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The global industrial gas turbine market size was valued at USD 9.13 Billion in 2018 and is projected to reach USD 10.23 Billion by 2026, exhibiting a CAGR of 1.39% during the forecast period.
The demand for electricity is growing on account of the increasing population and increasing electricity consumption per capita. Fulfilling the demand for electricity is crucial for the economic development of the world, which can further strengthen the overall energy and power industry outlook. The usage of coal for the production of electricity is responsible for air pollution, GHG emissions, and climate change in both developed and developing nations.
Such adverse conditions signify the importance of renewable energy, which is both clean and emission-free. Currently, renewable energy cannot match the global demand for electricity, and it shows the significance of diversification of energy sources. One such source is natural gas, which emits pollutants with lower global warming potential as compared to traditional coal-based power plants. According to the International Energy Agency (IEA), energy from natural gas is has an installed capacity of approximately 1.6 TW in 2017 and production of roughly 5.7 PW-hours in 2017.
The gas turbine is an internal combustion engine that uses gaseous or liquid fuel. It delivers the power derived from this combustion either by means of propulsion, in an aircraft jet engine. In ships, it provides electricity and mechanical power for driving compressors & ship thrust by rotating a shaft. In the electric power generation sector, gas turbines have also become an essential technology for the conversion of conventional fossil fuels into electricity.
Traditional gas-fired and oil-fired steam power plants have been replaced by very efficient combined-cycle power plants using gas turbines for the combustion of gas or oil. The combined-cycle gas turbine power plant works as follows. Firstly, the gas turbine drives an alternator to produce electricity, delivering more than two-thirds of the total power output. Secondly, the hot exhaust gas from the turbine passes through a boiler and exchanges heat with water, to produce high pressure and temperature steam. This steam drives a steam turbine which is a coupled alternator to produce electricity.
This secondary system delivers the remaining of the total power output of the combined-cycle power plant. An important variant of the combined cycle is cogeneration, or combined heat and power. In this case, the steam produced in the boiler is used for process heat. The steam produced can also be used as a heat source for vapor absorption refrigeration. There are many applications for co-generation, for example, in the chemical, paper, process, and food & beverage industries.
Apart from these major areas, gas turbines are also used in a variety of other applications. In the oil and gas sector, aero-derivative gas turbines drive compressors or pumps for gas and oil processing and transport. Furthermore, gas turbines often power fast ferries and military vessels owing to their superior power/weight ratio. There is also a new trend to apply very small gas turbines for pre-firing in central heating and refrigeration systems in universities, apartment complexes, industrial units, etc.
Potential pollutant emissions from gas turbines include nitrogen oxides (NO and NO2, collectively referred to as NOx), carbon monoxide (CO), unburned hydrocarbons (UHC, usually expressed as equivalent methane), sulfur oxides (SO2 and SO3) and particulate matter (PM). Unburned hydrocarbons consist of volatile organic compounds (VOCs), which contribute to the formation of ground-level atmospheric ozone, and compounds such as methane and ethane, that do not contribute to ozone formation.
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Sulfur oxides, unburned hydrocarbon, and particulate matter are generally considered negligible when burning natural gas. Thus, NOx and possibly CO are the only emissions of significance when combusting natural gas in combustion turbines. The NOx emissions decrease, and CO emissions decrease when combustion temperature increase while NOx emissions increase and CO emissions decrease when combustion temperature increase.
The process and cycle optimization of the gas turbine is essential to keep the emissions under control. Post-processing of gas turbine exhaust gas is mandatory to reduce the level of GHG and pollutants. This equipment required for the processing of exhaust gases adds to the capital cost significantly of the gas turbine system. Several technologies are under research, development, and demonstration phase to keep the least amount of pollutants in the gas turbine exhaust.
“The increasing demand for electricity along with steps to reduce GHG emission will propel the adoption of industrial gas turbine systems”
The industrial gas turbine market forecasts to show impressive growth owing to the increasing demand for energy along with the rising population and urbanization. This has further resulted in the increasing demand for electricity across the world. Also, rowing concerns regarding greenhouse gas (GHG) emissions have seen governments favor the adoption of industrial gas turbine systems. These factors will augment the growth of the global market over the given forecast period.
“Refurbishing of power generation infrastructure coupled with abundant availability of fuel will foster the market growth”
The replacement of long-standing electrical infrastructure with new and efficient gas turbines for optimizing the performance of the power plants will positively cater to the industry size. Additionally, abundant accessibility of lowering fuel due to increasing gas production activities along with discoveries of new conventional and unconventional reserves will further boost industrial gas turbine outlook.
“The 150-300 MW would hold the largest market share during the given forecast period”
As the trend of power generation has shifted to reduce emissions of GHGs, mainly taking the environmental factors into consideration, the 150-300 MW has gradually acquired a good percent of market share in the industrial gas turbine market. The various advantages of natural gas like lower costs and lesser carbon emissions with excellent efficiency have driven the growth of this segment. Also, the increased exploration activities in each region for natural gas are the reason for its increased adoption.
The small capacity industrial gas turbine segments of 1-2 MW, 2-5 MW, 5-7.5 MW, 7.5-10 MW, 10-15 MW, and 15-20 MW are growing rapidly due to the easy availability of gas. These small capacity gas turbines are modular and can operate on two fuels. These small capacity turbines are used for combined heat & power plants and co-generation plants. The medium capacity segments of 30-40 MW, 40-50 MW, and 50-100 MW are increasingly used for electricity generation. 300+ MW segment requires a large amount of investment and is growing steadily.
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“The light industrial and aero-derivative gas turbine technology with the advantage of modular design is anticipated to exhibit significant growth during the given forecast period”
The light industrial segment will also experience high growth as gas turbines are preferred for backup power and peak power requirements. The light industrial and aero-derivative gas turbines are also used to provide mechanical power. Aeroderivative gas turbine technology with its modular design can be used for electricity generation and to provide rotational mechanical power which is required for some equipment like compressor, pumps, etc. The heavy-duty gas turbines will show steady growth owing to the increasing number of electricity production applications.
“Increasing deployment of the gas turbine in the manufacturing sector has augmented the growth of the industrial gas turbine market”
The manufacturing sector uses the turbine for backup power and to provide peak power. Gas turbines are also used to drive equipment which has high power requirements either by providing electricity or providing mechanical power. The gas turbine used in the manufacturing sector is fuel flexible. The gas turbine used in the oil and gas sector can use the residual/waste gases, and liquids have fuel. Even the flare gases are used as fuel to power the drilling platforms. Gas turbines are increasingly used in electric power generation as emissions form gas turbine is cleaner as compared to coal.
“Increasing awareness about cogeneration combined heat power plants and combined cycles plants has boosted the growth of the industrial gas turbine market”
The plant efficiency of combined cycle plants is higher than the simple cycle. Hence, the combined cycle plants are preferred as compared to a simple cycle. The combined cycle requires greater investment as compared to a simple cycle, and thus these plants are built in phases. First, the simple cycle plants are constructed and then are converted to combined cycle gradually. A similar process takes place in for construction of cogeneration and combined heat power plants.
North America currently is increasing its industrial gas turbine capacity and is anticipated to emerge as a major region in the Industrial gas turbine market during the given forecast period. The growth of the region can be seen with the increase in the industrial gas turbine capacity installations in recent years. North America region has a large percentage of its industrial gas turbine plants operating on natural gas owing to the ongoing increased shale gas exploration activities taking place in the region.
The average per capita electricity consumption of the African continent is 0.58 MWh while the average per capita electricity consumption of the world was 3.11 MWh in 2016. Due to the lack of electrification, Africa has the maximum scope for infrastructure development in the coming years. Although with the share of more than 35% of gas turbine electricity generation, Africa has the largest potential for gas turbine power plants. The oil and gas surrounding the African continent remain unexplored and underutilized in the past few decades. According to our market analysis, in the past few years, the oil and gas exploration and drilling activities have been gaining traction in the African continent.
With a sufficient supply of home-produced natural gas, African countries have the right base to rapidly increasing industrial activities and urbanization. All these market trends indicate an overall boom for the power generation sector, especially the industrial gas turbine market and renewable energy market. The increasing industrial provides a big boost for the gas turbine having a capacity of less than 50 MW. These gas turbines can be used for combined heat and power plants and cogeneration power plants. Combined heat and power plants and cogeneration power plants have higher efficiency than simple cycle gas turbines. Asia-Pacific region is expected to have significant growth in the gas turbine. Middle-East nations like Egypt, Iran, Kuwait, Qatar, Saudi Arabia, etc. are increasingly adopting gas power due to low operating costs.
North America Industrial Gas Turbine Market Size, 2018
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Asia-Pacific region is the most populous region in the world but has a very low average per capita electricity consumption. This region is majorly dependent on power production using coal. Combustion of coal is a significant cause of air pollution, and hence countries are shifting to gas-powered plants in the coming future. Government initiatives to reduce emissions of GHGs have promoted the use of gas turbines in countries like Japan, China, Australia, South Korea, India, Thailand, Indonesia, Australia, etc. Gas-powered power plants have been gaining traction in Latin America. Combined heat and power gas power plants are extensively used in industries in Latin America in countries like Brazil, Mexico, Argentina, etc. The growing industrial activities promoted the gas turbine market in Mexico.
Europe is projected to witness significant growth in the global Industrial gas turbine market. Several European countries like Germany, Italy, etc. have a direct natural gas pipeline from Russia, which makes it easier to produce electricity in Europe. European nations are shifting away from coal and opting renewables and natural gas for electricity production.
“Market Players such as GE, Siemens, and Mitsubishi, to strengthen their market position with respect to providing Industrial gas turbine solutions to the people”
The industrial gas turbine market is highly fragmented with the presence of lots of competitive players around the world. However, some of the leading global players dominate the gas turbine industry due to their strong product portfolio, key strategic decisions, and dominance of market share. These include a group of 4-5 key companies with wider geographic presence and continued R&D, resulting in regulatory approvals.
The deployment of the industrial gas turbine has been mainly in the utility segment for increased electricity generation. The industrial gas turbine is majorly used for rural electrification. Industrial gas turbines either feed power in the grid or used for backup power. Some of the industrial gas turbines have been used for off-grid applications. With more international organizations promoting the use of industrial gas turbines and it has spread in countries all over the world, the opportunity for the market has also increased. This will see the industrial gas turbine market to grow at a reasonable rate all over the world.
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Along with this, the report provides an elaborative analysis of the global industrial gas turbine market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in the global market, such as mergers & acquisitions, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key retail industry trends, competitive landscape and company profiles.
Value (USD Billion) and Volume (GW)
Fortune Business Insights says that the Industrial gas turbine market was valued at USD 9.13 Billion in 2018.
In 2026, the Industrial gas turbine market was valued at USD 10.23 Billion.
Growing at a CAGR of 1.39% the industrial gas turbine market will exhibit significant growth in the forecast period.
North Americas industrial gas turbine market was valued at about USD 3.39 billion in 2018.
The gas turbine having 150-300 MW capacity is expected to lead the industrial gas turbine market.
Refurbishing of power generation infrastructure coupled with abundant availability of fuel will foster market growth. However, shifting towards renewable power generation technologies may hamper industry growth.
GE, Siemens, Solar Turbines, and Mitsubishi are among the top players in the industrial gas turbine market.
The low amount of GHGs emitted by gas turbine has propelled the adoption of industrial gas turbine