The global gas turbine market is expected to surge with a CAGR of 4.06% to achieve a market size of US$24.574 billion by 2025, from US$19.354 billion in 2019.
The market is projected to propel in the forecast period owing to the growing demand for power worldwide, the growth in shale gas exploration and increasing investment in the energy and power sector by governments are some of the factors contributing to the growth of the gas turbine market. Fluctuations in the global power generation industry and the economic benefit of coal power generation may affect its growth in some major countries restricting the expected overall growth. The Asia Pacific accounts for a bulk of the demand for gas turbines and will continue to dominate the global market over the forecast period. Furthermore, factors such as rapid urbanization, growing investments in energy infrastructure, and industrialization are contributing to increasing the growth of the global gas turbine market in the forecast period.
Rapid urbanization is contributing to increasing the global demand for gas turbines, with the growing global demand for electricity.
With the rampant urbanization especially in the developing economies of the world, the demand for per capita energy use is also increasing which has given rise to options such as natural gas as a source of power apart from other sources. Hence, driving the growth of the gas turbine market in these regions. The people are migrating from the rural areas to urban areas and are becoming well-educated and thus demand modern living conditions, burgeoning the market demand in the forecast period. Furthermore, rapid urbanization has paved a way for concepts such as urban energy planning and urbanization management as a whole, further fueling the market demand with the growing demand for electricity in the forecast period. Additionally, such initiatives are providing a platform for designing a suitable framework for the use of sustainable energy in the forecast period and in the upcoming years.
The growing shale gas production is expected to propel the growth of the global gas turbine market in the forecast period, especially in the United States.
As natural gas is the most commonly used fuel for gas turbines, the market is projected to fuel with the growing shale gas production. The production of natural gas from shale formations is the most rapidly increasing trend in the United States utilized for exploring and production of energy. Additionally, this rapid exploration has further given rise to drilling for natural gas. The production activities have been observed in some parts of the country, in comparison to little or no activity in the recent past. According to the U.S. Energy Information Administration, “Annual Energy Outlook 2012”, shale gas production in the United States is expected to grow by 12 times, and this is expected to continue till 2030. Shale gas production, which is around 23% of the total dry gas production of the United States is estimated to rise from around 5 trillion cubic feet in a year in 2010 to attain around 13 trillion cubic feet per year in 2035, around 49% of the dry gas production in the country.
The Asia Pacific region is projected to hold a significant market share in the forecast period.
The growing demand for gas turbines in the Asia Pacific region is attributed to the high consumption level of electricity due to a high consumer base. This is because of the fact that the countries in the APAC region include highly populated countries like India and China, where the market is expected to soar in the forecast period. Also, with the growing urbanization and industrialization, the market is poised to fuel the growing demand for energy and electricity from natural gas apart from other sources of energy.
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