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The hydro-pumped storage plants market size is estimated to grow at a CAGR of 7.71% between 2022 and 2027. The market size is forecast to increase by USD 147.54 billion. The accelerated growth of the market is by various factors, including the demand for new water resources due to urbanization and safety concerns, the increase in sustainable water storage technologies, and the stringent government regulations on greenhouse gas emissions.
This hydro-pumped storage plants market report extensively covers market segmentation by application (load balancing, ancillary grid services, stability, and storage capacity), type (open-loop and closed-loop), and geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The demand for new water resources due to urbanization and safety concerns is driving market growth. Increasing urbanization has resulted in greater demand for new water resources, which is driving hydro-pumped storage plants market growth. The global scarcity of water along with rising energy costs has resulted in water treatment plants incurring massive capital and maintenance costs. Hence, authorities have been urged to reuse sewage and groundwater through wastewater treatment.
Additionally, with diminishing freshwater resources and groundwater levels, the need for effective desalination of seawater is increasingly urgent. This has resulted in a positive impact on the demand for desalination plants and hydro-pumped storage plants. As per the Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian water treatment plant industry is predicted to grow from USD 2.4 billion in 2019 to USD 4.3 billion by 2025. Hence, such trends are likely to propel the growth of the market during the forecast period.
Integration of pumps with IIoT is a key trend in the market. Technological advances in connected electronics and information relay technologies are resulting in shifting the upgrade of control systems in pumps and associated systems towards digital communication. Along with Industry 4.0, the adoption of the Industrial Internet of Things (IIoT) technologies in pumps is also expected to increase. It shall allow information collection across the entire water and wastewater treatment process, including the pumps. This data once collected from be analyzed to gain key insights and inform decisions to improve operational efficiency across the entire chain.
The oil and gas industry is one of the early adopters of such technology, particularly to leverage IIoT and big data analytics for accounting and controlling volatility in the industry. This can result in the implementation of automatic error detection and correction methods by using real-time data. It can even enable remote supervision and diagnosis and offer the option of predictive maintenance. This can be a huge advantage by reducing the likelihood of sudden failure of pumps and reducing downtimes. Hence, the above technological advances are likely to positively impact market growth during the forecast period.
Volatility in raw material prices is challenging market growth. The fluctuating market price of raw materials like cast iron, bronze, stainless steel, aluminum, and copper used in the manufacture of hydro pumps is a challenge that reduces the adoption of pumps in highly price-sensitive countries. Some of the reasons for raw material price volatility include increased taxes and duties and production outages in many metal ore-producing countries worldwide. Additionally, the required raw materials, differing from product to product, are supplied by various vendors. This causes further pricing, supply chain management, and logistical difficulties.
Hence, vendors are opting to get into long-term partnerships with local raw material suppliers. This helps regional vendors offer competitive products, increasing competition for international vendors. However, fluctuating raw materials prices result in differing prices even for similar products, making it very difficult to justify the price variation. This is likely to negatively impact the profitability of vendors and hence is likely to hinder the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Hydro-pumped Storage Plants Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ALSTOM SA - The company offers hydro-pumped storage plants such as Hainan Qiongzhong pumped storage power station which is an important supporting facility for the Hainan Changjiang nuclear station in terms of peak load regulation.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The load balancing segment is estimated to witness significant growth during the forecast period. Balancing energy to maintain energy grid frequency and voltage can be achieved using hydro-pumped storage power plants. They can store and supply electricity quickly, hence ensuring the maintenance of a balance between power generation and consumption.
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The load balancing segment was the largest segment and was valued at USD 86.08 billion in 2017. Besides load-balancing, they also provide services like tension control, frequency control, and spinning reserve which can boost grid reliability while reducing the need for conventional generators during peak hours. Hence, the various uses of the load-balancing segment are likely to boost the growth of the hydro-pumped storage plants during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC had the largest market share of the global hydro-pumped storage plants market in 2022, vastly due to the development of hydrogen-powered fuel cells for transportation. The increasing demand for clean energy generation has resulted in greater usage of fuel cell-based vehicles. This along with vast applications in electronic devices, such as smartphones, laptops, and other consumer electronics has increased hydro-pumped storage plants market growth. The surging regional demand for consumer electronics especially in India and China is positively impacting the market. The usage of hydrogen as an energy source has gained traction and involves storing renewable energy generated to be used later for various applications. It is predicted that by 2030 that hydrogen generated from wind sources will be comparatively more economically feasible than natural gas. Hence, the above factors are likely to boost regional market growth during the forecast period.
The COVID-19 pandemic seriously impacted the regional hydro-pumped storage plants market by imposition of lockdowns which resulted in the closure of manufacturing units and the ceasing of operations of end-users. It had a negative impact on supply chain management in the region by reducing the supply and increasing the prices of raw materials. However large large-scale COVID-19 vaccination drives, the expanding focus on the hydrogen-based economy, and increasing technological advancements have boosted demand for hydro-pumped storage plants. Hence the above factors are predicted to positively impact the global hydro-pumped storage plants market growth during the forecast period.
The hydro-pumped storage plants market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Hydro-pumped Storage Plants Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.71% |
Market growth 2023-2027 |
USD 147.54 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.64 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Japan, Italy, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALSTOM SA, Duke Energy Corp., E.ON SE, Electricite de France SA, Enel Spa, Exelon Corp., First Hydro Co., General Electric Co., Gilbert Gilkes and Gordon Ltd., HD Hyundai Co. Ltd., Hitachi Ltd., Iberdrola SA, Mitsubishi Electric Corp., Siemens AG, Sulzer Management Ltd., Sumitomo Electric Industries Ltd., Toshiba Corp., voestalpine AG, Voith GmbH and Co. KGaA, and Andritz AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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