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The gas turbine market for the power industry is estimated to grow at a CAGR of 3.05% between 2022 and 2027. The size of the market is forecast to increase by USD 3,356.87 million. The growth of the market depends on several factors, including the growth of distributed power generation base, growth of distributed power generation base, and focus on the reduction of carbon emissions.Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
This report extensively covers market segmentation by product (heavy-duty gas turbine and aero-derivative gas turbine), technology (CCGT and OCGT), 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.
Gas Turbine Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The demand for combined-cycle gas turbines for power plants is on the rise due to increased efficiency and better output. The abundance of natural gas and its low cost has also enabled companies and utilities to build new natural gas-based thermal power plants. This has helped increase the number of CCGT plants globally. In the long term, CCGT will also help meet the carbon emission targets. Moreover, the CPP proposes state-by-state emission levels for existing power plants, with the cumulative goal of reducing nationwide carbon emissions by 30% by 2030, from the 2005 levels. The Environmental Protection Agency (EPA) has issued four building blocks as part of its CPP, including an objective of reaching 70% capacity factor in the existing combined-cycle plants, which is higher than the current range of 45% to 50%. Such initiatives on the part of the government will see a significant increase in the combined-cycle installed capacity during the forecast period.
Major manufacturers, such as General Electric (GE) and Siemens, are investing heavily in the development of high-efficiency gas turbines. Both turbines are categorized as H-class gas turbines. The constant pursuit of higher efficiency by major manufacturers, focusing on capturing the untapped potential of this market, will support market growth. Moreover, the flexibility of fuel is another area of focus for gas turbine manufacturers. This is because the composition of fuel in the energy mix varies considerably across regions. Durability is another key focus for gas turbine manufacturers, as an operational failure of gas turbines and consequent downtime for maintenance and service cause high financial losses, especially in capital-intensive plants. However, an increase in efficiency and durability will not only decrease the operational cost of gas turbines but also offer operational benefits, thus adding to the demand for gas turbines.
In order to safeguard the power prices from price fluctuations, utilities always seek to maintain a balanced feedstock portfolio. However, in the present scenario, with a rapid shift toward gas turbine and natural gas-driven power plants in pursuit of cleaner modes of power generation, the reliance on natural gas is continuously increasing. Moreover, with low natural gas prices, the prospects of over-reliance on natural gas for power generation look less harmful. However, going by the historic trend of natural gas prices, the over-reliance on natural gas will expose consumers to high natural gas prices, prompted by its growing demand and recovery of crude oil prices. Utilities will have to take the first effect of such an increase in natural gas prices, followed by consumers who will be overburdened with power prices. Such factors will hinder market growth during the forecast period.
The market share growth of the heavy-duty gas turbine segment will be significant during the forecast period. Heavy-duty (frame) gas turbines are extensively used in large-scale power-generating facilities, attributing to the anticipated robust growth of the segment during the forecast period. Power consumption is increasing across the globe; hence, there will be an additional demand for electric power. Technavio expects that there will be significant power generation activity across the globe, especially in developing nations, during the forecast period.
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The heavy-duty gas turbine segment was valued at USD 10,055.10 million in 2017 and continues to grow until 2021. Environmental concerns are fueling the adoption of gas-based power generation over coal-based power generation, which is expected to increase the demand for gas turbines across the globe. High-baseload plants that require gas turbines with more than 300 MW are expected to contribute significantly to the growth of the global gas turbine market for power industry during the forecast period. Owing to the high efficiency of heavy-duty gas turbines, many power plants are widely adopting such turbines so that they can use fewer turbines to generate the power required.
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APAC is estimated to contribute 34% 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.
There is immense potential for gas turbines in APAC as emerging economies like India, China, and Indonesia are mainly focusing on efficient power generation to sustain their economic growth and development. With governments promoting cleaner energy, the shift to gas-based power generation is growing in these countries. However, India is one of the countries which is highly dependent on coal for its power generation. Nonetheless, due to environmental concerns, the expansion of coal mining is limited, thereby increasing the scope for gas-based power generation.
Some vendors are also increasing the production capacity in APAC. For instance, in January 2020, Mitsubishi Heavy Industries launched full-scale operations at a newly established subsidiary in Jakarta, Indonesia. Similarly, in October 2020, Mitsubishi Power, a subsidiary of the Mitsubishi Heavy Industries (MHI) Group, secured a full-turnkey contract for the engineering, procurement, and construction (EPC) of a 1,400MW power plant in Thailand. Mitsubishi will supply two M701JAC gas turbines for the natural gas-fired turbine combined cycle (GTCC) facility. Such new agreements and expansion by vendors can accelerate market growth in APAC during the forecast period.
The gas turbine market for power industry in APAC was negatively impacted by the COVID-19 pandemic. However, the initiation of large-scale vaccination drives led to the lifting of lockdowns in 2021. This has resulted in the resumption of operations in gas turbine generation facilities, which has further fueled the demand for gas turbines in APAC. Moreover, there is an increase in the commercial and industrial demand for electricity. Therefore, the gas turbine market for power industry in APAC is expected to witness growth during the forecasted period.
Companies 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.
MAN Energy Solutions SE - The company offers gas turbines for power industry such as MGT6000-1S, MGT6000-2S, THM1304 as its key offerings. Under this segment, the company offers power to gas that is used in exploration and production, fuel gas, liquified natural gas, pipeline and gas storage, petrochemicals, refinery
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including: Ansaldo Energia Spa, Bharat Heavy Electricals Ltd., Capstone Green Energy Corp., Caterpillar Inc., Doosan Corp., Harbin Electric Corp., General Electric Co., Hindustan Aeronautics Ltd., Kawasaki Heavy Industries Ltd., IHI Corp., MAN Energy Solutions SE, MAPNA Group Co., Mitsubishi Heavy Industries Ltd., Motor Sich JSC, OPRA Technologies B.V., PJSC Krasny Kotelshchik, Rolls Royce Holdings Plc, Shanghai Electric Group, Siemens AG, and Vericor Power Systems
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The gas turbine market 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.
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Gas Turbine Market Scope |
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Report Coverage |
Details |
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Page number |
186 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.81% |
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Market growth 2023-2027 |
$ 4023.23 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
2.67 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 39% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Ansaldo Energia Spa, Bharat Heavy Electricals Ltd., Capstone Green Energy Corp., Caterpillar Inc., Doosan Corp., Harbin Electric Corp., General Electric Co., Hindustan Aeronautics Ltd., Kawasaki Heavy Industries Ltd., IHI Corp., MAN Energy Solutions SE, MAPNA Group Co., Mitsubishi Heavy Industries Ltd., Motor Sich JSC, OPRA Technologies B.V., PJSC Krasny Kotelshchik, Rolls Royce Holdings Plc, Shanghai Electric Group, Siemens AG, and Vericor Power Systems |
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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 |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Market Segmentation by Technology
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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