Smart micro hydropower market reaches $2.456b by 2032

In APAC, the market is seen to grow 6.4% annually to 2031.

The global smart micro hydropower systems market is projected to grow to $2.456b by 2032 from $ 1.65b in 2024, reflecting a compound annual growth rate of 5.1% from 2025 to 2032.

In its new analysis, DataM Intelligence 4market Research LLP said one of the growth drivers is the lack of reliable electricity for over 1.5 that can electrify 17% of underserved rural communities by 2032.

Annual fossil-fuel-based rural electrification costs have also surpassed $35b in 2024, pushing governments toward sustainable micro hydro alternatives. Meanwhile, over $6.1b in government and institutional funding was announced between 2023 to 2024 to boost decentralised hydropower in developing markets, including Asia.

In technology, IoT-enabled micro hydropower deployments grew from 12,400 sites in 2023 to 39,600 sites in 2024, projected to reach 215,000 installations by 2032.

Smart automation in micro hydropower is expected to reduce maintenance and operational costs by 40% and enhance energy output efficiency by up to 32% by 2030, DataM said.

Per region, the Asia-Pacific smart micro hydropower systems market is forecast to rise to $768.76m by 2031, registering an annual growth rate of 6.4% during 2024–2031.

The Japanese market alone is set to reach $510m by 2032, growing at 18.1% annually.