Pumped Hydro Storage Industry:
Pumped Hydro Storage Market Set for Steady Growth Amid Rising Demand for Grid Stability
Market overview :
The global pumped hydro storage (PHS) market is expected to reach , the market is projected to reach USD 85.91 billion, expanding at a CAGR of 6% from 2025 to 2035, growing at a year-on-year rate of 5.8%. Increasing integration of wind and solar energy is driving demand for long-duration storage to ensure grid stability, particularly across utility and renewable power sectors. Modernization of aging hydro assets through variable-speed turbines and AI-enabled monitoring is improving operational efficiency and flexibility, accelerating project investments.
Rising renewable integration, grid stability needs, ancillary services, and hybrid energy projects present strong growth potential. Equipment manufacturing and associated services are also set to create new revenue streams. The market is shifting toward closed-loop, off-river pumped hydro systems using artificial reservoirs for efficient energy storage. Rapid adoption of AI-powered digital twins and predictive monitoring is improving reliability and operational performance.
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Region & Countries to Watch:
Asia-Pacific dominated nearly 60% of the market in 2024, led by large-scale renewable deployment and strong government mandates. North America is seeing robust demand driven by grid modernization and policy incentives, while Europe’s clean energy transition and grid flexibility goals support steady growth. India is rapidly scaling with multiple gigawatt-class projects and supportive policy approvals. Australia’s Snowy 2.0 and Battery of the Nation initiatives highlight long-term energy security goals.
Segmentation:
By Plant Type: This segment includes open loop & closed loop categories. open-loop systems account for nearly 70% of the market share due to enhanced global installations, leveraging existing reservoirs and proven reliability, and the Closed-loop systems will showing rapid growth during the forecast period.
By Capacity: This segment includesBelow 500 MW, 500-1000 MW and above 1000 MW categories.
Competition in the Market:
The market is moderately consolidated with leading OEMs and utilities such as General Electric, Siemens, Andritz, and Voith. This player’s dominant market due to turbine supply, digitalisation and EPC contracts. They focus on Strategic collaborations, modernisation services, and digital plant upgrades are the core competitive approaches.
Industry Competition:
- General Electric Company
- Siemens AG
- Andritz AG
- Mitsubishi Heavy Industries Ltd
- Voith GmbH & Co. KGaA
- Others
