Pumped Hydro Storage Market Size, Share, Growth, and Industry Analysis, By Type (Closed-loop System & Open-loop System), By Application (Natural Reservoirs & Man-made Reservoirs) and Regional Forecast to 2032

Updated On: 02 September 2024

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PUMPED HYDRO STORAGE MARKET REPORT OVERVIEW

The global Pumped Hydro Storage Market Size was USD 3.979 billion in 2023 and the market is projected to touch USD 7.09 billion by 2032, exhibiting a CAGR of 5.6% during the forecast period.

Pumped Hydro Storage industry is essential for the renewable energy division, offering massive storage capacity to protect power systems. Pumped hydroelectric storage systems involve the use of water to store energy where electricity is generated from water that is pumped from one river to another at varying heights. The increasing use of renewable energy sources such as wind and solar energy has led to a rise in the need for efficient energy storage such as PS & RES, hence the pumped hydro storage market.

COVID-19 Impact: Market Growth Restrained During Pandemic Due To Impact On Projects

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 outbreak affected the growth of the Pumped Hydro Storage Market negatively because many projects were slowed down or halted, and companies were cautious about investing in new energy storage systems due to supply chain issues. Even in planned projects, there have been significant delays or abandonments by nations that wanted to shift focus to fight the disease. The dynamism and growth rate of the market also faced a setback during this period due to the pandemic, which brought a new level of uncertainty in the global economy.

LATEST TRENDS

"Market growth is driven by hybrids and closed-loop designs for sustainability"

Wind and solar combined with pumped hydro storage are popularizing hybrids in the pumped hydro storage market. One of the essential trends is the relative newcomer of closed-loop designs that are increasingly being used because they have a smaller environmental footprint than the open-loop systems. Such cognitive reassessment corresponds to the rising concern for clean and environmentally friendly forms of energy generation.

SEGMENTATION

By Type

Based on type the market can be categorized into Closed-loop System & Open-loop System.

Closed-loop System: A closed-loop pumped hydroelectric storage system does not involve relations with natural water frameworks and rather uses an isolated water storage chamber. It has versatility in its placement and also reduces the effects on the natural resources because it is not dependent on the aqueous sources. This system is preferred in areas where there is a shortage of water or where, due to environmental considerations, the use of water is highly restricted.

Open-loop System: An open-loop pumped hydroelectric storage system is integrated with the natural water bodies, such as rivers or lakes, as the water storage and generation source. This system is commonly more economical and productive as a result of the natural water discharge availability. However, because it involves interaction with natural systems, EN could be faced with environmental and regulatory constraints.

By Application

Based on application the market can be categorized into Natural Reservoirs & Man-made Reservoirs.

Natural Reservoirs: This type of system stores energy in the lower reservoir and generates energy from the upper reservoir, which can be a lake or a river. These systems are normally cheaper than the others because the natural terrains are most of the time used rather than constructing more fancy ones. Still, such solutions can be environment-bound and contingent upon geographical and hydrological factors.

Man-made Reservoirs: Pumped hydroelectric storage reservoirs are built for this purpose to provide better control of water pools and electricity generation. These systems can be designed to store the energy as required and are more flexible with regard to location. Yet, they need a big deal of investment in construction and can influence ecosystems in the region.

DRIVING FACTORS

"Market growth is fueled by renewable energy and grid balancing needs"

The growth of renewable energy systems such as solar and wind energy is a key factor that continues to fuel the Pumped Hydro Storage Market Growth. They also play a role in providing the much-needed grid balancing because these systems are capable of storing energy that may be produced in excess at some point in time and using it at other points in time when demand is high.

"Market growth is driven by the product’s reliability and security"

Governments and utilities are looking to take advantage of pumped hydroelectric storage to increase reliability and energy security. In this message, the most advanced and effective large-scale power storage technology is reported as pumped hydro storage, which is vital for energy supply during peak load hours and maintaining grid stability.

RESTRAINING FACTOR

"Market growth is constrained by high initial investment and development costs"

The initial capital investment that is needed to develop the pumped hydro storage facilities is very large and acts as a constraint. These projects entail high expenses of land purchase, construction, and evaluation of the impact on the natural environment, thus becoming costly for certain locations or certain firms to undertake.

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PUMPED HYDRO STORAGE MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Market growth is driven by North America's infrastructure and investment"

North America holds the largest Pumped Hydro Storage Market Share because of infrastructure and favorable regulation, along with prominent investment in the integration of distributed energy storage systems. The U.S. and Canada have a technological edge of large-scale storage projects and thus act as a driving force of the market. Besides, the availability of government subsidies and the market with emphasis on grid improvement also strengthen North America’s dominance in the market.

KEY INDUSTRY PLAYERS

"Market growth is driven by technology, investment, and renewable energy demand"

Industries are motivating the pumped hydro storage market by contributing through technological developments and heavy investments. Global companies are increasing both operational effectiveness and projects’ scale potential, which fuels market growth. Strategic partnerships and collaborations also drive innovation along with project development. Motions towards the utilization of renewable energy sources also increase the demand for pumped hydroelectric storage systems.

List of Market Players Profiled

• EDF (France)
• Voith Hydro (Germany)
• Schluchseewerk (Germany)
• Toshiba (Japan)
• Dongfang Electric (China)

INDUSTRIAL DEVELOPMENT

May, 2023: Voith Hydro announced the successful commissioning of the Battersea Pumped Hydro Storage Facility in the UK. This development introduced advanced turbine technology, significantly increasing the efficiency and capacity of the facility, marking a major milestone in the Pumped Hydro Storage Market.

REPORT COVERAGE

This report is based on historical analysis and forecast calculation that aims to help readers get a comprehensive understanding of the global Pumped Hydro Storage Market from multiple angles, which also provides sufficient support to readers’ strategy and decision-making. Also, this study comprises a comprehensive analysis of SWOT and provides insights for future developments within the market. It examines varied factors that contribute to the growth of the market by discovering the dynamic categories and potential areas of innovation whose applications may influence its trajectory in the upcoming years. This analysis encompasses both recent trends and historical turning points into consideration, providing a holistic understanding of the market’s competitors and identifying capable areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.