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The gas turbine market for 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.
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. Furthermore, the report includes historic market data from 2017 to 2021.
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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 increase in CCGT power plants is notably driving market growth. 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.
The technological innovations in gas turbines will fuel the global gas turbine market for the power industry. 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.
One of the major challenges hindering the growth of the global gas turbine market is the volatility of natural gas prices. 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 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 Gas Turbines Market for Power Industry 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.
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
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 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.
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.
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Gas Turbines Market For Power Industry Scope |
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Report Coverage |
Details |
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Page number |
167 |
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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 3.05% |
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Market growth 2023-2027 |
USD 3,356.87 million |
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Market structure |
Concentrated |
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YoY growth 2022-2023(%) |
2.2 |
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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 34% |
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Key countries |
US, Canada, China, Japan, India, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, 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., Centrax Ltd., Cryostar, Doosan Corp., General Electric Co., Harbin Electric Co. Ltd., IHI Corp., JSC The Ural Turbine Works, Kawasaki Heavy Industries Ltd., MAN Energy Solutions SE, MAPNA Group Co., Motor Sich JSC, OPRA Technologies B.V., Pumori Energy Ltd., Siemens AG, Vericor Power Systems, and Mitsubishi Heavy Industries Ltd. |
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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, and Market condition analysis for the 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 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 Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 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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