The future of gas turbine market: Asia Pacific to emerge as a key revenue pocket through 2028

The constant endeavor of industry players for withstanding competition in the gas turbine market has led to an increase in collaborative agreements and partnerships in the marketplace over the recent years. Several companies are coming up with product innovations for gaining a strong industry foothold.  

Quoting an instance, in September 2021, OPRA Turbines B.V. signed a distribution agreement with Silent-Power AG. The deal focused on the extension of the latter’s ECONIMO product line.  

Similar advancements are expected to drive gas turbine market outlook over the forthcoming years. 

According to the latest research conducted by Global Market Insights Inc., the industry is anticipated to record substantial expansion through 2028.

Capstone Green Energy Corporation, Mitsubishi Heavy Industries, Solar Turbines, UEC Saturn, Baker Hughes Company, Kawasaki Heavy Industries, Harbin Electric Corporation, Siemens, Nanjing Turbine & Electric Machinery, and others are some of the major players in the industry.  

Rising product demand in the aviation sector. Numerous companies in the aviation industry are signing contracts and agreements for the expansion of their production capacities and the introduction of new products. Considering an instance, in March 2022, Rolls-Royce and Air bp entered an agreement. The transaction was centered on the reduction of lifecycle carbon emissions for gas turbine tests conducted at three sites.  

The deal was further aimed at ensuring the deployment of a 10% SAF (Sustainable Aviation Fuel) blend for engine testing at Rolls-Royce units in Germany and the U.K.  

Rising capacity expansion initiatives to foster industry growth across Europe. The industry share in Europe is poised to expand at a substantial rate of 8.7% through 2028. The rise can be credited to an increase in capacity expansion initiatives by various market players.  

For instance, in May 2021, Mitsubishi Power announced plans for the expansion of its footprint with a new GTCC (gas turbine combined cycle) business unit focused on the European as well as MEA regions. The facility would aim at the sale of its J-series air cooled gas turbines.  

Asia Pacific market value to rise with an increase in MoUs and business roadmaps. The Asia Pacific gas turbine services market size is set to witness considerable expansion owing to an upsurge in the research initiatives and MoUs in the region.  

Considering an instance, in June 2021, IHI Corporation and GE inked a Memorandum of Understanding (MoU) for the collaborative development of their Ammonia Roadmap, focused on the gas turbine business. The initiative would support the usage of ammonia as a carbon-free fuel for the reduction of lower carbon emissions in new as well as existing turbines.  

Furthermore, under the MoU, both the companies would conduct research pertaining to the marketplace volume of ammonia. Additionally, they would also undertake feasibility studies for ammonia as feedstock for the installation of gas turbine power plants in Japan and across the Asian continent. 

The COVID-19 pandemic has led to an increase in government-imposed restrictions and lockdowns, leading to a halt in industrial operations and temporarily affecting business growth. However, the increasing integration of renewable sources and the growing deployment of sustainable energy resources are expected to drive gas turbine market share over the ensuing years. GP

AUTHOR

Mohmmadsaif Nafeej Bagwan