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
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 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.
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.
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 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.
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
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] |