Gas Turbine Market Analysis By Capacity (≤200 MW, >200 MW), By Technology (Open Cycle, Combined Cycle),By Application(Power Generation, Industrial, Aviation),Trends & Dynamics, Competitive Landscape, And Segment Forecasts, 2014 - 2025

Industry Insights

The global gas turbine market size was valued at USD 18.86 billion in 2015. Increasing awareness regarding sustainable energy sources has shifted the industry focus towards large-scale incorporation of natural gas as a fuel for electricity generation. In upcoming years, global electricity demand is expected to increase by nearly two-thirds of the current demand. Focus on projects related to distributed power generation is anticipated to bolster the market growth.

As compared with other combustion based power generation applications, these are very efficient and also result in lower carbon emissions. With the implementation of various climate change initiatives as well as regulations to cut down GHG emissions, their potential is expected to increase in coming years.

U.S. gas turbine market revenue by application, 2014-2025 (USD Million)

U.S. has been a key market over the past many years. Abundant availability of shale gas and presence of key manufacturers has been a major factor supporting the growth of gas turbine power plant in this region.

Emerging economies including India and China are projected to fuel the growth of the industry. China is expected to decrease its reliance on coal and is increasing its focus on renewable installed capacity and gas, making it a key industry over the forecast period. Gas power production in China is still at an introduction stage, but with the development of its infrastructure, it is anticipated to grow rapidly. India is also increasing its focus on the use of cleaner resources.

The market is heading toward consolidation with no new entrants in the past few years. Globalization is the key to industry competition, wherein international trade forms an important aspect of sustainable growth. Most of the players have established joint ventures with several customers and suppliers in various countries around the world that help to increase market share, decrease costs, and gain access to new markets.

Capacity Insights

The industry is expected to witness an increasing demand for efficient as well as small capacity gas turbines. In coming years, the gas turbine market with capacity ≤ 200 MW is likely to witness an increasing demand and also is likely to maintain its high share.

One of the major advantages of low capacity gas turbines is that they can be easily transported for supplying mobile electricity supplies. Rising demand in various industries such as petroleum to power the platform, to drive the compressors to inject gas into oil wells to extract oil, etc. is likely to augment the market growth for small capacity turbines further. >200 MW capacity segment is anticipated to grow at an estimated CAGR of 3.9% from 2016 to 2025.

Technology Insights

In 2015, combined cycle turbines accounted for over 50% of the industry by revenue. In upcoming years this technology segment is anticipated to grow at an estimated CAGR of 5.0%. These turbines require lower fuel to produce the required energy output and also negate transmission & distribution losses. Combined cycle turbines are known to be highly efficient and facilitate system efficiencies in the range of 60 to 80 percent.

The open cycle turbine market share is expected to decline and is anticipated to grow at an estimated CAGR of 3.7% by volume. High energy loss resulting in lower efficiencies is expected to be a major factor to influence its industry share negatively. Even though these systems require less space, unfavorable environmental conditions significantly affect their component efficiency thus lowering the overall system efficiency as compared to combined cycle units.

Application Insights

Power generation was the largest application segment in 2015 and is likely to continue the trend during the forecast period. In past couple of years, various countries across the globe have faced power shortage issues and to counter such issues, regulatory bodies are stressing on the need to upgrade infrastructure for electricity generation. As a result, new power plants to compensate for the energy deficit are likely to be commissioned.

Application Market Share, By Capacity (MW), 2015

Regions such as North America and Europe have already regulations to counter the adverse environmental effects of coal-based electricity generation. These factors are likely to support the market growth in power generation applications. Power generation application segment is anticipated to grow at a CAGR of 4.1% from 2016 to 2025.

Industrial segment includes oil & gas industry, marine industry, etc. where weight is expected to be a major factor. Industrial application segment is anticipated to emerge as the fastest growing segment. Aviation sector is expected to have the lowest share owing to shifting application base of turbines. This application segment is anticipated to grow at an estimated CAGR of 4.3% during the forecast period.

Regional Insights

Based upon the number of gas turbine orders and capacity additions, Asia Pacific is expected to maintain its leading position during the forecast period with a highest estimated CAGR of 4.8% from 2016 to 2025. Factors such as rapid industrialization, upcoming power generation projects, etc. especially in India and China are expected to foster the demand. China, a key player in this region is aggressively promoting the use of gas turbines to reduce the dependence on coal for power generation.

North America has the highest installed capacity and is considered to be mature market. It is likely to witness less number of capacity additions as compared to other regions.Major players in this region are expected to focus on maintenance and after sales services. This region is likely to grow at an estimated CAGR of 4.1% from 2016 to 2025.

Europe is expected to emerge as the second largest industryin terms of orders and capacity additions. This region was valued at USD 3.8 billion in 2015. Increasing demand can be attributed to rising preference towards gas fired combined cycle plants followed by steady phase out of nuclear power plants in most of the region.

Competitive Insights

Key players include General Electric Company, Siemens AG,Kawasaki Heavy Industries, Ltd.,Ansaldo Energia S.P.A.,Bharat Heavy Electricals Limited,Opra Turbines B.V.,Solar Turbines Incorporated, etc. Top five companies account for over 65% industry share. Mergers & acquisitions is a key trend.

The industry is consolidated and themanufacturers are likely to focus on providing efficient post-sales services to survive the market competition. Maintenance of turbine components is anticipated to emerge as a key factor to achieve competitive edge.Major players focus their marketing strategies on increasing sales and targeting specific applications to exploit their competitive strengths. In order to achieve this, they emphasize on expanding their geographical presence and capitalizing on new markets and industries for existing as well as new products.

Report Scope

Segments covered in the report

This report forecasts capacity & revenue growth and provides an analysis on thelatest trends in each of the sub-segments from 2014 to 2025. For the purpose of this report, Grand View Research has segmented the global gas turbine market on the basis of capacity, technology, application and region:

• Capacity Outlook (Capacity, Mega Watts; Revenue, USD Million, 2014 - 2025)

  • ≤200 MW

  • >200 MW

• Technology Outlook (Capacity, Mega Watts; Revenue, USD Million, 2014 - 2025)

  • Open Cycle

  • Combined Cycle

• Application Outlook (Capacity, Mega Watts; Revenue, USD Million, 2014 - 2025)

  • Power Generation

  • Industrial

  • Aviation

• Regional Outlook (Capacity, Mega Watts; Revenue, USD Million, 2014 - 2025)

• North America

  • U.S

  • Europe

• Germany

  • UK

  • France

• Asia Pacific

  •  China

  • India

  • Japan

• Middle East and Africa

  • Saudi Arabia

• Central & South America

  • Brazil