U.S. Gas Turbine Market Size, Share and COVID-19 Impact Analysis, By Capacity (1-2 MW, 2-5 MW, 5-7.5 MW, 7.5-10 MW, 10-15 MW, 15-20 MW, 20-30 MW, 30-40 MW, 40-100 MW, 100-150 MW, 150-300 MW, and 300+ MW), By Technology (Heavy Duty, Light Industrial, and Aero-Derivative), By Cycle Type (Simple Cycle and Combined Cycle), By Sector (Power Utilities, Oil & Gas, Manufacturing, and Aviation), and Country Forecast, 2023-2030

The U.S. gas turbine market was worth USD 5.10 billion in 2022 and is expected to grow at a CAGR of 4.56% over the forecast period.

A gas turbine is a combustion turbine, an internal and continuous combustion engine. It consists of a combustion chamber, an upstream rotating compressor, and a downstream turbine on the same shaft as the compressor. Another component called the turbofan engine is mainly used to increase performance and convert energy into electrical or mechanical form. These turbines are very efficient and replace traditional gas or oil-fired power plants with combined cycle power plants that use turbines that run primarily on natural gas.

The rapid technological advancements in the energy sector in the past few years have led to the creation and evolution of exceptional products, greatly enhancing the market for these engines. In addition, the market is witnessing a significant surge in demand for clean and efficient electricity generation technology. Consequently, these factors are poised to contribute to the market's growth shortly. Moreover, the increasing emphasis on carbon emission reduction and transitioning to cleaner and more sustainable energy sources has resulted in various initiatives, such as regulatory frameworks and tax incentives, thus, driving U.S. gas turbine market growth.

The COVID-19 pandemic became a global health threat, which impacted over 200 nations. The power sector was primarily affected by the pandemic and the lockdown implemented by various nations, which led to the harmful effects of the pandemic. Due to the blockade, there were no workers, supply chains were severely disrupted, some power plant projects observed challenges related to investment, and the demand for the product was reduced. In addition, governments shut international borders and imposed travel restrictions owing to the unavailability of machinery, power generation equipment, and the expertise needed to install the equipment, which delayed many projects.  Energy Information Administration’s (EIA) preliminary monthly generator inventory shows that total of 31 natural gas-fired turbines and combined cycle power plants were delayed due to COVID-19. The implementation of power plant projects is still slow.

U.S. Gas Turbine Market Trends

Growth of the Aviation Industry and Increase in Electricity Consumption

Electricity demand is growing globally, and governments are focusing strongly on reducing fossil fuel consumption as global emissions increase. The U.S. government is replacing coal-fired steam and combined cycle power plants with gas turbines. These turbines utilize natural gas as their primary fuel. Gas-powered electricity produces fewer greenhouse gases. Moreover, the aviation industry is growing rapidly worldwide, creating enormous opportunities for this market. Emerging economies are focusing on improving the aviation industry. Increased investment in the aviation sector is expected to create demand for the product, thus creating growth opportunities for the market.

U.S. Gas Turbine Market Growth Factors

Increasing Emphasis on Replacing Nuclear and Coal Turbines with Gas Turbines to Fuel the Market Growth

Large amounts of harmful gases are emitted by coal-burning power plants. Emissions of these gases contribute significantly to heating. Nuclear turbines also produce large amounts of toxic gases with long-term harmful environmental effects. The U.S. government aims to minimize greenhouse gas emissions and replace coal and nuclear turbines with the product. These turbines typically emit less toxic gases than coal-burning power plants, thus, leading to an increased demand for the product.

Significant coal generation capacity in the U.S. has been retired over the past decade, and a record 14.9 GW was retired from 2015 to 2020. Then, 11.5 GW was the average retirement rate in 2022, and that year, the coal plant operators retired on average 8.9 GW of coal-power plants, which is 4.5% of total coal-powered capacity.

Increasing Demand for Electricity Worldwide Impelling Market Growth

The U.S. is experiencing growing demand for efficient heat and electricity production over the past decade, and the power generation segment is witnessing growth.  Gas-fired power plants offer significant advantages in terms of efficiency and load management, which is one of the main concerns in coal-fired power plants. When natural gas is transported through a pipeline system, 92% is delivered as energy after transportation, with only 8% of the energy lost, making it more efficient than other power generation sources.

Various intelligent city projects have been implemented, further increasing the electricity demand. To meet the demand for electricity, the private and public sectors are bolstering the capacity of power plants by installing new or increasing capacity. These projects mainly install these turbines because they are more efficient and less toxic. Moreover, the U.S. accounts for a major share in the North America gas turbine market. Governments have also implemented strict emissions standards, encouraging companies to adopt the product on a large scale. Therefore, this factor is expected to boost the growth of the market in the coming years.

RESTRAINING FACTORS

Volatility in Natural Gas Prices May Hinder the Market Growth

In the current scenario, with the rapid shift toward the product and natural gas-fired power plants in search of cleaner methods of electricity production, the dependency on gas nature is increasing steadily. In addition, with low natural gas prices, the prospects of relying too heavily on natural gas for electricity production appear less unfavorable. However, due to historical trends in natural gas prices, overreliance on natural gas exposes consumers to high prices due to growing demand and rising crude oil prices. Utilities are the first to suffer the consequences of such increases in natural gas prices, followed by consumers who have to bear the brunt of high electricity prices. Such factors are anticipated to hinder market growth during the forecast period.

U.S. Gas Turbine Market Segmentation Analysis

By Capacity Analysis

On the basis of capacity, this market is classified into 7.5-10 MW, 1-2 MW, 40-100 MW, 2-5 MW, 5-7.5 MW, 10-15 MW, 15-20 MW, 20-30 MW, 300+ MW, 30-40 MW, 100-150 MW, and 150-300 MW.

The 150-300 MW segment dominated the market in 2022, since products with a capacity of 150-300 MW are mainly deployed in the power generation industry. The power generation industry focuses on reducing harmful emissions owing to awareness of environmental safety. The use of the product is increasing in these capacities; hence, this factor is expected to drive growth of the 150-300 MW segment.

Small-capacity industrial turbine segments 1-2 MW, 2-5 MW, 5-7.5 MW, 7.5-10 MW, 10-15 MW, and 15-20 MW are leading due to ready availability of gas sources. Small products, with capacities ranging from 1 to 2 MW or 2 to 5 MW, are helpful because they are modular and can operate on two fuel types. There is a huge preference for these turbines for combined heat and cogeneration plants. Such CHP plants are widely installed worldwide in residential, commercial, and industrial areas.

By Technology Analysis

Based on technology, the U.S. gas turbine market is segmented into light industrial, heavy duty, and aero-derivative.

The heavy duty segment accounted for the majority of the global market share in 2022. The number of manufacturing plants is increasing rapidly with the deployment of large-scale economic zones in developing countries. The expansion of captive power plants is accelerating worldwide due to growing electricity demand in the industrial sector. These power plants help meet electricity demand, which in turn is expected to boost the growth of the heavy duty segment.

The aero-derivative segment is expected to grow significantly during the forecast period. The high availability of highly mobile and flexible technologies is driving the growth of this segment. The aero-derivative products have diverse applications such as marine propulsion, energy generation, and district heating.

By Cycle Analysis

Based on cycle type, the U.S. gas turbine market is categorized into combined cycle and simple cycle.

The combined cycle segment is expected to capture this market's significant share by 2022. The growth is mainly due to the efficient use of waste heat, environmental friendliness, and operational efficiency. The demand for such turbines is increasing in power plants. Combined cycle power plants are built in stages. Firstly, simple cycle power plants are built, then gradually converted to combined cycle.

The single cycle segment is expected to witness growth in the market during the forecast period. Compared to combined cycle plants, these plants are cost-effective and are easy to build and maintain.

By Sector Analysis

On the basis sector, the market is segregated into oil & gas, manufacturing, power utilities, and aviation.

The power utilities segment is slated to hold the dominating position during the forecast period. Governments and companies are replacing traditional coal and steam turbines with gas turbines in many power plants. These turbines offer high electricity production efficiency compared to traditional power plants.

The aviation segment is expected to witness a significant CAGR during the forecast period since the use of this turbine in the aviation segment is growing rapidly. The industry is experiencing significant growth, and using such turbines in this field is more feasible for high-speed needs.

List of Key Companies in U.S. Gas Turbine Market

This market in U.S. is fragmented into large and medium-sized regional players, providing a wide range of products locally and nationally across the value chain. Many companies are actively operating in different countries to meet customers' specific needs. In terms of the competitive landscape, the market portrays the presence of recognized and emerging companies.

Moreover, Caterpillar Inc. dominated the U.S. market in 2022. It is one of the leaders in energy and gas products and services for the global industrial and power markets. The company provides solutions mainly for renewable, environmental, and thermal segments. The focus on the greater adoption of the product has allowed the company to streamline its products and operation service, thus significantly improving its sales and volume shipments.

LIST OF KEY COMPANIES PROFILED:

• GE (U.S.)


• Cummins Inc. (U.S.)


• Mitsubishi Power (Japan)


• Caterpillar (U.S.)


• Siemens (Germany)


• Solar Turbines (U.S.)


• Wärtsilä (Finland)


• Capstone Green Energy Corporation (U.S.)


• Vericor Power Systems LLC (U.S.)


• Kawasaki Heavy Electrical Limited (Japan)

KEY INDUSTRY DEVELOPMENTS:

• September 2023- Rolls-Royce developed a new gas turbine to power hybrid-electric flight and completed its first fuel burn. The engine is designed using new combustion technology to produce extremely low emissions, and this critical achievement confirms the efficiency of the compact, high-output turbine that will be integrated into the lightweight turbine generator system.


• August 2023- General Electric Company's GE unit, GE Vernova's Gas Power business, received two orders from its subsidiary East Asia Power Co., Ltd. of Royal Golden Eagle Group and Beijing International Energy Group Co., Ltd. to provide four units of gas turbine 6F.03. GE Vernova brings together the combined operations of GE Digital, Renewable Energy and GE.


• March 2023- GE launched its newest high-efficiency gas turbine, which consumes less natural gas and is to be deployed at the 435-megawatt Tallawarra Power Station in Sydney, Australia.

REPORT COVERAGE

The report provides a detailed analysis of the U.S. gas turbine market. It focuses on key aspects such as an overview of technological advancements, the prevalence of various players in the U.S., and pricing analysis. In addition, it includes an overview of the gas turbine scenario, the targets to be achieved in the U.S., the number of applications of the product in the U.S., new product launches, key industry developments such as mergers, partnerships, & acquisitions and the impact of COVID-19 on the market. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market over recent years.

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