Gas Turbine Market Size, Share & Trends Report

Gas Turbine Market Size, Share & Trends Analysis Report By Capacity (≤200 MW, >200 MW), By Technology (Open Cycle, Combined Cycle), By End-use (Industrial, Power & Utility), By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Sep, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-1-68038-225-9
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 130

Report Overview

The global gas turbine market size was valued at USD 19.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.4% from 2020 to 2027. A gas turbine is an engine, which heats a mixture of fuel and outside air at very high temperatures to generate mechanical energy through the spinning of the turbine blades. The mechanical energy further drives a generator, which produces electrical energy. Favorable government policies regarding the reduction of Greenhouse Gas (GHG) emissions and usage of clean fuels for electricity generation are expected to increase demand for natural gas-based power plants over coal-based power plants. In addition, the discovery of shale gas reserves along with decreasing gas prices is anticipated to drive the market over the forecast period.

The U.S. gas turbine market Size

The U.S. market is anticipated to witness a prominent growth on account of rising government support for power generation technologies that aim to reduce carbon dioxide emissions. According to the Energy Information Administration, natural gas was the largest source of electricity generation in the U.S. in 2019, occupying a 38% share in sources of the U.S. power generation.

The major factors driving the shift from coal-based power generation to gas-based power generation are suitable economics & supporting policies for setting up gas-based power plants in the country. In addition, assured long-term fuel supply availability in the U.S. is also one of the factors supporting the market growth in the country.

Gas turbines offer several benefits, such as lower operating costs, lower emissions, high power density, and quality exhaust stream that can be further used in other processes. As compared to other combustion-based power generation technologies, gas turbines are very efficient and also result in lower carbon emissions.

However, the rising share of renewables in the electricity mix is anticipated to hamper the industry growth over the forecast period. In addition, a lack of suitable gas infrastructure in some of the economies, particularly in the Asia Pacific region, can impede the market growth in the forecast period.

Capacity Insights

The >200 MW capacity segment led the market in 2019 and accounted for the largest revenue share of over 67%. The segment is estimated to expand further at the fattest CAGR from 2020 to 2027. These gas turbines are majorly utilized by power & utility companies to set up large-scale gas-based power plants to fulfill the growing power demand from various sectors of their respective region. Moreover, the shifting focus of some of the countries to switch to gas-based power generation from the coal-based methods will support the segment growth in the forecast period.

≤200 MW gas turbines are usually used for captive power generation plants by industrial end-users. One of the major advantages of low capacity gas turbines is that they can be easily transported for supplying mobile electricity supplies. ≤200 MW is expected to grow at a significant rate owing to the rising demand for on-site power to ensure uninterruptible supply in various industrial sectors, such as chemical, fertilizers, oil & gas, and metal.

Technology Insights

The combined cycle technology segment led the market in 2019 and accounted for over 78% of the global revenue share. The segment will retain its dominance and register the fastest CAGR from 2020 to 2027 owing to the technology’s ability to enhance the overall efficiency of the plant. In addition, these turbines require lesser fuel to produce the required energy output as compared to open cycle technology. Moreover, the rise in demand for large capacity of gas-based power plants to fulfill the growing power demand in various regions will boost the market for combined cycle technology in the forecast period.

Open cycle gas turbines extract air from the atmosphere, which is then compressed in a compressor and is then fed in a combustion chamber. Open cycle gas turbines provide an advantage in terms of lower space requirements for installation, owing to which they are preferred from small-scale installation. On the other hand, high energy loss results in lower efficiencies, which is expected to hinder the segment growth in the forecast period.

End-use Insights

The power & utility segment accounted for the largest share of more than 85% in 2019 owing to the high demand for large-scale power plants to fulfill the rise in baseload power demand. The segment will grow further at a steady rate due to the rise in power demand from residential, commercial, and industrial sectors coupled with the retirement of old coal-based power generation plants.

Resurging industrial sector growth coupled with government initiatives taken in various countries to improve the manufacturing sector has driven the industrial end-use segment. The units are installed across industries, such as chemical, cement, iron & steel, and refineries, for captive power generation purposes.

Global gas turbine market share

The industrial end-use segment will register the fastest CAGR from 2020 to 2027 due to an increase in industrial operations across the globe. Furthermore, frequent load shedding, blackouts, and power cuts in some regions have contributed to the rise in demand for gas turbines for captive power plants in the industrial segment.

Regional Insights

Asia Pacific is expected to witness the fastest CAGR of 5.9% over the forecast period, with China being the major contributor to the regional market growth. In July 2018, the State Power Investment Corporation (SPIC) of China entered into a strategic framework agreement with Siemens. Under the technology collaboration, Siemens will support the Chinese government to independently design and manufacture heavy-duty gas turbines. Independent manufacturing is expected to solidify China’s position in the global market.

North America had a significant market share in the gas turbine market in 2019. Growing demand for clean electricity along with regulatory policies aimed at reducing carbon emissions is expected to propel the regional market growth. In addition, the shale revolution in the U.S. has resulted in increasing coal-to-gas switching in the U.S. power sector.

According to the International Energy Agency, the U.S. accounted for 250 Mt CO2 savings in 2018 from coal-to-gas switching. The CO2 savings are expected to grow further with the usage of clean energy technologies, thereby bolstering the market growth in the region over the forecast period. The Middle East & Africa is expected to witness considerable growth rate in the forecast period owing to the rise in projects in the pipeline in various countries, such as Saudi Arabia, UAE, and Egypt.

Key Companies & Market Share Insights

The market is consolidated by a few major companies, which account for a dominating industry share. Industry participants practice several strategic initiatives, such as joint ventures, mergers & acquisitions, partnerships, and new product offerings, to enhance their foothold in the market. For instance, in June 2020, the consortium between Ansaldo Energia and Shanghai Electric Group signed a contract with Bangladesh Power Development Board company named North-West Power Generation Company Ltd. Under the contract, the consortium is expected to design and construct a combined cycle power plant of 880 MW in Bangladesh, thereby enabling the companies to enhance their scale of operation. Some of the prominent players in the gas turbine market include:

  • General Electric

  • Siemens AG

  • Mitsubishi Hitachi Power Systems, Ltd.

  • Kawasaki Heavy Industries, Ltd.

  • Ansaldo Energia S.P.A.

Gas Turbine Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 18.4 billion

Market volume in 2020

36,100 MW

Revenue forecast in 2027

USD 29.9 billion

Volume forecast in 2027

56,400 MW

Growth Rate

CAGR of 4.91% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Volume in MW, revenue in USD million, and CAGR from 2020 to 2027

Report coverage

Volume forecast, revenue forecast, competitive landscape, growth factors, and trends

Segments covered

Capacity, technology, end-use, region

Regional scope

North America; Europe; Asia Pacific; Middle East & Africa; Central & South America

Country scope

The U.S.; Russia; China; India; Japan; Saudi Arabia; Egypt

Key companies profiled

General Electric; Siemens AG; Mitsubishi Hitachi Power Systems, Ltd.; Kawasaki Heavy Industries, Ltd.; Bharat Heavy Electricals Ltd.; Ansaldo Energia S.P.A.; Solar Turbines Inc.; Opra Turbines B.V.; Man Energy Solutions; Centrax Gas Turbines

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global gas turbine market report on the basis of capacity, technology, end-use, and region:

  • Capacity Outlook (Volume, MW; Revenue, USD Million, 2016 - 2027)

    • ≤200 MW

    • >200 MW

  • Technology Outlook (Volume, MW; Revenue, USD Million, 2016 - 2027)

    • Open Cycle

    • Combined Cycle

  • End-use Outlook (Volume, MW; Revenue, USD Million, 2016 - 2027)

    • Power & Utility

    • Industrial

  • Regional Outlook (Volume, MW; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

    • Europe

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

    • Middle East & Africa

      • Saudi Arabia

      • Egypt

    • Central & South America

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