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Industrial Gas Turbines Market By Capacity (≤ 70 MW, > 70 MW - 300 MW, ≥ 300 MW) By Product (Aero-Derivative, Heavy Duty) By Technology (Open Cycle, Combined Cycle) - Growth, Share, Opportunities & Competitive Analysis, 2016 - 2028

About this report

The global Industrial Gas Turbines Market report explores the critical analysis of the industrial gas turbines industry using key parameters. The report consists of investment strategies, the need for investments in the industrial gas turbines industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the industrial gas turbine industry's global technical regulations and how economic and non-economic barriers are helping the market grow. Moreover, the report examines historic and forecasted market sizes at the global, regional, and country levels. The report also includes an in-depth examination of key investment propositions, the demand and supply gap, competitor positioning, SRC analysis, STAR analysis, and Tornado analysis. Important technological advancements and other analyses, including Porter's Five Forces, PESTEL, Value Chain, etc.

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Key Highlights of the report

How are the major segments performing in the Industrial Gas Turbines Market?

The heavy-duty segment led the market in terms of product in 2021 and is expected to continue throughout the projection period. Heavy-duty gas turbines are an ideal fit for a variety of industrial applications due to benefits such as high performance and efficiency. New technological developments are expected to support significant growth in heavy-duty industrial gas turbines. An increase in product investments and restructured trade policies will pave the way for segment growth. For instance, GE announced the successful demonstration of its 7HA.03 heavy-duty gas turbines at Florida Power & Light's (FPL) Dania Beach facility in June 2022.

In 2021, the ≥ 300 MW capacity segment led the global market due to the massive deployment of renewable energy systems supported by favorable government mandates. The large-scale implementation of advanced green energy systems will aid in producing natural gas-fired turbines and boilers. The majority of these large-capacity turbines are used in the power generation industry. Gas-powered units have a faster-operating speed, higher mechanical efficiency, improved reliability, and the ability to support distributed power generation.

In 2021, the combined cycle technology segment led the global market due to efficient waste heat utilization, environmental proximity, and operational efficiency. Turbines using combined cycle technology uses less fuel to produce the same amount of energy while eliminating transmission and distribution losses. Combined cycle turbines are extremely efficient, allowing systems to achieve 60 to 80 percent efficiencies. These units are used in land-based industries for mechanical and direct drive applications.

The oil and gas segment led the market in terms of application in 2021, and this trend is expected to continue throughout the forecast period. Increasing awareness of the dangers of traditional sources of electricity is hastening the adoption of sustainable energy systems, leading to high demand for industrial gas turbines in oil and gas applications. Industrial gas turbines are a valuable asset used in the oil and gas industry, and the growing market for cleaner assets in the sector is expected to increase the number of new installations of industrial gas turbines over the projected period.

Which region dominated the Industrial Gas Turbines Market?

The Asia Pacific region led the global industrial gas turbine market in 2021 owing to several factors, including rapid industrialization, rising energy demand, and rising interest in clean energy technology. Power generation in the Asia Pacific region is heavily reliant on coal. Increased R&D spending, rising technological development spending, and growing electricity consumption from countries such as Japan, China, and India drive regional industry growth. Moreover, the rapid evolution of the region's electricity landscape is expected to lead to increased demand for the industry over the forecast period. The growing number of initiatives launched by the regional government to encourage more efficient methods of generating electricity is fueling growth prospects in the regional market.

What is the competitive environment of the Industrial Gas Turbines Market?

The global industrial gas turbine industry is segmented, with a large market player acquiring a significant portion. Several large corporations are forming numerous strategic alliances to increase their market share and gain a competitive advantage. The companies are primarily concerned with expanding their product portfolios through multiple business and infrastructure development initiatives. For instance, OPRA Turbines signed a contract with Quanta in June 2021. The collaboration enabled Quanta to become an OPRA Turbines reseller in the North Sea offshore oil & gas industry. On the other hand, Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries, was awarded a contract in March 2022 to develop two H-25 gas turbines with a total capacity of 32 MW. A natural gas-fired cogeneration power plant in Tashkent, Uzbekistan, will benefit from the project.

Executive Summary

What are all technical developments being developed in the Industrial Gas Turbines Market?

Technological advancements have played an important role in revolutionizing the industrial gas turbine market, and this trend is expected to continue throughout the forecast period. The aviation sector was at the forefront of innovation as aero-derivative technology entered the fray, marking a significant step forward in the power production sphere and important development in combined heat and power (CHP) generation. These advancements remain critical in balancing the integration of various power sources, such as solar and wind. Significant investments have been made to develop new mobile and improved industrial gas turbine models or units, as technological advancements continue to be critical for players in the industrial gas turbine market. Several companies have recently introduced cutting-edge industrial gas turbine models and technologies. For instance, ENGIE offered Emerson a contract to replace antiquated combustion turbine controls with modern turbine control methods as part of a project. In terms of technical innovation, GE has consistently remained at the forefront and leads the gas turbine market in developing innovative gas turbines. GE, for example, recently launched the DLN-2.6e combustion, in which fuel nozzles could influence pressure emissions, oscillations, and dynamic pressures.

Which are the key investments by the players in the Industrial Gas Turbines Market?

A massive change toward abundant natural gas resources and supportive government schemes and regulatory activities encourages grid infrastructure modernization. Significant investments in power network restructuring are being made to meet rising electricity demand. Governments worldwide are launching ambitious plans to include renewable energy sources in the mix of energy sources. Several investments and funds in renewable energy have been announced, which will help to meet the demand for additional power generation. For instance, the U.S. government announced plans to accelerate technology development in hydrogen and ammonia-fired gas turbines in May 2022. The initiative will invest $24.9 million to support six innovative industry-led projects. Similarly, GE received $4.2 million in federal funding in 2022 to develop new gas turbine technology projects. The project was funded by the U.S. Department of Energy's Advanced Research Projects Agency-Energy (ARPA-E) OPEN 2021 program, which encourages novel approaches to clean energy challenges.

Some of the major players in the market are General Electric, Siemens Energy, Mitsubishi Heavy Industries, Wartsila, Harbin Electric Corporation, Bharat Heavy Electricals Limited, VERICOR, MAN Energy Solutions, Kawasaki Heavy Industries, Opra Turbines, Solar Turbines Incorporated, UEC-Saturn, and Baker Hughes Company.

What are the Major Driving Factors for the Industrial Gas Turbines Market?

Rapid technological advancements in the energy industry, combined with a shift in emphasis toward distributed power production technologies, are expected to drive industry growth over the forecast period. Integrating product technology into other systems to provide innovative solutions increases market demand. Moreover, the growing government initiatives toward technology development, combined with the increasing need to address the strong demand for energy decarbonization around the world, is significantly leading to higher growth prospects for the industry.

What are the Major Risks for the Industrial Gas Turbines Market?

Volatile natural gas prices impede the market growth. Natural gas prices are influenced by actions that have the potential to disrupt the natural gas supply. Global geopolitical tensions are disruptive, causing uncertainty about gas supply and demand. Lack of expertise in industrial gas turbine installation and below-average labor safety laws may also limit the true potential of the industrial gas turbine market. Other implementation risk factors, such as increased fuel consumption while idling and a preference for a constant load over a variable load, are expected to limit market growth to some extent. Furthermore, the combustion chamber temperature is too high, leading to a shorter life, which impedes market revenue growth over the forecast period.

Which is the key Application in the Industrial Gas Turbines Market?

In terms of application, the oil and gas segment led the market in 2021, and this trend is expected to continue throughout the forecast period. Industrial gas turbines are in high demand in oil and gas applications due to growing awareness of the risks associated with conventional electricity sources and the accelerated adoption of sustainable energy systems. Industrial gas turbines are a valuable asset used in the oil and gas industry, and over the projected period, the number of new installations of industrial gas turbines is anticipated to rise in response to the sector's expanding demand for cleaner assets. Oil and gas turbine plants are commonly used as medium-sized peak load plants that run intermittently during brief periods of high-power demand on an electric grid. Additionally, they serve as cogeneration units for district heating systems and industrial facilities with high heat loads. Oil and gas companies produce shale gas using advanced technology completion techniques such as multistage hydraulic fracturing and drilling techniques such as horizontal wellbores. Gas turbines demonstrate a cost-effective and efficient power distribution solution in plants.

How is the Industrial Gas Turbines Market performing in regions?

The Asia Pacific dominated the global industrial gas turbine market in 2021 and is expected to continue this dominant position over the forecast period. This is due to the expansion of the gas turbine market in the Asia Pacific, as well as increased electricity consumption and subsequent investments in developing new large gas-fired combined cycle power plants generation, which has fueled demand for industrial gas turbines in the region. To reduce greenhouse gas emissions, the use of gas for transportation and power generation has significantly increased in the area. Another factor driving growth is the installation of new power plants in various emerging economies and the region's rapid urbanization, industrialization, and economic expansion.

Besides, North America is expected to grow the most during the forecast period due to shale gas reserves, and the development of new extraction and mining technologies is lowering the operational costs of gas extraction in the region. Moreover, large-scale gas-based power plant commissioning has occurred in North America. Oil and gas companies commercially produce shale gas using advanced completion techniques such as multistage hydraulic fracturing and drilling techniques like horizontal wellbores. The rising demand for clean electricity by prescribed norms and regulatory policies imposed by governing bodies in countries such as the United States is expected to propel market growth. Furthermore, the region's emerging shale revolution is expected to drive the market demand for industrial gas turbines.

What is the regulatory landscape for the Industrial Gas Turbines Market?

As environmental awareness rises, there is a growing global consumer preference for energy-efficient technologies. Aggressive regulatory targets for carbon emission reduction in the EU are being implemented by government agencies worldwide, which may result in a rise in the use of natural gas as a source of industrial energy. Due to mounting regulatory pressure and environmental concerns, natural gas continues to rise in popularity among power producers worldwide as a reliable fuel of choice. Participants in the industrial gas turbine market are expected to keep up with these developments while power producers continue to invest in new technologies in tandem with the changing industrial and regulatory requirements. Key players in the industrial gas turbine market are concentrating primarily on increasing the reliability of their products and reducing carbon emissions. CHP plant is an example of a combined cycle power plant that can be used to generate electricity as well as provide mechanical drive. The market in the United States is expected to grow due to increased government support for power generation technologies aimed at reducing carbon dioxide (CO2) emissions. According to the Energy Information Administration, with a 38% share of the sources of U.S. power generation, natural gas was the country's top source of electricity generation in 2019. Long-term fuel supply assurance is being observed in the United States. Gas turbines are critical in lowering greenhouse gas (GHG) emissions. These are more efficient than other combustion-based electricity generation applications and result in lower carbon emissions.

What is the Market Size of the Industrial Gas Turbines regarding value?

The global industrial gas turbine market is anticipated to grow at a substantial CAGR of 5.6% in the upcoming years. The global industrial gas turbines industry was estimated to be worth USD 5.5 billion in 2021 and was expected to be worth USD 7.62 billion by 2028.

What are the major players planning for the future of the Industrial Gas Turbines Market?

One of the key trends that will gain traction in the global industrial gas turbine market during the forecast period is the increase in cogeneration. Producing both heat and electricity at the same time is known as cogeneration. This technique is becoming more popular in food processing, chemicals, and metal manufacturing industries since it reduces GHG emissions. The future extent of cogeneration in these sectors will directly impact the market's expansion. Currently, clean hydrogen generated from natural gas using carbon capture, utilization, and sequestration (CCUS) technology allows companies like Mitsubishi Power to access clean fuel while future infrastructure is developed and scaled. For instance, Mitsubishi Power received contracts from Taiwan Power in 2022 for the large-scale overhaul of four industrial gas turbine combined cycle (GTCC) power plants (Units 3–6), totaling eight gas turbines. The project aimed to reduce nitrogen oxide (NOx) emissions while maintaining generating capacity, allowing the plant to comply with increasingly stringent environmental regulations and improving operational flexibility through improved operations and maintenance (O&M).

Segmentation of Global Industrial Gas Turbines Market -

Global Industrial Gas Turbines Market – By Capacity

  • ≤ 70 MW
  • > 70 MW - 300 MW
  • ≥ 300 MW

Global Industrial Gas Turbines Market – By Product

  • Aero-Derivative
  • Heavy Duty

Global Industrial Gas Turbines Market – By Technology

  • Open Cycle
  • Combined Cycle

Global Industrial Gas Turbines Market – By Application

  • Power Generation
  • Oil & Gas
  • Other Manufacturing

Global Industrial Gas Turbines Market – By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • Germany
    • France
    • The U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Frequently asked questions about the global Industrial Gas Turbines Market

The industrial gas turbine market also suffered from the COVID-19 pandemic, which resulted in a decline of over 2.2% in revenue generated in 2020.

The Asia Pacific accounted for the highest share in the global industrial gas turbines market regarding value and volume.

Rapid technological advancements in the energy industry, rising global demand for power, rapid urbanization, increased investment in energy and power projects, and increased shale gas exploration activities are major factors propelling the market growth.

Heavy duty industrial gas turbines had a major share in 2021, with more than 67% of the market revenue share. Besides, the aero-derivative industrial gas turbines are projected to witness the fastest growth.

Oil & Gas had a major share in the global market in 2021 and is projected to continue its dominance over the forecast period.

Industrial Gas Turbines Market Scope

Report Attribute Details
Market Value in 2021 USD 5.5 billion
Market Value in 2028 USD 7.62 billion
CAGR 5.6%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
Choose License Type
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:  Sep 2022
Category:  Automotive & Transportation
Report ID:   60661
Report Format:   PDF
Pages:   120
Rating:    4.1 (50)
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