The global Hydro Turbine Generator Unit Market is estimated to be valued at US$ 7,320.0 Mn in 2019 and is expected to exhibit a CAGR of 3.5% over the forecast period 2020-2027, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Hydro turbine generator units are widely used in hydroelectric power plants to convert the energy of flowing water into electrical energy. These units consist of turbines, generators, and other auxiliary equipment. The demand for hydro turbine generator units is driven by the increasing focus on renewable energy sources and government initiatives to reduce carbon emissions. These units provide a clean and sustainable source of energy and are environmentally friendly. They are used in various applications such as hydroelectric power plants, dams, rivers, and other water resource projects.
B) Market Dynamics:
1. Driver: Increasing Demand for Renewable Energy
The growing need for clean and sustainable energy sources to mitigate climate change is a major driving factor for the hydro turbine generator unit market. Hydroelectric power is considered one of the most reliable and economical sources of renewable energy. It accounts for a significant share of the global renewable energy capacity. Governments around the world are implementing various policies and incentives to promote the development of hydroelectric power plants, which is boosting the demand for hydro turbine generator units.
For example, the Indian government's target to achieve 175 GW of renewable energy capacity by 2022, with a major focus on hydroelectric power, is expected to drive the market growth in the Asia Pacific region.
2. Driver: Government Initiatives toward Sustainable Development
Government initiatives and regulations aimed at reducing carbon emissions and promoting sustainable development are driving the demand for hydro turbine generator units. Many countries have set renewable energy targets and implemented feed-in tariffs, tax incentives, and subsidies to encourage the development of renewable energy sources such as hydroelectric power. For instance, the U.S. Department of Energy's Water Power Technologies Office provides funding and support for research and development in the hydroelectric power sector.
C) SWOT Analysis:
Strength:
1. Environmentally friendly: Hydro Turbine Generator Unit Market Growth provide a clean source of energy and do not emit greenhouse gases during operation.
2. High energy conversion efficiency: These units have a high efficiency in converting the energy of flowing water into electrical energy.
Weakness:
1. High capital cost: The installation and construction costs of hydroelectric power plants can be high, which could limit the market growth.
2. Limited availability of suitable sites: The availability of suitable sites for hydroelectric power plants is limited, which could restrict the market growth.
Opportunity:
1. Increasing investments in renewable energy: The increasing investments in renewable energy projects, especially in developing countries, present significant opportunities for the market players.
2. Technological advancements: Continuous technological advancements in hydro turbine generator units, such as the development of advanced control systems and materials, provide opportunities for market growth.
Threats:
1. Intense competition from other renewable energy sources: The hydro turbine generator unit market faces competition from other renewable energy sources such as wind and solar, which could impact its growth potential.
2. Environmental concerns: The construction of large-scale hydroelectric power plants can have certain environmental impacts, such as habitat disruption and fish migration issues, which could pose challenges to market growth.
D) Key Takeaways:
- The global hydro turbine generator unit market is expected to witness high growth, exhibiting a CAGR of 3.5% over the forecast period, due to increasing demand for renewable energy and government initiatives toward sustainable development.
- Asia Pacific is expected to be the fastest-growing and dominating region in the hydro turbine generator unit market, driven by the rapid growth of hydroelectric power projects in countries like China and India.
- Key players operating in the global hydro turbine generator unit market include Andritz AG, General Electric, Voith Group, Toshiba Energy Systems & Solutions Corporation, Harbin Electric International Company Limited, Dongfeng Electric Machinery Co., Ltd., Power Machines, Hitachi Mitsubishi Hydro Corporation, IMPSA, Zhefu Holding Group Co., Ltd., Bharat Heavy Electricals Limited (BHEL), Gilbert Gilkes & Gordon Ltd., Kirloskar Brothers Limited, WWS Wasserkraft GmbH, FLOVEL Energy Private Limited, and Litostroj Power.
In conclusion, the global hydro turbine generator unit market is witnessing significant growth due to the increasing demand for renewable energy and government support for sustainable development. Despite challenges such as high capital costs and environmental concerns, the market is expected to expand, driven by technological advancements and investments in renewable energy projects. The Asia Pacific region is expected to lead the market growth, with key players competing to capitalize on the opportunities presented by this growing market.
