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The hydro-pumped storage plants market size is forecast to increase by USD 149.2 billion, at a CAGR of 7.37% between 2023 and 2028. The rapid expansion of the market is propelled by several factors. Firstly, urbanization and heightened safety awareness drive the demand for new water resources, creating a pressing need for innovative solutions. Concurrently, the surge in sustainable water storage technologies addresses environmental concerns while meeting growing water requirements. Moreover, stringent government regulations targeting greenhouse gas emissions catalyze the adoption of eco-friendly practices and technologies within the industry. These regulations not only promote environmental sustainability but also incentivize the development and adoption of green initiatives. Collectively, these factors converge to fuel the accelerated growth of the market, highlighting the critical role played by evolving environmental dynamics, technological advancements, and regulatory frameworks in shaping the future trajectory of the water storage sector.
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Hydro-pumped storage plants capitalize on hydro storage systems, utilizing both open loop and closed loop systems. These plants leverage natural water inflows and the high energy density of water to maximize power output. Situated near river systems and streams, they efficiently manage off peak electricity by storing excess energy for later use, making them key players in energy storage technologies. This technology is a cornerstone of pumped storage hydropower, complementing conventional hydroelectric dams and supporting water distribution systems.
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 90.80 billion in 2018. 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 market in 2023, 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 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 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.
Market utilizes PHS (Pumped hydro storage) technology to store and generate electricity. Companies like GE Renewable Energy lead in developing these installations, which can reach several GW (Gigawatts) in capacity. They offer an environmentally friendly alternative to fossil fuels, mitigating environmental effects. These systems leverage gravitational potential energy by pumping water to higher reservoirs during low-demand periods and releasing it through turbines to generate electrical energy during peak demand. Their flexibility complements intermittent renewables and strengthens baseload sources. Our researchers analyzed the data with 2023 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. 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, can be analyzed to gain key insights and inform decisions to improve operational efficiency across the entire chain.
Further, 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 manufacturing 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 companies. This causes further pricing, supply chain management, and logistical difficulties.
Hence, companies are opting to get into long-term partnerships with local raw material suppliers. This helps regional companies offer competitive products, increasing competition for international companies. 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 companies 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 market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies 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 companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market plays a pivotal role in the renewable energy sector's transition towards sustainability. These plants leverage hydropower to store and generate electricity, contributing to carbon neutrality and reducing peak coal consumption. By utilizing water reservoirs at different elevations, they facilitate commercial operation and offer grid support while addressing power quality problems associated with variable renewable energy (VRE) sources. With advancements in energy storing systems (ESS) like lithium-ion batteries and hydroelectric energy storage, these plants ensure efficient utilization of natural inflows and enable peak shaving during periods of high demand. However, their deployment requires careful consideration of environmental impact and adherence to regulatory permit requirements for obtaining operating licenses. As demand for reliable, sustainable energy grows, hydro-pumped storage plants emerge as integral components of the global energy landscape.
Furthermore, the market stands at the forefront of the renewable sector, offering innovative solutions for energy storage and generation. These plants, typically associated with hydropower project, play a crucial role in maintaining grid stability and promoting carbon neutral by storing excess energy during periods of low demand and releasing it when needed in snowmaking facilities. By utilizing pump back plants and storm water basin, they effectively manage discharge and maximize energy efficiency. Furthermore, advancements in lithium ion battery technology have enhanced their storage capacity and overall performance. However, the development and operation of these plants require compliance with regulatory standards and obtaining operating license, ensuring safe and environmentally responsible practices. As the demand for sustainable energy solutions grows, hydro-pumped storage plants continue to emerge as key players in the global energy landscape.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.37% |
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Market growth 2024-2028 |
USD 149.2 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.86 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 44% |
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Key countries |
China, Japan, US, Italy, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ALSTOM SA, Andritz AG, 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 Ltd., Sumitomo Electric Industries Ltd., Toshiba Corp., voestalpine AG, and Voith GmbH and Co. KGaA |
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Market dynamics |
Parent market analysis, Market forecasting , market report , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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