Market Research Report

Global Pumped Hydro Storage Market Research Report: Forecast (2023-2028)

By Type (Open-Loop, Closed-Loop), By Region (North America, South America, Europe, The Middle East & Africa, Asia-Pacific), By Company (ANDRITZ HYDRO GmbH, Voith GmbH & Co. KGaA, S...iemens, GE Renewable Energy, ABB Ltd., Alstom Hydro France, Mitsubishi Electric Corporation, Toshiba Corporation, Hyundai Heavy Industries Co., Ltd., Hitachi Energy, J-Power, Dongfang Electric Corporation, Harbin Electric Company Limited, Obermeyer Hydro, Inc., Others) Read more

  • Energy
  • May 2023
  • 189
  • EN44031

Market Definition

Pumped storage hydropower (PSH) is a method of storing hydroelectric energy. It is a design of two differing elevation water reservoirs that may create electricity when water flows down from one to the other (discharge) and via a turbine. Further, power is also required when the machine pumps water back into the top reservoir (recharge). This hydropower functions similarly to a massive battery that can store energy & then release it when required.

Market Insights & Analysis: Global Pumped Hydro Storage Market (2023-28)

The Global Pumped Hydro Storage market is projected to grow at a CAGR of around 6.27% during the forecast period, i.e., 2023-28. The market growth imputes to the rising environmental concerns, increasing demand for reliable & sustainable energy storage solutions, affordability for large-scale energy storage, and much longer technical lifetime, an average of around 75-100 years. Along with this, the integration of renewable energy sources into the electricity grid can lead to fluctuations in supply & demand, which can cause instability in the grid. They can help stabilize the grid by storing excess energy during times of low demand & releasing it during high demand.

Many governments around the world are implementing policies & incentives to encourage the growth of renewable energy & energy storage. These policies can include subsidies, tax credits, and renewable energy targets. As renewable energy continues to grow & become more integrated into the grid, the demand for pumped hydro storage is expected to enhance.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 6.27%
Regions Covered North America: US, Canada, Mexico
Europe: The UK, Norway, Germany, Spain, Rest of Europe
Asia-Pacific: China, Japan, India, Indonesia, Rest of Asia-Pacific
South America: Brazil, Argentina, Rest of South America
Middle East & Africa: Turkey, South Africa, Rest of the Middle East & Africa
Key Companies Profiled ANDRITZ HYDRO GmbH, Voith GmbH & Co. KGaA, Siemens, GE Renewable Energy, ABB Ltd., Alstom Hydro France, Mitsubishi Electric Corporation, Toshiba Corporation, Hyundai Heavy Industries Co., Ltd., Hitachi Energy, J-Power, Dongfang Electric Corporation, Harbin Electric Company Limited, Obermeyer Hydro, Inc., Others
Unit Denominations USD Million/Billion

 

In addition, the demand for sustainable energy is rising quickly in the manufacturing industry as the number of e-vehicle production elevates year-on-year & also governments from all over the world, like India, China, the UK, and the US, are implementing regulations to reduce carbon emissions to achieve net zero coalition has led to a surge in demand for this method. For instance, according to International Energy Agency (IEA), China continued to be the top producer of EVs, accounting for nearly 41% of global EV production in 2021, with around 1.33 million units produced.

Moreover, technological advancement has made this system more efficient & cost-effective. For instance, improvements in turbine design & control systems have raised the efficiency of these systems, while new materials & manufacturing techniques have reduced the cost of construction. Further, escalating the market growth in the coming years.


Global Pumped Hydro Storage Market Research Report: Forecast (2023-2028)

Global Energy Storage Industry Outlook, 2022

The Global Energy Storage industry has been growing rapidly since 2022 & this growth is expected to continue into the following years as well. The expanding deployment of energy storage technologies, such as pumped hydro storage, thermal energy storage, and hydrogen storage, across the globe, positively generates the demand for energy storage. Lithium-ion batteries are popular due to their high energy density, long cycle life, and low maintenance requirements. They are also being progressively used in large-scale applications such as grid-scale energy storage systems & electric vehicle batteries.

Moreover, these systems are the most common form of energy storage on the grid & account for over 95% of the storage in use currently. During off-peak hours, turbines pump water to an elevated reservoir using excess electricity. According to the US Department of Energy, the largest markets for energy storage in 2030 are predicted to be in North America (41.1 GWh), China (32.6 GWh), and Europe (31.2 GWh). Excluding China, Japan (2.3 GWh) & South Korea (1.2 GWh) comprised a large part of the rest of the Asian market. Furthermore, several other factors are driving the expansion of the Energy Storage market, including advancing demand for renewable energy sources, declining costs of energy storage systems, and government incentives & regulations promoting the adoption of energy storage technologies in the forthcoming years.

Global Pumped Hydro Storage Market Key Driver:

Surging Demand for Electricity from Renewable Energy Sources to Drive the Market - The growing demand for electricity from renewable energy sources in various industries, such as residential, commercial, government & transport, and industrial, propelled the growth of the Pumped Hydro Storage market during the historical years. Renewable energy sources, including solar & wind power, are thought to be clean energy sources as they don't emit harmful pollutants such as mercury, lead, sulfur dioxide, nitrogen oxides, particulates, and various other heavy metals, which pollute the environment.

Furthermore, dependence on fossil fuels from foreign countries can lead to energy security risks, such as supply disruptions & price volatility globally. Renewable energy sources are primarily domestically sourced & can provide a more secure energy supply. Thus, to mitigate the effects of climate change & achieve the target of sustainable development, governments around the world, including India, the UK, and the US, have set high targets for renewable energy deployment to attain zero emissions. As a result, the industry is being propelled by enhanced demand for electricity from renewable energy sources in the forthcoming years.

Global Pumped Hydro Storage Market Possible Restraint:

High Initial Investment to Limit the Market - However, a large upfront investment is required to establish the necessary infrastructure, which includes the building of upper & lower reservoirs as well as the installation of pumps & turbines are primary barriers to market growth. The average cost of constructing a pumped hydro storage facility varies between USD1,000 & USD2,500 per kW of planned installation capacity, with a typical project size of about 100 megawatts (MW). As a result, the price to construct a 100MW pumped hydro storage would fall between USD100 & USD250 million. Hence, this would constrain the companies & government to set up this system, restricting the market expansion during 2023-28.

Global Pumped Hydro Storage Market Growth Opportunity:

Government Targets to Curb CO2 Emissions - The increasing government initiatives to decarbonize industrial sectors, such as chemical, automobile, shipping, food & beverage, etc., are estimated to uplift the demand for pumped hydro storage systems in the coming years. Governments in the countries like the US, India, Vietnam, Brazil, etc., are planning to go carbon-neutral in the near future, i.e., to reduce carbon emissions in their countries. As technology advances & economies of scale are achieved the price of this system is anticipated to decrease in the coming years.

As a result, it would be more competitive with alternative energy storage methods. The need for energy storage technologies such as pumped hydro storage is projected to rise as more nations establish high goals to develop renewable energy sources. Hence, governments are developing decarbonizing strategies & taking necessary initiatives by providing support, to drive economies toward renewable energy.

Moreover, emerging markets such as China, India, and Brazil are also presenting opportunities for market growth. These countries are highly investing in renewable energy & energy storage technologies to meet their growing energy demand & reduce carbon emissions. Hence, the upcoming investments from different governments to build these plants would drive the market in the forthcoming years.

Global Pumped Hydro Storage Market Key Trend:

Adoption of Dynamic Pumped Hydro Storage Innovation - In recent years, technological innovation is a key trend gaining popularity in the market. Companies such as Duke Energy Corporation are adopting the latest technology, such as dynamic pumped hydro storage (DPHS), to lead their position in the market. DPHS is similar to standard ones in that it stores & generates power using the elevation difference between two reservoirs.

Additionally, it incorporates a tiny turbine generator & a battery, allowing it to adapt to changes in demand & supply in seconds, which reduces the overall time to supply electricity for end-users such as manufacturing, construction, and residential. Moreover, due to higher demand from the manufacturing & construction sectors owing to rapid urbanization & smart home adoption, the demand for this system is expected to gain traction in the coming years.

Global Pumped Hydro Storage Market (2023-28): Segmentation Analysis

The Global Pumped Hydro Storage Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the System the market has been further classified as:

Based on System:

  • Open-loop
  • Closed-loop

Among them, a Closed-loop system is expected to dominate the market in the coming years as it is more effective & ecologically beneficial since it can reuse the water in the system several times. Additionally, closed-loop systems may be installed in several locations, including underground, which gives site options & can lessen the impact on the environment. Also, as environmental & aquaculture concerns grow, closed-loop systems can be installed off-river, avoiding ecological impacts on riverine fish & other aquatic biotas.

Further, they help to balance the intermittent nature of renewable energy sources, such as solar & wind, by storing excess energy generated during periods of low demand & releasing it during the high-demand period.

As the penetration of renewable energy sources enhances, grid stability becomes increasingly important. Closed-loop helps to provide grid stability by balancing the supply & demand of electricity & providing grid operators with more flexibility & control over the grid. Hence, owing to these factors, the demand for this system is anticipated to expand in the forthcoming years.

Global Pumped Hydro Storage Market Regional Projection

Geographically, the market expands across:

  • North America
  • South America
  • Europe
  • The Middle East & Africa
  • Asia-Pacific

Of all the regions globally, Asia-Pacific is projected to attain a significant market share in the Global Pumped Hydro Storage market during 2023-2028. Countries in the Asia-Pacific region, such as India & China, are undergoing rapid economic expansion with government initiatives like building smart cities & RRTS railway projects in India & the construction of high-speed rail from Sichuan province to the Tibetan capital Lhasa. These projects have generated the demand for electricity for construction & maintenance, which encouraged investment in energy & infrastructure projects in the coming years.

Furthermore, due to the increased demand for energy storage technologies, countries like India & China have established ambitious goals for the deployment of renewable energy & have implemented policies & regulations to encourage the expansion of the market during 2023-28.

Global Pumped Hydro Storage Industry Recent Developments 

  • 2022ANDRITZ and EnBW entered an agreement for the supply, installation, and commissioning of a 50 MW pump turbine with a generator & all necessary auxiliaries for the Forbach pump storage power plant.
  • 2022: General Electric Company (GE) was chosen by Anhui Jinzhai Pumped Storage Power Co., LTD to supply the four 300 MW pumped storage turbines, generator motors, and other plant components for the latter's Anhui Jinzhai Pumped Storage Power Plant, which is situated in Jinzhai County, Anhui Province, China.

Gain a Competitive Edge with Our Global Pumped Hydro Storage Market Report

  1. Global Pumped Hydro Storage Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
  2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
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  4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.

Frequently Asked Questions

   A. The Pumped Hydro Storage Market is expected to grow at a CAGR of around 6.27% during 2023-2028.

   A. Closed-loop System is the dominating segment in the Pumped Hydro Storage Market.

   A. The surging demand for renewable energy sources is expected to drive the Pumped Hydro Storage Market during 2023-2028.

   A. The top players in the Pumped Hydro Storage Market are ANDRITZ HYDRO GmbH, Voith GmbH & Co. KGaA, Siemens, GE Renewable Energy, ABB Ltd., Alstom Hydro France, Mitsubishi Electric Corporation, Toshiba Corporation, Hyundai Heavy Industries Co., Ltd., Hitachi Energy, Dongfang Electric Corporation, Harbin Electric Company and others.

   A. The adoption of dynamic pumped hydro storage innovation is the key trend in the pumped hydro storage market.

   A. High initial investment is the possible restraint affecting the growth of the Pumped Hydro Storage Market.

Global Pumped Hydro Storage Market Research Report (2023-2028) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Global Energy Storage Infrastructure Outlook, 2022
  5. Global Hydropower Industry Outlook, 2022
    1. Installed Capacity by Region
    2. Year on Year Capacity Growth, 2018-2022
    3. Key Developments, By Region
      1.  By Government Initiatives
      2. By Investment
  6. Global Pumped Hydro Storage Market Regulations & Policies
  7. Global Pumped Hydro Storage Market Trends & Insights
  8. Global Pumped Hydro Storage Market Dynamics
    1. Growth Drivers
    2. Challenges
  9. Global Pumped Hydro Storage Market Hotspot & Opportunities
  10. Global Pumped Hydro Storage Market Outlook, 2018- 2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Installed Capacity in GWh
    2. Market Share & Analysis
      1. By Type
        1. Open-Loop
        2. Closed-Loop
      2. By Region
        1. North America
        2. South America
        3. Europe
        4. The Middle East & Africa
        5. Asia-Pacific
      3. By Company
        1. Competition Characteristics
        2. Revenue Shares
  11. North America Pumped Hydro Storage Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Installed Capacity in GWh
    2. Market Share & Analysis
      1. By Type
      2. By Country
        1. The US
        2. Canada
        3. Mexico
    3. The US Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    4. Canada Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    5. The Mexico Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
  12. South America Pumped Hydro Storage Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Installed Capacity in GWh
    2. Market Share & Analysis
      1. By Type
      2. By Country
        1. Brazil
        2. Argentina
        3. Rest of South America
    3. Brazil Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    4. Argentina Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
  13. Europe Pumped Hydro Storage Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Installed Capacity in GWh
    2. Market Share & Analysis
      1. By Type
      2. By Country
        1. The UK
        2. Norway
        3. Germany
        4. Spain
        5. Rest of Europe
    3. The UK Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    4. Norway Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    5. Germany Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    6. Spain Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
  14. The Middle East & Africa Pumped Hydro Storage Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Installed Capacity in GWh
    2. Market Share & Analysis
      1. By Type
      2. By Country
        1. Turkey
        2. South Africa
        3. Rest of the Middle East & Africa
    3. Turkey Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    4. South Africa Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
  15. Asia-Pacific Pumped Hydro Storage Market Outlook, 2018-2028F
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Installed Capacity in GWh
    2. Market Share & Analysis
      1. By Type
      2. By Country
        1. China
        2. Japan
        3. India
        4. Indonesia
        5. Rest of Asia-Pacific
    3. China Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    4. Japan Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    5. India Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
    6. Indonesia Pumped Hydro Storage Market Outlook, 2018-2028F
      1. Market Size & Analysis
        1. By Revenues (USD Million)
        2. Installed Capacity in GWh
      2. Market Share & Analysis
        1. By Type
  16. Competition Outlook
    1. Competition Matrix
      1. Product Portfolio
      2. Target Markets
      3. Research & Development
      4. Strategic Alliances
      5. Strategic Initiatives
    2. Company Profiles (Business Description, Solutions Offered, Business Segments, Financials, Future Plans)
      1. ANDRITZ HYDRO GmbH
      2. Voith GmbH & Co. KGaA
      3. Siemens
      4. GE Renewable Energy
      5. ABB Ltd.
      6. Alstom Hydro France
      7. Mitsubishi Electric Corporation
      8. Toshiba Corporation
      9. Hyundai Heavy Industries Co., Ltd.
      10. Hitachi Energy
      11. J-Power
      12. Dongfang Electric Corporation
      13. Harbin Electric Company Limited
      14. Obermeyer Hydro, Inc.
      15. Others
  17. Disclaimer


Pumped Hydro Storage Market - Segmentation Slide