The global gas turbine market to exhibit a CAGR of 3.3% between 2021 and 2028, Fortune Business Insights says.
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The rising demand for electricity globally is expected to boost the turbine’s demand. A rising focus on the reduction of fossil fuels consumption is likely to fuel the product’s adoption. The popularity regarding turbines’ benefits, increasing electricity consumption, and rapid developments in the aviation industry are likely to foster market growth.
A gas turbine is an internal and continuous combustion engine that consists of a downstream turbine on the same shaft as compressors, an upstream rotating gas compressor, and a combustor. A gas-based turbine uses natural gases instead of coal, which is expected to boost its adoption. It can replace traditional oil-fired and gas-fired power plants by utilizing turbines that run on natural gas.
Governments focus on replacing coal-based plants with gas-based turbines to reduce global emissions, thereby boosting the turbine’s sales. In addition, its adoption is increasing rapidly from the aviation industry because of the rising investments in the aviation industry. These factors are likely to boost market growth during the upcoming years.
The rising adoption of gas turbines instead of nuclear and coal turbines is likely to boost market development. Concerns regarding the emission of toxic materials from nuclear and coal are likely to boost demand for natural gas-based turbines. For example, China operated nearly 1,082 coal-fired power plants, which, in turn, is likely to boost the air pollution level.
Junliangcheng Power Plant installed 650 MW gas-driven turbines in February 2021.
This factor is likely to increase the turbine’s demand. Furthermore, infrastructural development and rapid urbanization lead to rising electricity demand.
Private and public sectors install new power plants to increase their power plant capacity and meet the demand for sustainable energy resources. Several industries install gas-based turbines to expand their operations. In addition, governments implement strict norms provoking manufacturers to install gas-based turbines and reduce emission levels. These factors are likely to drive the gas turbine market growth.
North America is projected to dominate the gas turbine market share because of the rising shale gas exploration activities.
The market in North America stood at USD 4.43 billion in 2020 and is expected to dominate market share in the upcoming years. As per the U.S. Energy Information Administration (EIA) information in 2019, approximately 40% of the nation’s power is generated using coal plants, and 25% of power is generated through the adoption of natural gas.
Approximately 14GW boiler and 49GW coal plants were closed down, and nearly 15GW were replaced with natural gas cycle. Rapid digitization and the emergence of several companies are likely to boost gas-based turbine adoption.
These factors are likely to fuel the market growth in the upcoming years.
Asia-Pacific is expected to gain the largest market share because of rapid urbanization and industrialization.
The rising demand for clean energy is expected to boost natural gas-based turbine demand.
Further, the dependence on coal power boosts pollution levels, which may boost the product adoption. In addition, the rising adoption of gas-based turbines in South Korea, Japan, Australia, India, and China is expected to boost market development.
In Europe, the rising adoption of natural gas plants over coal and nuclear is expected to boost the product adoption. Increasing carbon emissions and rising initiatives by the European Union to reduce greenhouse gas are likely to boost the product’s adoption. These factors may propel market progress. ■
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