The industrial gas turbine market is expected to grow at a CAGR of over 1% during the forecast period of 2020 – 2025. Factors such as rapid urbanization and increasing demand for electrical energy are expected to be major drivers driving the market. The rising demand for cleaner energy from gas turbines over concerns of environmental impact of energy generation from coal fired plants, is expected to help grow the industrial gas turbine market. However, increasing shift towards renewable energies such as solar and wind for power generation have somewhat hampered the growth of the market.
- Power sector is expected to witness a significant growth in forecast period, owing to various factors such as increase in power generation from gas based plants due to rising concerns over greenhouse gases emissions, and economical aspects.
- The increasing demand for electrical energy to sustain global development requires consistent heavy investments in power supply generation. This has helped the market for gas turbines grow significantly in recent and is expected to do so in forecast period.
- Asia Pacific is expected to dominate the market growth with majority of the demand coming from the countries such as the China and India, owing to the factors like economic growth in the emerging nations, increase in number of gas based power generation plant, and rising industrial activities.
Key Market Trends
Power Sector to Dominate the Market
- The increase in the production of natural gas has shifted the global focus on the development of gas-fired power plants. The greenhouse gases emitted from gas-fired power plants are comparatively lower than that emitted from coal-fired power plants. Moreover, the demand for peak power is increasing globally, which can be most effectively met by gas-based power generation
- The high efficiency in power generation from gas turbines has given this technology an upper hand in comparison to conventional power generation plants. Electricity generation from natural gas amount for 23.22% of the global electricity generation in 2018, all the while there have been a steady decline in share of global coal-based electricity generation.
- The electricity consumption rose more than primary energy consumption, with increases at 4% and 2.3%, respectively. The electricity demand increased more than overall energy growth because more people got access to electricity.
- Furthermore, the electricity demand is expected to increase in the future fueled by the electrification of the automobile. Several countries have adopted targets of phasing out the sale of passenger cars running on fossils. Among the first to set targets are Costa Rica and Norway, with 2021 and 2025 defined as targets, respectively.
- Therefore, factors such as increased access to electricity, rise in number of electric vehicles, and increased concerns over greenhouse gas emissions from coal based power plants, are expected to help drive the market in forecast period.
Asia Pacific to Dominate the Market
- Asia-Pacific is expected to be the fastest growing market in forecast period, due to increase in energy demand, and natural gas usage in the region.
- There has been a major increase in use of gas for power generation and transportation in the region, aiming at reducing greenhouse gas emissions. Asia-Pacific region have crossed it’s expected LNG import, with China importing three times the expected LNG in 2018.
- China gas demand grew from around 240 BCM in 2017 to around 280 BCM, with a lot of demand coming from industrial and transportation sector. China’s gas consumption increased by 18% in 2018 and reached 22% of the global gas consumption.
- With the rising pollution concerns across the world due to industrialization, especially in Asia-Pacific, the shift towards clean energy generation from gas turbines has gained considerable momentum.
- Therefore, the aforementioned factors are expected to drive the market in forecast period, similar to the trend witnessed in recent years.
The industrial gas turbine market is consolidated with major players holding a big share of the market. Some of the major companies are General Electric Company, Siemens AG, Harbin Electric International Company Limited, Kawasaki Heavy Industries, Ltd.,Bharat Heavy Electricals Limited, Solar Turbines among others.
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1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
4.2 Market Size and Demand Forecast, in USD billion, till 2025
4.3 Recent Trends and Developments
4.4 Market Dynamics
4.5 Supply Chain Analysis
4.6 Porter's Five Forces Analysis
4.6.1 Bargaining Power of Suppliers
4.6.2 Bargaining Power of Consumers
4.6.3 Threat of New Entrants
4.6.4 Threat of Substitutes Products and Services
4.6.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1.1 1 to 40 MW
5.1.2 41 to 120 MW
5.1.3 121 to 300 MW
5.1.4 Above 300 MW
5.2.1 Combined Cycle
5.2.2 Simple Cycle
5.3.2 Oil & Gas
5.4.1 North America
5.4.4 South America
5.4.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 General Electric Company
6.3.2 Siemens AG
6.3.3 Mitsubishi Heavy Industries Ltd
6.3.4 Harbin Electric International Company Limited
6.3.5 Bharat Heavy Electricals Limited
6.3.6 Kawasaki Heavy Industries, Ltd.
6.3.7 Ansaldo Energia S.P.A
6.3.8 Solar Turbines
6.3.9 Man Diesel and Turbo SE
6.3.10 MTU Aero Engines Ag / Vericor Power Systems Llc.
6.3.11 Centrax Industries Ltd
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.