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Gas Turbines Market by Design Type (Heavy Duty Type, Aeroderivative Type) by Rated Capacity (1 to 40 MW, 40 to 120 MW, 120 to 300 MW, Above 300 MW) by Technology (Open Cycle, Combined Cycle) - Growth, Future Prospects And Competitive Analysis, 2016 - 2028

A gas turbine is called an internal combustion engine that converts natural gas or any other fuel into energy. The power generated by these turbines is then used to operate the generator for electricity generation. The gas turbine can be performed using different fuel types, including fuel oil, natural gas, synthetic fuel, etc. The shaft, compressor, combustion chamber, and turbine are major gas turbine parts. Gas turbines are available in a wide range of capacities from as low as 1 M.W. to as high as above 300 MW. Operational cost of gas turbines is more downside than other power generation sources. Open Cycle and Combined Cycle are two technology segments of a gas turbine.  

The Global Gas Turbines market is expected to witness a 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 is expected to generate revenue worth USD 27,915 million in 2028. Therefore, the incremental growth opportunity offered by the global Gas Turbines is estimated to be USD 173.75 billion between 2022 and 2028.   

gas-turbines-market

Interesting Facts about Gas Turbines Industry

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

Russia – Ukraine Was to Reshape Dynamic of Energy Industry

Gas turbines have been in great demand for the last few decades as energy demand has grown significantly worldwide. Although Germany, France, UK, and United States are leading gas turbine suppliers, Russia occupies a significant share. Russia has long been an essential player in the 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, the ongoing Russian – Ukraine has affected the market dynamics severely. First, the new gas turbine supply has been stopped owing to trade-related sanctions on Russia, and it has also become challenging for customers to buy parts for gas turbines. This, in turn, can result in a significant decline in power generation in countries with Russian Build gas turbines. Secondly, companies like G.E. have also invested in Gas Turbine Plants in Russia, which have to shut down due to the war with Ukraine. This also affects the supply of gas turbines.

Ever Rising Natural Gas Power Generation

The intense energy demand mainly drives the demand for gas turbines. Growing energy needs have increasingly forced the countries to 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 terawatts. All natural gas power generation plants use a gas turbine. Based on rated capacity, the gas turbine market can be segmented into 1 to 40 M.W., 40 to 120 MW, 120 to 300 MW, and Above 300 MW. 40 to 120 MW segment will dominate the gas turbine demand with over one-third share in 2021.

Gas Turbines Market Shows Strong Growth in the U.S.

Heavy Duty Gas Turbines installation in the U.S. alone reached over 1,793 units in 2020. Natural gas-fired power plants accounted for over 38% share of the total natural gas consumption of the U.S. in 2021. Massive demand for electricity and abundant natural gas in the U.S. has resulted in strong demand for gas turbines. Heavy Duty Type and Aeroderivative Type are two significant types of gas turbines. However, heavy-duty gas turbines occupied the most important share, with over 80% of total demand by 2021 in 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 the U.K. control over 50% share in gas turbine export. After the Fukushima nuclear accident in Japan, Germany has slowly moved towards other energy sources, with gas-fired power generation being the country's largest energy source. However, Russia's invasion of Ukraine forced the western world, including Germany, to impose sanctions on trade with Russia, severely affecting Germany's gas supply. Germany imports 70% of its gas from Russia. With a shortage of natural gas, the gas turbine market in Germany is expected to have a significant impact on its growth. While in the Asia Pacific, Japan, China, and Singapore are substantial manufacturers of gas turbines in the region. However, the 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

Unlike other industries, COVID 19 also taken a toll on Gas Turbines market with around 10.69% decline in its revenue growth rate in 2020 as compare to 2019

Asia Pacific is the largest regional market with highest share in the total revenue generation of Gas Turbines consumed in 2021

Ever increasing demand for electricity and distributed power generation across the world

Heavy Duty Type segment dominated the Gas Turbines market in 2021 with over 80% share

40 to 120 MW was the largest segment of Gas Turbines by mounting in 2021 with over 35% share

Gas Turbines Report Scope

Report Attribute Details
Market Value in 2021 USD 20,850 million
Market Value in 2028 USD 27,915 million
CAGR 4.13% between 2022 and 2028
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
Segments covered

Design Type

Heavy Duty Type

Aeroderivative Type

Rated Capacity

1 to 40 MW

40 to 120 MW

120 to 300 MW

Above 300 MW

Technology

Open Cycle

Combined Cycle

Major Players Analysed Ansaldo Energia 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
Cost of the Report Write us at [email protected]
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Budget Buying
Executive Summary - Brief Global Market Size - Current & Forecast
Regional Market Size - North America
Country Market Size - US
Company Profile – 1
Trusted By
Godaddy
Published Date:  Mar 2022
Category:  Energy
Report ID:   60525
Report Format:   PDF
Pages:   128
Rating:    4.8 (16)
Delivery Time: 24 Hours to 48 Hours   
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