Industry Overview:
The global pumped hydro storage market size is projected to reach USD 48.88 billion in 2025, reflecting a y-o-y growth of 5.8%. Rising deployment of wind and solar has intensified demand for long-duration energy storage to maintain grid reliability. The utility and renewable generation sectors drive this surge in leveraging PHS for energy arbitrage and peak-load management. The modernisation of ageing hydro assets involves which adoption of variable-speed turbines and integration of AI-based monitoring systems. These innovations enhance operational flexibility and efficiency and technological upgrades are propelling global project investments and lifecycle optimisation.
Industry Insights: Scale, Segments, and Shifts
Market Size & Growth: The global pumped hydro market is forecast to reach USD 85.91 billion by 2035, with 6% of CAGR during the forecast period 2025 to 2035.
Segment Analysis: Conventional 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.
Regional Highlights: Asia-Pacific holds about 60% of the overall market share in 2024 due to large-scale renewable integration and strong government storage mandates, while North America shows strong demand driven by grid modernisation and policy incentives.
Competitive Landscape: 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.
Factors Shaping the Next Decade
Market Gaps / Restraints: The lack of Lengthy environmental clearances and the need for high upfront capital costs for initial investment for building new pumped hydro facilities is very high.
Key Trends and Innovations: The industry is witnessing the transition towards Closed-loop, off-river pumped hydro systems with two artificial reservoirs, an energy storage process. The AI-enabled digital twin and predictive monitoring systems is having rapid deployment, which improves project reliability.
Potential Opportunities: The Renewable Energy Integration, Grid Stability & Ancillary Services, and Hybrid Projects have potential in emerging designs and optimize energy generation. Equipment Manufacturing and Services is expected to generate new revenue streams in upcoming time period.
Recent Industry Updates:
• October 2025: Siemens AG has implemented advanced grid synchronisation and automation solutions at a South American for pumped-storage facility, which is boosting grid reliability and showcasing next-generation hybrid storage technologies.
• September 2025: Voith GmbH & Co. KGaA has completed critical Factory Acceptance Tests (FATs) for turbine-generator components of the Snowy 2.0 project in Australia which marking a major milestone in one of the world’s largest ongoing PHS developments.
• September 2025: Andritz AG has an order for the 1,800 MW Gandikota pumped storage project in Andhra Pradesh, which reinforces its strong presence in India’s energy transition program.
• January 2025: Enel Spa has announced expansion of its long-duration storage portfolio they committing to additional pumped storage capacity across Europe and South America to balance its growing renewable fleet.
Industry Outlook Scope
By Plant Type
• Open Loop
• Closed Loop
By Capacity
• Below 500 MW
• 500-1000 MW
• Above 1000 MW
Regional Overview:
While Europe drives strong growth on account of the adoption of clean energy transition and grid flexibility goals. The South American hydropower modernisation integration program is fostering new project pipelines across hilly terrains. The Middle East and Africa drive the pumped hydro storage market due to growing renewable energy integration, government diversification plans like Saudi Arabia’s Vision 2030, and investments in water-energy management to stabilize grids in arid, while the demand in Latin America is being driven by renewable energy deployment which increasing grid instability from intermittent solar and wind sources and supportive national decarbonization targets that encourage long-duration storage investments.
Countries to Watch: 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. Brazil and Chile show rising activity through hydro modernisation and hybrid renewable projects, while Vietnam explores off-river concepts for mountainous sites.
Regulatory Environment and Policy Support
Government Regulations & Supportive Policies: The European Union’s Renewable Energy Directive (RED III) integrates storage within renewable permitting frameworks. The U.S. Inflation Reduction Act (IRA) offers tax credits for standalone energy storage and which includes PHS modernisation. India’s Ministry of Power pumped storage guidelines in 2023 streamlined approvals and incentivised capacity expansion through viability-gap funding.
Key Government Initiatives: India’s National Pumped Storage Mission and Green Energy Corridor programs, the U.S. DOE Hydro WIRES initiative, and the EU Green Deal funding collectively promote pumped storage deployment and modernisation investments.
Competitive Landscape and Strategic Outlook
The market is moderately consolidated, which is led by a mix of global OEMs and regional utilities. Players are focusing on automation, digital services, and project alliances to expand portfolios. Strategic partnerships for technology exchange and financing define current competition with modernisation contracts becoming a key revenue stream.
Industry Competition:
• General Electric Company
• Siemens AG
• Andritz AG
• Mitsubishi Heavy Industries Ltd
• Voith GmbH & Co. KGaA
• Ansaldo Energia SpA
• Duke Energy Corporation
• EON SE
• Enel SpA
• Electricite de France SA (EDF)
Analyst Perspective
The pumped hydro storage industry is shifting toward digitally optimized, flexible, and low-impact energy systems. Over the next three to five years the rising integration with renewable sources in smart grid technologies and closed-loop designs will redefine large-scale energy storage infrastructure. Companies that invest early in automation, advanced monitoring and environmentally adaptive projects will secure stronger profitability and long-term competitive positioning in the evolving global energy transition.
What to Expect from Outlook:
1. Save time carrying out entry-level research by identifying the size, growth trends, major segments, and leading companies in the Global Pumped Hydro Storage
2. Use PORTER’s Five Forces analysis to assess the competitive intensity and overall attractiveness of the Global Pumped Hydro Storage sector.
3. Profiles of leading companies provide insights into key players’ regional operations, strategies, financial results, and recent initiatives.
4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Pumped Hydro Storage with a forecast for the decade by both market share (%) & revenue (USD Million).
1. Key Findings
2. Introduction
2.1. Executive Summery
2.2. Regional Snapshot
2.3. Market Scope
2.4. Market Definition
3. Across The Globe
3.1. Factors Affecting End Use Industries
3.2. Upcoming Opportunities
3.3. Market Dynamics
3.3.1. Ongoing Market Trends
3.3.2. Growth Driving Factors
3.3.3. Restraining Factors
3.4. List of Operators
3.5. List of Technology Providers
3.6. PORTER’s & PESTLE Analysis
3.7. Key Developments
3.8. Overall Hydropower Installed Capacity, 2015 to 2025
3.9. Hydropower Installed Capacity & Generation, By Country, 2025
3.10. List of Pumped Storage Hydropower
Plants
3.11. Types of Risks for Developing
Pumped Storage Hydropower
3.12. Cost Structure of PHES
(*Indicative Costing)
4. Global Pumped Hydro Storage
Market Overview, By Plant Type
4.1. Market Size (US$ Mn) Analysis, 2020 – 2035
4.2. Market Share (%) Analysis (2024 vs 2035), Y-o-Y Growth (%) Analysis
(2024-2035) & Market Attractiveness Analysis (2025-2035)
4.3. Market Absolute $ Opportunity Analysis, 2020 – 2035
4.3.1. Open Loop
4.3.2. Closed Loop
5. Global Pumped Hydro Storage
Market Overview, By Capacity
5.1. Market Size (US$ Mn) Analysis, 2020 – 2035
5.2. Market Share (%) Analysis (2024 vs 2035), Y-o-Y Growth (%) Analysis
(2024-2035) & Market Attractiveness Analysis (2025-2035)
5.3. Market Absolute $ Opportunity Analysis, 2020 – 2035
5.3.1. Below 500 MW
5.3.2. 500-1000 MW
5.3.3. Above 1000 MW
6. Global Pumped Hydro Storage
Market Overview, By Region
6.1. Market Size (US$ Mn) Analysis, 2020 – 2035
6.2. Market Share (%) Analysis (2024 vs 2035), Y-o-Y Growth (%) Analysis
(2024-2035) & Market Attractiveness Analysis (2025-2035)
6.3. Market Absolute $ Opportunity Analysis, 2020 – 2035
6.3.1. North America
6.3.2. Europe
6.3.3. Asia Pacific
6.3.4. Middle East & Africa
6.3.5. South America
7. North America Pumped Hydro
Storage Market Overview
7.1. Market Size (US$ Mn) Analysis, 2020 – 2035
7.2. Market Share (%) Analysis (2024 vs 2035), Y-o-Y Growth (%) Analysis
(2024-2035) & Market Attractiveness Analysis (2025-2035)
7.3. Market Absolute $ Opportunity Analysis, 2020 – 2035
7.3.1. By Country
7.3.1.1. U.S.
7.3.1.2. Canada
7.3.1.3. Mexico
7.3.2. By Plant Type
7.3.3. By Capacity
7.4. Top Countries by Total Installed Hydropower Capacity
7.5. Latest Development, By Country
7.6. Country-wise Potential & Policy Activity
8. Europe Pumped Hydro Storage
Market Overview
8.1. Market Size (US$ Mn) Analysis, 2020 – 2035
8.2. Market Share (%) Analysis (2024 vs 2035), Y-o-Y Growth (%) Analysis
(2024-2035) & Market Attractiveness Analysis (2025-2035)
8.3. Market Absolute $ Opportunity Analysis, 2020 – 2035
8.3.1. By Country
8.3.1.1. UK
8.3.1.2. Italy
8.3.1.3. Spain
8.3.1.4. Germany
8.3.1.5. France
8.3.1.6. Switzerland
8.3.1.7. Rest of Europe
8.3.2. By Plant Type
8.3.3. By Capacity
8.4. Top Countries by Total Installed Hydropower Capacity
8.5. Latest Development, By Country
8.6. Country-wise Potential & Policy Activity
9. Asia Pacific Pumped Hydro
Storage Market Overview
9.1. Market Size (US$ Mn) Analysis, 2020 – 2035
9.2. Market Share (%) Analysis (2024 vs 2035), Y-o-Y Growth (%) Analysis
(2024-2035) & Market Attractiveness Analysis (2025-2035)
9.3. Market Absolute $ Opportunity Analysis, 2020 – 2035
9.3.1. By Country
9.3.1.1. China
9.3.1.2. Japan
9.3.1.3. India
9.3.1.4. South Korea
9.3.1.5. Rest of Asia Pacific
9.3.2. By Plant Type
9.3.3. By Capacity
9.4. Top Countries by Total Installed Hydropower Capacity
9.5. Latest Development, By Country
9.6. Country-wise Potential & Policy Activity
10. Middle East & Africa Pumped
Hydro Storage Market Overview
10.1. Market Size (US$ Mn) Analysis,
2020 – 2035
10.2. Market Share (%) Analysis (2024
vs 2035), Y-o-Y Growth (%) Analysis (2024-2035) & Market Attractiveness
Analysis (2025-2035)
10.3. Market Absolute $ Opportunity
Analysis, 2020 – 2035
10.3.1. By Country
10.3.1.1. GCC
10.3.1.2. South Africa
10.3.1.3. Rest of Middle East & Africa
10.3.2. By Plant Type
10.3.3. By Capacity
10.4. Top Countries by Total Installed
Hydropower Capacity
10.5. Latest Development, By Country
10.6. Country-wise Potential &
Policy Activity
11. South America Pumped Hydro
Storage Market Overview
11.1. Market Size (US$ Mn) Analysis,
2020 – 2035
11.2. Market Share (%) Analysis (2024
vs 2035), Y-o-Y Growth (%) Analysis (2024-2035) & Market Attractiveness
Analysis (2025-2035)
11.3. Market Absolute $ Opportunity
Analysis, 2020 – 2035
11.3.1. By Country
11.3.1.1. Brazil
11.3.1.2. Argentina
11.3.1.3. Rest of South America
11.3.2. By Plant Type
11.3.3. By Capacity
11.4. Top Countries by Total Installed
Hydropower Capacity
11.5. Latest Development, By Country
11.6. Country-wise Potential &
Policy Activity
12. Company Profiles
Technology
Providers
12.1. General Electric Company
12.1.1. Company Overview
12.1.2. Business Segments
12.1.3. Financial Insights
12.1.4. Key Business Aspects (Noise Analysis)
12.2. Siemens AG
12.3. Andritz AG
12.4. Mitsubishi Heavy Industries Ltd
12.5. Voith GmbH & Co. KGaA
12.6. Ansaldo Energia SpA
Operators
12.7. Duke Energy Corporation
12.8. EON SE
12.9. Enel SpA
12.10. Electricite de France SA (EDF)
12.11. Iberdrola SA
13. Analysis & Recommendations
13.1. Targeting Segment
13.2. Targeting Region
14. Research Methodology
15. Disclaimer
