Strategies realigned for growth in clean power generation

Brand, pricing, technical performance, and local servicing capabilities are key competitive factors.

Frost & Sullivan Industry Analyst Manoj Shankar said: “With greater uptake, gas turbine manufacturers are focussing on modular designs with faster delivery times.”

Shankar added: “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 GenerationGrowth 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.

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% of the global market.

Of the top five, GE, Siemens, and Mitsubishi Hitachi Power Systems are 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% 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.”