Japan Hydropower Market

Market Overview:

Japan hydropower market size reached 88.5 TWh in 2024. Looking forward, IMARC Group expects the market to reach 112.4 TWh by 2033, exhibiting a growth rate (CAGR) of 2.69% during 2025-2033. The increasing advancements in various technologies, such as integration with the industrial internet of things (IIoT) solutions that can continuously monitor the energy levels generated by the plant, thereby enhancing operational efficiency, are primarily driving the market.

Hydropower, also known as hydroelectric power, refers to a source of renewable energy that can harness the energy of falling or flowing water in order to generate electricity. It involves the use of dams, reservoirs, and turbines to transform the kinetic energy of water into electrical power. Water is typically stored in a reservoir behind a dam, and when released, it flows through turbines connected to generators, causing them to spin and produce electricity. Hydropower has several advantages, including its renewable nature, low greenhouse gas emissions, as well as the ability to provide a reliable and consistent source of electricity. It has been used for centuries to grind grain and perform other mechanical tasks, but in the modern era, it plays a crucial role in meeting the world's energy needs. It is a clean and sustainable energy option that can limit the reliance on fossil fuels and mitigate the environmental impact of power generation.

Japan Hydropower Market Trends:

The hydropower market in Japan is poised for extensive growth in the coming years, primarily driven by a confluence of factors. Firstly, the increasing regional emphasis on renewable energy sources has positioned hydropower as a leading contender, as it is one of the cleanest and most reliable sources of electricity generation. Moreover, the growing concerns over climate change and the need to mitigate greenhouse gas emissions have prompted governments in Japan to invest heavily in sustainable energy solutions, further propelling the hydropower market forward. Additionally, technological advancements in hydropower infrastructure, including improved turbine designs and grid integration solutions, have enhanced the efficiency and cost-effectiveness of hydropower projects. This has bolstered investor confidence and attracted substantial capital to the sector, fostering market expansion. Moreover, supportive government policies, such as subsidies, tax incentives, and favorable regulations, have created a conducive environment for hydropower development, further fueling its market prospects. Apart from this, the emerging trend towards decentralized energy generation that can offer opportunities for smaller-scale hydropower projects is expected to drive the market in Japan during the forecast period.

Japan Hydropower Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on size and application.

Size Insights:

• Large Hydropower (Greater Than 100 MW)
• Small Hydropower (Smaller Than 10 MW)
• Others

The report has provided a detailed breakup and analysis of the market based on the size. This includes large hydropower (greater than 100 MW), small hydropower (smaller than 10 MW), and others.

Application Insights:

• Industrial
• Residential
• Commercial

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes industrial, residential, and commercial.

Regional Insights:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Japan Hydropower Market News:

• June 2025: The Department of Energy (DOE) of the Philippines and the Japan International Cooperation Agency (JICA) have established a new technical cooperation initiative aimed at hydropower development in the Philippines. The project seeks to aid the nation’s renewable energy objectives by conducting a comprehensive inventory of possible large-scale hydropower initiatives
• May 2025: Chubu Electric Power commenced building the 730kW Uchigatani Hydropower Plant located in Gujo City, Gifu Prefecture. The facility will produce electricity from maintenance water released by the Uchigatani Dam, which is presently being built by the prefecture. The power plant is set to commence commercial operations in FY2027 when the dam is projected to be finished. When it becomes operational, Chubu EPCO anticipates producing approximately 4.5GWh each year.
• April 2025: Hyundai E&C entered into a business agreement with ITOCHU Corporation, a major general trading company in Japan, to enhance collaboration and investigate opportunities in pumped-storage hydroelectricity (PSH), data centers, ammonia, and LNG. This agreement signifies a tripartite partnership involving Hyundai E&C, ITOCHU Corporation – a worldwide investment and development project firm – and ITOCHU Plantech, a subsidiary of ITOCHU Corporation focused on the plant EPC sector. Under this agreement, the companies will investigate multiple collaboration opportunities in essential business sectors like global data centers, ammonia and LNG initiatives, including the development of pumped-storage hydropower (PSH) facilities funded by public financial resources.
• March 2025: Indonesia's Coordinating Ministry for Economic Affairs and Japan's Ministry of Economy, Trade, and Industry (METI) have signed a letter of intent (LoI) to collaborate on the development of the Kayan hydropower plant in North Kalimantan, the largest project of its kind in Southeast Asia, with a total investment amounting to $17.8 billion.

Japan Hydropower Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan hydropower market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Japan hydropower market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan hydropower industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.