Industrial Turbines

Industrial Turbines Global Market Outlook

• The global market size for industrial turbine is expected to be around $203.21 billion in 2023 and is projected to grow at a CAGR of 8.45 percent, to reach a market size of $239.15 billion by 2025

• Asia Pacific growth rate is expected to be dominant geographical market for the turbine market due to huge power requirement from developing markets and transition of coal based power plants to gas based power plants

Global Market Overview – Industrial Turbines Market

• Due to rising energy demands globally, the demand for industrial turbines is expected to increase in the coming years. Rise in number of power plants projects (both Renewable power source and non-renewable power source) is expected to drive the demand for turbine generators. Product sales will be driven by market growth in developing markets such as China, India, Brazil and other industrializing nations, where demand for electricity is set to increase in the coming years

• Some of the significant factors impacting the global turbine machinery market include development of energy efficient turbine machinery, increasing usage of connected devices in the power plant industry, rise in global consumption of energy by end consumer, and stringent government regulations

• Increased usage of natural gas as a major fuel to generate electricity would influence the adoption of gas turbines in developed market such as the US and Canada

• Globally the countries are looking for alternatives to coal-based power plants. Hence countries are looking for better viable options in form of natural gas, wind-energy based outputs. It is highly expected that the wind turbines and gas turbines are going to be in huge demand compared to steam turbines

Global Turbines Market Maturity

• North America and Europe are among the mature markets for turbine machinery

• Asia-Pacific growth rate is expected to be dominant geographical market for the turbine machinery market due to the huge demand in power requirement for both domestic and industrial needs

Industrial Turbines Market Drivers and Constraints

Drivers

• Rising energy requirement: The global power requirement has been on a steady rise in the last decade and is expected to rise further in the coming years. In order to reduce carbon emission, the government has also encouraging the need for renewable energy power sources such as Wind and Hydro. This would drive the demand for the low head turbines, floating wind turbines and hydro plant turbines

• Rising Investment in renewable power sources: Majority of the power development activities happening in developed market are towards to renewable energy sources due to rise in government investment on renewable energy projects. In developing markets too, there is a huge investment in solar power plants, hydro and windmill plants. These are expected to drive the demand for turbines running without fossil fuels

• Growing technological advancements in machines: Equipment sales is also fostered by growing technological advancements in turbines that are process/cost efficient and adding to sustainability. This trend is likely to take an upper hand in the near future

Constraints

• Capital Intensive equipment: The cost of high tech and customized turbine package have risen in recent years. As these equipment are driven by raw material prices and subsequent engineering cost, the turbine cost have increased rapidly. Global supplier might face challenge to control the cost and might face stiff competition from regional players (for low capacity turbines). Replacement and spare parts sales make up to 20 percent of the total market, but lack of channel partners weaken the sales network in emerging regions

• Rising input costs: As the energy needs across user groups and geographies are varying rapidly, the turbines are also being customized to meet the needs of consumer preferences. However, with catering to these needs, various input costs such as, raw material costs, labor costs, engineering cost, energy and power costs etc. are also rising significantly. As a result, buyers in the power industry market have to constantly look for machines that has better energy efficiency optimizes power consumption to meet standards and also automate the processes to spend less on labor etc.