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, 2022 - 2030

Report Overview

The global gas turbine market size was valued at USD 22.17 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 6.2% from 2022 to 2030. A gas turbine is an engine, which heats a mixture of fuel and outside air at a very high temperature to generate mechanical energy through the spinning of the turbine blades. The mechanical energy further drives a generator, which produces electrical energy. Rapid technological advancements in the energy industry, combined with a shift in focus toward distributed power production technologies, are propelling the worldwide market forward. This market is predicted to expand rapidly during the forecast period, owing to increased government backing for power production technologies that minimize carbon dioxide (CO2) emissions around the world.

Gas turbines are primarily used for power generation. Operating a simple cycle turbine power plant for supplying electricity to the industry is much costlier than purchasing it from outside. Thus, mostly, combined cycle power plants are employed, which have better efficiency. CHP plant is an example of a combined cycle power plant, which can be employed for electricity production as well as for obtaining mechanical drive.

The paradigm shift from coal-based power generation to gas-based power generation in developed and developing countries such as the United States, Japan, China, and India, as well as supportive government policies for the construction of gas-based power plants, are the major factors driving the market's growth.

The U.S. market is anticipated to observe a protruding growth on account of growing government support for power generation technologies that aim to reduce carbon dioxide emissions. 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 play an important role in reducing greenhouse gas emissions. As compared to other combustion-based electricity generation applications, gas turbines are very proficient and also result in decreasing carbon emissions. The execution of numerous climate change initiatives along with regulations to cut down GHGs emissions are expected to lead to a surge in the potential for gas turbines during the forecast period.

Lockdowns in major cities and economies have caused most industries around the world to shut down, effectively halting production. As a result, demand for oil and gas has decreased over the world. Global natural gas consumption was reported to be 3,822.8 billion cubic meters in 2020, according to the bp statistical analysis of world energy 2021, a decrease of roughly 81.1 billion cubic meters from 2019. Furthermore, as a result of the global pandemic, electricity consumption from industrial and commercial end-users has decreased significantly. As a result, demand for gas turbines decreased during the pandemic.

Capacity Insights

>200 MW emerged as one of the most significant segments in this market with a revenue share of more than 65.0% in 2021. It is likely to be the fastest-growing segment during the forecast period. The rising power generation operations around the world, as well as the move from coal to gas-based power plants in some of the world’s major countries, are driving demand in this category.

The need for power generation is expanding due to an increase in power generation activities around the world as a result of the rising demand for energy due to population growth and fast urbanization. The rise of the power generation business, combined with a greater emphasis on generating electricity from renewable energy sources, is the primary driver for gas turbines, particularly those with capacities above 200 MW.

The reduced size of the turbine allows for easier maintenance and operation, which is a crucial reason for the 200 MW turbine's success. Because of its smaller size, the product is lighter, making it perfect for offshore locations where the power to weight ratio is a key factor in selecting whether or not to build a turbine unit. The oil and gas industry is expected to restore its impetus in the near future. Because of their compliance with operational and environmental circumstances, small turbines are frequently used in the oil and gas industry.

Technology Insights

The combined cycle turbines sector accounted for the largest revenue share of more than 72.0% in 2021 and is anticipated to continue its dominance in the near future. This technology category is expected to increase at a faster rate in the coming years. These turbines use less fuel to produce the same amount of energy and eliminate transmission and distribution losses. Combined cycle turbines are known to be extremely efficient, allowing systems to achieve efficiencies of 60 to 80 percent.

Strict regulations for coal plants, low gas prices, and the integration of increasing amounts of renewable energy are driving the switch to combined cycle gas turbine technology. CCPPs complement solar and wind power by being able to start and stop fast, allowing them to compensate for changes in renewable energy power.

Government initiatives that encourage the use of sustainable fuels for electricity generation and reduce greenhouse gas emissions are likely to boost demand for natural gas-fired power plants over coal-fired power plants. Furthermore, the industry is expected to be propelled by falling gas costs and the finding of shale gas reserves during the forecast period.

End-use Insights

The Power & utility sector accounted for the largest revenue share of approximately 80.0% in 2021. Increased demand for power generation is being driven by the expansion in population and urbanization around the world, which is boosting the use of gas turbines in the power and utility sectors. Another important driver for the gas turbine company in the power generation sector is the focus on establishing an environmentally friendly form of power generation.

Heavy industries, specialty chemical production, glass and cement manufacture, pharmaceutical, and sugar mills are all part of the industrial segment. Due to strict pollution regulations, gas turbines are seeing growing demand in the industrial sector. Low natural gas prices are also helping to boost demand for gas turbines in industrial settings. The demand is mostly driven by past increases in industrial activity around the world.

Regional Insights 

The Asia Pacific emerged as the largest market share of more than 31.0% for the gas turbine market in terms of revenue as of 2021. During the forecast period, the region led by China, Japan, Indonesia, Thailand, and India is expected to grow at the quickest rate. The Asia Pacific region's regional need for electricity is being driven by rapid urbanization and the emergence of a middle class. The presence of growing economies such as India and China, as well as low-cost raw materials and labor, are tempting multinational businesses to expand their operations in this region.

North America led by the U.S, Mexico, and Canada is projected to grow at significant rates during the forecast period. The demand is primarily driven by the shale gas reserve and technological development in extraction and mining technology which are consistently lowering the operational cost of gas extraction in the region. Further, the North American region has witnessed large-scale commissioning of gas-based power.

Oil and gas companies have been able to generate shale gas on a commercial scale because of technological breakthroughs in completion procedures like multistage hydraulic fracturing and drilling techniques like horizontal wellbores. The aforementioned technological breakthroughs, as well as commercial shale gas production, are expected to fuel the regional market in the foreseeable period, according to trends.

Saudi Arabia is a major gas turbine end consumer in the Middle East and Africa region. This has resulted in a large number of gas turbine providers in the country, all of whom are seeking to increase their market share. Gas turbines are supplied by major OEMs such as Siemens Energy, General Electric, and Mitsubishi Power, Ltd. throughout the country.

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 the Bangladesh Power Development Board company named North-West Power Generation Company Ltd. The consortium is anticipated to design and build an 880 MW combined cycle power plant in Bangladesh under the terms of the deal, allowing the companies to expand their scale of operation. Some of the prominent players in the gas turbine market include:

• General Electric

• Siemens Energy

• Mitsubishi Power, Ltd.

• Kawasaki Heavy Industries, Ltd.

• Ansaldo Energia

• Solar Turbines Incorporated 

Gas Turbine Market Report Scope

Segments Covered in the Report 

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the global Gas Turbine market report based on technology, capacity, end-use, and region:

• Technology Outlook (Capacity, MW; Revenue, USD Million, 2019 - 2030)

  • Open Cycle

  • Combined Cycle

• Capacity Outlook (Capacity, MW; Revenue, USD Million, 2019 - 2030)

  • ≤200 MW

  • >200 MW

• End-Use Outlook (Capacity, MW; Revenue, USD Million, 2019 - 2030)

  • Power & Utility

  • Industrial

• Regional Outlook (Volume, MW; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

  • Europe

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

  • Middle East & Africa

    • Saudi Arabia

    • Egypt

  • Central & South America