Market Trends of Gas Turbine Industry
This section covers the major market trends shaping the Gas Turbine Market according to our research experts:
Power Sector is Expected to Dominate the Market
In 2021, the electricity generated by natural gas amounted to 6518.5TWh. On the note of environmental impact, many countries such as the United States, China, Germany, and India opt for power generation through natural gas-fired power plants.
Setting up nuclear-based power plants requires a lot of investments and includes operational risks associated with safety concerns. Power generation through natural gas-fired will be the safest option, which is expected to increase the demand for gas turbines in the global market. As of 2021, global carbon dioxide emissions accounted for 38976 million tonnes, which is rapidly increasing day-to-day. Countries like Japan, Russia, Myanmar, and Germany are imposing taxes on power plants to reduce emissions. This will improve the adoption of gas-fired power plants across the world.
The increasing trend of distributed power generation and the replacement of phased-out nuclear and coal plants are expected to provide opportunities for the expansion of the global gas turbine market in the power sector during the forecast period.
Asia-Pacific is Expected to Dominate the Market
Rapid industrialization in the countries like India, China, Japan, and Myanmar and increasing urbanization are driving an ever-growing power demand in this region, culminating in the development of numerous power generation projects.
The Indian power sector is dominated by coal-based generation, accounting for 74% of the total electricity generation in 2021. The country has a huge potential for renewable energy and gas-based power generation for decarbonization and to meet the targets according to the Paris Agreement. In March 2022, GE Gas Power and Harbin Electric announced that Shenzhen Energy Group Corporation Co. ordered the equipment for its Guangming combined cycle power plant, located in the Shenzhen Guangming district of Guangdong province in China. General Electric will provide three GE 9HA.01 gas turbines. In China, gas-fired power capacity has been witnessing faster growth compared to recent years, and it is expected to add 40 to 50 GW of new capacity by 2025.
Countries like Australia, Japan, and Malaysia, with a growing social consensus against nuclear power, are expected to propel the utilization of gas turbines during the forecast period.
