Download Sample, Rising Popularity of Distributed Power Generation is Influencing the Market Expansion
Consumption of electricity is an integral component of modern living. Growing industrialization and increased usage of electrical appliances as a result of expanding economic activity in emerging countries have increased power consumption. According to the International Energy Agency, the total net generation of electricity in the OECD was 887.8 TWh in March 2023. Electricity consumption is expanding globally due to increased urbanization and infrastructure development. Various smart building and smart city initiatives have been launched in numerous nations, increasing the demand for power even more. To meet the rising demand for energy, the public and private sectors are boosting power plant capacity, either by building new facilities or expanding existing ones. Gas turbines are often used in such projects since they are efficient and less hazardous. Governments have also imposed tough pollution standards, prompting firms to deploy gas-powered turbines on a big scale.
As a result, this element is anticipated to fuel expansion in this market in the future years. Additionally, electricity was distributed by small power plants using low-voltage DC-based power distribution. Distributed generation can be utilized to produce electricity as well as to do mechanical work (producing torque to move items). Gas turbines have an advantage over other distributed generation technologies for supplying backup power and onsite generating demands due to their better efficiency and stable generation capability. As a result, the growing popularity of distributed power production provides a significant potential for the gas turbine business.
As a result, this element is anticipated to fuel expansion in this market in the future years. Additionally, electricity was distributed by small power plants using low-voltage DC-based power distribution. Distributed generation can be utilized to produce electricity as well as to do mechanical work (producing torque to move items). Gas turbines have an advantage over other distributed generation technologies for supplying backup power and onsite generating demands due to their better efficiency and stable generation capability. As a result, the growing popularity of distributed power production provides a significant potential for the gas turbine business.
Restoration of Outdated Electrical Infrastructure and Increasing Environmental Concerns are Driving the Market Growth
The increase in energy usage is likely to boost demand for gas turbines in the coming years. Gas turbines provide outstanding reliability and efficiency when used to generate power. Countries all around the world are emphasizing the restoration of their outdated electrical infrastructure, which is increasing demand for gas turbines. Moreover, expansion in industries such as oil and gas, chemicals, and petrochemicals is also boosting the growth of the gas turbine industry.
Furthermore, coal-fired power facilities release a considerable amount of hazardous emissions. The discharge of such gases adds significantly to heating. Nuclear-powered turbines also produce enormous volumes of hazardous gases, which have long-term negative consequences on the environment. Gas turbines are more environmentally friendly than fossil fuel-based power generation systems. These turbines are becoming more popular as a way to reduce greenhouse gas emissions. As a result, several governments are focusing on replacing nuclear and coal-powered turbines with gas-powered turbines in an attempt to cut greenhouse gas emissions. These turbines often release less hazardous gases than coal power stations thus driving the expansion of the market over the forecast period.
Furthermore, coal-fired power facilities release a considerable amount of hazardous emissions. The discharge of such gases adds significantly to heating. Nuclear-powered turbines also produce enormous volumes of hazardous gases, which have long-term negative consequences on the environment. Gas turbines are more environmentally friendly than fossil fuel-based power generation systems. These turbines are becoming more popular as a way to reduce greenhouse gas emissions. As a result, several governments are focusing on replacing nuclear and coal-powered turbines with gas-powered turbines in an attempt to cut greenhouse gas emissions. These turbines often release less hazardous gases than coal power stations thus driving the expansion of the market over the forecast period.
Recent Trends in the Gas Turbine Industry
- Development of high-efficiency combined cycle gas turbines (CCGT).
- Integration of IoT, AI, and big data into gas turbines for predictive maintenance and performance optimization.
- Modernization of existing gas turbine plants with advanced turbines.
- Gas turbines with the flexibility to complement renewable energy sources.
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Volatility of Natural Gas Prices and Rising Adoption of Renewable Energy Sources for Power Generation is Likely to Hinder the Market Growth
Despite the various advantages of gas turbines over traditional turbines, there are some constraints associated with them that are anticipated to hamper the market growth. For instance, natural gas prices are impacted by natural gas supply disruptions. Geopolitical tension is a disruptive element that generates uncertainty about the availability or demand for petrol. This may result in more volatility in petrol prices. Consequently, this factor has a detrimental influence on the gas turbine market development. Furthermore, increasing adoption of renewable energy such as solar and wind for power generation owing to its higher competency is anticipated to hamper the expansion of the gas turbine industry over the forecast period.
New Product launches, Contracts and Agreements Provide Traction to the Market Development
Major participants in the gas turbine business are focusing their efforts on providing products and solutions in order to expand their product offerings. They are expanding their product range through the addition of new items, mergers, and acquisitions in order to improve their position in the global market. For example, in October 2019, General Electric (GE) introduced the 7HA.03, the newest iteration of its HA gas turbine, which will power Florida Power & Light Company's (FPL) Dania Beach Clean Energy Centre in Fort Lauderdale, Florida. The 7HA.03 is an advanced breakthrough for the industry as the world's largest, most efficient, highest-capacity 60-hertz gas turbine with industry-leading flexibility and the lowest cost of conversion for gas to electricity, retaining the common design and legacy of GE's HA gas turbine platform.
Later, in June 2021, OPRA Turbines B.V. announced the signing of an agreement with Quanta. Based on this agreement, Quanta, located in Newcastle, UK, became an authorized OPRA Turbines distributor in the North Sea region for the offshore oil and gas industry. With this collaboration, OPRA Turbines also enhanced its assistance for North Sea operators in meeting their goals for sustainable output and net-zero emissions Furthermore, GE's local subsidiary in India signed a deal with Cochin Shipyard Limited in February 2023 to provide a full digital solutions package to enhance the capabilities of the LM2500 marine gas turbines that power the Indian Navy's IAC-1 Vikrant, which was commissioned in August 2022. This digital solutions bundle included GE's SmartSignal system, which was determined to provide the Navy with early warnings of technical problems that might cause engine damage and result in unexpected losses.
Later, in June 2021, OPRA Turbines B.V. announced the signing of an agreement with Quanta. Based on this agreement, Quanta, located in Newcastle, UK, became an authorized OPRA Turbines distributor in the North Sea region for the offshore oil and gas industry. With this collaboration, OPRA Turbines also enhanced its assistance for North Sea operators in meeting their goals for sustainable output and net-zero emissions Furthermore, GE's local subsidiary in India signed a deal with Cochin Shipyard Limited in February 2023 to provide a full digital solutions package to enhance the capabilities of the LM2500 marine gas turbines that power the Indian Navy's IAC-1 Vikrant, which was commissioned in August 2022. This digital solutions bundle included GE's SmartSignal system, which was determined to provide the Navy with early warnings of technical problems that might cause engine damage and result in unexpected losses.
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Rising Urbanisation and Technical Advancements are Accelerating the Market Expansion
Owing to rapid urbanization, there is a surge in the demand for electricity in the Asia Pacific region. Additionally, the presence of developing economies such as India and China, as well as the availability of low-cost raw materials and labor are encouraging international corporations to expand their operations in this region. As a result, Asia Pacific is anticipated to experience significant growth in the gas turbine industry development. Furthermore, North America also accounts for a sizeable share of the gas turbine market over the forecast period. This can be attributed to the shale gas deposit and technical advancements in extraction and mining technologies, which are continually decreasing the operational cost of gas extraction in the region.
Oil and gas firms have been able to create shale gas on a commercial scale due to technical advances in completion methods like as multistage hydraulic fracturing and drilling techniques such as horizontal wellbores. On the other hand, Europe is anticipated to witness substantial growth in the market owing to the rising initiatives towards the reduction of carbon emissions. Some countries in the region have decided to phase out coal and nuclear reactors from their power-generating portfolio. The emphasis is shifting towards gas-powered turbine plants, which run on natural gas and can be a viable alternative to coal. Thus, the growing emphasis on renewable energy generation is expected to stimulate market expansion.
Oil and gas firms have been able to create shale gas on a commercial scale due to technical advances in completion methods like as multistage hydraulic fracturing and drilling techniques such as horizontal wellbores. On the other hand, Europe is anticipated to witness substantial growth in the market owing to the rising initiatives towards the reduction of carbon emissions. Some countries in the region have decided to phase out coal and nuclear reactors from their power-generating portfolio. The emphasis is shifting towards gas-powered turbine plants, which run on natural gas and can be a viable alternative to coal. Thus, the growing emphasis on renewable energy generation is expected to stimulate market expansion.
The report provides a detailed overview of the gas turbine market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the gas turbine market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the gas turbine market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the gas turbine market. Some key countries and regions included in the gas turbine market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Poland, Belgium, Sweden, Austria, Norway, Denmark, Finland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Thailand, Vietnam, Philippines, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Kenya, Rest of MEA |
Gas Turbine Market Research Report Covers In-depth Analysis on:
- Gas turbine market detailed segments and segment-wise market breakdown
- Gas turbine market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in gas turbine industry)
- Current, historical, and forthcoming 10 years market valuation in terms of gas turbine market size (US$ Mn), volume (Units), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Gas turbine market demand analysis
- Gas turbine market pricing analysis over the forecast period (by key segment and by region)
- Gas turbine market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the gas turbine market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in the gas turbine market
- Gas turbine market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on gas turbine market forecast by countries
- Mergers and acquisitions in the gas turbine market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What factors are driving the growth of the gas turbine market?
The gas turbine market is expanding due to increasing energy demand, the shift toward cleaner power generation, technological advancements, and the adoption of combined-cycle plants for improved efficiency and reduced emissions.
What challenges do gas turbine manufacturers face?
Manufacturers face challenges such as fluctuating fuel prices, competition from renewable energy sources, maintenance costs, and the need for continuous innovation to enhance efficiency and environmental compliance.
Which regions present the most growth opportunities for the gas turbine market?
Markets with growing industrialization, increasing energy demand, and infrastructure expansion—such as Asia-Pacific, North America, and the Middle East—offer significant opportunities for gas turbine deployment.
