Gas Turbine Market Forecasts 2020-2025: An Overview

Gas Turbine Market Forecasts

The global gas turbine market was estimated at $18.5 billion in 2020 and is expected to increase at a CAGR of 3.3 percent from 2021 to 2025, reaching $25.4 billion by 2025. A gas turbine is a mechanical device that uses kinetic or potential energy from a working fluid or gas to generate energy. These turbines operate on the Brayton cycle, which includes a heater, compressor, turbine, and cooler.

The working fluid goes through a thermodynamic process in which the system converts mechanical/heat energy into spinning energy. Which creates electricity as an output. The global gas turbine market is expanding due to significant technological breakthroughs in the energy sector; as well as an increased emphasis on distributed power production technologies.

The gas turbine market is likely to expand significantly during the forecast period as governments around the world increase their support for power production technologies that aim to minimize 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 United States in 2020, and the second-largest source of electricity generation globally, accounting for 40.5 percent of U.S. power generation and 23.4 percent of global power generation.

Region-Wise Analysis

Asia-Pacific accounted for a significant gas turbine market share in 2020, owing to an increase in demand for low-impact energy alternatives. Natural gas output increased by 10.4 percent globally between 2010 and 2020, owing to technological advances in the energy sector and lower shale gas production costs. Rapid industrialization and urbanization are generating a vast and ever-increasing demand for power in the region, necessitating the creation of various power-producing projects. As a result, demand for gas turbines in China is increasing. The need for gas turbines is likely to rise as the share of gas-powered generation grows. Furthermore, countries with a rising social consensus against nuclear power, such as Australia, New Zealand, Japan, Italy, and Malaysia, are potential markets in this regard.

Technology-Wise Analysis

Because it uses less fuel to create the required energy output and decreases transmission and distribution losses, combined cycle technology accounted for a significant proportion of the gas turbine industry in 2020. Combined cycle turbines are known to be highly efficient, allowing for system efficiencies of 60.0–80.0 percent.

Furthermore, increased demand for this technology is being driven by harsher rules for coal plants, cheap gas prices, and the incorporation of renewable energy. The combined cycle power plant (CCPP) complements solar and wind power because it can start and stop fast, effectively countering changes in renewable energy power.

Global Gas Turbine Market analysis By Design Type

Due to economic cost structures, high-capacity operations, and lower pressure ratios to provide maximum specific power, the heavy-duty sector accounted for a significant proportion of the gas turbine market in 2020.

Furthermore, a surge in demand for heavy-duty gas turbines from heat recovery power plants and the power and utility sectors; owing to smaller turbine dimensions and reduced investment costs; as well as optimum cycle efficiency, is expected to push the business landscape. Furthermore, continued technology advancements in terms of efficiency, reliability, and flexibility upgrades in both recovered and unrecovered systems are expected to fuel industry dynamics.

The market for Global Gas Turbines by Rating Capacity

The over 300 MW segment accounted for a significant proportion in 2020; owing to the change from coal to gas-based power plants in some of the world’s major countries; including the United States, China, and India.

Furthermore, an increase in power generation activities around the world due to an increase in demand for electricity. As a result of population growth and rapid urbanization drives up product demand. Thus, the expansion of the power production sector and growing emphasis on generating electricity from sustainable energy resources stimulate demand for gas turbines; particularly turbines with a rating capacity greater than 300 MW.

Application-wise analysis

The power generation segment accounted for a significant gas market share in 2020. As governments around the world are now putting in efforts to reduce the share of coal-based power plants in order to reduce carbon emissions; which has the potential to increase demand for gas turbines for power generation.

As a result of the government’s increased investment in establishing gas-based power generation plants. Electricity generation in China increased by 70.0 percent; resulting in more gas-fired power capacity being sanctioned than coal. Additionally, gas-fired power generation is less expensive to establish than nuclear power plants. Furthermore, it is a more dependable supply than renewables.

Thus, the numerous benefits associated with gas-based power generation. As well as the desire to minimize carbon emissions, have fueled the global demand for gas turbines.

COVID-19 Impact Assessment

Lockdown imposed in major cities and economies has resulted in most industries throughout the world ceasing production. This has led to a decrease in global demand for oil and gas.

For example, according to the bp statistical assessment of world energy 2021; worldwide natural gas consumption was expected to be 3822.8 billion cubic meters in 2020. A decrease of around 81.1 billion cubic meters from 2019. Furthermore, as a result of the global pandemic, electricity consumption from industrial and commercial end-users has decreased significantly.

As a result, demand for gas turbines has decreased throughout the pandemic outbreak. This trend is likely to continue for a few more years to come.

Gas turbine control system

GE Gas turbine control system control and protect your turbine power plant by continuous monitoring and evaluation. It supports simplex, dual, and triple-redundant systems with high-speed networked I/O. IS215VPROH2B, IS415UCVGH1A are some examples.

Stakeholder Benefits

  • The worldwide gas turbine market analysis includes detailed information on leading industry players.
  • Porter’s five forces analysis aids in the analysis of buyer and supplier potential. As well as the competitive environment of the industry for strategy development.
  • The major countries’ individual revenue contributions to the regional market have been mapped.
  • The study provides a thorough examination of the worldwide gas turbine market forecast for the years 2021–2025.
  • The worldwide gas turbine market study explains key drivers, restraints, and opportunities, as well as their full impact analysis.

Also Read: Innovative Approaches to Stock Wholesale Scarves