Gas Turbines Market For Power Industry - North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Forecast 2023-2027

Gas Turbines Market For Power Industry Forecast 2023-2027

The gas turbine market for power industry is forecast to increase by USD 3.35 billion at a CAGR of 3.05% between 2022 and 2027. The market is driven by various factors, primarily the expanding distributed power generation base. As industries and communities increasingly adopt distributed power generation solutions, the demand for gas turbines rises. Additionally, there is a growing emphasis on reducing carbon emissions, prompting the power industry to invest in cleaner energy sources like gas turbines. They play a crucial role in providing efficient and reliable power while helping to minimize environmental impact, driving their adoption in the global power sector. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Gas Turbines Market For Power Industry During the Forecast Period?

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Market Dynamics and Customer Landscape

The market has been experiencing significant growth due to the increasing demand for electricity and the shift towards cleaner energy sources. Combustion turbines, a type of continuous combustion engine, play a crucial role in power generation through the use of turbines, gas compressors, and turbo fans. Gas-fired power plant and oil-fired power plant are the primary consumers with natural gas being the most common fuel. Investment issues and travel restrictions have not deterred this sector from investing in this, including cooling technologies and materials to improve fuel consumption, operating costs, and efficiency levels. Hydrogen-fueled gas turbines are gaining popularity due to their potential to reduce NOx emissions and improve reliability and durability. The aviation industry also relies heavily on them for power generation. This sector's supply chain faces challenges in sourcing fuel and maintaining control systems to ensure optimal performance. Fossil fuels continue to dominate the market, but the trend towards renewable energy sources is expected to accelerate in the coming years. 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.

Key Market Driver

The increase in CCGT power plants is notably driving market growth. The market plays a significant role in the this industry, particularly in the operation of Combustion Turbines. They include combustors, gas compressors, turbines, and turbo fans, are integral to Gas-fired and Oil-fired power plant that utilizes Natural Gas. This sector relies heavily on this machinery for electricity generation, with workforce and supply chain considerations impacting the projects. Investment issues, international borders, and travel restrictions are factors influencing the market. They offer flexibility, catering to both large and small energy users, and can operate in stand-alone mode or as part of an integrated system. Cooling technologies, materials, and combustion systems are essential components, with fuel consumption and operating costs key considerations. Steam turbines and Efficiency levels are also relevant, with the emergence of Hydrogen-fueled gas-turbines offering potential solutions to environmental concerns. Experts monitor trends in designs, control systems, reliability, durability, and downtime. Flexibility is crucial in addressing electricity demand, particularly in the aviation industry and electricity consumption sectors. The market's future is shaped by the ongoing transition from fossil fuels to cleaner alternatives, with implications for fuel consumption, operating costs, and the role of greenhouse gases.

Significant Market Trends

The technological innovations in gas turbines will fuel the global market. The market is experiencing significant growth due to the increasing focus on high-performance and cost-effective power generation. Major manufacturers, including General Electric Co. and Siemens AG, are investing in the development of high-efficiency gas-turbines, such as the 9HA/7HA-series CCGT by GE-Power and Water and the SGT5-8000H by Siemens. These H-class gas turbines boast efficiency levels exceeding 60% in a combined cycle configuration. This sector's constant pursuit of higher efficiency is driving market growth as manufacturers seek to tap into this market potential. They are comprised of a combustor, gas compressor, turbine, and turbo fans, are integral to gas-fired power plants and, to a lesser extent, oil-fired power plant. This sector is witnessing investment issues due to international borders and travel restrictions, impacting the workforce and supply chain of power-plant projects. Experts predict the adoption of cooling technologies, advanced materials, and combustion systems to enhance fuel consumption efficiency and reduce operating costs. The transition to hydrogen-fueled gas-turbines is also underway, with a focus on materials and diagnostics for reliability, durability, and downtime reduction. Designs, control systems, flexibility, electricity demand, and the aviation industry's electricity consumption are other factors influencing the market. Fossil fuels and greenhouse gas emissions remain concerns as this sector shifts towards cleaner energy sources.

Major Market Challenges

One of the major challenges hindering the growth of the global market is the volatility of natural gas prices. The market is experiencing growth due to the increasing shift towards gas-fired power plants for cleaner energy. However, the reliance on natural gas as a feedstock poses challenges due to its price volatility. Utilities aim to maintain a balanced portfolio to mitigate price fluctuations. While current low natural gas prices reduce the perceived risk, historical trends suggest potential for increased prices due to growing demand and crude oil recovery. This sector relies heavily on it, including Combustion Turbine, Gas compressors, Turbines, and Turbo fans. Investment issues, international borders, and travel restrictions impact the market. Experts focus on improving machinery, power generation equipment, cooling technologies, materials, and combustion systems to enhance fuel consumption efficiency, operating costs, and reliability. Flexibility, electricity demand, and the aviation industry influence the market. Hydrogen-fueled gas turbines and materials diagnostics are emerging trends. Designs, control systems, and flexibility are essential for meeting electricity consumption demands while minimizing downtime. Fossil fuels, including natural gas, contribute to GHG emissions. The market must address these concerns through efficiency levels, steam turbines, and alternative fuels.

Customer Landscape

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.

Customer Landscape

Who are the Major Market Companies?

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

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• 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.
• MAPNA Group Co.
• Motor Sich JSC
• OPRA Technologies B.V.

Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

The market encompasses the sale of the Combustion Turbine, which are integral components of power-plants. These turbines utilize a Gas compressor to compress air before it enters the Combustor, where fuel is burned to produce hot gas. The resulting energy is then harnessed by the Turbine to generate electricity. Both Gas-fired power-plant and Oil-fired power plant relies on these turbines. With increasing electricity demand worldwide, particularly in developing nations, this sector is witnessing significant growth. Environmental concerns are driving the preference for Gas-based power generation over Coal-based, boosting the demand. High-baseload plants, requiring turbines with over 300 MW capacity, will significantly contribute to market expansion. Machinery and Power generation equipment manufacturers are focusing on innovations in Cooling technologies, Materials, and Combustion systems to enhance Fuel consumption efficiency and reduce Operating costs. Experts predict the adoption of Hydrogen-fueled Gas turbines, which offer higher Efficiency levels and lower Greenhouse gas emissions, will gain traction. Investment issues, International borders, and Travel restrictions may impact the supply chain and Projects execution. Reliability, Durability, and Downtime are crucial factors influencing the market's Designs and Control systems. Flexibility is another essential consideration, as turbines must cater to varying Electricity demand in the Aviation industry and other sectors. Fossil fuels, including Natural gas, continue to dominate the this sector, but the shift towards renewable energy sources and concerns over fuel availability and costs may influence market trends.

By Product

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. 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 10.05 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 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 market 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.

Key Regions 

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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.

In the APAC region, they represent a dependable source for power generation, particularly in emerging economies like India, China, and Indonesia. These countries are prioritizing efficient energy solutions to fuel their economic growth and development. Despite India's heavy reliance on coal for power generation, the expansion of coal mining is restricted due to environmental concerns. This creates an opportunity for gas-based power generation, as international agreements and domestic exploration support the energy sector in India. As a reliable energy source, they are set to play a significant role in the this industry's transition towards cleaner energy.

Market Analyst Overview

The market is a significant sector, with combustion turbines and steam turbines playing essential roles. Compressor sections and power generators are crucial components of these turbines. The market is driven by factors such as increasing electricity demand, government initiatives for renewable energy, and advancements in technology. The market is expected to grow steadily due to the flexibility and efficiency of gas turbines in power generation. They offer several advantages, including high efficiency, low emissions, and quick response times. The market is also influenced by factors such as the availability of natural gas and the competitiveness of gas-fired power against other sources. The market is expected to witness growth in regions such as Asia Pacific and the Middle East, where there is a high demand for electricity and abundant natural gas resources. The market is competitive, with key players including Siemens, GE, Mitsubishi Heavy Industries, and Ansaldo Energia. These companies focus on innovation and technology to differentiate themselves and meet the evolving needs of the the industry. Overall, the market is set for growth, driven by technological advancements and increasing electricity demand.

Segment Overview

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. 

• Product Outlook 
  • Heavy-duty
  • Aeroderivative 

• Technology Outlook 
  • CCGT
  • OCGT

• Region Outlook 
  • APAC
    • China
    • India
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina

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 3.05%
Market growth 2023-2027	USD 3.35 billion
Market structure	Concentrated
YoY growth 2022-2023(%)	2.2
Regional analysis	APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution	APAC at 34%
Key countries	US, Canada, China, Japan, India, and Germany
Competitive landscape	Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks
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.
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.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key companies

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