Global gas turbines market set to decline by CAGR 7.7% over the next four years to $6.84bn by 2022, says GlobalData
October 9, 2018 (Investorideas.com Newswire) The global gas turbines market value is estimated to be $6.84bn in 2022, declining with a negative compound annual growth rate (CAGR) of 7.7% between 2018 and 2022, according to GlobalData, a leading data and analytics company. When comparing the total market value for the 5 year period 2013 to 2017 of $52.39bn and the estimate for 2018 to 2022 of $37.97bn, the CAGR decline is 0.7%.
The company's latest report: ‘Gas Turbines for Thermal Power, Update 2018 - Global Market Size, Competitive Landscape, Key Country Analysis, and Forecasts to 2022' reveals that the slowdown in the market is mainly attributed to the growing influence of renewable energy technologies and volatility in gas spot price markets. However, the growing influence of developing economies in the global energy market is expected to propel the Asia-Pacific (APAC) region, to overtake EMEA as a market leader in 2022. The market in APAC is projected to grow with a CAGR of 3.95%, between 2018 and 2022.
Nirushan Rajasekaram, Power Analyst at GlobalData, comments: "The need to meet the short term increasing demand for electricity faces significant technical, monetary and supply challenges that are influencing governments' agendas to generate cheap electricity; utilizing indigenous resources and existing power generation infrastructure. The existing infrastructures in most nations are heavily tilted towards coal and a potential shift towards abruptly increasing gas would require substantial investments."
Cost plays a significant role in assessing potential power generation technologies. Nations will prefer to capitalize on the declining prices of renewables as well as distributed energy technologies and cheaper coal to generate electricity to meet the immediate demand for electricity. Moreover, initiatives to reduce demand through various efficiency measures, would limit the need for new generation capacities, which are capital intensive development projects.
However, the demand for gas turbines is primarily driven by climate change commitments, the ongoing development of suitable gas infrastructure, and evolving technologies which enhance generation efficiency.
Gas power generation offers the backup capabilities of coal based generation, with the added benefit of low emissions, allowing nations to achieve their environmental commitments without destabilizing their burgeoning development growth. China, the dominant nation within the region has prioritized cleaner technologies such as gas and renewables to support its economic growth. Southeast Asia, a region with a high population and economic growth is also expected to drive the demand for gas turbines.
Rajasekaram concludes: "In the long run, gas turbines are expected to be a relevant source of power generation. The transition towards low carbon economies, the phasing out of coal, restricted use of nuclear technology, stringent emission norms, the establishment of robust infrastructure and ramping up support for renewables will all help to drive the gas turbines market."
Information based on GlobalData's report: Gas Turbines for Thermal Power, Update 2018 - Global Market Size, Competitive Landscape, Key Country Analysis, and Forecast to 2022
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Notes to Editors:
- Quotes provided by Nirushan Rajasekaram, Power Analyst at GlobalData,
- Information based on GlobalData's report: Gas Turbines for Thermal Power, Update 2018 - Global Market Size, Competitive Landscape, Key Country Analysis, and Forecast to 2022
The report offers an overview of the gas turbine market at global, regional (Asia-Pacific, Americas, Europe, Middle East and Africa) and key countries (the US, Mexico, China, India, Japan, Republic of Korea, Indonesia, Egypt, the UK, and Saudi Arabia) level. The report analyzes the gas turbines market value and volume for the historical (2012-2017) and forecast (2018-2022) period. The report also covers the drivers and restraints affecting the gas turbines market, country-wise annual capacity additions and market value, competitive landscape for respective countries in 2017, and key upcoming projects. In addition, profiles of major gas turbine manufactures are also presented in this report.
4,000 of the world's largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData's unique data, expert analysis and innovative solutions, all in one platform. GlobalData's mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.
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