing the variety of energy sources to mitigate environmental problems including air pollution and carbon emissions. One renewable energy source that is crucial to this diversification strategy is hydropower. Smart micro hydropower systems are becoming more and more necessary as China's renewable energy capacity grows to effectively use the potential of small-scale hydro resources.
In December 2023, according to China's NEA, the nation's installed renewable energy capacity has surpassed 1.4 TW or roughly 49.9% of its overall capacity for producing electricity. There are 44 GW of biomass, 536 GW of solar, 404 GW of wind and 420 GW of hydropower potential. By the end of 2023, China will have installed more than 1.45 TW of renewable energy capacity, with installations of solar and wind power surpassing 1 TW.
In January 2023, 250 micro hydropower projects will be constructed in Uzbekistan. President of Uzbekistan announced during a conference that 50 potential locations for new micro hydropower projects had been chosen. The meeting was intended to discuss strategies for the hydropower industry as well as ways to improve the nation's energy supply. In addition to constructing new solar, wind and hydropower facilities and increasing the capacity of those already in place, the president stated that all forms of energy are being utilized to develop the nation's system, which further in turn opens the growth avenues for the regional product market. 27 projects totaling US$ 500 million have been implemented in the hydropower sector in the last several years, adding 260 MW of capacity. In the Uzbekhydroenergo system, the total capacity of the stations is more than 2,000 MW.
In December 2022, The hydropower division of General Electric's renewables business has installed the first two 300MW turbines at a pumped hydro energy storage site in China. The company is supplying four turbines, generator motors and balance of plant equipment to the 1,200MW long-duration energy storage resource.
According to IEA, with 24 GW installed in 2022, roughly three-quarters of all worldwide growth—China remains the leader in terms of capacity additions. Although capacity expansions are anticipated to slow down in the upcoming years due to a declining number of suitable locations and environmental constraints, hydropower is still a significant component of the 14th Five-Year Plan for Renewable Energy, which was issued in 2022.
New developments in control mechanisms and system integration allow smart micro hydropower systems to work alongside seamlessly with other renewable energy sources like wind and solar energy. By enhancing overall system availability and reliability, this integration increases the appeal of smart micro hydropower systems for deployment in a variety of settings. For instance, in March 2022, Ricoh launched a micro hydropower system for remote locations, usable with solar-plus-storage. The hydropower is made with 3D-printed sustainable materials and can generate electricity even
with a small stream of water. Solar and storage may be linked to the system to ensure a stable power supply.
On August 30, 2022, a Japanese startup, Yumes Frontier produced a 2.7 kW micro-hydropower system that can be installed in some civil buildings. It can also be paired with solar to power lights and surveillance cameras. With an increasing emphasis on sustainable development and renewable energy usage, the market for smart micro hydro power systems in civil works is expected to rise significantly over the forecast period in Asian region.
Competitive Landscape
The major global players include Andritz Hydro GmbH, Voith Hydro GmbH & Co. KG, General Electric Company (GE), Toshiba Corporation, Siemens AG, Wartsila Corporation, Harbin Electric Machinery Co., Ltd., Canyon Hydro, Gilbert Gilkes & Gordon Ltd., Nautilus Turbines Ltd..
COVID-19 Impact Analysis
The economic uncertainty caused by the pandemic has made it more difficult for projects to secure financing. Financial institutions may be more cautious in providing loans or investments for smart micro hydro power systems, resulting in funding challenges for developers and operators.
The overall decrease in energy demand during the pandemic has impacted the operation and profitability of smart micro hydropower systems. With businesses temporarily closing or operating at reduced capacities, the electricity consumption has declined, affecting the financial viability of existing systems and potentially discouraging new installations.
Russia- Ukraine War Impact
The ongoing conflict can create economic instability in the region. Uncertainty and disruptions in trade and commerce can impact consumer confidence and purchasing power. As a result, During times of conflict and uncertainty, governments and communities may divert their attention and resources towards immediate needs and security concerns. It could potentially lead to a deprioritization of renewable energy projects, including smart micro hydro power systems, as the focus shifts towards other pressing matters.
Furthermore, the war can disrupt supply chains, affecting the availability of components and equipment necessary for smart micro hydro power systems. Difficulties in sourcing materials, such as turbines or control systems, may cause delays or increased costs in the installation or maintenance of these systems.
Key Developments
- On August 30, 2022, Japanese startup Yumes Frontier has developed a 2.7 kW micro-hydropower system that can be used in some buildings. It can also be combined with solar to provide power for lights and surveillance cameras.
- On March 25, 2022, Ricoh launched micro hydropower system for remote locations, usable with solar-plus-storage. The hydro power is made with 3D-printed sustainable materials and is able to generate electricity even with a small stream of water. Solar and storage may be linked to the system to ensure stable power supply.
- On February 16, 2023, VerdErg Renewable Energy has launched the concept development of VETT-in-a-Box, a new ‘plug & play’ micro hydropower system for generating electricity from small rivers, wastewater outflows, lock gates or canals with only two metres head drop.
Why Purchase the Report?
- To visualize the global smart micro hydropower systems market segmentation based on component, power output, application, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of smart micro hydropower systems market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global smart micro hydropower systems market report market report would provide approximately 69 tables, 67 figures and 201 Pages.
Target Audience 2023
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
