Global Aeroderivative Gas Turbine Market Size and Share - Outlook Report, Forecast Trends and Growth Analysis (2024-2032)

Global Aeroderivative Gas Turbine Market Outlook

The global aeroderivative gas turbine market size is projected to grow at a CAGR of 4.2% between 2024 and 2032.

Key Takeaways

• The high availability of aero gas turbines, over 98%, lowers the CAPEX costs per unit of power generation.

• The primary energy consumption in the Asia Pacific region rose by about 2.1 percent in 2022, reaching 277.6 exajoules.

• China was the world's largest consumer of electricity in 2022, with more than 8,000 terawatt-hours, followed by the United States with over 4,000 terawatt-hours.

Aeroderivative gas turbines are gas turbines that are derived from the design and technology of jet engines. They are typically lighter, more compact, and more efficient than conventional gas turbines. They can also operate on a variety of fuels, including natural gas, biogas, and hydrogen. Aeroderivative gas turbines are widely used for power generation, especially in remote areas, peak load situations, and emergency backup. They can also provide mechanical drive for industrial applications, such as oil and gas, marine, and mining.

The global aeroderivative gas turbine market is poised for significant growth in the upcoming years due to various factors. These include the escalating demand for electricity, particularly in regions with limited grid access or instability, the increasing adoption of low-carbon and renewable energy sources necessitating aeroderivative gas turbines as backup power sources, and advancements in turbine design enhancing their competitiveness and appeal for diverse applications.

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Key Trends and Developments

Increasing adoption of renewable energy sources, growing demand for decentralised power generation, and rising investments in gas infrastructure are boosting the aeroderivative gas turbine market value

Global Aeroderivative Gas Turbine Market Trends

Demand for aeroderivative gas turbines is increasing as they offer advantages, such as reliability, efficiency, flexibility, and smaller footprint. They are based on advanced aircraft engine technologies and materials, which make them much lighter, faster, and smaller than heavy industrial gas turbines. They can achieve up to forty five percent efficiency, compared to thirty five percent for heavier gas turbines, which can further lead to aeroderivative gas turbine market growth. In Asia, they are used in power trains for Liquefied Natural Gas (LNG) plants, whereas in the USA, they are mainly used for peaking power plant operations. This has significantly increased the market size.

Furthermore, the growing global demand for electricity and the need to reduce emissions have made reliable, efficient, flexible, and compact heat and power tools, a critical need for industrial and utility operators. Therefore, there is a large, untapped potential to develop efficient combined heat and power (CHP) in the USA, Europe, and other parts of the world. Aeroderivative gas turbines are widely used in CHP applications, where they can achieve net plant efficiency of up to 90% - much higher than typical simple- or combined-cycle power plants. These applications are expected to augment the aeroderivative gas turbine market development.

Aeroderivative gas turbines can also help meet low emissions standards. With products ranging from 18 MW to 100 MW, aeroderivative gas turbines can also provide a wide range of thermal energy for CHP solutions, which, in turn, can aid in a positive aeroderivative gas turbine market outlook.

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Market Segmentation

Global Aeroderivative Gas Turbine Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Simple cycle segment is expected to hold a significant market share due to rising demand for emergency power backup, especially in remote areas

Aeroderivative gas turbines can operate on simple cycle or combined cycle, depending on the application and the fuel availability. Simple cycle gas turbines use only one turbine to generate power, while combined cycle gas turbines use two or more turbines in sequence to increase the power output and thermal efficiency.

The simple cycle segment is anticipated to lead the aeroderivative gas turbine market share in the forecast period. Simple cycle aeroderivative gas turbines are widely used for peaking power, emergency backup, and remote power generation. They offer fast start-up, low maintenance, and low emissions.

According to aeroderivative gas turbine market analysis, the combined cycle segment, on the other hand, is also expected to grow significantly, as it offers higher efficiency, lower fuel consumption, and lower carbon footprint. The combined cycle aeroderivative gas turbines are suitable for base load, cogeneration, and district heating applications.

Oil and gas sector can expand the aeroderivative gas turbine market size due to rising demand for LNG and CNG

The oil and gas segment of aeroderivative gas turbine market report includes the application of aeroderivative gas turbines for offshore and onshore oil and gas exploration, production, processing, and transportation. Aeroderivative gas turbines are preferred for their high-power density, low emissions, fast start-up, and flexibility to operate on various fuels, such as natural gas, diesel, and flare gas. They are used to drive compressors, pumps, generators, and mechanical loads. The oil and gas segment can propel the aeroderivative gas turbine market growth, as the global demand for oil and gas is projected to increase, especially in the emerging markets, such as China, India, and Southeast Asia. Moreover, the increasing adoption of liquefied natural gas (LNG) and compressed natural gas (CNG) as cleaner and cheaper alternatives to oil will boost the sales for aeroderivative gas turbines for LNG and CNG production and transportation.

The manufacturing segment of the aeroderivative gas turbine market includes the production of aeroderivative gas turbines and their components, such as compressors, combustors, turbines, and generators. The major manufacturers of aeroderivative gas turbines are General Electric, Siemens, Mitsubishi Hitachi Power Systems, Kawasaki Heavy Industries, Solar Turbines, and Ansaldo Energia. These companies have a strong presence in North America, Europe, and Asia Pacific, where they compete based on product innovation, quality, performance, and price. The manufacturing segment is expected to witness a moderate growth rate, as the demand for aeroderivative gas turbines is influenced by the economic and environmental factors affecting the end-use industries.

Furthermore, the electric power utility segment includes the application of aeroderivative gas turbines for power generation and grid stability. Aeroderivative gas turbines are used to provide peaking power, emergency power, distributed power, and combined heat and power (CHP). They are also used to balance the intermittent power supply from renewable energy sources, such as wind and solar. The aeroderivative gas turbine market estimates that the electric power utility segment is expected to witness a steady growth rate, as the global demand for electricity is expected to rise, especially in the developing regions, such as Africa, Latin America, and the Middle East. Furthermore, the increasing focus on reducing greenhouse gas emissions and improving energy efficiency will drive the demand for aeroderivative gas turbines for low-carbon and high-efficiency power generation.

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Competitive Landscape

Market companies are providing renewable energy solutions for various industries and regions to cater to the evolving regulatory landscape

Other key players in the global aeroderivative gas turbine market include Siemens AG, and Kawasaki Heavy Industries, Ltd., among others.

Global Aeroderivative Gas Turbine Market Analysis by Region

North America is one of the dominant regions due to increasing demand for natural gas-fired power plants and the growing adoption of renewable energy sources

The North American region is anticipated to hold a dominant position in the aeroderivative gas turbine market, owing to the increasing demand for natural gas-fired power plants, the growing adoption of renewable energy sources, and the stringent environmental regulations. The U.S. is the largest market in the region, followed by Canada and Mexico. According to the U.S. Energy Information Administration (EIA), natural gas accounted for 38% of the total electricity generation in the U.S. in 2019 and is projected to increase to 41% by 2021. Aeroderivative gas turbines are preferred for natural gas-fired power plants, as they offer high efficiency, low emissions, and fast start-up and ramp-up capabilities. Some of the aeroderivative gas turbine manufacturers in this region are General Electric, Siemens, Mitsubishi Hitachi Power Systems, and Rolls-Royce.

Asia Pacific may capture a significant aeroderivative gas turbine market share, driven by the rapid industrialisation and electrification in countries such as China, India, Japan, and South Korea. The region is witnessing a surge in the demand for power generation, especially from the industrial and commercial sectors, which require reliable, flexible, and efficient power supply. Aeroderivative gas turbines are ideal for meeting the peak load and emergency power needs of these sectors, as they can be installed in remote and isolated areas, and can operate on various fuels, such as natural gas, diesel, and biogas. Moreover, the region is also investing in the development of renewable energy sources, such as wind and solar, which require backup power sources to ensure grid stability. Aeroderivative gas turbines can provide such backup power, as they can integrate with renewable energy systems and respond quickly to fluctuations in power demand.

Europe has significantly contributed to increasing the aeroderivative gas turbine market size due to the high penetration of gas-fired power plants, the stringent environmental regulations, and the increasing integration of renewable energy sources in the region. The region is aiming to achieve carbon neutrality by 2050 and is implementing various policies and initiatives to reduce greenhouse gas emissions and increase the share of renewable energy sources in the power sector. Aeroderivative gas turbines can support this transition, as they offer low carbon emissions, high efficiency, and flexibility for power generation. Some of the leading players operating in the European aeroderivative gas turbine market are Siemens, General Electric, Rolls-Royce, and Ansaldo Energia.

Key Highlights of the Report