The firm said that the sector's growth will be driven by increased investment in China, Brazil and India, as well as several emerging countries.

In a latest report, GlobalData estimates the global hydropower installations to increase from 1211.3GW in 2016 to 1,691.8GW by 2025.

GlobalData power analyst Anchal Agarwal said that the global hydropower market is driven by key factors such as policy support and environmental concerns for clean energy generation.

“The recently adopted UN Sustainable Development Goals, for example, which supersede the millennium development goals, include a special goal related to energy which encourages the share of renewable energy by 2030.”

By 2025, the global power demand is expected to increase to over 27 million GWh from around 21.7 million GWh in 2017, the firm said.

Agarwal noted that China will continue to dominate the hydropower market with the country's installed capacity reaching 442GW by 2020 from 341GW in 2016.

“In order to achieve its carbon reduction goals, China is quickly exploring low-carbon generation technologies, including nuclear, wind, and solar power.

“The flexible characteristics of hydropower, including pumped storage, facilitate the increased grid penetration of wind and solar.”

The firm noted that China develops large-scale projects as well as smaller projects in more remote regions.