The formation of vapor bubbles in cavitation is not a major problem in itself but the collapse of these bubbles generates pressure waves, which can be of very high frequencies, causing damage to the machinery. The bubbles collapsing near the machine surface are more damaging and cause erosion on the surfaces called as cavitation erosion. The collapses of smaller bubbles create higher frequency waves than larger bubbles. So, smaller bubbles are more detrimental to the hydraulic machines.
Smaller bubbles may be more detrimental to the hydraulic machine body but they do not cause any significant reduction in the efficiency of the machine. With further decrease in static pressure more number of bubbles is formed and their size also increases. These bubbles coalesce with each other to form larger bubbles and eventually pockets of vapor. This disturbs the liquid flow and causes flow separation which reduces the machine performance sharply. Cavitation is an important factor to be considered while designing Hydraulic Turbines.