BUENOS AIRES, Argentina
April 3, 2013
/PRNewswire/ -- The large hydro turbine (LHT) market in
is all set to soar on the back of economic growth in developing countries and use of the hitherto untapped resources of tropical and subtropical rivers. The biggest push for the LHT market will come from
's concerted energy planning and the ongoing construction of large hydropower projects aimed at sustaining the economic and demographic growth.
New analysis from Frost & Sullivan (
Large Hydro Turbine Market in Latin America
, finds that the market earned revenues of
in 2012 and estimates this to reach
in 2017, at a compound annual growth rate of 16.9 percent.
"Infrastructure improvements in the form of large hydro power plants (HPPs) are vital to not only meet the electricity demand of a growing economy, but also to generate jobs and usher in development in remote areas," said
Frost & Sullivan Energy & Environmental Research Analyst
. "Government policies that promote hydropower generation have given a fillip to the hydropower market and consequently, the LHT market."
Further, the competitive structure and flexibility of manufacturers in
enable them to form partnerships and keep prices competitive in the electromechanical components segment, especially for turbines and generators.
Despite the encouragement from the government, the hydropower market's long-term prospects are uncertain due to the volatility of financing for projects in the early planning phase. Financing difficulties also restrain renewable energy developments in
Once the energy market obtains steady funding, governments might seek greater representation from the wind power segment instead of restricting itself to hydropower. Naturally, some hydro turbine manufacturers are already making forays into the wind turbine market.