Global Gas Turbines Market Analysis

An internal combustion engine that converts natural gas or any other fuel into energy is called as gas turbine. The energy generated by these turbines in then used to operate generator for the electricity generation. Gas turbine can be operated using different types of fuel including fuel oil, natural gas, synthetic fuel, etc. Shaft, compressor, combustion chamber and turbines are major parts of a gas turbine. Gas turbines are available in wide range of capacity of as low as 1 MW to as high as above 300 MW. Operational cost of gas turbine is on lower side as compared to other sources of power generation. Open Cycle and Combined Cycle are two technology segments of gas turbine.   

Global Gas Turbines market is expected to witness CAGR of 7.95% during the forecast period. The revenue generated by the global Gas Turbines market in 2021 was over USD 20,850 million and expected to generate revenue worth USD 27,915 million in 2028. The incremental growth opportunity offered by the global Gas Turbines is estimated to be USD 173.75 billion between 2022 and 2028.     

Interesting Facts about Gas Turbines Industry

• Average work life of gas turbines is 20 years
• CAPEX required for turbine in U.S. is around USD 850 per kilowatt
• Average cost of heavy duty gas turbine ranges between USD 30 to USD 70 million
• Russia is one of the major suppliers of Gas Turbines
• There are over 17,93 gas turbines are installed all over U.S.

Russia – Ukraine Was to Reshape Dynamic of Energy Industry

Gas turbines are in great demand since last few decades as energy demand has grown significantly all over the world. Although Germany, France, UK and United States are leading suppliers of gas turbines, there is significant share occupied by Russia. Russia has long been an important player in gas turbine industry. As the adoption of natural gas based power generation technology has increased, several countries have preferred gas turbine installations for power generation. However, ongoing Russia – Ukraine was affected the market dynamics severely. New gas turbines supply has been stopped and owing trade related sanctions on Russia, it has become very difficult to customers to buy parts of gas turbines as well. This in turn can result into significant decline in power generation in countries with Russian Build gas turbines. Secondly, companies like GE have also invested into Gas Turbine Plants in Russia, which have to shut down due to war with Ukraine. This also affecting the supply of gas turbines.

Ever Rising Natural Gas Power Generation

Demand for gas turbines is mainly driven by the strong demand for energy. Growing energy need have forced the countries to increasingly adopt natural gas power generation. Natural gas power generation requires heavy duty gas turbine installation in power plants. Natural gas power generation capacity is anticipated to increase by 30% by the end of 2050 to reach over 2.4 terawatt. All natural gas power generation plants use a gas turbine. Based on rated capacity, gas turbines market can be segmented into 1 to 40 MW, 40 to 120 MW, 120 to 300 MW and Above 300 MW. 40 to 120 MW segment dominated the gas turbines demand with over one third share in 2021.

Gas Turbines Market Shows Strong Growth in U.S.

Heavy Duty Gas Turbines installation in U.S. alone has reached over 1,793 units in 2020. Natural gas fired power plants accounted for over 38% share of the total natural gas consumption of U.S. in 2021. Huge demand for electricity and abundance of natural gas in U.S. has been resulted into strong demand for gas turbines in the country. Heavy Duty Type and Aeroderivative Type are two major types of gas turbines. Heavy duty gas turbines occupied largest share with over 80% share in total demand by 2021 in terms of revenue. Heavy duty gas turbines are mainly used in power generation.

Europe to Lead the Demand for Gas Turbines 

Europe dominated the demand for gas turbines with over 29% share in 2021. European manufacturers are at the forefront of gas turbine manufacturers. Germany, France and UK control over 50% share in gas turbine export. After Fukushima nuclear accident in Japan, Germany has slowly moved towards other sources of energy with gas fired power generation being the largest source of energy source for the country. However, Russia’s invasion of Ukraine forced the western world including Germany to put sanction on trade with Russia which as severely affected the Germany’s gas supply. Germany imports 70% of its gas from Russia. With shortage of natural gas, gas turbines market of Germany is expected to have significant impact on its growth. While, in Asia Pacific, Japan, China and Singapore are major manufacturers of gas turbine in the region. However, U.S. is the single largest market for gas turbines.    

Ansaldo EnPower Machines, ergia Spa, Bharat Heavy Electricals Ltd., Capstone Green Energy Corp., Caterpillar Inc., General Electric Co., IHI Corp., United Engine Corporation, Kawasaki Heavy Industries Ltd., Mitsubishi Heavy Industries Ltd., OPRA Turbines and Siemens AG are leading players in global gas turbines market.       

Frequently asked questions about global Gas Turbines industry