The global hydro turbine market is entering a new era of growth and transformation as the world pivots toward cleaner, more sustainable energy systems. According to the latest industry assessment, the market was valued at US$ 2.6 billion in 2024 and is expected to grow at a CAGR of 5.9% from 2025 to 2035, reaching an estimated US$ 4.9 billion by 2035.

This resurgence is being fueled by the increasing focus on renewable energy integration, modernization of aging hydropower infrastructure, and the growing role of pumped-storage hydropower in balancing the intermittency of wind and solar energy.

Hydro turbines — the core component of hydropower systems — convert the kinetic and potential energy of water into mechanical power, driving electricity generation across large dams, small-hydro projects, and micro-hydro systems. As nations intensify efforts to decarbonize, hydro turbines are once again taking center stage in the clean energy conversation.

Hydropower’s Renewed Importance in the Energy Mix

Hydropower remains the largest source of renewable electricity globally, accounting for more than 40% of total renewable power generation, according to the International Energy Agency (IEA). Despite the rise of wind and solar, hydropower continues to play a crucial role in baseload generation, grid stability, and energy storage.

In particular, pumped-storage hydropower (PSH) is emerging as a vital tool for balancing fluctuating renewable outputs. When solar and wind generation exceed demand, PSH systems store excess energy by pumping water to higher elevations — releasing it later to generate power during peak demand hours.

This flexibility makes hydro turbines indispensable to modern energy systems. Governments and utilities are increasingly turning to hydropower as a stabilizing backbone for national grids amid the ongoing energy transition.

Key Growth Drivers: Modernization and Renewable Integration

1. Rising Investments in Renewable Energy Transition and Grid Reliability

With global electrification on the rise and clean energy mandates gaining momentum, hydropower is being reimagined as a strategic enabler of the renewable transition.

• In developed economies, utilities are refurbishing aging plants with modern turbines to improve efficiency and environmental compliance.
• In emerging economies, new hydro projects are being deployed to expand electricity access and reduce dependence on fossil fuels.

For instance, China and India are leading large-scale hydropower installations, while Southeast Asia, Latin America, and Africa are investing in small and micro-hydro systems for rural electrification.

Moreover, hydropower is critical to achieving net-zero emission targets, as it provides stable, dispatchable energy that complements intermittent renewables. This balance between reliability and sustainability continues to drive global demand for advanced hydro turbine technologies.

2. Technological Advancements and Sustainability-Oriented Modernization

The hydro turbine industry is undergoing a wave of technological innovation aimed at improving efficiency, sustainability, and digital intelligence.

• Next-generation turbine designs now feature advanced materials, flexible runner geometries, and high hydraulic efficiency.
• Manufacturers like GE Renewable Energy and Voith Hydro are pioneering fish-friendly turbine designs that reduce ecological impacts and meet strict environmental regulations.

Digitalization is also transforming hydropower operations. AI-driven predictive maintenance, smart sensors, and remote monitoring platforms enable real-time performance optimization and proactive equipment management. These advances reduce operational downtime and lifecycle costs, making hydropower projects more economically viable.

In regions like Europe and North America, where nearly 30% of installed hydropower capacity is over 30 years old, modernization efforts are boosting generation efficiency by up to 15% while extending plant lifespans.

Market Segmentation: Small Hydro Leads the Charge

The up to 100 MW turbine segment has emerged as a significant contributor to market revenue. These smaller-scale turbines are being adopted across community power projects, off-grid applications, and rural electrification programs, particularly in Asia-Pacific and Africa.

Governments and utilities favor small-hydro projects due to their lower environmental impact, faster construction, and compatibility with local grid systems. Many older installations in Europe and North America are also being upgraded with compact, high-efficiency turbines — creating continuous demand for refurbishment and retrofitting.

Regional Insights: Asia Pacific Dominates the Market

The Asia Pacific region holds a commanding 43.5% share of the global hydro turbine market, driven by massive hydropower development in China, India, and Southeast Asia.

• China’s large-scale dam projects and pumped-storage capacity expansions underpin its clean energy ambitions.
• India’s investments in small and micro-hydro initiatives are helping extend electricity access to remote and underserved areas.

In contrast, Europe’s market growth is largely driven by modernization and digital retrofits rather than new constructions. Nations like Norway, France, Austria, and Switzerland are focusing on upgrading turbine efficiency, adding fish-detection systems, and implementing IoT-based monitoring to improve operational sustainability.

North America continues to invest in upgrading older infrastructure and deploying PSH projects for grid flexibility, while regions like Latin America and Africa are exploring hydropower potential to reduce energy poverty and strengthen grid resilience.

Key Players Shaping the Future of Hydropower

The global hydro turbine landscape is led by a mix of established industrial giants and regional specialists, including:

• GE Vernova (GE Renewable Energy)
• ANDRITZ
• Voith Group
• Toshiba Corporation
• Harbin Electric Corporation
• Kirloskar Brothers Limited
• Global Hydro Energy GmbH
• Flovel Energy Private Limited
• GUGLER Water Turbines GmbH

These companies are investing heavily in digitalization, retrofit projects, and environmentally sustainable turbine designs to meet evolving market and regulatory demands.

Recent Industry Developments

• GE Renewable Energy announced the successful completion of the 1.2 GW Jinzhai Pumped-Storage Plant in China, one of the world’s largest such projects, highlighting the growing role of pumped-storage in achieving grid flexibility.
• Voith Group, in 2025, launched its Hydro Pocket solution in Japan — a lightweight, cloud-based monitoring platform enabling remote condition diagnostics and digital retrofitting for small and mid-sized plants.

These advancements underscore the industry’s shift toward smart, connected, and sustainable hydropower ecosystems.

The Road Ahead: Hydropower as a Cornerstone of Net-Zero Goals

As the global energy transition accelerates, hydropower will continue to play a pivotal role in ensuring grid stability, energy storage, and renewable reliability. With aging plants being modernized and new, efficient turbines entering operation, the sector is well-positioned to maintain its status as a clean, dispatchable energy source for decades to come.

By 2035, the hydro turbine market will not only expand in size — reaching US$ 4.9 billion — but will also redefine how the world generates and manages renewable electricity. Through innovation, digital transformation, and sustainability-driven design, hydro turbines are poised to remain a vital pillar of the global clean energy future.

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