Industrial Gas Turbine Market

Industrial Gas Turbine Market Size (2022 - 2027)

The Global Industrial Gas Turbine Market was worth US$ 19.6 billion in 2021, and it is estimated to reach a valuation of US$ 23.5 billion by the end of 2027, expanding at an annual growth rate of (CAGR) 3.7% between 2022 and 2027.

MARKET OVERVIEW:

A gas turbine is a combustion engine at the power plant's heat that can convert natural gas or other liquefied material to mechanical energy. This energy further drives the generator that produces the electrical energy that moves along power lines to homes and businesses. Gas turbines are highly efficient in power generation and reduce environmental pollution compared to coal. The gas turbine can be either Heavy-duty or Aeroderivative. Aeroderivative gas turbines will soon dominate the market as they weigh less, are easy to install, quick to start and stop, and have a diverse portfolio compared to conventional coal. The combined cycle is expected to dominate the gas turbine market as it is highly efficient in power generation compared to the open cycle. The gas turbine is majorly used in the Electricity power utility segment to increase power generation for meeting the rising electricity demand. 

Asia-Pacific is expected to dominate the industrial gas turbine market growth due to the majority of electricity demand coming from China and India, owing to factors like economic growth in emerging nations, an increase in the number of gas-based power generation plants, and rising industrial activities. The increasing electricity consumption and stringent government norms regarding environmental emission drives the growth of the gas turbine market in the period between 2022 and 2027

MARKET DRIVERS AND RESTRAINTS:

The driving force of the Industrial Gas Turbine Market is rapid urbanization and increasing demand for electricity. The increasing urbanization and industrial activities are demanding an enormous amount of electricity. Due to increasing demand, several countries around the globe are increasing their power generation capacity by installing new plants or expanding the existing ones with low environmental pollution. Thus, the increasing demand for electricity across the globe is driving the growth of the industrial gas turbine market in the future.

The increase in natural gas production has changed the global focus on the development of gas-fired power plants. This is because the greenhouse gas emitted from gas-fired plants is comparatively lower than from coal-fired plants. However, conventional coal-fired power plants emit many pollutants that affect our environment and heat the environment. Due to increasing environmental pollution, the government of several countries has imposed stringent norms to reduce pollution; thus, the demand for gas turbines is rising to lower environmental pollution while generating Power which further drives the market's growth.

Gas turbines are much more efficient than conventional coal-fired power plants and meet the increasing electricity demand without toxic emissions. Owing to these reasons, the demand for gas turbines is increasing, which will boost the growth of the industrial gas turbine market in the period between 2022 and 2027.

The increasing shift towards renewable energies such as wind and solar for power generation will shortly hamper the gas turbine market's growth.

MARKET RECENT DEVELOPMENTS:

• In June 2021, GE and IHI signed an agreement to develop an Ammonia Gas Turbine Business Roadmap to achieve a mutual goal of reducing carbon emissions from gas turbine power installations. Ammonia roadmap supports ammonia as a carbon-free fuel to lower carbon emissions in existing and new gas turbines.
• In March 2021, Clayfield Construction Ltd.(one of the leading construction companies in Cyprus and Siemens Energy are working together on gas turbine technology to support cleaner, more energy-efficient energy production on the island of Cyprus.

INDUSTRIAL GAS TURBINE MARKET REPORT COVERAGE:

Market Segmentation:

Industrial Gas Turbine Market - By Capacity:

• 1-40MW
• 40-120MW
• 120MW - 300MW
• Above 300MW

Based on Capacity, the Global Industrial Gas Turbine Market is segmented into 1-40MW, 40-120MW, 121MW - 300MW, and above 300MW. Above 300 MV is expected to drive market growth due to the rising focus on high power generation with low emissions.

Industrial Gas Turbine Market - By Product Type:

• Heavy Duty
• Aero derivative

The Global Industrial Gas Turbine Market is segmented into Heavy Duty Aero derivatives based on Product Type. Aero derivative is expected to dominate the product type segment in the projected period between 2022 and 2027 due to the availability of highly flexible and mobile technologies. The aero-derivate gas turbine technology is based on aviation gas turbines. This gas turbine has less weight, is easy to install, and is faster to start and stop than the heavy-duty gas turbine. Moreover, aero-derivative gas turbines have a diverse portfolio, including district heating, marine propulsion, and utility generation.

Industrial Gas Turbine Market - By Technology:

• Open Cycle
• Combined Cycle

The Global Industrial Gas Turbine Market is segmented into Open Cycle, Combined Cycle based on Technology. The combined cycle is expected to dominate the market in the forecast period due to its high operational efficiency, low environmental pollutants, and effective waste heat utilization. Additionally, a combined power plant requires less water and needs minor infrastructure than conventional plants.

Industrial Gas Turbine Market - By End-User:

• Electric Power Utility
• Oil and gas
• Others

Based on End User, the Global Industrial Gas Turbine Market is segmented into Electric Power Utility, Oil and Gas, and others (mechanical drive processes in the steel, aluminium, and manufacturing industries). Growing focus towards regenerating traditional steam and coal-fired power plants with gas or other renewable energy. The Power and utility segment will dominate the market because the gas turbine is highly efficient in power generation, which meets the increasing electricity demand. Furthermore, the growing electrification of automobiles will boost the growth of the Gas turbine market in the forecasted period.

Market Regional Analysis:

The Global Industrial Gas Turbine Market has been categorized into four regions:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

North America holds the largest share of the industrial gas turbine market due to a large number of industrial gas turbines operating on natural gas used in the oil and gas sector. In addition, the increasing exploration of shale gas will require more gas turbines for power generation, which will further boost the growth of this market in the forecasted period.

It is anticipated that the Asia-Pacific region will show a significant growth rate during the forecast period due to rapid industrialization, a significant rise in energy demand, and natural gas usage in this region. Coal is used for power generation in this region which causes a lot of environmental pollution. In this region, the governments of several countries like Japan, China, India, Australia, and South Korea, etc., in this region, has imposed strict regulations regarding environmental pollution, leading to an increase in the demand for gas turbines to reduce carbon emissions. With the growing environmental pollution concerns worldwide due to rapid industrialization, especially in Asia-Pacific, shifting the focus toward clean energy generation from gas turbines has gained considerable momentum.

The European region is expected to have healthy growth in this region due to the government's increasing focus on replacing coal with either gas turbines or other renewable sources to reduce greenhouse gas emissions. Moreover, the energy demand is considerably increasing, which requires more power generation. Therefore, the increasing energy demand and rising focus on replacing coal with gas turbines drive the growth of the gas turbine market in the forecasted period between 2022 and 2027.

Leading Company:

General Electric had the largest share of the world's Industrial Gas Turbine in sales revenue as it alone produced one-third of electricity in 2018.

Covid-19 Impact on Global Industrial Gas Turbine Market: 

The COVID-19 outbreak has significantly impacted the Global Industrial Gas Turbine Market. Due to the pandemic industrial, activities have slowed down, which results in lower electricity demand. This decreased graph of electricity demand by industries also affected the expansion and refurbishment of power plants which further decreased the demand for gas turbines. New projects have stalled throughout the world, which, in turn, has led to a decline in demand for new gas turbines. Furthermore, due to pandemics, global factories have struggled a lot due to the unavailability of the workforce which disrupted the global supply chains. Post-COVID, I expected that there would be an increase in production, supply chain, and demand for gas turbines.

Market Key Players:

Some of the leading companies operating in the Global Industrial Gas Turbine Market are 

1. Kawasaki Heavy Industries, Ltd. (Japan)
2. Siemens Energy (Germany)
3. Capstone Green Energy Corporation (US)
4. General Electric (US)
5. Ansaldo Energia (Italy)
6. Mitsubishi Heavy Industries, Ltd. (Japan)
7. United Engine Corporation (Russia)
8. Rolls-Royce plc (England)
9. Harbin Electric Machinery Company Limited (China)
10. OPRA Turbines (Netherlands)
11. Solar Turbines Incorporated (US)
12. Bharat Heavy Electricals Limited (India)