Gas Turbine Market

Gas Turbine Market Opportunities - 2030

The global gas turbine market was valued at $18.5 billion in 2020, and is projected to reach $25.4 billion by 2030, growing at a CAGR of 3.3% from 2021 to 2030. Gas turbine is a mechanical device, which harnesses energy from working fluid or gas by utilizing its kinetic energy or potential energy. These turbines run on brayton cycle, which is equipped with a heater, compressor, turbine, and cooler. The working fluid undergoes thermodynamic process where the system converts mechanical/heat energy into rotating energy, which, in turn, produces the electricity as output.

COVID-19 pandemic outbreak across the globe has resulted in decline in demand for power from industrial and commercial end-users owing to halted production and manufacturing activities amid government imposed lock down measures. Due to this the demand for gas turbines is expected decline during the forecast period.

The growth of the global gas turbine market is driven by rapid technological advancements in the energy sector coupled with increase in focus toward distributed power generation technologies. The gas turbine market is expected to grow significantly during the forecast period on account of rise in government support across the world for power generation technologies that aim to reduce carbon dioxide (CO2) emissions. According to the bp Statistical Review of World Energy 2021, natural gas was the largest source of electricity generation in the U.S. in 2020, and the second largest source of electricity generation across the globe, occupying a 40.5% share in sources of the U.S. power generation and 23.4% share in sources of the global power generation. The major factors driving the growth of the market is the paradigm shift from coal-based power generation to gas-based power generation of developed and developing countries such as the U.S., Japan, China, and India& supporting government policies for setting up gas-based power plants. 

In addition, assured long-term fuel supply across various oil producing companies across the globe is one of the key factors supporting the growth of the gas turbine market. Gas turbines play an important role in reducing greenhouse gas (GHG) emissions. As compared to other combustion-based electricity generation applications, these are proficient and also result in decreasing carbon emissions. The execution of various climate change initiatives along with implementation of regulations to cut down GHG emissions are expected to boost the demand for gas turbines during the forecast period.

However, volatile price of natural gas is expected to hamper the growth of the gas turbine market during the forecast period. On the contrary, increase in trend of distributed power generation and replacement of phased out nuclear & coal plants are expected to provide remunerative opportunities for the expansion of the gas turbine market during the forecast period.

The global gas turbine market size is segmented into technology, design type, rating capacity, application, and region. By technology, the market is bifurcated into open cycle and combined cycle. Depending on design type, it is segregated into heavy duty and aero-derivative. By rating capacity, it is divided into less than 40 MW, 40–120 MW, 120-300 MW, and above 300 MW. The applications covered in the study include power generation, oil & gas, marine, aerospace, process plants, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The key players operating in the global gas turbine industry include Ansaldo Energia,    BayerischeMotoren Werke AG (BMW) (Rolls-Royce Motor Cars Limited),Bharat Heavy Electricals Limited, Capstone Green Energy, Caterpillar Inc. (Solar Turbines Incorporated), General Electric Company, Harbin Electric Company Limited, IHI Corporation, Kawasaki Heavy Industries Ltd., Mitsubishi Hitachi Power Systems, Ltd. (MHPS), MTU Aero Engines (Vericor Power Systems),Siemens AG, Volkswagen Group (MAN Energy Solutions), and Wartsila. Other players operating in this market include OPRA Turbines, Centrax Gas Turbines, Zorya-Mashproekt, Cryostar, and United Engine Corporation (UEC Saturn).

Gas Turbine Market, by Region

Asia-Pacific accounted for a major gas turbine market share in 2020, owing to surge in demand for energy alternative having low environmental impact. Owing to technological advancements in the energy sector and decrease in cost of shale gas production, natural gas production increased by 10.4% during 2010–2020, globally. Rapid industrialization and increase in urbanization are driving an enormous and ever-growing power demand in the region, which necessitates the development of numerous power generation projects. This, in turn, is driving the demand for gas turbines in China. In addition, according to the India Brand Equity Foundation (IBEF), India’s power sector is dominated by coal-based generation, accounting for 61.3% of the total installed capacity in June 2021. The country identified the potential of renewable energy and gas-based generation for decarbonizing the country and meeting the targets as per the Paris Agreement, which aims to substantially reduce global greenhouse gas emissions in an effort to limit the global temperature increase. With increase in share of gas-based generation, the demand for gas turbines is expected to increase. Moreover, countries, like Japan, Australia, New Zealand, Italy, and Malaysia with a growing social consensus against nuclear power, are prospective markets in this regard.

Global Gas Turbine Market, by Technology

The combined cycle technology accounted for a major share in the gas turbine market in 2020,as it requires lower fuel to produce the required energy output and reduces transmission & distribution losses. Combined cycle turbines are known to be highly efficient and facilitate system efficiencies in the range of 60.0–80.0%.

In addition, surge in demand for this technology is being compelled by stricter regulations for coal plants, low gas prices, and the integration of renewable power. Combined cycle power plant (CCPP) complements solar and wind power, as it can start and stop quickly, and thus is proficient in offsetting the variations in renewable energy power.

Furthermore, favorable government policies regarding the usage of clean fuels for electricity generation and the reduction of GHG emissions are expected to increase the demand for natural gas-based power plants. In addition, decline in gas prices and the discovery of shale gas reserves are expected to propel the gas turbine market growth during the projected period.

Global Gas Turbine Market, by Design Type

The heavy-duty segment accounted for a major share in the gas turbine market in 2020, owing to economic cost structure, high-capacity operations, and lower pressure ratios to yield maximum specific power. In addition, surge in demand for heavy-duty gas turbine from heat recovery power generating plants and power and utility sector, owing to its lower turbine dimensions & lower investment cost along with maximum cycle efficiency is likely to drive the business landscape. Furthermore, ongoing technological developments in terms of efficiency, reliability and flexibility enhancements in both recuperated & un-recuperated systems are likely to fuel the industry dynamics.

Global Gas Turbine Market, by Rating Capacity

The above 300 MW segment accounted for a major share in 2020,due to shift from coal to gas-based power plants in some of the major countries across the globe such as the U.S., China, and India. Moreover, rise in power generation activities across the globe due to surge in demand for electricity as a result of population growth and rapid urbanization boosts the product demand. Thus, expansion of the power generation sector and increased focus on generating electricity through sustainable energy resources drive the demand for gas turbines, especially for turbines with rating capacity above 300 MW capacity.

Global Gas Turbine Market, by Application

The power generation segment accounted for a major gas market share in 2020,as governments all over the world are now putting in efforts to reduce the share of coal-based power plants to reduce carbon emissions, which have the potential to render opportunities for increase in demand for gas turbines for power generation.

In addition, due to increase in investment by the government in setting up gas-based power generation plants, power generation in China grew by 70.0%, owing to which more gas-fired power capacity was sanctioned than that of coal. Moreover, the gas-based power generation is cheaper to install than the nuclear power plant. Furthermore, it is a more reliable source as compared to renewables. Thus, multiple benefits associated with gas-based power generation and urgency to reduce the carbon emission have fostered the demand for gas turbines across the world. 

COVID-19 impact analysis

Lockdown impositions in major cities and economies have resulted in most of the industries around the world, thereby halting their production. This has further resulted in reduction of oil & gas demand around the world. For instance, as per the bp statistical review of world energy 2021, global natural gas consumption was reported to be 3822.8 billion cubic meters in 2020, which was a decline by around 81.1billion cubic meters as compared to 2019. In addition, power demand from industrial and commercial end users has seen a significant dip in recent times, owing to the global pandemic. Thus, the demand for gas turbine is declined during the pandemic outbreak. This trend is likely to continue for few more coming years until all industrial activities across the globe resume to normal that are halted amid government-imposed lockdown measures.

Key Benefits for Stakeholders

• The global gas turbine market analysis covers in-depth information of major industry participants.
• Porter’s five forces analysis helps to analyze potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• Major countries have been mapped according to their individual revenue contribution to the regional market.
• The report provides in-depth analysis of the global gas turbine market forecast for the period 2021–2030.
• The report outlines the current gas turbine market trends and future estimations of the global gas turbine market from 2020 to 2030 to understand the prevailing opportunities and potential investment pockets. 
• Key drivers, restraints, &opportunities and their detailed impact analysis are explained in the global gas turbine market study.

Key Market Segments

By Technology

• Open Cycle
• Combined Cycle

By Design Type

• Heavy-duty
• Aero-derivative

By Rating Capacity

• Less than 40 MW
• 40–120 MW
• 120-300 MW
• Above 300 MW

By Application

• Power Generation
• Oil & Gas
• Marine
• Aerospace
• Process Plants
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Italy
  • Spain
  • UK
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of Asia-Pacific
• LAMEA
  • Brazil
  • Saudi Arabia
  • South Africa
  • Rest of LAMEA