Global Gas Turbine Market Expected to Grow Considerably in Future

Monday 13 February 2012, Amsterdan

Drivers, restraints and revenue forecasts, market share, sales volumes, technological trends and purchase analysis are covered for the ten key countries in the gas turbine market. Revenue forecasts, average pricing, market share, sales volume analysis and regulations are covered at the national level for each country.

Global Gas Turbine Market Expected to Grow Considerably in Future

The rising electricity demand in both emerging and developed economies and strict environmental regulations act as the major drivers for the global gas turbine market. Short construction times and low upfront costs which are required for Combined Cycle Gas Turbine (CCGT) power plants benefit the gas turbine market. Over the forecast period, Asia Pacific and the Middle East regions are anticipated to become prospective markets for gas turbine companies.

Utilities across Europe and North America are being forced to decommission old coal and nuclear power plants in order to comply with stringent environmental regulations, and this is driving the growth of gas turbines. CCGT power plants are increasingly being used to balance the intermittent load from renewable energy sources in these regions. The average annual global gas turbine revenues stood at $11.7 billion during the period 2000-2011 and are expected to grow to $17.1 billion for the period 2012-2020.

See figure: Gas Turbine Market, Global, Average Annual Revenues ($m), 2000-2020

Iran Expected to Witness Substantial Growth in Future

Over the recent years, the share of CCGT power plants in Iran has significantly increased. Rising electricity demand in the country and increasing privatization in the power generation sector will be the main driver for the gas turbine market over the forecast period. The annual average revenue is expected to increase from an average of $708m over the period 2000-2011 to reach an average of $1,234m during the forecast period 2012-2020.

China Expected to Grow in the Forecast Period

The Chinese gas turbine market is expected to see considerable growth over the forecast period 2012-2020. Rising electricity demand is the biggest driver for the gas turbine market. An increase in natural gas demand led to a restricted gas supply which had adversely affected the market, but this is expected to ease during the forecast period. The domestic production of natural gas is set to increase, and international companies are increasing their penetration in China’s upstream sectors. Gas pipeline interconnections with neighboring countries will also improve the supply of gas in China over the forecast period. The 12th Five Year Plan (FYP) focuses on promoting cleaner energy sources and decreasing energy intensity, and is expected to boost the construction of gas-fired power plants. In China, the average annual gas turbine revenues stood at $1,125m during the period 2000-2011 and are expected to grow to $1,357m for the period 2012-2020.