Gas Turbine Market Growth & Trends
The global gas turbine market size is expected to reach USD 29.9 billion by 2027, escalating at a CAGR of 5.4% over the forecast period, according to a new report by Grand View Research, Inc. Supporting government policies and initiatives relating to the usage of clean energy sources, such as natural gas, for power generation, along with rising electricity demand, is likely to drive the market growth over the forecast period.
The discovery of shale gas reserves in the U.S., along with declining gas prices, is expected to further drive the industry growth. Gas turbines provide several advantages, such as lower GHG emissions, lower operating costs, enhanced power density, and quality exhaust gas that can be further used in other processes.
Industry participants are entering into various strategic collaborations, such as joint ventures and mergers & acquisitions, to develop advanced technologies and expand their foothold across various regional markets. Contracts and agreements occupy the majority share in total strategic developments of the market.
Natural gas production is concentrated in a few countries, resulting in a higher risk of gas supply disruptions due to geopolitical tensions affecting trade and transportation of gas. Furthermore, a rise in focus towards renewable energy technologies, such as solar and wind, is estimated to hamper the market growth in the forecast period.
Gas Turbine Market Report Highlights
- >200 MW emerged as the dominating capacity segment in 2019 owing to a rise in the deployment of new large-scale gas-based power plants and coal to gas switching in retired coal-fired power plants
- The combined cycle technology segment is expected to witness a significant growth rate in the forecast period owing to its higher overall efficiency and lower fuel requirement as compared to open cycle technology
- Power & utility emerged as the largest end-use segment in 2019 and will retain the dominance over the forecast years owing to the high number of gas-based power plants under pipeline to meet the growing demand
- North America region accounted for a significant market share in 2019 owing to the high demand for clean electricity along with supportive regulatory policies to reduce carbon emissions
- Middle East & Africa is also expected to witness considerable growth during the forecast period owing to a number of gas-based power projects under development stages in countries, such as Egypt, Saudi Arabia, and the UAE