Growing Focus on Green Energy Driving Demand for Hydro Turbines Across Europe

According to a recent study by Renub Research, the Europe Hydro Turbine Market is projected to grow from US$ 542.44 million in 2024 to US$ 840.78 million by 2033, expanding at a CAGR of 4.99% during the forecast period 2025–2033. This growth is being fueled by increasing investments in clean energy infrastructure, stringent EU carbon reduction policies, and the rising demand for sustainable and reliable electricity sources.

👉 Access the Full Report Here: Europe Hydro Turbine Market

Hydropower: A Cornerstone of Europe’s Renewable Energy Strategy

Hydropower remains one of the most dependable and widely utilized forms of renewable energy in Europe. As countries work toward meeting the EU’s Green Deal and climate-neutrality targets, hydro turbines are playing a vital role in the transformation of energy systems. Unlike solar and wind, hydro power offers greater consistency and grid stability—making it an essential component of a balanced energy mix.

European nations including Norway, Switzerland, France, Austria, and Sweden lead the continent in hydroelectric production, and ongoing upgrades to aging hydro plants are further bolstering market potential.

Government Incentives and Policy Support Accelerate Hydro Projects

The European Union’s regulatory framework and financial incentives are significantly encouraging the development and modernization of hydro infrastructure. Policies such as the EU Renewable Energy Directive, Green Deal Investment Plan, and national-level feed-in tariffs are creating a favorable environment for hydropower expansion.

In addition, the availability of European Investment Bank (EIB) financing for green projects has stimulated private-sector participation in hydroelectric initiatives, particularly in small- and medium-scale hydro plants in Central and Eastern Europe.

Technological Advancements Enhancing Turbine Efficiency

Recent technological advancements in hydro turbines—including Kaplan, Francis, and Pelton turbine innovations—are enabling better performance across various water flow conditions. Modern turbines now feature:

  • Higher energy conversion efficiency

  • Improved materials for corrosion resistance

  • Reduced cavitation

  • Advanced control systems for real-time optimization

Digitalization and the integration of smart monitoring tools are also improving operational reliability and minimizing maintenance costs. These innovations are encouraging project developers to renovate old installations and invest in new, technologically advanced plants.

Small Hydro and Run-of-River Projects Gaining Traction

While large hydroelectric projects continue to dominate the market in countries like Norway and France, the growth of small hydro and run-of-river plants is gaining momentum across Europe. These systems require minimal water storage and are especially suitable for mountainous and remote regions with flowing rivers.

Countries such as Austria, Romania, and Italy are witnessing a growing number of mini-hydro installations, supporting rural electrification and contributing to grid resilience.

Europe Hydro Turbine Market Segmentation

Renub Research’s comprehensive report segments the hydro turbine market based on type, capacity, application, and geography, allowing stakeholders to understand specific growth opportunities:

By Type:

  • Impulse Turbines (Pelton, Turgo)

  • Reaction Turbines (Francis, Kaplan, Propeller)

By Capacity:

  • <1 MW (Micro)

  • 1–10 MW (Small)

  • 10–100 MW (Medium)

  • >100 MW (Large)

By Application:

  • Power Generation

  • Irrigation

  • Industrial Usage

By Country:

  • Germany

  • France

  • Italy

  • Norway

  • Austria

  • Switzerland

  • Sweden

  • United Kingdom

  • Poland

  • Rest of Europe

This structured segmentation enables decision-makers to identify profitable regions and technology types suited for their business models.

Key Drivers Fueling Market Growth

1. Energy Security and Climate Goals

Europe’s commitment to becoming climate-neutral by 2050 requires a major shift toward renewable energy sources. Hydropower offers a reliable and scalable solution to support decarbonization.

2. Modernization of Existing Infrastructure

Many hydro plants in Europe are decades old. Investments in modernizing these facilities, especially in Western Europe, are creating new demand for efficient turbine systems.

3. Cross-Border Electricity Trading

With the integration of European power grids, hydropower can be leveraged to balance intermittent renewables like solar and wind across regions, further boosting turbine deployments.

4. Technological Innovation

Advanced materials, AI-based grid control, and predictive maintenance systems are making hydro projects more efficient and financially attractive.

Market Challenges

Despite positive growth prospects, several challenges could hinder market expansion:

  • Environmental Regulations: Stricter ecological assessments and water usage regulations may slow down new project approvals.

  • High Initial Capital Investment: The upfront costs of hydro turbine projects, especially in large installations, remain a barrier for smaller developers.

  • Public Opposition: In some regions, public resistance to river alteration and damming affects project timelines and approvals.

Competitive Landscape: Key Players Shaping the European Market

Leading manufacturers and service providers in the hydro turbine industry are focusing on innovation, joint ventures, and regional expansions to capitalize on growing demand. Prominent players include:

  • Voith Hydro

  • GE Renewable Energy

  • ANDRITZ Hydro

  • Siemens Energy

  • Gilkes

  • Toshiba Energy Systems

  • Litostroj Power

  • IMPSA

These companies are delivering turnkey solutions—from turbine design and installation to control systems and maintenance services—across the European continent.

Future Outlook: Sustainable Power for the Next Generation

With the European energy transition gaining momentum, hydropower is poised to remain a cornerstone of the continent’s green strategy. The focus on climate resilience, energy independence, and grid flexibility ensures that the hydro turbine market will continue to witness sustained investment and innovation.

As newer technologies emerge and old systems are upgraded, Europe’s hydroelectric capacity will remain a vital pillar in achieving a low-carbon and reliable energy future.

About the Company

Renub Research is a Market Research and Consulting Company with more than 15 years of experience, especially in international Business-to-Business Research, Surveys, and Consulting. We provide a wide range of business research solutions that help companies make better business decisions. We partner with clients across all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

Our wide clientele includes key players in Healthcare, Travel & Tourism, Food & Beverages, Power & Energy, Information Technology, Telecom & Internet, Chemicals, Logistics & Automotive, Consumer Goods & Retail, Building & Construction, and Agriculture. Our core team comprises experienced professionals with graduate, postgraduate, and Ph.D. qualifications in Finance, Marketing, Human Resources, Bio-Technology, Medicine, Information Technology, Environmental Science, and more.