Originally Published on Technavio | Gas Turbine Market Analysis North America, Europe, EMEA, APAC : US, Canada, China, Germany, UK - Size and Forecast 2023-2027

The gas turbine market is expected to witness a Compound Annual Growth Rate (CAGR) of 2.81% between 2022 and 2027, with a forecasted market size increase of USD 4,023.23 million. The market's growth hinges on various factors, including the expansion of the distributed power generation base and a concerted effort to reduce carbon emissions. This report delves into historical data from 2017 to 2021 and provides a detailed analysis of the current market scenario.

**Market Segmentation and Analysis:**

The report covers extensive market segmentation based on product (heavy-duty gas turbine and aero-derivative gas turbine), technology (Combined Cycle Gas Turbine - CCGT and Open Cycle Gas Turbine - OCGT), and geography (APAC, North America, Europe, Middle East and Africa, and South America). Additionally, it includes a thorough examination of drivers, trends, and challenges shaping the gas turbine market.

**Market Dynamics:**

Through years of data analysis (with 2022 as the base year and 2023 as the estimated year), the report presents key drivers, trends, and challenges for the gas turbine market. Despite the disruptions caused by the COVID-19 pandemic, a holistic analysis is conducted to aid companies in refining marketing strategies for a competitive advantage.

**Drivers:**

The increase in Combined Cycle Gas Turbine (CCGT) power plants is a significant driver for market growth. The demand for CCGT power plants is rising due to enhanced efficiency and increased output. Abundant and cost-effective natural gas has facilitated the construction of new natural gas-based thermal power plants, contributing to the global growth of CCGT plants. In the long term, CCGT is expected to assist in meeting carbon emission targets, particularly in alignment with government initiatives like the Clean Power Plan (CPP), which aims to reduce nationwide carbon emissions by 30% by 2030.

**Trends:**

Technological innovations in gas turbines, particularly the development of high-efficiency gas turbines categorized as H-class, are contributing to the global gas turbine market's growth. Major manufacturers such as General Electric (GE) and Siemens are investing significantly in these advancements. The focus on higher efficiency, fuel flexibility, and durability is driving market trends, with an emphasis on capturing untapped market potential.

**Challenges:**

A major challenge hindering market growth is the volatility of natural gas prices. The increasing reliance on natural gas, coupled with low prices, poses a risk to power prices. While a shift towards cleaner power generation is observed, over-reliance on natural gas can expose consumers to high prices due to fluctuations in demand and crude oil prices. Maintaining a balanced feedstock portfolio becomes crucial for utilities to navigate these challenges.

**Segmentation Analysis:**

The heavy-duty gas turbine segment is expected to witness significant market share growth during the forecast period. This segment, valued at USD 16,626.82 million in 2017, is projected to continue growing until 2021. The adoption of gas-based power generation over coal-based power generation, driven by environmental concerns, is contributing to the increased demand for heavy-duty gas turbines. These turbines, with high efficiency, are anticipated to play a vital role in meeting the rising power consumption globally.

**Regional Analysis:**

The Asia-Pacific (APAC) region is estimated to contribute 39% to the global market's growth during the forecast period. Emerging economies like India, China, and Indonesia are focusing on efficient power generation to sustain economic growth, driving the demand for gas turbines. Governments in these countries are promoting cleaner energy, leading to a shift to gas-based power generation. Despite India's reliance on coal, environmental concerns are limiting coal mining expansion, providing opportunities for gas-based power generation. Initiatives such as increased production capacity by vendors in APAC further contribute to market growth.

**Major Companies:**

Market players are adopting various strategies, including strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches. MAN Energy Solutions SE is one such company offering gas turbines for the power industry, including MGT6000-1S, MGT6000-2S, and THM1304. The report provides detailed analyses of 20 market companies, including Ansaldo Energia Spa, Bharat Heavy Electricals Ltd., Capstone Green Energy Corp., Caterpillar Inc., Doosan Corp., Harbin Electric Corp., General Electric Co., Hindustan Aeronautics Ltd., Kawasaki Heavy Industries Ltd., IHI Corp., MAN Energy Solutions SE, MAPNA Group Co., Mitsubishi Heavy Industries Ltd., Motor Sich JSC, OPRA Technologies B.V., PJSC Krasny Kotelshchik, Rolls Royce Holdings Plc, Shanghai Electric Group, Siemens AG, and Vericor Power Systems.

**Segment Overview:**

The report offers revenue growth forecasts at global, regional, and country levels, along with an analysis of the latest trends and growth opportunities from 2017 to 2027. The segmentation includes product outlook (heavy-duty gas turbine and aero-derivative gas turbine), technology outlook (CCGT and OCGT), and region outlook (APAC, North America, Europe, Middle East & Africa, and South America). The analysis also classifies companies based on business approaches and categorizes them as pure-play, category-focused, industry-focused, or diversified, with a quantitative assessment of their dominance in the market.

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