The global small hydropower market installed capacity stood at 110.77 GW in 2014 and is projected to reach 146.65 GW by 2023 at a CAGR of 2.85% from 2015 to 2023.

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Small Hydropower (SHP) offers an efficient, emission-free renewable source of electricity which can be used off-grid as well as on-grid. Small hydro is often constructed using existing dams or built with the flow of river known as run of river. Typically, SHP systems consist of transformers, generators, turbines, and reservoirs. Small hydropower plants are ideal for rural areas where there is no electricity infrastructure, such as transmission and distribution lines. Hydroelectric energy is the cleanest form of renewable generation as it does not release any harmful gases, carbon dioxide, and other pollutants which directly or indirectly affect the environment. It has no international denomination and its upper limit varies from country to country. For example, in Canada it ranges up to 50 MW and in Brazil it ranges up to 30 MW; however, 10 MW total capacity is generally accepted worldwide. Capacity utilization and plant load factor for small hydropower plants are high when compared to other renewable sources of energy.

The small hydropower market has been segmented into five regions: North America, Asia Pacific, Europe, Middle East and Africa, and South and Central America. Asia Pacific was the largest market for small hydropower, accounting for 70.3% of the global market in 2014. China is the leader in terms of SHP installations, followed by India and Japan. The Government of China has been promoting small hydropower by offering tax credits and incentives. Europe was the second-largest market for SHP in 2014. Italy spearheads the small hydropower market in Europe with well-structured policies and large funding for market development. North America was the third-largest market for small hydropower, in terms of market share, in 2014. The U.S. and Canada are the leading countries with major SHP installations. The market in Middle East and Africa is expected to witness significant growth in the near future, with increase in electricity demand from renewable energy across Kenya, Nigeria, and Egypt

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The global Small Hydropower market has been segmented as follows:

Small Hydropower Market: By Region

North America
Europe
Asia Pacific
Middle East and Africa
South and Central America