Gas Turbine Market Analysis Report By Capacity, By Technology, By End-use, By Region And Segment Forecasts From 2020 To 2027

Industry Insights

The global gas turbine market size has generated a revenue of USD 19.6 billion in 2019. It is also estimated to register a 5.4% CAGR from 2020 to 2027. The rising power demand across various industrial sectors and favorable initiatives undertaken by statutory governing bodies for reducing greenhouse emissions are projected to drive the demand for gas turbines.

The need to adopt clean fuel for power and electricity generation is increasing rapidly due to the rising industrial pollution. Thus, there has been a shifting trend from the adoption of coal-based power generation plants to gas-based plants for the last few years. Further, factors like the unearthing of reserves of shale gas and the lowering of gas prices are anticipated to augment the growth of gas turbines.

The market across the U.S. is expected to gain significant momentum in the upcoming years owing to extended support provided by the government for reducing the emission of carbon dioxide. The report by the Energy Information Administration stated that natural gas accounted for the largest share of more than 38.0% in the electricity generation across the U.S. during the year 2019.

The benefits of gas turbines include lower emissions, reduced operational costs, and more power density. But, the increasing adoption of renewable energy sources is expected to hinder market growth. Moreover, the lack of required infrastructure and skilled workforce for performing operations is expected to hinder the market growth.

Capacity Insights

In 2019 the segment of >200 MW capacity held the largest share of around 67.0% across the global gas turbine market. It is also projected to register the highest growth in the upcoming years. The rising number of large-scale industries and the need for catering to their power demand across several sectors are expected to drive the market growth for this segment. Moreover, the shifting trend towards the usage of coal-based power to gas-based power prevailing among several countries is projected to further fuel up the market demand.

The ≤200 MW capacity segment also accounted for a substantial share across the global market in 2019. This can be attributed to their usage of captive power generation by various industrial sectors. Moreover, the ability of easy transportation and surging demand for on-site power generation along with an uninterrupted power supply is expected to drive the market growth.

Technology Insights

The technology segment of the combined cycle accounted for the largest share of more than 78.0% across the global market in 2019. It is also expected to continue its dominance over the forecasted years, 2020 to 2027. This can be attributed to the rising need for enhancing overall plant efficiency. Moreover, less requirement of fuel for producing required output is estimated to further fuel up the demand.

The open-cycle gas turbines were used conventionally and are now being replaced by combined cycle turbines. They had an advantage of the reduced requirement of space for installation as compared to combined cycles. But, factors like more energy losses and lower efficiency are projected to stagnate the market growth to some extent.

End-use Insights

The end-user segment of power & utility accounted for a dominant share of around 85.0% across the global market in 2019. This can be attributed to the increase in baseload demand for power across large-scale power plants. It is also expected to witness significant in the upcoming years owing to surging power demand across commercial, industrial, and residential sectors.

The industrial end-use segment is expected to witness the highest growth over the forecasted period, 2020 to 2027. This can be associated with the rise in the number of industries and the widening of their operations across the globe. Moreover, issues like frequent blackouts, power cuts, and load shedding are triggering the demand for alternative power resources.

Regional Insights

North America held a significant share across the global market in 2019. Rising demand for clean electricity as per the prescribed norms and regulatory policies imposed by governing bodies across countries like the U.S. is expected to propel market growth. Moreover, the emerging shale revolution across this region is projected to trigger up market demand for gas turbines.

Asia Pacific is anticipated to register the fastest growth with a 5.9% CAGR from 2020 to 2027. This can be attributed to the rising presence and demand for power across countries like India and China. For example, the SPIC (State Power Investment Corporation) of China had entered an agreement in 2018 with Siemens.

COVID-19 Impact Analysis

The gas turbines market has been negatively impacted due to the COVID-19 pandemic. International trade and travel restrictions have severely hindered the supply chain of several industrial sectors. Also, reduced demand for power across industrial and commercial sectors has stagnated the market demand for gas turbines. The shutting down of several industries, lack availability of skilled laborers, and a low number of gas-based units as compared to coal-based power generation units are also projected to obstruct the market growth for gas turbines over the post-pandemic period.

Gas Turbine Market Share Insights

The key players operating in the market are Siemens AG, General Electric, Ansaldo Energia S.P.A.; Opra Turbines B.V.; Solar Turbines Inc.; Centrax Gas Turbines, and Man Energy Solutions. Constant product innovation and product developments are undertaken by the key players to gain a cutting edge.

Strategies like partnerships, acquisitions, mergers, and joint ventures are being undertaken by these players for widening geographical reach and product portfolio. For example, Shanghai Electric Group and Ansaldo Energia had signed a contract with northwest Power Generation Company Ltd. in 2020.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2016 to 2027 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global gas turbine market 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
    • The Asia Pacific
        • China
        • India
        • Japan
    • Middle East & Africa
        • Saudi Arabia
        • Egypt
    • Central & South America