The global gas turbine engine market is projected to grow at a significant rate over the forecast period. The market for this product is heavily influenced by the strong inclination towards sustainable and eco-friendly solutions. The rapidly evolving need for the product in electricity generation, oil & gas, aviation and marine industries is expected to foster its demand over the coming years.
The product has high operational speed, long life, greater efficiency, durability and low costs of operation and maintenance. The increasing availability of natural gas due to the boom in shale gas production, rising demand for electricity, increasing investments to limit greenhouse emissions by governments are the major factors driving the gas turbine engine market.
Government regulations and eco-friendly initiatives in the U.S., UK, and Japan to use sustainable energy sources has led to shifting to the use of natural gas in electricity generation. This efficient technique of electricity generation ensures lower carbon emissions. Such policies are anticipated to augment the product’s market growth over the coming years.
Design Type Insights
The product comes in two design types namely, heavy duty (frame) type and aeroderivative type. The heavy duty type occupies a larger market share compared to its counterpart as it is used in industrial models that are heavier and designed for land use. There has been a rise in the demand for large-gas fired power plants and thus in the demand for frame type to power them.
The output of electricity is greater in heavy duty types. Their use in combined cycle operations provides an output of more than 300MW. Aeroderivative types weigh considerably less than heavy duty types. This use of aeroderivative type in electric applications is more but during intermittent and peak times than for base load electricity generation.
The product’s power capacities fall under two categories such as 1 to 200 MW and more than 200 MW category. The 1 to 200 MW category consists of small capacity turbines that are extensively used for driving compressors for extracting oil by injecting gas into oil wells and in the petroleum industry to power the platform.
Their share is expected to rise in the coming years as they can be transported easily for supplying electricity and mobile supplies. The category of more than 200 MW capacity consists of high capacity turbines that offer high performance and outstanding efficiency owing to which their market share is anticipated to grow.
The product finds applications in combined cycle and open cycle power plants. The market share for combined cycle plants accounted for the highest share in 2016. Compared to open cycle plants, combined cycle offers more output at nearly the same fuel cost. Combined cycle type is highly efficient, have lower emissions and very little distribution & transmission losses.
The product’s application in open cycle plants is expected to decline due to low efficiencies caused by high energy losses. These plants require less space but its components’ efficiency is highly affected due to unfavorable environmental conditions.
The product findsapplication in electricity generation, aviation, and industrial segments. In 2016, its market size was highest for power generation applications. Power shortage issues are handled by installing the product and generating electricity. This cost efficient and eco-friendly solution is expected to increase the product's demand.
Industrial applications have also augmented the product’s growth due to the rise in its installations in oil & gas, marine and aviation sectors. Low weight to power ratio offered by it is driving its demand in these sectors.
Asia Pacific is expected to have the highest share for the product owing to itsgrowing installations. New electricity generation projects and growing industrialization in China and India are enhancing its demand. To reduce the dependence of coal for generation of electricity, China and India are also promoting the product’s installation.
Europe is expected to grow at a significant rate owing to the rising orders and capacity additions. Demand is expected to arise from countries such as UK, Italy, and Germany. Its rising demand can be attributed to the shift to combined cycle plants.
North America has occupied the largest share for the product since a long time and this can be attributed to the early shift to this product, government emphasis on low emissions and R&D investments. Thus, there are expected to be fewer capacity additions and more maintenance and after sales services in this region.
The end-use landscape entails a list of current and prospective consumers prevailing across the regions. This section provides company addresses, contact details, products, and regional presence of companies who are purchasing or are likely to purchase gas turbines over the coming years. Some leading consumers of this product are Duke Energy (The U.S.), Saudi Aramco (Saudi Arabia), Airbus Group (The Netherlands), Boeing (The U.S.) and Engie (France).
The industry for the product is consolidated. The key players in this industry are Siemens Corporation (The U.S.), General Electric Company, Alstom S.A. (France), Kawasaki Heavy Industries (Japan), Bharat Heavy Electricals Limited (India).
In May 2016, Siemens Corporation celebrated the arrival of four H-class gas turbines at the Beni Suefpower plant in Egypt. These turbines each with 400 megawatts capacity will later be added with heat exchangers and steam turbines and expanded into a combined cycle mode with 4.8 gigawatts capacity. This ambitious project will be the largest combined cycle power plant worldwide and is aimed at supplying electricity to around 15 million Egyptians.
In October 2016, General Electric Company announced that it had secured a turnkey order of more than USD 900 million for Porto de Sergipe combined-cycle power plant with CentraisElétricas de Sergipe S.A. This project has a capacity of 1,516 megawatts and will be the largest gas power plant in Latin America that can deliver an efficiency rate of over 62%.
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