Steam Turbine Market Growth & Trends
The global steam turbine market demand is expected to reach 72,471.3 MW by 2027, expanding at a CAGR of 1.18% from 2020 to 2027, according to a new report by Grand View Research, Inc. Dominating share of fossil-fuel based power generation sources in the majority of the countries has been the major driver for the market. Furthermore, research & development for clean coal technologies will boost the market growth in the forecast period.
Availability of coal in huge proportion in some regions and low cost of power generation through coal-fired power plants are among the major reasons that some of the countries around the world prefer coal-based power plants over other sources of power generation in order to fulfil growing power demand in their respective countries.
Steam turbines are also used in combined heat and power systems, primarily used in industrial applications. Combined heat and power installation offer flexible output with greater efficiency and it can also operate on clean and green fuel, such as natural gas. Statutory support towards combined heat and power installations is projected to stand in for small level and medium level steam turbines capacity demand over the upcoming years.
The rise in environmental concerns regarding an increase in carbon emissions has compelled most of the countries around the world to reduce their carbon footprint. Furthermore, some of the major countries, such as France, Canada, and Germany, have plans to phase out coal based power generation plants in the forecast period, which will hinder the market growth in the forecast period.
Steam Turbine Market Report Highlights
- >300 MW emerged as the dominant capacity segment in 2019 owing to rise in deployment of new large scale fossil-fuel based power plants and renovation in retired fossil-fuel based power plants
- The <150 MW capacity segment is expected to witness significant growth in the forecast period owing to its utilization in renewable energy power generation projects, such as biomass, geothermal, and solar thermal
- Power and utility emerged as the largest end-use segment in 2019 owing to a planned capacity addition of power generation plants to fulfil the growing power demand from the industrial, commercial, and residential sectors
- Asia Pacific emerged as the largest regional market in 2019 owing to the dominance of fossil-fuel based power generation sources in the region. The market in the region is dominated by China and India
- The Middle East and Africa is expected to witness significant growth in the forecast period owing to a number of fossil-fuel based power projects under development stage in countries, such as UAE, Saudi Arabia, and Iran.