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Team and Gas Turbine Manufacturers Realign Strategies to Harness Growth Opportunities

November 22, 2016


The gas turbine market is growing to the detriment of steam turbines. Availability of low-cost natural gas and intensifying environmental regulations are fuelling a shift towards gas turbines. The need for more flexible power generating assets and the decommissioning of ageing power stations bolster this trend. With several large power-generating nations agreeing to cut back on their emissions, the market is expected to see business realignment toward cleaner sources of power generation. Brand, pricing, technical performance, and local servicing capabilities are key competitive factors.

"With greater uptake, gas turbine manufacturers are focussing on modular designs with faster delivery times," stated Frost & Sullivan Industry Analyst Manoj Shankar. "While the latest generation of gas turbines was initially conceived with greater efficiency as the key goal, operating flexibility is emerging as the battleground between original equipment manufacturers."

Global Gas and Steam Turbines Market, Forecast to 2025 is part of Frost & Sullivan's Power Generation Growth Partnership subscription that includes insights on conventional and renewable power equipment and services, including fuel mix, power equipment, power plant services, and renewable and alternative power.

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Turbine manufacturers should consider merger and acquisitions with other players in order to strengthen growth opportunities, gain clean power technology, and build market share. At present, the market is fairly concentrated, with the top five participants controlling about 93.8 percent of the global market. Of the top five, GE, Siemens, and Mitsubishi Hitachi Power Systems are truly global, with manufacturing and service capabilities across all regions. Ansaldo is focused on select regions such as Europe, the Middle East, and Africa. The recent merger of GE and Alstom is expected to create a gas turbine major with more than 40 percent share of the total market. This could lead to further market consolidation to tackle competition.

"While North America is the largest market, China is expected to overtake the Middle East in 2020 as the second largest market due to aggressive promotion of gas turbine plants in a bid to reduce pollution and reduce the dependence on coal plants," noted Shankar. "Strong growth and market expansion are expected as order levels rise, the prospects for new gas plants start to improve in the weak European region, and accelerated growth occurs in emerging markets such as China, India and East Asia due to infrastructure development and availability of gas."

Frost & Sullivan's Power Generation Team: Global Gas and Steam Turbines Market, Forecast to 2025 is part of the Power Generation Growth Partnership Subscription. Related studies include: Global Power Generation Markets 2016; 2016 Latin American Energy & Environment Industry Assessment; Power Generation Technologies of the Future; Global Biomass Power Market; South African Small-Scale Embedded Generation Market, Benchmarking of Top 10 Independent Power Producers (IPPS) in ASEAN-6, and many more. All studies in the subscription provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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