June 16, 2024
Pumped Hydro Storage Market

Pumped Hydro Storage Market to Grow Massively with Demand for Renewable Energy

The pumped hydro storage market involves the storage of potential energy in the form of water, typically in reservoirs at different elevation levels. Pumped hydro storage enables the storage and generation of electricity from renewable energy sources such as solar and wind. It plays a crucial role in stabilizing the grid and maximizing the value of renewable energy by allowing energy storage during periods of low demand and high renewable energy generation for use during peak demand periods.

Global pumped hydro storage market is estimated to be valued at US$ 401.19 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period 2024 to 2031.

Key Takeaways

The rising integration of renewable energy sources into national grids around the world presents lucrative growth opportunities for Pumped Hydro Storage Market Size players. Countries are increasingly adopting pumped hydro storage technologies to support higher thresholds of solar and wind power in their energy mix. Developing regions in Asia Pacific and Latin America offer massive untapped potential for pumped hydro storage deployments.

Key players operating in the pumped hydro storage market are AbbVie Inc. (Allergan), Terumo Corporation, GlaxoSmithKline PLC, Novartis AG, Medtronic PLC, Abbott Laboratories, Boston Scientific Corp., W L Gore and Associates Inc., Stryker Corporation, and Becton, Dickinson and Company. Key players are focusing on capacity expansion to leverage the growing demand for large-scale renewable energy storage solutions across regions.

Global expansion through cross-border projects and strategic partnerships will be a key growth strategy for pumped hydro storage market participants. Players may explore overseas markets through joint ventures, acquisitions, and international project deals. The increasing shift towards renewable-friendly energy policies worldwide will promote global pumped hydro storage capacity additions over the coming decade.

Market Drivers

The key driver boosting the growth of the Pumped Hydro Storage Market Size is the rising deployment of renewable energy solutions across the globe. Many countries have set ambitious targets to increase the share of solar and wind power in their energy mix to reduce fossil fuel dependence and carbon emissions. Pumped hydro storage emerges as a cost-effective solution to balance renewable energy intermittency issues and maximize the utilization of green power sources. By enabling bulk storage of energy produced from solar farms and wind turbines during non-peak hours, pumped hydro storage facilitates higher renewables integration into national grids. This drives the increasing need for commercial and utility-scale pumped hydro storage projects worldwide.

PEST Analysis

Political: The pumped hydro storage market is witness regulations and favorable government policies promoting the development of renewable and clean energy sources. Many governments provide subsidies and tax incentives boosting investments in the growth of this market.

Economic: Changing economic conditions and fluctuation in power prices impact the demand dynamics of this market. Growing investments towards the integration of renewables in the power grid along with the need for power balancing and storage support market growth.

Social: Rising environmental concerns and the need for sustainable energy sources drive the adoption of pumped hydro storage plants. The social acceptance for large scale projects and their possible impact needs consideration.

Technological: Advancements in design, engineering, and operational efficiencies improve the performance and lower the costs. Use of digitalization, IoT, and AI help optimize operations. Developments in renewable energy and energy storage technologies further support the need for large scale storage solutions.

Geographical regions where market in terms of value is concentrated

The Asia Pacific region dominate the global pumped hydro storage market in terms of value, supported by significant investments and a large number of planned and under-construction projects especially in China. Countries like Japan and India are also actively involving in the development of new capacities.

The fastest growing region for the pumped hydro storage market

The North America region is expected witness the fastest growth during the forecast period led by the U.S. Strong policies supporting renewable integration and infrastructure modernization drive opportunities. Growing demand for reliable power supply and balancing capabilities also promote regional market expansion.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it