Gas Turbine Market Size 2024-2028

The gas turbine market size is forecast to increase by USD 2.65 at a CAGR of 1.86% between 2023 and 2028.  The market expansion hinges on several key factors. Primarily, the market's progression is driven by the advancements in technology, leading to increased efficiency and robustness. Additionally, the proliferation of distributed power generation systems is bolstering market growth. Furthermore, the expansion of natural gas pipeline networks is facilitating the widespread adoption as a reliable and sustainable energy source. These factors collectively contribute to the dynamic growth trajectory of the market. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasted market scenario.

Market Forecasting and Size

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Market Dynamics

The Market is a significant segment of the Power Generation industry, focusing on Mechanical Drive applications. This market encompasses Jet Engines used in Electricity Production, adhering to Emission Norms. Natural Gas Reserves serve as the primary fuel source, with GT capacity ranging from small to large-scale installations, including Combined Cycle Plants. Gas-Fired Reciprocating Engines and Steam Turbine Generators are alternative technologies in the Energy Sector. Gas Turbine Orders continue to grow in the Electric Power Sector, driven by the increasing demand for Electricity. Renewable Energy sources like Solar and Wind Energy are expanding their Renewable Capacity Additions, posing competition to the market. The Mechanical Device's Working Fluid follows the Brayton Cycle, which includes a Heater, Compressor, Turbine, and Cooler, to convert the input Energy into Electricity. The market's growth is influenced by the continuous advancements in technology and the increasing focus on reducing Carbon Dioxide emissions. Our researchers studied the market research and growth data for years, with 2023 as the base year along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver - Enhanced efficiency and robustness of gas turbines

The demand for gas turbines is expected to increase owing to their increased efficiency, the implementation of stringent carbon emission regulations, and the reduction in the cost of power generation using gas turbines. Several leading manufacturers, such as General Electric and Siemens, are investing heavily in the development of high-efficiency gas turbines. The 9HA/7HA CCGT series developed by General Electric's Power and Water division and the SGT5-8000H developed by Siemens are some examples of gas turbines with high-efficiency levels in a combined-cycle configuration. Both gas turbines belong to the H Class of gas turbines.

Durability is another area of focus for manufacturers, as the failure of gas turbines causes substantial financial losses, especially for capital-intensive plants. Modern gas turbines offer high durability and significantly increase the interval between scheduled maintenance services. Thus, the increase in efficiency and durability will reduce the operational costs and offer operational benefits, which, in turn, will support the greater adoption of gas turbines, especially in power generation, during the forecast period.

Significant Market Trends - Establishment of new power plants

Gas turbines are significantly deployed in gas-fired power generation plants where an internal combustion engine is used. The rising number of power plant projects across the world is a major factor that is boosting the growth of the market. China and India are some of the prominent countries in the power infrastructure industry. These countries are making significant investments in power plant infrastructure development.

For instance, some of the upcoming power plants in these countries are the Patratu Super Thermal Power Project in India, the Shandong Shenglu Power Project and the Fujian Luoyuanwan Power Project in China. Mobile power plants are gaining popularity across various countries. The increasing efficiency and durability of mobile power plants are factors that are influencing their demand, which, in turn, increases the demand for mobile gas turbines. Many government organizations are synchronizing mobile power plants in their electricity operations. All these factors can influence the accelerated growth momentum of the market during the forecast period.

Major Market Challenge - Inherent challenges in handling natural gas

 While gas-fired power plants are more efficient than coal-fired power plants, the risk of gas leaking into the atmosphere poses a threat. Natural gas consists of methane, which is odorless and 82 times more potent than carbon dioxide in terms of global warming potential. Methane leaks typically go undetected.

Natural gas storage-related leakage incidents are a major concern for environmentalists who monitor global warming. This may have a negative impact on natural gas-fired power plants. Hence, the governments of various countries are expected to come up with stringent gas storage regulations for natural gas-powered gas turbine power plants, which will hinder the growth of the market during the forecast period.

Market Segmentation

By Product 

The market share growth by the heavy-duty gas turbine segment will be significant during the forecast period. Heavy-duty (frame) gas turbines are extensively used in large-scale power-generation facilities, which is anticipated to witness robust growth during the forecast period. Power consumption is increasing across the globe, and hence, there will be additional demand for electrical power.

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The heavy-duty gas turbine segment showed a gradual increase in market share from USD 18.42 billion in 2018. Technavio expects that there will be significant power generation activities across the globe, especially in developing nations, during the forecast period. Environmental concerns are fueling the adoption of gas-based power generation over coal-based power generation, which is expected to increase the demand for gas turbines across the globe. High-baseload plants that require gas turbines of more than 300 MW are expected to contribute significantly to the growth of the market segment during the forecast period. Owing to the high efficiency of heavy-duty gas turbines, many power plant operators are widely adopting such turbines so that they can use fewer turbines to generate the power required. 

Regional Analysis

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APAC is estimated to contribute 47% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. 

Countries such as China, Japan, and India are the major contributors to the growth of the regional market in terms of revenue. This is due to the tremendous growth of the electricity-consuming sectors in APAC. The rising urban population and improving standards of living have made electricity a valuable commodity in many major countries in APAC. As a result, the governments of various countries in APAC have opened their power generation sector to private players. This helps attain the required efficiency in electricity production and distribution, besides reducing the total price of electricity and endorsing fair competition among power utilities.

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Ansaldo Energia Spa- The company offers gas turbines of 80 MW-538 ?MW, namely GT36, GT26, AE94.3A, AE94.2 and AE64.3A, for the power industry, which belongs to  E, F and H class technology, and are designed to meet the needs of advanced gas turbines while offering user-friendly features and easy maintenance.

We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:

Ansaldo Energia Spa, Bharat Heavy Electricals Ltd., Capstone Green Energy Corp., Caterpillar Inc., Doosan Heavy Industries and Construction Co. Ltd., General Electric Co., Harbin Electric Corp., IHI Aerospace Co. Ltd., Kawasaki Heavy Industries Ltd., MAN Energy Solutions SE, MAPNA Group Co., Mitsubishi Heavy Industries Ltd., Motor Sich JSC, MTU Aero Engines AG, Rolls Royce Holdings Plc, Siemens Energy AG, Solar Turbines Inc., Wartsila Corp., Shanghai Electric Group Co. Ltd., and OPRA Turbines BV 

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Product Outlook
  • Heavy-duty gas turbine
  • Aeroderivative gas turbine
• End-user Outlook
  • Power generation
  • Mobility
  • Oil and gas
  • Others
• Technology Outlook
  • CCGT
  • OCGT
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina
    • Chile

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Market Analyst Overview

The market  is a significant sector in the energy industry, driven by the increasing demand for efficient and clean power generation solutions. The market growth can be attributed to several factors, including the rising energy demand, technological advancements, and government initiatives to reduce carbon emissions. Gas turbines are widely used for power generation due to their high efficiency, flexibility, and low emissions. The market is segmented based on the type of gas turbines, applications, and regions. The market for large gas turbines is expected to dominate the market due to their high capacity and efficiency. The application is diverse, ranging from power generation to industrial processes and oil and gas production. The market is also witnessing a growing trend towards the integration of renewable energy sources with gas turbines to enhance their efficiency and reduce carbon emissions. The market for gas turbines is expected to grow at a significant rate in the coming years, with Asia Pacific being the largest market due to the increasing energy demand and government initiatives to reduce carbon emissions. The market is also expected to witness significant growth in the Middle East and Africa due to the increasing investment in power generation and oil and gas production. In conclusion, the Gas Turbine Market is a dynamic and growing sector, driven by the increasing demand for efficient and clean power generation solutions. The market is expected to witness significant growth in the coming years, with Asia Pacific being the largest market due to the increasing energy demand and government initiatives to reduce carbon emissions.

 Moreover, the market encompasses various power generation technologies, including natural gas power plants, wind power plants, solar power plants, and fossil-fueled power plants. The industry's growth is driven by factors such as urbanization, economic growth, and increasing electricity demand. According to the International Energy Agency, simple cycle GT installations are becoming increasingly popular for electric utility peaking, while coal-fired generation is retiring in many regions. Gas turbines are a versatile solution for power generation, with designs ranging from simple cycle to combined cycle. Natural gas is a common fuel source for these plants due to its availability and relatively low carbon emissions. However, renewable energy sources like solar and wind are also gaining traction, and hydrogen fuel blends are being explored as a potential cleaner alternative. Fossil-fueled power plants, including those using coal, continue to play a significant role in the energy mix. Gas turbines are often used in conjunction with coal-fired plants to improve efficiency and reduce emissions. Nuclear energy is another power generation technology that is important to note, as it provides a large share of the world's electricity but does not directly involve gas turbines. In summary, the market is a dynamic and evolving industry that is essential for meeting the world's growing electricity demand. It includes various power plant technologies, including natural gas, wind, solar, fossil-fueled, and nuclear, and is influenced by factors such as economic growth, urbanization, and the transition to cleaner energy sources.

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What are the Key Data Covered in this Gas Turbine Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the gas turbine market between 2024 and 2028
• Precise estimation of the market growth analysis, market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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