Gas Turbine Market to Grow by USD 2.65 Billion (2024-2028), Enhanced Efficiency & Robustness Boosting the Market, with AI Driving Market Transformation - Technavio
NEW YORK, Jan. 31, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global gas turbine market size is estimated to grow by USD 2.65 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 1.86% during the forecast period. Enhanced efficiency and robustness of gas turbines is driving market growth, with a trend towards growing use of alternative types of fuel in aeroderivative gas turbines. However, inherent challenges in handling natural gas poses a challenge. Key market players include 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.
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Gas Turbine Market Scope
Report Coverage
Details
Base year 2023
Historic period
2018 - 2022
Forecast period
2024-2028
Growth momentum & CAGR Accelerate at a CAGR of 1.86%
Market growth 2024-2028
USD 2650.24 million
Market structure
Fragmented
YoY growth 2022-2023 (%) 1.7
Regional analysis
APAC, North America, Europe, Middle East and Africa, and South America
Performing market contribution APAC at 47%
Key countries
US, China, Japan, India, and Germany
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
Key companies profiled Turbines Inc., Wartsila Corp., Shanghai Electric Group Co. Ltd., and OPRA Turbines BV
Market Driver
The gas turbine industry is experiencing significant growth in the power generation sector, with mechanical drive applications in jet engines and electricity production leading the way. Emission norms and concerns over carbon dioxide emissions are driving the shift towards natural gas reserves as a cleaner alternative to coal production. Renewable energy sources like solar and wind power are also increasing in capacity, leading to the retirement of fossil-fired power plants. New power plants, including combined cycle plants and gas-fired reciprocating engines, are being ordered to meet electricity demand driven by urbanization and economic growth. The International Energy Agency predicts GT capacity additions will continue, with combined cycle technology and open cycle technology seeing strong demand. Gas turbine OEMs like Solar Turbines, IHI Corporation, Wartsila, OPRA Turbines, Centrax Gas Turbines, Zorya-Mashproekt, and Cryostar are at the forefront of this trend. Design types, including aeroderivative gas turbines, are being optimized for efficiency and emissions reduction. The electric power sector is undergoing a transformation, with renewables, wind energy, and solar energy gaining ground. Electric utility peaking and ancillary systems are also important considerations for power plant technologies. Installation costs, project financing, and equipment pricing are key factors in the decision-making process. Gas turbines, as mechanical devices using the Brayton cycle, consist of a heater, compressor, turbine, and cooler to generate electricity. Climate change initiatives and regulations are driving the need for carbon emissions reduction and the exploration of hydrogen fuel blends. The power sector continues to evolve, with natural gas, nuclear energy, coal, and renewables all playing a role.
The cost of fuel is a significant expense in gas turbine power generation, making up a substantial portion of the overall cost. In response, there is a growing trend towards using low-cost alternatives, particularly in the marine and industrial sectors. Fuel flexibility is a key driver for innovation in gas turbine technology. Aeroderivative gas turbines, for instance, have been developed to accommodate various fuel types for enhanced versatility. Traditionally, natural gas has been the primary fuel for these systems, but other fuels and gases, such as biofuel and synthetic gas, are gaining traction due to their affordability. However, the large-scale production of these alternative fuels is still in its infancy.
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Market Challenges
-- The gas turbine industry faces several challenges in the power
generation sector. Mechanical drive applications, including jet engines,
require advanced gas turbine technology. Emission norms and carbon
dioxide reduction targets pose significant hurdles for fossil-fired
power plants, pushing the industry towards renewable energy sources like
solar and wind power. Natural gas reserves and economic growth in urban
areas increase electricity demand, leading to new power plants. Design
types, such as combined cycle plants and gas-fired reciprocating
engines, are in high demand. Rating capacity additions in the electric
power sector require project financing and equipment pricing
considerations. International Energy Agency reports show renewable
capacity additions surpassing new gas turbine orders. Retiring
coal-fired generation and hydrogen fuel blends add complexity. Carbon
emissions, gas turbine designs, and ancillary systems are key areas of
focus. Gas turbine OEMs like Solar Turbines, IHI Corporation, Wartsila,
OPRA Turbines, Centrax Gas Turbines, Zorya-Mashproekt, and Cryostar
innovate to meet power sector needs. Gas turbines, as mechanical
devices, use the Brayton cycle, with a working fluid, heater,
compressor, turbine, and cooler, to generate electricity. Climate change
initiatives and regulations drive innovation in power plant
technologies. MW demand, installation costs, and overhaul and repair are
ongoing concerns. Gas turbines have applications in marine, aerospace,
and process plants.
-- Natural gas-fired power plants offer efficiency advantages over
coal-fired alternatives. However, the environmental concern of methane
leaks from natural gas storage is a significant challenge. Methane, a
major component of natural gas, is odorless and has a global warming
potential 82 times greater than carbon dioxide. Undetected leaks can
contribute to environmental damage. Regulatory measures addressing gas
storage safety are anticipated, which may restrict the expansion of the
gas turbine market during the forecast period.
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Segment Overview
This gas turbine market report extensively covers market segmentation by
1. Product
-- 1.1 Heavy-duty gas turbine
-- 1.2 Aeroderivative gas turbine
2. Technology
-- 2.1 CCGT
-- 2.2 OCGT
3. Geography
-- 3.1 APAC
-- 3.2 North America
-- 3.3 Europe
-- 3.4 Middle East and Africa
-- 3.5 South America
1.1 Heavy-duty gas turbine- The global heavy-duty gas turbine market is projected to experience robust growth due to the increasing demand for electric power as a result of rising power consumption worldwide. Developing nations are expected to drive significant power generation activities during the forecast period. Gas turbines are preferred over coal-based power generation due to environmental concerns, contributing to market growth. High-baseload plants requiring turbines over 300 MW will contribute significantly. Vendors, like General Electric Co., secure long-term agreements for constructing new heavy-duty gas turbines to expand market presence. For instance, in March 2022, GE received an order from Harbin Electric Co. Ltd for three GE 9HA.01 gas turbines. This trend of increasing orders for heavy-duty gas turbines is expected to accelerate market growth during the forecast period.
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Research Analysis
The gas turbine industry is a critical segment of the power generation sector, focusing on the production of electricity using the Brayton cycle. A gas turbine is a mechanical device that converts the energy contained in a working fluid into mechanical power, which is then converted into electricity. The working fluid, typically natural gas, is heated in a heater, causing it to expand and drive a turbine. The expanding gas then passes through a cooler to condense and repeat the process. Gas turbines are used in various applications, including mechanical drive and jet engines. In the electric power sector, they are often used in combined cycle plants, which also incorporate steam turbine generators. The gas turbine market is driven by the increasing demand for electricity and the availability of natural gas reserves. However, emission norms and the shift towards renewable energy sources, such as solar and wind, are major challenges. Renewable capacity additions are expected to impact gas turbine orders, but gas-fired reciprocating engines may still play a role in the transition towards a low-carbon energy sector.
Market Research Overview
The gas turbine industry is a critical segment of the power generation sector, focusing on the production of electricity using the Brayton cycle. Gas turbines, mechanical devices that convert the energy of a working fluid into mechanical power, are used in various applications, including jet engines, mechanical drive, and electricity production. The increasing demand for electricity due to urbanization, economic growth, and electricity demand drives the market. Natural gas reserves and coal production are significant fuel sources for gas-fired power plants, which include combined cycle plants and gas-fired reciprocating engines. Renewable energy sources, such as solar power plants and wind power plants, are also increasingly integrated into the power sector, leading to renewable capacity additions. Emission norms and climate change initiatives have led to the development of carbon dioxide capture technologies and the use of hydrogen fuel blends. The power sector is undergoing a significant shift towards cleaner energy sources, with retiring coal-fired generation and the growth of nuclear energy, renewables, wind energy, and solar energy. The gas turbine market is influenced by various factors, including electricity demand, project financing, equipment pricing, and gas turbine OEMs such as Solar Turbines, IHI Corporation, Wartsila, OPRA Turbines, Centrax Gas Turbines, Zorya-Mashproekt, and Cryostar. The market also includes combined cycle technology, open cycle technology, and marine and aerospace applications. Gas turbine designs continue to evolve, with aeroderivative gas turbines and ancillary systems playing essential roles in the industry. Installation costs, overhaul and repair, and rating capacity are also significant factors influencing the market. The International Energy Agency forecasts continued growth in gas turbine capacity additions, driven by the electric power sector's increasing reliance on gas-fired power plants.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
-- Product
-- Heavy-duty Gas Turbine
-- Aeroderivative Gas Turbine
-- Technology
-- CCGT
-- OCGT
-- Geography
-- APAC
-- North America
-- Europe
-- Middle East And Africa
-- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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