Gas Turbines Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2018-2028 Segmented By Design Type (Heavy Duty and Aeroderivative), By Backing Material (Power Generation, Oil & Gas and Others), By Technology (Open Cycle and Combined Cycle), By Rated Capacity (1–40 MW, 40–120 MW, 120–300 MW and Above 300 MW), By Region, and By Competition

Market Overview

Global Gas Turbines Market was valued at USD 15.68 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 3.17% through 2028. The global push to reduce carbon emissions and combat climate change is driving the adoption of gas turbines. Gas turbines, especially those using natural gas, produce lower emissions compared to some traditional forms of power generation, aligning with environmental regulations and sustainability goals.

Key Market Drivers

Increasing Demand for Power Generation Efficiency

The global gas turbines market is experiencing a significant boost due to the growing demand for enhanced power generation efficiency. As the world grapples with the challenges of a rapidly expanding population and urbanization, the need for reliable and efficient energy sources has become paramount. Gas turbines, known for their efficiency and versatility, have emerged as a key solution for power generation across various sectors.

One of the primary drivers behind the increasing demand for gas turbines is their ability to deliver high thermal efficiency in power plants. Gas turbines convert a significant portion of the fuel's energy into electricity, resulting in a more efficient and cleaner power generation process compared to traditional methods. This efficiency is particularly crucial in addressing the global push towards sustainable and environmentally friendly energy solutions. Governments and industries alike are increasingly recognizing the importance of adopting technologies that minimize environmental impact, making gas turbines a preferred choice for power generation.

Furthermore, advancements in gas turbine technology, such as combined cycle power plants, contribute to higher overall efficiency. These systems harness both gas and steam turbines to extract maximum energy from the fuel, providing a dual benefit of increased power output and reduced fuel consumption. The pursuit of improved energy efficiency and the desire to meet stringent environmental regulations are driving investments in research and development within the gas turbines market, ensuring a continuous evolution of more efficient and environmentally friendly technologies.

In summary, the increasing demand for power generation efficiency is a key driver propelling the growth of the global gas turbines market. As nations strive to meet rising energy needs while minimizing environmental impact, gas turbines offer a compelling solution with their ability to deliver higher thermal efficiency and contribute to sustainable power generation.

Growing Industrialization and Infrastructure Development

The global gas turbines market is witnessing substantial growth driven by the rapid pace of industrialization and infrastructure development across the globe. As emerging economies expand their manufacturing capabilities and established economies invest in upgrading existing infrastructure, the demand for reliable and efficient power generation solutions, such as gas turbines, has surged.

In the context of industrial applications, gas turbines play a pivotal role in providing a continuous and stable power supply for various processes. Industries such as petrochemicals, manufacturing, and oil and gas heavily rely on the consistent and high-energy output offered by gas turbines. The flexibility of gas turbines to operate in diverse conditions and their quick start-up capabilities make them well-suited for meeting the dynamic energy demands of industrial operations.

Moreover, the increasing need for decentralized power generation in remote or off-grid industrial locations further propels the demand for gas turbines. These turbines provide a reliable source of energy without the need for extensive grid infrastructure, making them ideal for supporting industrial facilities in diverse geographical settings.

In the realm of infrastructure development, gas turbines are a preferred choice for power generation in large-scale projects such as airports, hospitals, and commercial complexes. The ability of gas turbines to deliver high power output with relatively low emissions aligns with the sustainability goals of modern infrastructure projects. Governments and private entities investing in these developments see gas turbines as a reliable and efficient means of meeting the escalating energy demands associated with urbanization and infrastructure expansion.

In conclusion, the growing wave of industrialization and infrastructure development globally is a significant driver fueling the expansion of the gas turbines market. The adaptability and reliability of gas turbines make them indispensable for industries and projects seeking efficient power generation solutions.

Rising Focus on Renewable Energy Integration

A key driver influencing the global gas turbines market is the rising focus on integrating renewable energy sources into the power generation mix. While the world is transitioning towards a more sustainable energy future, the intermittent nature of renewable sources such as wind and solar presents challenges in maintaining a stable and consistent power supply. Gas turbines are emerging as a crucial component in addressing these challenges by providing flexible and reliable backup power.

As countries aim to increase the share of renewable energy in their overall energy portfolios, the need for effective energy storage and backup solutions becomes evident. Gas turbines, particularly those used in peaking power plants, offer a rapid response to fluctuations in renewable energy generation. They can quickly ramp up or down to compensate for variations in wind or solar power output, ensuring a stable grid and reliable electricity supply.

Another aspect driving the integration of gas turbines with renewable energy is the concept of hybrid power plants. These facilities combine the strengths of both renewable sources and gas turbines, creating a synergistic approach to power generation. Gas turbines can efficiently balance the intermittent nature of renewable energy, providing continuous power during periods of low renewable generation.

Furthermore, advancements in gas turbine technology, including enhanced combustion systems and improved operational flexibility, make them well-suited for integration with renewable energy sources. Governments and energy providers are increasingly recognizing the importance of a diversified and flexible energy mix, where gas turbines act as a crucial enabler for a smooth transition towards a sustainable and resilient power grid.

In summary, the rising focus on renewable energy integration is a significant driver propelling the growth of the global gas turbines market. Gas turbines' ability to complement and stabilize the fluctuations in renewable energy generation positions them as a key player in the ongoing global energy transition.