Gas Turbines For Power Industry Market size is set to grow by USD 2.55 billion from 2024-2028, Growth of distributed power generation base to boost the market growth, Technavio

NEW YORK, Aug. 13, 2024 /PRNewswire/ -- The global gas turbines for power industry market  size is estimated to grow by USD 2.55 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 2.31%  during the forecast period.  Growth of distributed power generation base is driving market growth, with a trend towards technological innovations in gas turbines. However, volatility in natural gas price  poses a challenge. Key market players include Ansaldo Energia Spa, Bharat Heavy Electricals Ltd., Capstone Green Energy Corp., Caterpillar Inc., Centrax Ltd., Cryostar, Doosan Corp., General Electric Co., Harbin Electric Co. Ltd., IHI Corp., JSC The Ural Turbine Works, Kawasaki Heavy Industries Ltd., MAN Energy Solutions SE, MAPNA Group Co., Mitsubishi Heavy Industries Ltd., Motor Sich JSC, OPRA Turbines BV, Pumori Energy Ltd., Siemens AG, and Vericor Power Systems.

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Key Market Trends Fueling Growth

The global gas turbines market for the power industry is driven by stringent carbon emission regulations and the need for lower power generating costs. Major manufacturers, such as General Electric Co. And Siemens AG, are investing in high-efficiency gas turbines to meet these demands. GE's 9HA/7HA-series CCGT and Siemens' SGT5-8000H, both categorized as H-class gas turbines, have more than 60% efficiency levels. Manufacturers are constantly pushing for higher efficiency levels, with GE aiming for a future 65% efficiency level. Advanced coatings for turbine blades are a major focus to increase metal reliability at high temperatures. Fuel flexibility and durability are also key considerations, as fuel composition varies regionally and operational failures cause significant financial losses. Modern gas turbines offer increased durability, with F-class turbines operating for 24,000 hours before scheduled inspections, expected to increase to 25,000 hours with H-class turbines. Technological innovations in gas turbines will positively impact market growth during the forecast period. 

The Gas Turbines market in the Power Industry is witnessing significant trends, with a focus on durability and minimizing downtime. Advanced designs and control systems are prioritized for improved efficiency and reliability. Electricity demand and infrastructural development fuel the need for increased capacity in the energy sector. Smart buildings and cities projects require efficient and clean power sources, driving the adoption of gas-based power over coal-based power. Emission norms and natural gas prices influence the market, with geopolitical tension and shale gas impacting supply. Heavy-duty and light industrial gas turbines, including aeroderivative, simple cycle, and combined cycle, cater to various sectors like power utilities, manufacturing, aviation, and mechanical energy. Technological advancements in turbine blades, generators, and electrical energy systems continue to shape the market landscape. Distributed power and CO2 reduction are key concerns, with CHP plants and gas-based power generation playing a crucial role in the energy industry. 

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Market Challenges

• The global gas turbines market for the power industry is experiencing significant growth due to the increasing shift towards cleaner modes of power generation. However, the market's expansion is being challenged by the volatility of natural gas prices. Utilities aim to maintain a balanced feedstock portfolio to protect power prices from price fluctuations. However, the rising trend of natural gas-driven power plants is increasing the reliance on natural gas. With low natural gas prices at present, this reliance appears less risky. However, historical trends suggest that increasing demand and potential crude oil price recovery could lead to significant price hikes. This would result in increased utility costs, followed by higher power prices for consumers. The U.S. Benchmark Henry Hub natural gas price averaged USD2.57 per million British thermal units (MMBtu) in 2023, while India's domestic natural gas price was USD 8.47 per million metric British thermal unit (mmBtu) in the same year. Natural gas price volatility, caused by production and consumption imbalances, could negatively impact the use of natural gas in gas-based power plants and, consequently, hinder the growth of the global gas turbines market for the power industry during the forecast period.
• In the power industry, gas turbines face challenges from various fronts. Climate change and the shift towards renewable energy sources like wind and solar are pushing utilities to reconsider their reliance on oil and gas. Population growth and urbanization require more power, but transmission and distribution losses limit the effectiveness of traditional power plants. Offshore locations offer potential solutions, but present unique challenges such as harsh environments and logistical complexities. Combined cycle turbines, a popular choice for efficiency and fuel flexibility, require specialized components like combustors, gas compressors, turbines, and turbo fans. Workforce and supply chain issues can impact power plant projects, while investment issues and international borders add complications. Experts predict a future where cooling technologies, materials, and combustion systems will be crucial. Fuel consumption and operating costs are key concerns for utility segments, with coal plants facing increasing pressure. Gas prices, CCS, hydrogen-fueled gas, and materials and diagnostics are all areas of focus for improving efficiency levels and reducing NOx emissions. Reliability remains a top priority, with machinery and power generation equipment under constant scrutiny. Joint ventures between companies like Aksa Power and Siemens Energy are driving innovation in this sector.

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Segment Overview 

This gas turbines for power industry market report extensively covers market segmentation by

1. Product 
• 1.1 Heavy-duty gas turbine
• 1.2 Aeroderivative gas turbine
2. Technology 
• 2.1 CCGT
• 2.2 OCGT
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Heavy-duty gas turbine-  The global market for heavy-duty gas turbines in the power industry is projected to expand substantially due to the rising demand for electric power worldwide. With increasing power consumption and growing environmental concerns, gas-based power generation is gaining popularity over coal-based alternatives. According to Technavio, there will be significant power generation activity, particularly in developing nations, during the forecast period. Heavy-duty gas turbines, which are highly efficient and capable of generating more than 300 MW of power, are in high demand for baseload plants. Vendors such as General Electric Co. Are securing long-term agreements with customers for the construction of new gas turbine power plants, as seen in their recent deal with Harbin Electric Co. Ltd for three GE 9HA.01 gas turbines. This trend is expected to accelerate market growth during the forecast period.

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Research Analysis

The Gas Turbines for Power Industry market is a significant segment of the energy industry, focusing on the generation of mechanical energy from gas fuel using turbines. Turbines convert the energy released from the combustion of fuel into kinetic energy, which drives a generator to produce electrical energy. Technological advancements in gas turbine designs, such as simple cycle and combined cycle, have increased efficiency and reduced emissions, making gas-based power generation increasingly competitive with coal-based power. Distributed power and CHP plants are also gaining popularity for their ability to generate electricity and heat locally, reducing GHG emissions and improving energy security. The market involves various components including combustors, gas compressors, turbines, turbo fans, and generators. Workforce and supply chain challenges, investment issues, international borders, and travel restrictions are some of the factors influencing power plant projects in this sector. Machinery and power generation equipment experts play a crucial role in the design, construction, and maintenance of these complex systems.

Market Research Overview

The Gas Turbines For Power Industry Market is witnessing significant growth due to the increasing demand for mechanical energy and electrical energy in the energy industry. Technological advancements in turbine blades, generators, and cooling technologies are driving innovation in gas-based power generation, including simple cycle turbines and combined cycle power plants. Distributed power and CHP plants are also gaining popularity in urbanization and industrialization. However, challenges such as CO2 emissions, climate change, and lockdowns are pushing the industry towards renewable energy sources like wind and solar. Population growth and urbanization are driving the demand for power in offshore locations, oil & gas industries, and utility segments. The market is also affected by investment issues, international borders, and travel restrictions. Machinery and power generation equipment manufacturers like Aksa Power, Siemens Energy, Combustor, Gas compressor, Turbine, Turbo fans, Power plant, and others are focusing on reliability, durability, and efficiency levels to reduce downtime and operating costs. The market is also witnessing the adoption of steam turbines, hydrogen-fueled gas, CCS, materials and diagnostics, and advanced control systems. Factors like electricity demand, infrastructural development, industrialization, smart building, and smart cities projects are also influencing the market dynamics. The market is also impacted by emission norms, natural gas prices, geopolitical tension, shale gas, capacity, technology, heavy duty, light industrial, aeroderivative, cycle, and simple cycle applications. Experts predict that the market will continue to grow, driven by the need for sustainable and efficient power generation solutions.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Heavy-duty Gas Turbine
• Aeroderivative Gas Turbine
• Technology
• CCGT
• OCGT
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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