Growing number of merger relationships and collaborations for the development of novel technologies is boosting the Natural Gas market growth and market trends. For instance, in 2017, General electric marine solutions and Dalian shipbuilding industry co, Ltd. jointly completed a preliminary design for the conversion of steam turbine powered LNG carrier to a gas turbine-based propulsion system. Additionally, in 2018, Siemens gas turbines were launched in Russia for two thermal power stations which are built in Crimea.
However, technological advancements of natural gas turbine and requirement of costly skilled labour for its maintenance are majorly challenging the natural gas turbine industry. Expansion of new technology is highly expensive, which may create negative impact on the industry growth and also enhances the equipment & services costs.
The high demand for power generation is due to large requirement for electricity, coupled with increasing global population and also intense power requirement for industries. In 2018, the majority of the electricity demand was met through the use of fossil fuel and generated large quantities of carbon emissions, thereby polluting the atmosphere. This has been a rising demand for power generation and decreasing carbon emissions.
The heavy duty is the leading segment of natural gas turbines market. The heavy duty gas turbines used in combined cycle operations provide more than 300 MW of output. In 2018, Mitsubishi Hitachi Power Systems has achieved a major milestone in the global Power Generation sector, securing market share leadership in global orders for heavy duty gas turbines of 100 MW and above.
Asia-Pacific accounts for the highest market share on account of industrial expansion and infrastructure development. The governments of emerging economies in Asia-Pacific, like India and China, have been supporting the development of oil & gas projects through policy level initiatives and supportive regulatory framework, which is expected to drive for industrial gas turbine market in this region.
The manufacturing sector in Asia-Pacific region is estimated to grow by the supportive government policies and regulations. Also, the development of liquefied natural gas (LNG) related infrastructure and increase in consumption of natural gas is expected to impact the industrial gas turbine market positively.
The Chinese government implemented few policies and initiatives to promote the uptake of cleaner fuels, like natural gas and renewable energy sources. The power demand from China’s manufacturing and chemical sectors is a major factor for the country’s huge power requirement.
Moreover, China target is to double the gas-fired power capacity from 56 GW in 2016 to 110 GW by 2020. Owing to the above factors the demand for industrial gas turbine market is expected to increase in China.
In 2018, Siemens fetched orders to supply two H-class gas turbines and associated components for the CCHP project of CHD Guangzhou Zengcheng. Further, Shanghai Electric develops some opportunities in China.
Manufacturers that are involved in natural gas turbine include Kawasaki Heavy Industries, Siemens, GE, MHPS, Ansaldo, Harbin Electric, OPRA, MAN Diesel, Solar Turbines, Vericor Power.
In 2018, GE group signed a 25-year agreement with a consortium formed between Techint Group and Macquarie Group Limited to offer complete service for the gas turbines and other equipment in their plant.
GE’s current Asia Pacific gas turbine fleet consists of more than 1,000 units across 15 countries, comprising the most extensive gas turbine portfolio in the region. GE units can deliver from 16 megawatts (MW) of power up to 510 MW, the equivalent power that would be needed to supply more than 1 million homes in countries such as Japan and Korea.