Gas Turbine Market Analysis Global Trends, Opportunities, and Forecasts
Market Analysis
The global gas turbine market is expected to grow from USD 14.01 billion
in 2022 to USD 25.08 billion by 2030, at a CAGR of 6.2%. The growth of the
market is attributed to increasing demand for electricity, rising investments
in the power sector, and growing adoption of gas turbines in the oil and gas
industry.
The gas turbine market is segmented based on
type, application, and end-user. By type, the market is divided into
aeroderivative gas turbines and heavy-duty gas turbines. By application, the market
is classified into power generation, oil and gas, and other applications. By
end-user, the market is segmented into independent power producers (IPPs),
utilities, and oil and gas companies.
A gas turbine is a combustion engine that
transforms natural gas or other liquids into mechanical energy.
This energy then fuels the generator that
generates electrical energy. Gas turbines have various benefits, such as high
power to weight ratio, low operating pressure, and lower than most
reciprocating engines of the same power rating. Turbines play an important part
in the reduction of carbon emissions.
Compared to other combustion-based power
generation applications, they show lower emissions. Global electricity demand
is anticipated to rise by almost one-third of current demand in the coming
years. Major gas-producing regions, like the Middle East, the U.S., and Russia,
are experiencing a major revamp in their electricity generation infrastructure
to actively pursue gas-based power generation.
These changes will boost the market for gas
turbines along with the need to minimize carbon emissions.
The availability of large quantities of natural
gas, combined with relatively lower prices, in particular in North America,
Thailand, and China, has led to a rise in power generation using a gas turbine.
For example, as per EIA, natural gas demand and supply averaged 93.4 billion
cubic feet per day in the first half of 2018, which is 12% higher than demand
in the first half of 2017.
The global gas turbine industry is expected to
rise at a high rate during the forecast period, mainly due to the strict
emission requirements for gas turbine and shale gas production boom. According
to EIA, the rapid pace of technological progress in the oil and gas sector will
result in an increase in growing per well recoveries and an increase in the
production of shale gas.
As stated by EIA, the share of natural gas will
increase from 34% in 2018 to 39% by 2050 due to growth in drilling activities.
Thus, the rise in the production of natural gas would put downward pressure on
the prices of natural gas, which would lead to an increase in the share of
electricity produced by natural gas. This is expected to spur the market growth
of gas turbines globally.
Competitive Landscape
Ongoing mergers and acquisitions, together with
rising R&D spending in product durability, efficiency, and versatility by
major manufacturers, will complement the industry's scenario.
·
General
Electric (U.S.)
·
Siemens
(Germany)
·
Mitsubishi
Heavy Industries Ltd. (Japan)
·
Alstom
S.A (France)
·
Kawasaki
Heavy Industries
·
Ltd.
(Japan)
·
Bharat
Heavy Electricals Limited. (India)
·
Ansaldo
Energia, (Italy)
·
Rolls-Royce
Holdings plc. (U.K)
·
Harbin
Electric Company Limited. (China)
COVID -19 Impact on the Gas Turbine Market
The industry is predicted to experience a mild
downturn due to the worldwide outbreak of a new coronavirus pandemic.
Manufacturing activities are at a standstill due to labor shortages. This has
contributed to a major decline in demand from the end-use industries.
Market Segmentation
The global gas turbine market has been
segmented based on capacity, technology, and application.
Based on capacity, the global gas turbine
market has been segmented into up to 200 MW and above 200 MW.
Based on technology, the global gas turbine
market has been segmented into open cycle and combined cycle. The open cycle
segment is propelled by factors such as lower warm-up time, lightweight,
compact size, operational versatility, quick start, and less dependency on
cooling water.
Based on application, the global gas turbine
market has been segmented into power generation, industrial, and aviation.
Power generation is estimated to be the largest market during the forecast
period due to growing energy demand coupled with positive regulatory towards
the integration of sustainable energy infrastructure.
Regional Analysis
Region-wise, the global gas turbine market has
been segmented into Europe, North America, Asia Pacific, and the rest of the
world.
APAC to lead the global market
The Asia Pacific region is the largest gas
turbine market. Rapid industrialization, urbanization, and strong economic
growth in countries such as India and China will drive the gas turbine
industry.
Summary
The global Gas turbine engines market is expected to register a
4.80% CAGR from 2016 to 2023 (forecast period). Global electricity demand is
increasing and has doubled over the last two decades. It is expected to rise at
twice the rate of energy demand as a whole over the next 25 years. Moreover,
the development of technology leading to an increase in the production of shale
gas, along with the proposals of various countries to phase out coal-based
power generation and substitute it with a gas-fired power plant, is likely to
serve as a driver for the market.
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