Market Trends of Gas Turbines in Thermal Power Industry
This section covers the major market trends shaping the Gas Turbines in Thermal Power Market according to our research experts:
Increasing Demand for Turbine with Capacity Above 120 MW for Power Generation.
- The 250-500 MW class is the backbone of the power generation industry and is likely to dominate the market for at least the next decade.
- After a few years of constant carbon emissions, the emission rose again in 2018, raising concern about the use of coal-based power plants across the globe. Various governments across the globe have now started to put in efforts to reduce the share of coal-based power plants, which has a potential to render opportunity for the increase in demand of gas turbine with a capacity of more than 120 MW for power generation over the forecast period.
- In 2018, Final Investment Decisions (FDIs) for the gas-based power generation in China grew by 70%, and for the first time, more gas-fired power capacity was sanctioned than that of coal. This is likely to provide a impetus to the growth of large capacity turbine segment over the forecast period.
- Moreover, the gas-based power generation is cheaper to install than the nuclear power plant; on the other hand, the gas-based power generation is a more reliable source as compared to renewables. These benefits clubbed with the urgency to reduce the carbon emission have fostered the increase in demand for high capacity gas turbines across the globe.
- The EU policymakers consider gas turbines as little more than a bridging technology to achieve the 2030 targets until other technologies mature. This is likely to drive the demand for gas turbines during the forecast period.
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Asia-Pacific Region Dominated the Market
- Asia-Pacific region dominated the gas turbine market with gas-based power generation increasing by 3.04% in 2018 as compared to that in 2017, and gas consumption over the same period increased by 7.41% in Asia-Pacific. The Asia-Pacific market is driven by several factors, such as the rising demand for energy, low environmental impact, and increasing flexibility and efficiency.
- Due to technological advancement and the decreasing cost of shale gas production, natural gas production globally increased by 18.75% during 2011-2018. Rapid industrialization and urbanization are driving a huge and ever-growing power demand in this region, which necessitates the development of numerous power generation projects. This, in turn, is driving the demand for gas turbines in China.
- India's power sector is dominated by coal-based generation, accounting for 54.7% of the total installed capacity in December 2018. The country has identified the potential of renewable energy and gas-based generation for decarbonizing the economy and meeting the targets as per the Paris Agreement. With the increasing share of gas-based generation, demand for gas turbines is expected to increase.
- Countries like Japan, with a growing social consensus against nuclear power, are considered as prospective markets in this regard, especially as the country is also one of the world's largest power consumers.
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