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The steam turbine market is estimated to grow at a CAGR of 3.82% between 2022 and 2027. The size of the market is forecast to increase by USD 3,416.12 million. The growth of the market depends on several factors, including growing demand for power generation, several advantages of using steam turbines, and the growing use of steam turbines in CHP systems.
This report extensively covers market segmentation by end-user (utility and industrial), type (reaction and impulse), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing demand for power generation is notably driving the market growth, although different technical and safety issues related to steam turbines may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for power generation is notably driving the steam turbine market growth. A mechanical device known as a steam turbine uses pressurized steam to extract heat energy and convert it into rotational motion. Due to their high thermal efficiency and high power-to-weight ratio, they have almost completely replaced reciprocating steam engines. About 80% of the world's electricity is generated by steam turbines. Steam turbines are suitable for driving electrical generators through rotational motion. As the world transitions to a more digital economy, the demand for efficient and reliable power generation is increasing. Demand for steam turbines is expected to increase during the forecast period as they are a reliable and affordable method of power generation. Most of the electricity produced worldwide comes from steam power plants. Electricity demand is expected to soar as the world's population grows. This is expected to increase the demand for steam turbines.
By using gas turbines to generate electricity, steam turbines allow power plants to use the gas and heat produced by the process to produce steam, thus producing more electricity. In large-scale industrial applications, combined cycle power plants backed by steam turbines can produce or achieve power generation efficiencies above the 50% mark. Steam turbine engines are used to generate most of the electricity in the United States. Steam turbines are a critical component of many American industries today because of their high efficiency, low cost, and positive environmental impact. Therefore, increasing demand for power generation will be the major factor driving the growth of the global steam turbine market during the forecast period.
The increasing focus on renewable technologies is a key trend influencing the steam turbine market growth. Steam turbines are often used in the field of renewable energy, from solar heat, biomass, district heating, desalination, and waste to energy or power plants. The steam turbine market is expected to grow due to growing interest in renewable energy. Steam turbines are integral to heat-based renewable energy generation, such as concentrating solar, geothermal, biomass, and waste power plants. Steam turbines, combined with heat storage systems, provide affordable, plannable, and CO2-neutral power, ensuring grid supply stability and security.
Renewable energy, also known as clean energy, provides reliable energy sources and fuel types, increases energy security, and reduces the potential for fuel pollution. The main goals of renewable energy are to boost economic growth, increase energy security, expand access to electricity, and slow global warming. Steam turbines are a clean energy source with little or no environmental impact. With increasing emphasis on renewable energy sources, the global steam turbine market is expected to grow over the forecast period.
The mechanical problems associated with steam turbines are challenging the steam turbine market growth. In industrial settings, steam turbines are one of the most important mechanical components. These complex machines have many moving parts and require special maintenance. Lack of maintenance can lead to several problems, such as blade damage, excessive vibration, overheating, and steam outlet. These issues make the turbines prone to failure, get damaged or destabilized, can create different safety issues for operators, and many more. Therefore, several issues related to steam turbines are likely to pose major challenges to the growth of the global steam turbine market during the forecast period.
Additionally, installing a steam turbine requires a large capital investment. Before building a turbine, market participants must complete a number of administrative processes and tasks, which are costly. In addition to turbine installation, major costs also include foundations, control technology, grid connections, assets, electrical installations, road construction, and other costs. Installation costs vary by region and technology. The resulting high installation costs are likely to reduce the demand for steam turbines during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Steam Turbine Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ALSTOM SA: The company offers a large number of steam turbine cylinder retrofits with DEC600 MW steam turbine units. It also offers different products, light rail vehicles, metros, and other locomotives.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the utility segment will be significant during the forecast period. Almost all power plant operators that use steam to generate electricity use steam turbines as their primary propulsion system. A generator is driven by a turbine to produce electricity. The amount of steam required to generate electricity determines the size of the power plant, the type and configuration of equipment used in the steam power plant, etc. The growth of the industrial sector is associated with the expansion of global industrial activity. CHP turbines are used as steam turbines in industrial applications. These units produce multiple outputs and are more efficient than a single unit. Therefore, increasing use of steam turbines in power utilities is expected to drive the growth of the segment in the global steam turbine market during the forecast period.
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The utility segment was valued at USD 13,229.40 million in 2017 and continued to grow until 2021. A reaction turbine consists of an alternating set of fixed and movable nozzles (blades). Steam expands in both the fixed and movable nozzles of the reaction turbine. In other words, the steam continues to expand as it flows over the blades. Blades have pressure and velocity losses. Convergent steam nozzles are located on the rotating blades. As a result, when steam flows over stationary vanes, both its kinetic energy and steam pressure increase as it expands. In a reaction turbine, where pressure potential energy is converted to kinetic energy, the steam expands through a fixed nozzle. Thus, the increasing use of these different steam turbines is expected to drive the growth of the segment in the global steam turbine market during the forecast period.
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APAC is estimated to contribute 71% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The APAC global steam turbine market is expected to rise at a considerable rate during the forecast period. Countries such as China, Japan, and India are contributing significantly to the growth of the regional gas turbine market in terms of revenue. This is due to the tremendous growth of the electricity consumption sector in the Asia-Pacific region. Rising urban populations and rising living standards have made electricity a valuable commodity in major APAC countries. As a result, governments in various APAC countries have opened their power generation sector to private operators. This helps achieve the necessary efficiencies in power generation and distribution.
In 2020, the APAC steam turbine market was adversely affected by the COVID-19 pandemic. Strict lockdowns imposed by governments in countries such as China, India, and Japan have reduced energy use in commercial facilities due to the outbreak. Most steam turbine manufacturing plants closed in the first half of 2020 to curb the spread of the disease. However, the lockdown will be lifted in 2021 with the start of a mass vaccination campaign. This has brought steam turbine plants back into operation, further increasing the demand for steam turbines in APAC. Additionally, major vendors operating in the region are receiving orders that are expected to help record growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio classifies the global steam turbine market as part of the global renewable energy market within the global independent energy and renewable power market. The overall global renewable energy market includes companies engaged in the generation and distribution of electricity from renewable energy sources. The global renewable power market size includes revenue generated by independent power producers' generation and distribution, gas and power marketing and trading professionals, and integrated energy traders and companies involved in renewable power.
Steam Turbine Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.82% |
Market growth 2023-2027 |
USD 3416.12 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.7 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 71% |
Key countries |
US, China, India, Japan, and South Korea |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ALSTOM SA, Baker Hughes Co., Dongfang Electric Corp. Ltd., Doosan Corp., Downer EDI Ltd., Ebara Corp., General Electric Co., Hangzhou Steam Turbine Power Group Co. Ltd., Harbin Turbine Co. Ltd., Heinzmann GmbH and Co. KG, Howden Group Ltd., Mitsubishi Heavy Industries Ltd., Moog Inc., Nanjing Turbine and Electric Machinery Group Co. Ltd., Porsche Automobil Holding SE, Shandong Qingneng Power Co. Ltd., Shanghai Electric Group Co. Ltd., Siemens AG, Sumitomo Heavy Industries Ltd., and Triveni Engineering and Industries Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
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