Market Analysis
Germany's gas turbine market is characterized by a strong emphasis on renewable energy integration and energy transition initiatives. With a commitment to phasing out nuclear power and reducing carbon emissions, gas turbines play a vital role in Germany's energy mix, providing flexible and reliable power generation solutions. Investments in grid modernization and renewable energy infrastructure further drive market growth, fostering innovation and technological advancements in turbine design and performance. Additionally, government support for clean energy projects and initiatives to enhance energy efficiency propel market expansion, creating opportunities for industry players to capitalize on evolving market dynamics. Despite challenges posed by market saturation and regulatory complexities, Germany remains a key market for gas turbine manufacturers, offering a conducive environment for sustainable growth and development.
Market Research Future (MRFR) predicts the global gas turbine market to register a 6.42% CAGR from 2024 to 2030 (forecast period).
A gas turbine is a combustion engine that transforms natural gas or other liquids into mechanical energy. This energy then fuels the generator that generates electrical energy. Gas turbines have various benefits, such as high power to weight ratio, low operating pressure, and lower than most reciprocating engines of the same power rating. Turbines play an important part in the reduction of carbon emissions.
Compared to other combustion-based power generation applications, they show lower emissions. Global electricity demand is anticipated to rise by almost one-third of current demand in the coming years. Major gas-producing regions, like the Middle East, the U.S., and Russia, are experiencing a major revamp in their electricity generation infrastructure to actively pursue gas-based power generation. These changes will boost the market for gas turbines along with the need to minimize carbon emissions.
The availability of large quantities of natural gas, combined with relatively lower prices, in particular in North America, Thailand, and China, has led to a rise in power generation using a gas turbine.
The global gas turbine industry is expected to rise at a high rate during the forecast period, mainly due to the strict emission requirements for gas turbine and shale gas production boom. According to EIA, the rapid pace of technological progress in the oil and gas sector will result in an increase in growing per well recoveries and an increase in the production of shale gas. As stated by EIA, the share of natural gas will increase from 34% in 2018 to 39% by 2050 due to growth in drilling activities. Thus, the rise in the production of natural gas would put downward pressure on the prices of natural gas, which would lead to an increase in the share of electricity produced by natural gas. This is expected to spur the market growth of gas turbines globally.
Market Segmentation
The global gas turbine market has been segmented based on capacity, technology, and application.
Based on capacity, the global gas turbine market has been segmented into up to 200 MW and above 200 MW.
Based on technology, the global gas turbine market has been segmented into open cycle and combined cycle. The open cycle segment is propelled by factors such as lower warm-up time, lightweight, compact size, operational versatility, quick start, and less dependency on cooling water.
Based on application, the global gas turbine market has been segmented into power generation, industrial, and aviation. Power generation is estimated to be the largest market during the forecast period due to growing energy demand coupled with positive regulatory towards the integration of sustainable energy infrastructure.
Regional Analysis
Region-wise, the global gas turbine market has been segmented into Europe, North America, Asia Pacific, and the rest of the world.
APAC to lead the global market
The Asia Pacific region is the largest gas turbine market. Rapid industrialization, urbanization, and strong economic growth in countries such as India and China will drive the gas turbine industry.
Competitive Landscape
Ongoing mergers and acquisitions, together with rising R&D spending in product durability, efficiency, and versatility by major manufacturers, will complement the industry's scenario.
- General Electric (U.S.)
- Siemens (Germany)
- Mitsubishi Heavy Industries Ltd. (Japan)
- Alstom S.A (France)
- Kawasaki Heavy Industries
- Ltd. (Japan)
- Bharat Heavy Electricals Limited. (India)
- Ansaldo Energia, (Italy)
- Rolls-Royce Holdings plc. (U.K)
- Harbin Electric Company Limited. (China)
Summary
The global gas turbine industry is expected to register a 4.80% CAGR from 2016 to 2023 (forecast period). Global electricity demand is increasing and has doubled over the last two decades. It is expected to rise at twice the rate of energy demand as a whole over the next 25 years. Moreover, the development of technology leading to an increase in the production of shale gas, along with the proposals of various countries to phase out coal-based power generation and substitute it with a gas-fired power plant, is likely to serve as a driver for the market.
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