Industrial Gas Turbine Market: Global Sector Analysis and Forecast (2024-2030)

Industrial Gas Turbine Market size was valued at USD 10.11 Bn. in 2023 and the total Industrial Gas Turbine revenue is expected to grow by 6 % from 2024 to 2030, reaching nearly USD 15.20 Bn.
Industrial Gas Turbine Market Overview:
An industrial gas turbine is a type of combustion engine that produces mechanical energy from fuels such as natural gas or liquid fuels. This mechanical energy is used to power an integrated generator, which generates electricity. Traditional gas- and oil-fired steam power plants have been replaced by efficient combined-cycle power plants that run on gas or oil turbines. The global demand for electricity is increasing, as is the demand for clean energy, which are the major factors expected to drive industrial gas turbine market growth.

Factors such as rapid urbanization and growing demand for electrical energy are expected to be major industrial gas turbine market drivers. The growing demand for cleaner energy from gas turbines, driven by concerns about the environmental impact of coal-fired power plants, is expected to drive the industrial gas turbine market. However, the growing shift toward renewable energies, such as solar and wind, for power generation has stifled market growth. The power sector is expected to grow significantly during the forecast period due to a variety of factors, including an increase in power generation from gas-fired plants due to growing concerns about greenhouse gas emissions and economic factors.

To meet the growing demand for electrical energy and sustain global development, consistent heavy investments in power supply generation are required. This has aided the growth of the gas turbine market in recent years, and it is expected to continue during the forecast period. Due to factors such as economic growth in emerging nations, an increase in the number of gas-based power generation plants, and rising industrial activities, Asia-Pacific is expected to dominate market growth, with the majority of demand coming from China and India.To know about the Research Methodology :- Request Free Sample Report
Industrial Gas Turbine Market Dynamics:
Industrial Gas Turbine Market Driver

Gas Turbine Technology Reduces Greenhouse Emissions and Drives Market Growth

Traditional coal-fired power plants are known to emit large amounts of toxic gases and contribute significantly to global warming. Coal-fired power plants are one of the major contributors to emissions. Rising greenhouse gas emissions create an urgency to develop cleaner methods of generating electricity, which is expected to increase demand for industrial gas turbines over the next decade. Natural gas, a primary fuel for gas turbines, contains very little sulfur, resulting in almost no sulfur dioxide emissions. The CO2 emissions from natural gas-fired gas turbines are also very low—0,37 kilograms of CO2 per kWh of electricity generated. This compares to 1.01 kg/kWh for lignite and 0.8 kg/kWh for anthracite. As a result, the factors listed above drive the growth of the industrial gas turbine market during the forecast period.

Growing Electricity Demand Accelerates Global Market Growth

The global increase, thriving industrial sector, and growth in infrastructure development activities have resulted in an enormous increase in demand for electricity. As the demand for electricity grows, several countries around the world are increasing their capacity to generate electricity by building new plants or growing the capacity of existing ones! Companies are more inclined to adopt industrial gas turbine systems due to stringent government norms regarding greenhouse gas emissions. These factors augment the industrial gas turbine market growth during the forecast period.

Growing environmental concerns and stringent regulatory commitments to reduce GHG emissions have focused on energy conservation, which benefits the industrial gas turbine market. Gas turbines have emerged as a critical factor for power and heat delivery systems as environmental concerns have grown. In line with rapid technological developments in combustion, aerodynamics, matter, and cooling, ongoing changes in critical power markets have been critical to this development. Increasing cash flow to replace conventional energy systems with improved units would accelerate market demand even further. The power-to-weight ratio, modularity, and high power rating all play important roles in driving dynamics in the market. The recent shale trend has resulted in increased investment in research and drilling in inland and onshore remote basins, which complements business growth.

Industrial Gas Turbine Market Restraints

Natural gas price volatility hampers the market growth

Natural gas prices are affected by actions that can disrupt natural gas research. Geopolitical tensions are a disruptive factor that creates uncertainty about gas availability and demand. This may result in increased volatility in gas prices. Gas prices in the United States have dropped dramatically as a result of shale gas extraction, but prices elsewhere in the world remain relatively high. The majority of the countries in the Middle East region have significant natural gas reserves. Because of political and cultural issues, it is a highly volatile region. Additionally, due to the Covid-19 pandemic, demand has increased in recent months. Natural gas prices have dropped significantly. Gas prices have fallen, which has a negative impact on the industrial gas turbine market.

Industrial Gas Turbine Market Opportunity

Broader Scope in Emerging Economies is the Most Recent Market Trend

The rise of industrial hubs and rising FDI in all major manufacturing sectors across emerging economies such as China, India, Brazil, and Southeast Asian countries are expected to create lucrative growth opportunities for this market during the forecast period. Various foreign developers interested in establishing businesses through FDI incentive schemes are focusing on emerging economies. This will indirectly boost the country's economy and accelerate industrialization. To attract investments and enable growth, countries such as the United States and many Asian countries have evolved and restructured their manufacturing policies and procedures. Industrialization will accelerate the automation process, increasing overall production efficiency and streamlining operations. As a result, it is possible to conclude that the expansion of the industrial sector, particularly in emerging economies, will provide an opportunity for the industrial gas turbine market.

The new contracts are occupying the attention of key participants

The industrial gas turbine market is highly fragmented, with several large-scale key players operating globally. This includes a group of four to five key companies with a broader geographic presence. Several companies are increasingly investing in organic and inorganic developments in order to strengthen their global market position. The firms are looking for new contracts in order to increase their market share. For example, in February 2022, GE began construction on six 34 MWLM250EXPRESS aero-derivative gas turbines that will replace a coal plant in Colorado.
Industrial Gas Turbine Market Segment Analysis:
Based on Capacity, The gas turbine segment, with a capacity of ≤ 70 MW, is expected to grow at a 7.5% annual rate through 2030. Significant Capacity across small-capacity power-generating plants and process industries has contributed to the growth. The widespread adoption and expansion of cogeneration units to meet industrial heat and energy consumption needs will drive turbine demand.Based on the Technology, In terms of technology, the heavy-duty segment dominated the industrial gas turbine market in 2023. A growing number of manufacturing plants, combined with the integration of large-scale economic zones across developing countries, have established an admirable business platform. The heavy-duty segment will grow as more captive-generating power stations are integrated to serve the electricity demand of industrial establishments. Because of the availability of highly flexible and mobile technologies, aero-derivative segments have gained significant market share in the global market. The segment also has a diverse Technology portfolio, which includes marine propulsion, utility generation, and district heating.Based on the Cycle, The combined cycle segment led the industrial gas turbine market in 2023, owing to its proximity to the environment, effective waste heat utilization, and operational efficiency. The combined cycle requires more investment than the straightforward cycle, so these plants are built in stages. First, simple cycle plants are built, and then they are gradually converted to combined cycle plants. During the forecast period, the simple cycle segment is expected to grow rapidly. Simple cycle plants are easier and more convenient to build than combined cycle plants, and they are also more cost-effective and efficient. The construction of only simple cycle power plants is increasing around the world. This drives growth in the simple cycle segment during the forecast period.

Based on the Sector, The electric power utility segment dominated the global market by sector in 2023. A growing emphasis on the restoration of traditional steam and coal-fired power plants. Power plants that use gas or other renewable energy sources boost the industrial gas turbine market. The high efficiency of gas turbine power generation has given this technology a competitive advantage in comparison to traditional power generation plants.

During the forecast period, the oil and gas segment is expected to grow significantly. Exploration and production activities are rapidly expanding, as is the volume of gas generated. Pipeline projects are also growing in importance. As a result, during the forecast period, the oil and gas segment will grow.


Industrial Gas Turbine Market Regional Insights:
The global industrial gas turbine market has been segmented into five major regions: North America, Europe, Asia Pacific, South America the Middle East and Africa, and Latin America. North America is expected to lead the market during the forecast period. Because of the region's increased shale gas exploration activities, the region has a large number of industrial gas turbine plants that run on natural gas. According to the US Energy Information Administration (EIA), coal currently accounts for more than 45% of the nation's power, while natural gas accounts for approximately 28%. The EIA predicts that natural gas will be the primary fuel for power generation by 2035.

During the forecast period, Asia Pacific is expected to grow at a significant CAGR. The region's market growth can be attributed to several factors, including rapid industrialization, rising energy demand, and rising demand for clean energy technologies. The Asia Pacific region is heavily reliant on coal for power generation. Coal combustion emits a significant amount of pollution into the atmosphere. In countries such as Japan, China, Australia, South Korea, and India, government initiatives to reduce carbon emissions have led to the use of gas turbines.

China is currently developing its 14TM Five-Year Plan, which will be most beneficial to the development of gas power. The 14°" FYP will implement a robust favorable policy to encourage more and more gas-fired power projects in China. The Europe region is also expected to expand significantly during the forecast period, with governments focusing on replacing coal with either gas turbines or other renewable sources to reduce greenhouse gas emissions.
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Industrial Gas Turbine Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 10.11 Bn.


Forecast Period 2024 to 2030 CAGR:
6%
Market Size in 2030:
US $ 15.20 Bn.


 Segments Covered:
by Capacity
≤ 70 MW
> 70 MW - 300 MW
≥ 300 MW


by Technology
Heavy Duty
Light Industrial
Aeroderivative


by Cycle
Simple Cycle
Combined Cycle


by Sector
Electric Power Utility
Oil & Gas
Manufacturing



Industrial Gas Turbine Market, by Region
 North America (United States, Canada and Mexico)
 Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
 Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
 Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
 South America (Brazil, Argentina Rest of South America)
Industrial Gas Turbine Market, Key Players are
1. General Electric Company
2. Siemens AG
3. Mitsubishi Heavy Industries Ltd
4. Harbin Electric International Company Limited
5. Doosan Heavy Industries & Construction
6. OPRA Turbines
7. Rolls-Royce
8. Vericor Power System
9. Bharat Heavy Electricals Limited
10. Kawasaki Heavy Industries Ltd
11. Ansaldo Energia SpA
12. Solar Turbines
13. Man Diesel and Turbo SE
14. MTU Aero Engines AG/Vericor Power Systems LLC
15. Centrax Industries Ltd
16. UEC Saturn
17. Wartsila
18. Zorya-Mashproekt.

Frequently Asked Questions:

1] What are industrial gas turbines used for?
Ans. A gas turbine is a combustion engine that converts natural gas or other liquid fuels to mechanical energy at the heart of a power plant. This energy then powers a generator, which generates the electrical energy that travels through power lines to homes and businesses.

2] What are the 3 basic types of gas turbines?
Ans. In general, three types of gas turbine compressors are available: axial compressors, centrifugal compressors, and mixed flow compressors.

3] What are industrial turbines?
Ans. To generate electricity, industrial turbines burn fuel and air at high pressures and temperatures. Turbines run on the Brayton cycle, which is a thermodynamic cycle.

4] Which fuel is used in gas turbines?
Ans. While gas turbines are frequently advertised as having fuel flexibility, natural gas or liquefied natural gas (LNG) is used by approximately 90% of gas turbines worldwide due to its purity and ease of combustion. Only about 400 GE gas turbines in the world use crude, naphtha, or heavy fuel oils.

5] What is the most used industrial gas?
Ans. Oxygen, nitrogen, hydrogen, carbon dioxide, carbon monoxide, acetylene, and noble gases are some of the most commonly used industrial gases.

6] What gas is the safest industrial fuel?
Ans. Propylene (C3H6) (C3H6) Propylene is a versatile industrial fuel gas with excellent performance, safety, and economy. It is a one-component liquefied fuel gas that is produced as a byproduct of petrochemical plants and oil refineries.

7] Can a gas turbine run on diesel?
Ans. Diesel, fuel oil, natural gas, hydrogen... pretty much any flammable fluid can be used to power marine and industrial gas turbines. Diesel is not used in jet aircraft because it would freeze at high altitudes. The basis of modern jet fuels is highly refined kerosene.