The global hydraulic turbine market size was valued at USD 17,850.3 million in 2021. It is projected to reach USD 32,269.10 million by 2030, growing at a CAGR of 6.80% during the forecast period (2022-2030). A hydraulic turbine is used to produce power by utilizing the kinetic energy of falling water. The mechanical energy produced by falling water on a turbine is then transformed into electrical energy by a hydroelectric generator. Typically, a hydraulic turbine's structure is built of stainless steel and consists of a single rotor with blades. In the industrial and commercial sectors, hydraulic turbines are widely used to provide renewable and clean energy. Growth in the market is anticipated to be driven by an increase in demand for renewable energy sources. Another significant market expansion driver is replacing outdated coal and fossil fuel power plants with renewable energy sources.
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Rising Demand for Sustainable and Renewable Energy Sources
Governments worldwide encourage sustainable energy sources since they can cut carbon emissions, unlike conventional power sources. The significance of various technologies that aid in producing kinetic energy used for multiple purposes is growing. These technologies are run-of-river, low-head turbines, and small hydro plants. This increased interest in renewable energy is expected to drive growth in the hydraulic turbines industry.
Hydropower is more efficient than traditional fossil fuel sources (coal, natural, and oil). The most incredible efficiency of hydraulic energy is predicted to reach 90%, compared to 35–45% for fossil fuels. In contrast to fossil fuel power plants, hydraulic turbines utilize no natural resources and do not emit any direct emissions. These elements significantly contributed to the market's expansion during the forecast period.
Growing Investment in Developed and Developing Nations
The majority of currently under hydroelectric construction projects are in Asia-Pacific, with some examples including Wudong-de Hydropower Station (10.2GW), Seli (400MW), Miyar (120MW), and Baihetan Hydropower Project (16GW). China produced around 4-5 times more hydropower than the United States in 2020. Additionally, the expansion of investment opportunities in brand-new hydropower projects supports the market expansion in Asia-Pacific. As a result, the market growth is positively impacted by the industry participants' increased interest and the substantial investments in medium and large hydropower projects.
High Construction Costs
For modest commercial and residential projects, the initial cost of a hydraulic turbine and additional infrastructure costs is very capital intensive. Additionally, hydraulic turbines require routine maintenance, which drives up operating costs and renders them unprofitable for small-scale power generation. Therefore, the market's expansion is constrained by expensive setup and maintenance costs.
Cities are needed to be located distant from hydropower plants. Additionally, severe flooding and dam or water reservoir failure can cause significant harm to adjacent towns or locations. These things need to be considered when setting up a hydraulic turbine plant. As a result, finding the best place for a hydraulic turbine installation presents significant difficulty for industry participants and is one of the critical things impeding the market's expansion.
Initiatives and Subsidies from the Government
Several government initiatives are anticipated to open up profitable opportunities for industry participants. For illustration, the Energy Policy Act of 2005's Section 242 authorized financial incentives to support the creation of hydroelectricity in 2014. According to this statute, participants in the industry can expect maximum payments of USD 750,000 annually and up to 1.8 cents per kilowatt hour (kWh) of energy produced. Additionally, under the renewable electricity production tax credit program, industry participants are eligible to collect tax credits worth up to 1.1 cents per kWh. This is expected to motivate more consumers to invest actively in the hydraulic turbine mark and accelerates the market's expansion.
The global hydraulic turbine market is segmented by type, rating, and end-user.
Based on type, the global hydraulic turbine market is bifurcated into reaction and impulse.
The impulse segment is the highest contributor to the market and is expected to grow at a CAGR of 7.30% during the forecast period. In an impulse turbine, the rotor blades are shaped like a buck and are appropriate for high water heads. The change in momentum moves the turbine blades after being struck by the water jet, and the kinetic energy from the water pressure is directed at the turbine blades. The water flow strikes the turbine blades tangentially in an impulse turbine. Pelton wheel, cross-flow turbine, and other popular impulse turbine designs are only a few. Due to increased demand from chemical and pharmaceutical companies, small and medium-sized hydropower plants, and other industries, the impulse turbine segment is anticipated to dominate during the forecast period.
Reaction hydraulic turbines mainly produce electricity in hydroelectric power plants. It generally provides the most power with a low water head. Additionally, compared to an impulse turbine, a reaction turbine produces more energy overall. In contrast to an impulse turbine, a reaction turbine has numerous blades that can capture energy at various moments. The Wells, Francis, and Darrieus reaction turbine designs are a few of the well-liked versions. However, compared to an impulse turbine, a reaction turbine has a lower energy transfer efficiency. High production and maintenance costs are two additional obstacles to market expansion.
Based on the rating, the global hydraulic turbine market is bifurcated into less than 1 MW, 1 MW to 10 MW, and 10 MW and above.
The 10 MW and above segment owns the highest market share and is expected to grow at a CAGR of 7.50% during the forecast period. The 10 MW and above rating is mainly utilized for power production and heavy industrial uses, such as the chemical and pharmaceutical sectors. Additionally, this works well for providing energy in large and medium-sized urban regions. Such massive hydropower projects typically use hydroelectric dams. However, such projects also make use of run-of-the-river and pumped-storage technology. The industrial and commercial end-user market expansion is anticipated to be driven by increased demand for sustainable energy solutions. The demand for hydraulic turbines is expected to increase significantly over the forecast period as governments worldwide turn to renewable energy sources.
For providing electricity for the operation of personal computers, radio and television, tube lights, fans, and other electrical appliances at residential locations, less than 1MW is employed in residential or small-scale applications. This is accomplished by using several types of impulse turbines. These turbines work well for mini-hydro, micro-hydro, and pico-hydro energy applications. The mini- and micro-hydro energy systems can sustain remote dwellings or small towns. Most emerging economies adopt this plan to provide power to remote or rural areas using micro- and mini-hydro systems. Additionally, increased demand response and distributed energy resource technologies open new business prospects.
Based on end-user, the global hydraulic turbine market is bifurcated into industrial, commercial, and residential.
The commercial category is the highest contributor and is expected to grow at a CAGR of 5.60% during the projected period. The commercial end-user sector includes the energy supply for small and medium-sized businesses, commercial buildings, and residences. Three Gorges Hydroelectric Power Plant, Itaipu Hydroelectric Power Plant, and Belo Monte Power Station are a few of the larger hydropower projects. The commercial hydropower facility also provides the benefit of allowing energy users to both use and sell excess energy in exchange for money up to 22 GW of commercial hydropower is possible. Commercial hydro-energy is being used by numerous organizations, businesses, and educational institutions. Some of the leading producers of hydraulic turbines on a commercial scale include General Electric and Toshiba Hydroelectric Power.
Heavy industries, textile, chemical and refinery, and pharmaceutical industries make up the industrial end-user market. GE Renewable Energy, Andritz Group, and Toshiba Hydroelectric Power are some of the top industrial hydroelectric turbine producers. Reaction turbines like the Kaplan turbine are frequently utilized to produce industrial power on a small scale. Such a reaction turbine has an operating efficiency of 90% or more. Industrial end-users accounted for a sizable revenue share due to the increased demand for renewable energy sources in the manufacturing sectors. Hydropower facilities are also in high demand in remote and rural industrial areas where grid power is unavailable.
The global hydraulic turbine market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
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Asia-Pacific is the most significant shareholder in the global hydraulic turbine market and is expected to grow at a CAGR of 7.60% during the forecast period. Asia-Pacific rules the market with a revenue share of more than 50%. This is related to an increase in government concern about zero emission standards in growing nations like China, India, and South Korea. In addition, China's position as the world's top hydropower producer is anticipated to help the Asia-Pacific market expand even further. China produced hydropower on a full scale in 2020, almost 4-5 times more than the United States. The expansion of investment prospects in brand-new hydropower projects also impacts the market expansion in this area. Some of the significant hydroelectric projects that are now being built are the Wudong-de hydropower station (10.2GW), Seli (400MW), Miyar (120MW), and the Baihetan hydropower project (16GW).
Europe is anticipated to grow at a CAGR of 6.60%, generating USD 6,099.74 million during the forecast period. The hydraulic turbine market in Germany, France, the United Kingdom, Italy, Spain, and the rest of Europe are all examined. Intense R&D efforts and funding of various hydropower projects by governing authorities like the European Commission favor market expansion. Additionally, the availability of significant producers like ANDRITZ GROUP and WWS Wasserkraft GmbH, which offer various hydraulic turbines for small, medium, and large projects, has a favorable impact on the market's expansion. The market for hydraulic turbines is anticipated to increase significantly due to the renewable energy target.
North America has the ability to harness a sizable amount of hydropower during the forecast period. It is anticipated that new infrastructure expenditures and hydropower initiatives will favorably affect this market expansion. The proportion of hydropower in total energy use is relatively minimal. The high electricity consumption required to pump water to the upper reservoir is a significant element that hurts market growth.
Due to the existence of rivers besides the Amazon River, the LAMEA region offers tremendous potential for harnessing hydropower. Additionally, significant hydropower projects like Itaip and Yacyretá are anticipated to promote market expansion during the anticipated time frame. Industrial and commercial sectors in Brazil and Saudi Arabia are major market demand drivers. Brazil is one of the primary nations that produce a substantial amount of hydropower. After Canada and the US, LAMEA has the second-largest hydropower capacity.
The global hydraulic turbine market’s key players are Andritz Ag, Canyon Industries Inc., General Electric, Gilbert Gilkes & Gordon Ltd, Kirloskar Brothers Ltd, Litostroj Power Group, Norcan Hydraulic Turbine Inc, Siemens AG, Toshiba Hydroelectric Power, and Voith & Co. KGAA.