Market Research Report
Gas Turbine Market Forecasts to 2028 - Global Analysis By Rated Capacity (1-40 MW, 40-120 MW, 120-300 MW, Above 300 MW), Design Type (Aeroderivative, Heavy Duty (Frame)), Application, and By Geography
|Gas Turbine Market Forecasts to 2028 - Global Analysis By Rated Capacity (1-40 MW, 40-120 MW, 120-300 MW, Above 300 MW), Design Type (Aeroderivative, Heavy Duty (Frame)), Application, and By Geography|
Published: May 1, 2022
Stratistics Market Research Consulting
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According to Stratistics MRC, the Global Gas Turbine Market is accounted for $18.58 billion in 2021 and is expected to reach $24.29 billion by 2028 growing at a CAGR of 3.9% during the forecast period. Gas turbine is a combustion engine at the heart of a power plant that can convert natural gas or other liquid fuels to mechanical energy. This energy then drives a generator that produces the electrical energy that moves along power lines to homes and businesses. Gas turbines are used to power aircraft, trains, ships, electrical generators, pumps, gas compressors, and tanks.
Rising trend of distributed power generation
Distributed generation can be used for electric supply and mechanical work (providing torque to move objects). Usually, the electricity was previously delivered through small power plants with low voltage DC-based power distribution. The higher efficiency of gas turbines and reliable generation capacity give them an edge over other distributed generation technologies for providing backup power and onsite generation needs. Therefore, the rise of distributed power generation represents a major driver for the gas turbines market growth.
Consumers shifting focus toward renewable energy
If the US starts exporting natural gas to other markets, the reserve to production ratio would significantly decline. At the current production rate, the supply of global natural gas is sufficient to last for only half the time as that of coal, despite coal production and consumption being much higher in the fast-growing economies of Asia Pacific. Solar and wind power plants act as clean sources of energy. Investment in renewable energy is expected to impact fossil-fired power plants. Hence, limited natural gas reserves pose a challenge to the gas turbines market growth.
Increasing use of electrical appliances
The increasing use of electrical appliances and growing industrialization because of rising economic activities in developing countries have escalated electricity demand. According to the Ministry of Statistics and Program Implementation Government of India, electricity production from utilities increased from 13, 03,493 GWh during 2017-2018 to 13,71,779 GWh during 2018-2019, registering an annual growth of about 5.24%. Therefore, the strict emission norms followed by developed nations and growing demand for electricity are expected to drive the installation of natural gas power plants, as natural gas emits less carbon dioxide.
Volatile price of natural gas
The volatile price of natural gas is expected to hamper the growth of the gas turbine market during the forecast period. Prices of basic energy (natural gas, electricity, heating oil) are generally more volatile than prices of other commodities. One reason that energy prices are so volatile is that many consumers are extremely limited in their ability to substitute other fuels when the price, of natural gas for example, fluctuates. It's not just gas prices at the pump that are rising. The cost of natural gas has spiked too, creating another concern for consumers as inflation lingers at a 40-year high.
The above 300 MW segment is expected to be the largest during the forecast period
The above 300 MW segment is estimated to have a lucrative growth owing to the shift from coal to gas-based power plants in some of the major countries across the globe such as the U.S., China, and India. Moreover, the increase in power generation activities across the globe due to surge in demand for electricity as a result of population growth and rapid urbanization boosts the product demand. Thus, expansion of the power generation sector and increased focus on generating electricity through sustainable energy resources drive the demand for gas turbines, especially for turbines with rating capacity above 300 MW capacity.
The power generation segment is expected to have the highest CAGR during the forecast period
The power generation segment is anticipated to witness the fastest CAGR growth during the forecast period. Governments all over the world are now putting in efforts to reduce the share of coal-based power plants to reduce carbon emissions, which have the potential to render opportunities for increase in demand for gas turbines for power generation. In addition, the gas-based power generation is cheaper to install than the nuclear power plant. Moreover, it is a more reliable source as compared to renewables. Therefore, multiple benefits associated with gas-based power generation and urgency to reduce the carbon emission have fostered the demand for gas turbines.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period owing to the surge in demand for energy alternative having low environmental impact. Rapid industrialization and increase in urbanization are driving an enormous and ever-growing power demand in the region, which necessitates the development of numerous power generation projects. This, in turn, is driving the demand for gas turbines in China. The country identified the potential of renewable energy and gas-based generation for de-carbonizing the country and meeting the targets as per the Paris Agreement, which aims to substantially reduce global greenhouse gas emissions in an effort to limit the global temperature increase. With increase in share of gas-based generation, the demand for gas turbines is expected to increase.
Region with highest CAGR:
Middle East & Africa is projected to have the highest CAGR over the forecast period owing to the abundant availability of natural gas reserves along with favorable regulatory norms. Increasing energy demand coupled with shifting focus toward renewable energy generation will propel the market growth. For instance, the King Abdullah City for Atomic and Renewable Energy released a time-bound plan for the introduction of a competitive procurement process of 54 GW renewable energy by 2040. Surging industrialization along with the modernization of infrastructure by investing in gas-fired distributed energy will support gas power generation.
Key players in the market
Some of the key players profiled in the Gas Turbine Market include Ansaldo Energia, Bharat Heavy Electricals Limited, Capstone Green Energy Corporation, Centrax Gas Turbine, General Electric, Harbin Electric Machinery Company Limited, IHI Corporation, Kawasaki Heavy Industries, Ltd, MAN Energy Solutions, Mitsubishi Heavy Industries, Ltd, OPRA Turbines, Rolls-Royce plc, Siemens Energy, Solar Turbines Incorporated, and United Engine Corporation.
In April 2021, Siemens Energy has signed an agreement with Spanish EPC contractor TSK to provide the company's highly efficient energy technology and services to Atinkou (formerly known as Ciprel V), a new combined cycle power plant to be built in Jacqueville, Cote d'Ivoire. Owned by ATINKOU S.A., a subsidiary of Eranove, the power plant will have an installed capacity of 390 MW in combined cycle and introduces the first F-class gas turbine in the Sub-Saharan Africa.
In June 2021, OPRA Turbines signed an agreement with Quanta. This partnership enabled Quanta to become a reseller for OPRA Turbines in the offshore oil & gas segment in the North Sea region.
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