Global Pumped Hydroelectric Energy Storage Market Insights Forecasts to 2033

• The Global Pumped Hydroelectric Energy Storage Market Size was Valued at USD 388.79 Billion in 2023
• The Market Size is Growing at a CAGR of 8.75% from 2023 to 2033
• The Worldwide Pumped Hydroelectric Energy Storage Market Size is Expected to Reach USD 899.62 Billion by 2033
• Europe is Expected to Grow the fastest during the forecast period.

The Global Pumped Hydroelectric Energy Storage Market Size is Anticipated to Exceed USD 899.62 Billion by 2033, Growing at a CAGR of 8.75% from 2023 to 2033.

Market Overview

Energy is stored in pumped hydroelectric energy storage by raising water from a lower reservoir to a higher level reservoir, utilizing low-cost electric power during off-peak times to run the pumps. The stored water is then released through hydro turbines to generate electric power when demand is high. The practical energy efficiency of pumped hydroelectric storage (PHES) ranges between 70% and 80%, and some sources claim it can be as high as 87%. Globally, most PHES facilities have a capacity of 1000–1500 MW, with some as large as 2000–3000 MW. Conversely, photovoltaic-based pumped storage systems have been primarily utilized for very small-scale applications, such as powering a few houses.

Pumped storage hydropower (PSH) is one of the most common and well-established types of energy storage technologies and currently accounts for 96% of all utility-scale energy storage capacity in the United States. PSH facilities store and generate electricity by moving water between two reservoirs at different elevations. Vital to grid reliability, today, the U.S. pumped storage hydropower fleet includes about 22 gigawatts of electricity-generating capacity and 550 gigawatt-hours of energy storage with facilities in every region of the country.

For instance, in August 2024, The Central Electricity Authority of India (CEA) is fast-tracking two large-scale pumped hydro energy storage (PHES) projects totaling 2,600MW of power.

Report Coverage

This research report categorizes the market for pumped hydroelectric energy storage based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the pumped hydroelectric energy storage market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the pumped hydroelectric energy storage market.

Driving Factors

The pumped hydroelectric energy storage installation is growing in response to the urgent need to increase global energy storage capacity. The development of large-scale energy storage for electricity is becoming more important as the intermittent renewable energy infrastructure grows. The pumped hydroelectric energy storage technology has a great capacity for storing energy and can give grid flexibility. As a result, the pumped hydroelectric energy storage industry is likely to see significant growth in the next years, as it is used for load-shifting and balancing inflexible sources of power supply. The need to integrate renewable energy sources into the grid is driving the expansion of grid-scale installations. Investments in sustainable energy technologies are increasing. Renewable energy is being integrated rapidly. Pumped hydro storage has low operational costs. Pumped hydro storage offers flexibility in power output. Pumped hydro storage has a high storage capacity which is an important driving factor.

Restraining Factors

Pumped hydroelectric energy storage faces several restraints. PHES can impact the environment by blocking or changing the natural flow of rivers, which can block fish migration routes. PHES has high capital and operational costs. PHES requires large amounts of land and water, which can conflict with other uses like agriculture and recreation. PHES can face technical challenges like water losses, evaporation, leakage, sedimentation, and erosion. PHES can face social and political barriers like public acceptance, permitting, licensing, and coordination among multiple stakeholders. PHES has a round-trip efficiency of about 80%, meaning that about 20% of the electricity is lost in a complete pumping/generation cycle. PHES requires elevation difference to work properly.

Market Segmentation

The pumped hydroelectric energy storage market share is classified into source and end user.

• The natural reservoirs segment is estimated to hold the highest market revenue share through the projected period.

Based on the source, the pumped hydroelectric energy storage market is classified into natural reservoirs and man-made reservoirs. Among these, the natural reservoirs segment is estimated to hold the highest market revenue share through the projected period. Pumped hydro systems make use of the potential energy of water, enabling efficient storage and release of energy. During periods of low energy demand, water is pumped to a higher elevation and then released to generate electricity during peak demand, effectively balancing supply and demand. This approach not only offers a dependable source of renewable energy but also improves grid stability, playing a vital role in the shift towards sustainable energy solutions. With the growing demand for renewable energy sources, the significance of natural reservoirs in this sector is expected to grow, solidifying their position as top revenue generators.

• The electrical & electronics segment is anticipated to hold the largest market share through the forecast period.

Based on the end user, the pumped hydroelectric energy storage market is divided into construction, wind energy, electrical & electronics, and others. Among these, the electrical & electronics segment is anticipated to hold the largest market share through the forecast period. The increasing demand for advanced technologies and energy-efficient solutions is driving the industry forward. Both industries and consumers are aiming to decrease energy consumption and improve performance, making the integration of innovative electrical and electronic systems crucial. This sector encompasses various applications, including smart grids, electric vehicles, and renewable energy technologies, all of which heavily rely on efficient energy storage and management systems. Furthermore, the continuous advancements in electronics, such as miniaturization and improved battery technologies, further support the segment's growth, positioning it as a significant player in the overall market landscape. As the world moves towards a more electrified and sustainable future, the electrical and electronics segment is expected to lead in terms of market share and influence.

Regional Segment Analysis of the Pumped Hydroelectric Energy Storage Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the pumped hydroelectric energy storage market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the pumped hydroelectric energy storage market over the predicted timeframe. This is fueled by rapid industrial growth, expansion of cities, and a growing emphasis on renewable energy sources, countries in this region, including China, Japan, and India, are making substantial investments in energy infrastructure to meet increasing electricity needs and decrease dependence on fossil fuels. The varied terrain in the region offers optimal conditions for pumped hydro systems, enabling efficient energy storage and grid stability. Additionally, government policies and incentives aimed at promoting sustainable energy practices are driving the development of large-scale pumped hydro storage projects. Consequently, the Asia Pacific region is well-positioned to take the lead in the market, benefiting from both technological progress and a strong commitment to transitioning to cleaner energy solutions.

Europe is expected to grow at the fastest CAGR growth of the pumped hydroelectric energy storage market during the forecast period. The European Union is focused on reaching its ambitious renewable energy targets and is dedicated to carbon neutrality. The Green Deal and other EU policies highlight the importance of dependable energy storage solutions to handle the variability of renewable sources such as wind and solar. Furthermore, numerous European nations are focused on modernizing their energy infrastructure, including expanding pumped hydro facilities to improve grid reliability and resilience. With the region's current array of hydro resources, coupled with advancements in technology and increased investment in sustainable energy projects, Europe is at the forefront of adopting and expanding pumped hydroelectric energy storage systems, establishing itself as a key player in the global energy transition.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the pumped hydroelectric energy storage market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Huizhou Pumped Storage Power Station
• Tianhuangping Pumped Storage Power Station
• Ludington Pumped Storage Power Plant
• Bath County Pumped Storage Station
• La Muela II Pumped Storage Power Station
• Dinorwig Power Station
• Okutataragi Pumped Storage Power Station
• Okukiyotsu Pumped Storage Power Station.
• Guangdong Pumped Storage Power Station
• Grand'Maison Dam
• Mingtan Pumped Storage Hydro Power Plant
• Raccoon Mountain Pumped-Storage Plant
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Development

• In January 2024, The Ministry of Environment, Forest, and Climate Change (MoEFCC) gave the environment-related go-ahead to pumped storage hydropower projects with a capacity of 11.98 gigawatts (Gw).

Market Segment

This study forecasts revenue at global, regional, and country levels from 2023 to 2033. Spherical Insights has segmented the pumped hydroelectric energy storage market based on the below-mentioned segments: 

Global Pumped Hydroelectric Energy Storage Market, By Source

• Natural Reservoirs
• Man-Made Reservoirs

Global Pumped Hydroelectric Energy Storage Market, By End User

• Construction

• Wind Energy
• Electrical & Electronics
• Others

Global Pumped Hydroelectric Energy Storage Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa