Gas Turbines Market Report By Type (Heavy-duty Gas Turbines , Industrial Gas Turbines , Aero Derivative Gas Turbines), By Capacity (Less than 40 MW , 40–120 MW , 120–300 MW , Above 300 MW), By Technology (Open Cycle , Combined Cycle), By End-Use, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033
- Published date: Feb 2024
- Report ID: 22290
- Number of Pages: 271
- Format:
- keyboard_arrow_up
Quick Navigation
Report Overview
The Global Gas Turbines Market size is expected to be worth around USD 27.9 Billion by 2033, from USD 18.5 Billion in 2023, growing at a CAGR of 4.20% during the forecast period from 2024 to 2033.
The Gas Turbines Market encompasses a sector dedicated to the production and distribution of gas turbines, sophisticated machinery designed for generating electricity.
These turbines operate on the principle of converting natural gas or other liquid fuels into mechanical energy, which then drives a generator for electricity production. This market is integral to the global energy infrastructure, catering to the needs of industries requiring reliable, efficient power generation solutions.
In the context of the Gas Turbines Market, a profound transformation is underway, largely fueled by the escalating global demand for electricity. According to the U.S. Energy Information Administration (EIA), a significant expansion in electric-power generating capacity is anticipated, with projections suggesting an increase of 50% to 100% by the year 2050. Concurrently, electricity generation is expected to surge by 30% to 76%, underscoring the pivotal role of gas turbines in meeting these burgeoning energy needs.
Specifically, the EIA forecasts that combined-cycle gas turbine (CCGT) electric-generating capacity in the United States is poised to reach almost 290 gigawatts (GW) by the end of 2022, constituting 24% of the total U.S. generating capacity. This data highlights the strategic importance of the Gas Turbines Market within the energy sector, emphasizing its contribution to the diversification and reliability of power generation sources.
From an analyst’s perspective, these trends indicate not only the sector’s robust growth trajectory but also its critical function in facilitating the transition to more sustainable energy systems. Gas turbines, known for their efficiency and lower carbon footprint compared to traditional coal-fired plants, are instrumental in this shift.
Strategic investments in gas turbine technology can enhance operational efficiency, reduce environmental impact, and align with global energy sustainability goals. As such, the market presents significant opportunities for innovation, growth, and leadership in the energy transition, highlighting its relevance and potential for stakeholders across the industry.
Key Takeaways
- Market Size Projection: The gas turbines market is forecasted to witness significant expansion, reaching USD 27.9 Billion by 2033, at 4.2% CAGR, driven by factors such as increasing energy demand, technological advancements, and industrialization.
- Dominant Segments:
- Type: Heavy-duty gas turbines dominate the market, accounting for 52.4% share, followed by industrial and aero derivative gas turbines.
- Capacity: Gas turbines with a capacity above 300 MW dominate, comprising 36.6% of the market.
- Technology: Combined cycle technology holds a dominant position, with an 87.4% market share
- End-Use: The power and utilities sector, along with aviation, dominate the end-use segment, collectively holding a market share of 48.3%. Other significant end-use sectors include oil & gas, manufacturing, and others.
- Regional Insights:
- Asia Pacific: Leads the global market with a 38.2% share, driven by rapid industrialization, infrastructural investments, and a focus on clean energy. China and India are pivotal players in driving demand for gas turbines.
- North America: Demonstrates steady growth supported by stringent environmental regulations, aging power plants, and abundant natural gas resources. The U.S. leads in adopting advanced gas turbine technologies.
Driving Factors
Shift Toward Natural Gas Drives Market Growth
The increasing shift towards natural gas as a predominant component of the global energy mix significantly propels the growth of the Gas Turbines Market. Natural gas, celebrated for its efficiency and lower emissions compared to traditional fossil fuels, is becoming a fuel of choice for power generation. This transition is underscored by the United States, which leads globally with 987 natural gas power plants as of 2022.
The U.S. Energy Information Administration (EIA) highlights a 3% increase in natural gas demand in 2023 over the previous year, driven by augmented exports and a marginal rise in its consumption for electricity generation. This trend not only reflects the growing reliance on natural gas but also positions gas turbines as critical components in the energy sector, given their proficiency in operating on natural gas..
Increasing Demand for Electricity Globally Fuels Market Expansion
Emerging and developing economies, particularly China, India, and Southeast Asia, are at the forefront of the surge in global electricity demand, accounting for over 70% of its growth in the coming years. This burgeoning demand is intrinsically linked to population growth and escalating electricity consumption, particularly in developing regions.
Gas turbines, with their capacity for high-efficiency power generation, are strategically positioned to meet this rising demand. The deployment of new gas turbine power plants is thus not only a response to current energy requirements but also a forward-looking investment in the infrastructure needed to support sustainable development and economic growth.
Operational Flexibility Enhances Market Dynamics
The inherent operational flexibility of gas turbines marks a significant evolution in power generation technology, offering grid operators the ability to adjust electricity production swiftly in response to fluctuating demand. This attribute is increasingly valuable in an era where the integration of renewable energy sources, such as wind and solar, into the power grid is expanding.
The variable nature of renewable energy production necessitates a complementary power generation solution that can provide stability and reliability to the energy system. Gas turbines, with their rapid start-up and shutdown capabilities, fill this critical role, ensuring that electricity supply remains consistent even as demand varies. This operational agility, coupled with the growing emphasis on renewable energy, amplifies the relevance and necessity of gas turbines in the contemporary energy market.
Restraining Factors
Competition from Renewable Energy Restrains Market Growth
The burgeoning competition from renewable energy sources significantly curtails the growth prospects of the Gas Turbines Market. With the levelized cost of electricity (LCOE) from renewables such as solar and wind experiencing a rapid decline, these energy sources have become more economically viable than new gas turbine installations in several markets.
This economic shift is reshaping investment patterns and operational priorities within the energy sector, diverting potential growth opportunities away from gas turbines. As renewables increasingly become the preferred choice for new power generation capacity due to their cost-effectiveness and lower environmental impact, the market share and expansion potential for gas turbines face considerable challenges.
High Upfront Capital Costs Limit Market Adoption
Despite the comparative lower capital costs of gas turbines relative to other conventional power generation technologies, the absolute financial outlay required for their deployment remains substantial. This high upfront investment poses a significant barrier to entry, particularly for smaller power producers who may lack the financial resources to absorb such costs.
The necessity for considerable initial investment not only restricts the accessibility of gas turbine technology but also limits its adoption across a broader spectrum of the market. As a result, the potential for market expansion is constrained, with financial considerations playing a pivotal role in determining the feasibility and attractiveness of gas turbine projects for many stakeholders.
Type Analysis
Heavy-duty gas turbines, commanding a substantial market share of 52.4%, represent the most dominant segment within the Gas Turbines Market. This prominence is attributed to their extensive application in large-scale power generation facilities, where their high efficiency and capacity for continuous operation are critical.
Heavy-duty turbines are designed to meet the demands of base-load power plants, offering superior durability and operational flexibility, which are essential for managing the complexities of modern electricity grids. Their ability to efficiently convert natural gas into electricity, coupled with advancements in technology that have improved their environmental performance, positions them as a preferred choice for utility companies aiming to balance energy production with environmental considerations.
The remaining sub-segments, namely Industrial Gas Turbines and Aero Derivative Gas Turbines, play pivotal roles in specific niches of the market. Industrial gas turbines, often utilized in smaller power generation applications and as mechanical drives for industrial processes, offer versatility and adaptability to a range of operational needs. Aero derivative gas turbines, on the other hand, are known for their lightweight and compact design, derived from jet engine technology, making them suitable for mobile power generation and emergency power supply situations.
Capacity Analysis
In the capacity segment, turbines with a capacity of above 300 MW lead the market, holding a share of 36.6%. This dominance is largely due to the increasing demand for high-capacity turbines in the utility sector, where the need for efficient, large-scale power generation solutions is most acute.
Turbines of this capacity are integral to the operations of large power plants, offering the high output necessary to serve extensive grids and meet substantial energy demands. The efficiency gains and economies of scale achievable with these larger units make them particularly attractive for regions experiencing rapid industrialization and urbanization, where electricity demand is surging.
The sub-segments of less than 40 MW, 40–120 MW, and 120–300 MW, although smaller in market share, cater to a wide array of applications that require more tailored power solutions. Turbines with a capacity of less than 40 MW are suited for small-scale industrial applications and decentralized power generation, offering flexibility and efficiency in scenarios where large outputs are not needed.
The 40–120 MW and 120–300 MW segments find their niches in medium-scale power generation projects, such as peaking power plants and combined heat and power (CHP) applications, where their size and output offer a balance between scalability and operational flexibility. These segments, while not dominating the market in terms of capacity, contribute to the market’s growth by addressing the diverse needs of the energy sector, from small, localized power systems to medium-sized industrial applications.
Technology Analysis
The Combined Cycle segment significantly dominates the Gas Turbines Market, with a commanding share of 87.4%. This dominance is underpinned by the combined cycle technology’s superior efficiency and environmental performance compared to open cycle systems.
Combined cycle gas turbines (CCGT) utilize the waste heat from the gas turbine to produce additional power through a steam turbine, significantly enhancing overall efficiency. This ability to achieve higher power output from the same amount of fuel makes CCGT particularly attractive for large-scale power generation projects, where maximizing energy production while minimizing fuel costs and emissions is paramount.
The Open Cycle segment, while not as dominant, plays a crucial role in providing peaking power and supporting grid stability during periods of high demand or sudden drops in renewable energy supply. Open cycle plants can be rapidly started and stopped, offering a flexible power generation solution that complements the variable nature of renewable energy sources. Despite its smaller market share, the Open Cycle technology remains an essential part of the energy mix, especially in regions with significant fluctuations in power demand.
End-Use Analysis
In the End-Use segment, Power and Utilities emerge as the dominant sub-segment, holding a market share of 48.3%. This segment’s leading position is largely attributed to the growing global demand for electricity and the critical role of gas turbines in meeting this demand efficiently.
Gas turbines, particularly in combined cycle configurations, are increasingly being deployed in power plants to provide both base-load and peak-load power, supporting the electricity grid’s stability and reliability. Their flexibility and efficiency make them well-suited to complement renewable energy sources, fitting into the broader trend towards more sustainable energy systems.
Other significant segments include Aviation, Oil & Gas, and Manufacturing, each serving specific needs within their respective domains. The Aviation sector utilizes aero-derivative turbines for mobile power generation and propulsion, highlighting the versatility of gas turbine technology. In the Oil & Gas industry, gas turbines are employed for power generation and mechanical drive applications, essential for operations in remote and offshore locations.
The Manufacturing segment benefits from both heavy-duty and industrial gas turbines for decentralized power generation and as a power source for various industrial processes. These segments, while not dominating the market to the extent of Power and Utilities, contribute to the overall growth and diversification of the Gas Turbines Market, reflecting the technology’s broad applicability across different industries and applications.
Key Market Segments
By Type
- Heavy-duty Gas Turbines
- Industrial Gas Turbines
- Aero Derivative Gas Turbines
By Capacity
- Less than 40 MW
- 40–120 MW
- 120–300 MW
- Above 300 MW
By Technology
- Open Cycle
- Combined Cycle
By End-Use
- Power and Utilities Aviation
- Oil & Gas
- Manufacturing
- Others
Growth Opportunities
Cogeneration Offers Growth Opportunity in Gas Turbines Market
Increasing gas turbine utilization through cogeneration presents a significant growth opportunity within the Gas Turbines Market. Cogeneration, or combined heat and power (CHP), enhances gas turbine economics by simultaneously producing electricity and useful thermal energy from a single fuel source.
This process improves overall energy efficiency, leading to reduced operational costs and lower greenhouse gas emissions. Industries such as metals, chemicals, and refining, which require substantial amounts of both power and heat, stand to benefit greatly from wider adoption of cogeneration systems. The potential for cogeneration extends beyond these sectors, offering versatile applications in commercial and residential settings.
Services for Existing Turbine Fleet Highlight Market Expansion Potential
The global installed base of gas turbines represents a vast opportunity for growth in the services sector. With a significant number of gas turbines in operation worldwide, the demand for maintenance, parts, repairs, and upgrades is continuously growing. These services are crucial for ensuring the longevity and performance of the turbines, addressing wear and tear, technological obsolescence, and efficiency degradation over time.
The services market extends the lifecycle of existing installations, enhances operational efficiency, and ensures compliance with evolving environmental regulations. As operators seek to maximize the value of their assets, the market for services surrounding the existing turbine fleet emerges as a lucrative area for expansion, contributing to the sustainability and profitability of the Gas Turbines Market.
Trending Factors
Transition to Lower-Carbon Fuels Are Trending Factors in the Gas Turbines Market
The transition to lower-carbon fuels is a predominant trending factor within the Gas Turbines Market, driven by the global imperative to reduce carbon emissions and combat climate change. Major manufacturers like GE, Siemens, and Mitsubishi Heavy Industries are at the forefront of this shift, investing significantly in the development of hydrogen and ammonia-capable turbines. These turbines are designed to operate with minimal or zero CO2 emissions, aligning closely with the broader decarbonization goals across industries and governments worldwide.
Regional Analysis
Asia Pacific Dominates with 38.2% Market Share in the Gas Turbines Market
The Asia Pacific region’s dominance in the Gas Turbines Market is attributed to rapid industrialization, significant investments in power generation infrastructure, and a growing emphasis on reducing carbon emissions.
Countries like China and India are leading the charge, with their vast energy demands driving the deployment of both large-scale and aero-derivative gas turbines. Additionally, the region’s commitment to diversifying energy sources and integrating renewable energy with gas turbines for more efficient power generation contributes to this high market share.
The unique regional dynamics, including a vast population base requiring electricity and the strategic shift towards cleaner energy sources, underpin the industry’s performance in Asia Pacific. The region’s policies favoring sustainable and efficient energy solutions further bolster the adoption of advanced gas turbine technologies.
The future influence of Asia Pacific on the Gas Turbines Market is expected to remain significant. With ongoing economic growth, urbanization, and industrialization, the demand for energy will continue to rise. The region’s focus on sustainable development and energy security is likely to keep it at the forefront of gas turbine adoption, driving innovations and investments in the sector.
North America Shows Steady Growth in the Gas Turbines Market
North America’s market share is supported by stringent environmental regulations, aging power plant upgrades, and the availability of natural gas. The U.S. leads in the adoption of advanced gas turbine technologies, driven by the need for efficient and reliable power generation.
The region benefits from well-established infrastructure and a shift towards energy efficiency and lower carbon emissions. The presence of major gas turbine manufacturers and technology developers also contributes to the market’s growth.
Europe Focuses on Sustainability in the Gas Turbines Market
Europe’s commitment to reducing carbon emissions and the transition towards renewable energy sources drive the demand for gas turbines. The region’s stringent environmental policies and the need for efficient, flexible power generation solutions support the market.
Middle East & Africa Expands with Energy Demand in the Gas Turbines Market
The Middle East & Africa’s market share is bolstered by increasing energy demand, investments in power infrastructure, and the availability of natural gas resources. The region’s focus on diversifying energy sources beyond oil also plays a crucial role.
Latin America Explores Potential in the Gas Turbines Market
Latin America’s emerging market share is driven by the modernization of power generation infrastructure, increasing electricity demand, and efforts to reduce carbon emissions. Investments in gas-fired power plants are gradually rising.
Key Regions and Countries
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Players Analysis
In the competitive landscape of the Gas Turbines Market, key players such as Siemens, General Electric (GE), and Mitsubishi Heavy Industries Ltd stand out for their significant impact, strategic market positioning, and influence. Siemens and GE, in particular, are renowned for their technological innovation, extensive product portfolios, and global service networks, positioning them as leaders in both efficiency and environmental performance. Mitsubishi Heavy Industries Ltd complements this trio by offering cutting-edge technology in high-efficiency gas turbines, furthering the push towards sustainable energy solutions.
Other noteworthy companies, including Wärtsilä, Kawasaki Heavy Industries, Ltd., and Solar Turbines Incorporated, enrich the market with their specialized offerings, from compact, versatile turbines to solutions tailored for the oil and gas industry. Bharat Heavy Electricals Limited (BHEL) and Harbin Electric Corporation Co., Ltd. highlight the market’s geographic diversity, showcasing the growth and technological advancement in emerging economies.
Market Key Players
- Siemens
- General Electric
- Wärtsilä
- Mitsubishi Heavy Industries Ltd
- Opra Turbines
- Kawasaki Heavy Industries, Ltd.
- Solar Turbines Incorporated
- Bharat Heavy Electricals Limited (BHEL) Harbin Electric Corporation Co., Ltd.
- MAN Energy Solutions
- VERICOR
- UEC Saturn
- Zorya-Mashproekt
- Baker Hughes Company
- Capstone Green Energy Corporation
- Ansaldo Energia
- Nanjing Turbine & Electric Machinery
Recent Developments
- As of Februrary 2024, We Energies, a utility company, is planning $2 billion in natural gas power projects in Oak Creek and Paris. This initiative is part of the company’s efforts to invest in natural gas power generation.
- In January 2024, GE Vernova and IHI have announced the next phase of their technology roadmap, aiming to develop a 100% ammonia-capable gas turbine combustion system by 2030. This collaboration leverages GE Vernova’s expertise in engineering and manufacturing of gas turbine combustion systems and balance of plant systems.
- In October 2023, A European consortium has achieved a significant milestone by successfully testing a gas turbine fully powered by hydrogen, marking a world first. The experiment, conducted at a Smurfit Kappa paper packaging factory near Limoges, France, involved injecting 100% hydrogen into a Siemens Energy SGT-400 gas turbine to produce electricity.
Report Scope
Report Features Description Market Value (2023) USD 18.5 Billion Forecast Revenue (2033) USD 27.9 Billion CAGR (2024-2033) 4.20% Base Year for Estimation 2023 Historic Period 2018-2023 Forecast Period 2024-2033 Report Coverage Revenue Forecast, Market Dynamics, Competitive Landscape, Recent Developments Segments Covered By Type (Heavy-duty Gas Turbines , Industrial Gas Turbines , Aero Derivative Gas Turbines), By Capacity (Less than 40 MW , 40–120 MW , 120–300 MW , Above 300 MW), By Technology (Open Cycle , Combined Cycle), By End-Use (Power and Utilities Aviation , Oil & Gas , Manufacturing , Others) Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Siemens, General Electric, Wärtsilä, Mitsubishi Heavy Industries Ltd, Opra Turbines, Kawasaki Heavy Industries, Ltd., Solar Turbines Incorporated, Bharat Heavy Electricals Limited (BHEL) Harbin Electric Corporation Co., Ltd., MAN Energy Solutions, VERICOR, UEC Saturn, Zorya-Mashproekt, Baker Hughes Company, Capstone Green Energy Corporation, Ansaldo Energia, Nanjing Turbine & Electric Machinery Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the projected market size of the Global Gas Turbines Market?The Global Gas Turbines Market is expected to reach approximately USD 27.9 Billion by 2033, up from USD 18.5 Billion in 2023, reflecting a CAGR of 4.20% during the forecast period from 2024 to 2033.
What is the primary function of gas turbines in the energy sector?Gas turbines are sophisticated machinery designed for generating electricity by converting natural gas or other liquid fuels into mechanical energy, which then drives a generator for electricity production. They play a crucial role in providing reliable and efficient power generation solutions for various industries.
What are the key market segments analyzed in the report?The report analyzes key segments including type (heavy-duty, industrial, and aero derivative gas turbines), capacity (less than 40 MW, 40–120 MW, 120–300 MW, above 300 MW), technology (open cycle, combined cycle), and end-use (power and utilities, aviation, oil & gas, manufacturing, others).
What are the recent developments in the Gas Turbines Market?Recent developments include strategic investments in natural gas power projects, collaboration to develop ammonia-capable gas turbine combustion systems, and successful testing of hydrogen-powered gas turbines, marking significant milestones in the industry.
- Siemens Aktiengesellschaft Company Profile
- General Electric
- Wärtsilä
- Mitsubishi Heavy Industries Ltd
- Opra Turbines
- Kawasaki Heavy Industries, Ltd. Company Profile
- Solar Turbines Incorporated
- Bharat Heavy Electricals Limited (BHEL) Harbin Electric Corporation Co., Ltd.
- MAN Energy Solutions
- VERICOR
- UEC Saturn
- Zorya-Mashproekt
- Baker Hughes Company
- Capstone Green Energy Corporation
- Ansaldo Energia
- Nanjing Turbine & Electric Machinery
- settingsSettings
Our Clients
Single User $4,599 $3,499 USD / per unit save 24% | Multi User $5,999 $4,299 USD / per unit save 28% | Corporate User $7,299 $4,999 USD / per unit save 32% | |
---|---|---|---|
e-Access | |||
Report Library Access | |||
Data Set (Excel) | |||
Company Profile Library Access | |||
Interactive Dashboard | |||
Free Custumization | No | up to 10 hrs work | up to 30 hrs work |
Accessibility | 1 User | 2-5 User | Unlimited |
Analyst Support | up to 20 hrs | up to 40 hrs | up to 50 hrs |
Benefit | Up to 20% off on next purchase | Up to 25% off on next purchase | Up to 30% off on next purchase |
Buy Now ($ 3,499) | Buy Now ($ 4,299) | Buy Now ($ 4,999) |