Hydropower Plant Construction Market Report 2026

Hydropower Plant Construction Market Overview

• Hydropower Plant Construction market size has reached to $20.8 billion in 2025 • Expected to grow to $26.87 billion in 2030 at a compound annual growth rate (CAGR) of 5.2% • Growth Driver: Rising Interest In Clean Energy Fuels Growth Of The Hydropower Plant Construction Market • Market Trend: Advancing Renewable Energy Through Next-Generation Hydropower Construction • Asia-Pacific was the largest region and fastest growing region.

What Is Covered Under Hydropower Plant Construction Market?

Hydropower plant construction refers to the process of building facilities that use the energy of flowing or falling water to produce electricity. These facilities, also known as hydropower plants or hydroelectric power plants, are built near rivers, streams, or other bodies of water with a high water flow. The main types of hydropower plant construction are water storage, diverted, and pumped storage. Water-storage hydropower plants, or pumped-storage hydropower (PSH), are facilities that use the potential energy of gravity to store and create electricity for load distribution within electric power systems. They are used to construct various capacities, such as large hydropower plants, medium hydropower plants, small hydropower plants, and others, for several applications, including city power supply, industrial power supply, military power supply, and others.

What Is The Hydropower Plant Construction Market Growth Forecast?

The hydropower plant construction market size is expected to see strong growth in the next few years. It will grow to $26.87 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to growing focus on low-carbon power generation, modernization of aging hydropower plants, increasing adoption of digital monitoring systems, expansion of pumped storage capacity, rising investment in small and micro-hydropower technologies. Major trends in the forecast period include increasing adoption of renewable energy infrastructure, rising use of automated turbine inspection technologies, advancements in precision engineering for hydropower equipment, expansion of digital monitoring and control platforms, growing deployment of smart grid-integrated hydropower systems.

Global Hydropower Plant Construction Market Segmentation

1) By Type: Water Storage, Diverted, Pumped Storage 2) By Capacity: Large Hydropower Plants, Medium Hydropower Plants, Small Hydropower Plants, Other Capacities 3) By Application: City Power Supply, Industrial Power Supply, Military Power Supply, Other Applications Subsegments: 1) By Water Storage: Reservoir-Based Hydropower Plants, Impoundment Hydropower Plants 2) By Diverted: Run-Of-River Hydropower Plants, Canal-Based Hydropower Plants 3) By Pumped Storage: Conventional Pumped Storage Hydropower Plants, Closed-Loop Pumped Storage Systems

What Is The Driver Of The Hydropower Plant Construction Market?

The rising interest in clean energy is expected to propel the growth of the hydropower plant construction market in the coming years. Clean energy is energy obtained from sources that do not emit greenhouse gases, such as nuclear power, hydroelectric power, solar, geothermal, wind, and tidal energy. The rising adoption of clean energy is due to several factors, including the growing awareness of climate change and environmental degradation, improvements in energy storage, and grid integration capabilities. The construction of hydropower plants makes it easier to generate sustainable energy by leveraging the power of water's movement to generate electricity while releasing zero greenhouse emissions. For instance, in December 2023, according to the Department for Energy Security and Net Zero, a UK-based government department, the Energy Company Obligation (ECO) remains the largest energy efficiency scheme, accounting for 83% of all measures installed in 2023. Throughout the year, ECO delivered 265,000 measures, marking a 61% increase compared to 2022, as activity under ECO4 expanded following its launch in April 2022 after the conclusion of ECO3. Therefore, the rising interest in clean energy is driving the hydropower plant construction industry.

Key Players In The Global Hydropower Plant Construction Market

Major companies operating in the hydropower plant construction market are PowerChina Group, Bouygues Construction SA, Sinohydro Corporation, Vinci Construction, Siemens Energy AG, ABB Group, Duke Energy Corporation, Toshiba Corporation, China Three Gorges Corporation, Strabag SE, Statkraft AS, Skanska Group, Hydro-Québec, Verbund AG, Enel Green Power, Webuild SpA, Dongfang Electric Corporation, Andritz AG, Suez Group, RusHydro, SNC-Lavalin Group Inc., BC Hydro, Voith Group, GE Renewable Energy, Astaldi S.p.A., Bharat Heavy Electricals Limited (BHEL), Alstom SA, Innergex Renewable Energy Inc., Voimaosakeyhtiö SF

Global Hydropower Plant Construction Market Trends and Insights

Major companies operating in the hydropower plant construction market are focusing on developing innovative solutions such as advanced run-of-river power plants to enhance renewable energy generation efficiency and support sustainable regional power supply. Advanced run-of-river power plants are modern hydropower systems that generate electricity using the natural flow and elevation drop of rivers without requiring large reservoirs, minimizing environmental impact while ensuring continuous renewable power production. For instance, in September 2025, Verbund AG, an Austria-based electricity company, partnered with Salzburg AG, an Austrian multi-utility company, to launch the Stegenwald Hydropower Plant on the Salzach River. The project, completed after two and a half years of construction, utilizes advanced turbine technology to optimize water flow and maximize renewable energy generation. This collaboration strengthens Austria’s clean energy infrastructure and contributes to the country’s goal of achieving carbon neutrality through sustainable hydropower development.

What Are Latest Mergers And Acquisitions In The Hydropower Plant Construction Market?

In November 2024, Endesa S.A., a Spain-based multinational electric utility company, acquired 100% Stake in Corporación Acciona Hidráulica from Acciona Energía for approximately $1.05 billion. With this acquisition, Endesa aimed to strengthen its renewable-generation portfolio by increasing its hydropower capacity and enhancing its integrated value-chain presence in renewables. Corporación Acciona Hidráulica S.L. is a Spain-based company that provide hydropower plant construction services.

Regional Insights

Asia-Pacific was the largest region in the hydropower plant construction market in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Hydropower Plant Construction Market?

The hydropower plant construction market includes revenues earned by entities by conventional hydroelectric power plants, pumped storage hydroelectric plants, run-of-river hydroelectric plants, tidal hydroelectric plants, and micro-hydroelectric plants. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in theHydropower Plant Construction Market Report 2026?

The hydropower plant construction market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the hydropower plant construction industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.