The global steam turbines market is projected to grow at a significant CAGR over the forecast period. The market for this product is influenced by the growing preference for efficiency in electricity generation. The rapidly evolving need for the product in power & utility and industrial sectors is expected to foster its demand over the coming years.
Steam turbines, whether heavy duty or small scale, play a critical role in the generation of electricity. The growing use of combined heat and power systems (CHP) in various industries is expected to enhance the demand for the product in the coming years. With increasing environmental concerns, there has been a slight shift in the use of coal to other renewable sources of energy like nuclear and biomass.
The product’s demand in the market is driven by factors such as increasing consumption of electricity, its growing demand from emerging economies and the resulting additions in the capacity of utilities particularly of thermal power plants in these regions. The Asia Pacific region is witnessing continuous investments in electricity generation infrastructure.
Steam turbines capacities fall under four categories such as 1-120 MW, 121-350 MW, 351-750 MW and more than 750 MW. The market for 1-120 MW small capacity type is expected to have the highest growth due to the increasing demand for CHP systems. These systems are used in various industries owing to their low cost, greater efficiency and reliability features.
The market for 121-350 MW type is expected to rise as they are used in lower capacity and CHP systems. Their use in various countries such as the U.S., Germany, Denmark, Japan and China is expected to foster demand for the product in the following years.
The product finds application in power & utility and industrial sectors. The product’s use in the power & utility sector is expected to be the highest in the coming years. They offer high efficiencies at low costs and have thus been used for the generation of electricity for over a century.
The product can be paired with any combustion fuel for generating electricity such as nuclear, coal, and biomass. However, coal has been the most preferred due to its abundant availability and affordable price. Its use in generation of electricity is expected to be the highest in the coming years and particularly in the developing and emerging economies of Asia Pacific region.
Steam turbines find application in CHP systems that are used in various industries such as chemical, pharmaceutical and waste disposable plants. CHP systems offer high efficiency and reliability than single units. Owing to this its use in industries is expected to rise, thus stimulating the demand for the product in the following years.
Exhaust type Insights
Based on the exhaust type the product is categorised into condensing and non-condensing. Condensing type is commonly used in power plants. Non-condensing type, on the other hand, is used widely in process steam applications. They are also known as back pressure turbines.
The market for condensing type is expected to grow at a higher rate and at a faster pace than for non-condensing type. Condensing type of steam turbines have the ability to generate power efficiently and at a lower operation cost, thus they are used widely for generating electricity.
In the coming years, Asia Pacific is projected to have the highest growth from countries such as China, South Korea, Japan and India. China is heavily dependent on coal-fired power plants. According to the Financial Times, close to 99% of the Chinese population is connected to the grid. The rapid industrialisation in India and China are expected to create demand for CHP systems and thus for steam turbines.
The European market is expected to grow but at a slow pace due to the growing emphasis on the use of cleaner and renewable energy sources. As a result of environmental protection policies in countries such as the UK, there is a shift from conventional energy sources such as coal to nuclear and gas plants.
However, countries such as Germany and Italy have passed laws supporting the installation of CHP systems. Some other European nations such as Spain have supported CHP systems installations following Germany’s path. This development is expected to foster the demand for the product in the coming years.
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 steam turbines over the coming years. Some leading consumers of this product are Duke Energy (The U.S.), Engie (France), NextEra Energy Inc. (The U.S), BASF SE (Germany) and The Dow Chemical Company (The U.S).
The steam turbines market is slowly turning into a consolidated market as there have been no new entrants in the past few years. The key players in this market are General Electric (The U.S.), Siemens AG (Germany), Mitsubishi Heavy Industries Limited (Japan), Ansaldo Energia (Italy) and Hitachi Limited (Japan).
With a view to increase their market share and establish a monopoly, industry giants are acquiring smaller players in the market. Some of the acquisitions include Kühnle, Kopp & Kausch (KK&K) Aktiengesellschaft by Siemens in 2007 and MAN Diesel & Turbo acquisition of MaxWatt Turbines Private Limited in 2015.
In June 2016, General Electric announced that its joint venture company Alstom Bharat Forge Power Private Limited (ABFPPL) signed a contract worth approximately USD 219 million with National Thermal Power Corporation Limited (NTPC). ABFPPL will manufacture and supply two 800 MW Steam Turbine Generator Islands that will help in meeting the increasing demand for power in southern states of India by adding 1600MW to the electric grid.
In October 2016, Siemens announced that it will deliver a steam turbine, a gas turbine, generators and related electrical equipment for installation at SaskPower’s Chinook Power Station project. This 350-megawatt natural gas-fired plant is located near Swift Current, Saskatchewan. This combined cycle facility will use Siemens’s steam and gas turbines for efficient utilisation of fuel consumed by the plant for generating electricity.
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