HIGH SPEED ENGINE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2023 - 2030)

The High Speed Engine Market size is expected to reach US$ 32.26 billion by 2030, from US$ 19.83 billion in 2023, at a CAGR of 7.2%during the forecast period. High speed engines are advanced turbomachinery systems with power ratings above 500 kW and operating speeds above 1000 rpm. They find extensive applications across aviation, marine, oil & gas, power generation and various industrial sectors. The key drivers fueling the growth include rising power demands, growth in gas exploration activities and increasing focus on distributed power generation.

The High Speed Engine Market is segmented by engine type, end-use industry, power rating, speed and region. By engine type, the gas turbine segment accounted for the largest share of over 40% in 2022. Gas turbines are lightweight and compact power systems finding widespread adoption for power generation and in the aviation and marine sectors. The increasing use of gas turbines for combined cycle power plants and growing LNG trade worldwide is driving growth of this segment.

High Speed Engine Market Regional Insights:

• North America is expected to be the largest market for High Speed Engine Market during the forecast period, accounting for over 41% of the market share in 2022. The growth of the market in North America is attributed to the high adoption of gas turbines for peak power generation and presence of leading manufacturers like GE, Siemens, Solar Turbines, etc.
• The Asia Pacific market is expected to be the second-largest market for High Speed Engine Market, accounting for over 22% of the market share in 2022. The growth of the market in is attributed to the rising power demands and increasing gas exploration activities in countries like China, India, Indonesia, etc.

• The Middle East & Africa market is expected to be the fastest-growing market for High Speed Engine Market, with a CAGR of over 9% during the forecast period. The growth of the market in Middle East & Africa is attributed to the increasing investments in the oil & gas sector and rising power generation capacities.

Figure 1. Global High Speed Engine Market Share (%), by Region, 2023

High Speed Engine Market Drivers:

• Increasing adoption of gas turbines for power generation: The growing adoption of gas turbines for power generation around the world is a key factor driving the growth of the high speed engine market. Gas turbines offer benefits like operational flexibility, high power output, low emissions and ability to use different fuels. They are increasingly being used in combined cycle power plants owing to their high electrical efficiency of over 60%. For instance, in June 2022, GE announced that Toshiba Energy Systems & Solutions Corporation selected its 7HA gas turbines to add over 1.4 GW capacity to the Omuta Power Station in Japan. Such installations will create significant demand for heavy duty gas turbines.
• Rising exploration activities and investments in oil & gas sector: The increasing investments in the exploration of new oil and gas reserves along with shale gas production are contributing to the growing deployment of high speed engines. Gas turbines are extensively used to power compressors and pumps in upstream, midstream and downstream oil & gas operations. According to the IEA, global oil & gas upstream investment is set to rise by around 10% in 2022, led by increases in North America shale as well as higher spending on offshore projects. This is driving the adoption of efficient and flexible turbine systems.
• Advancements in turbine cooling technologies: The enhancements in turbine blade cooling technologies are leading to improved efficiency and performance of high speed engines. Effective cooling protects turbine components from high temperatures and allows higher firing temperatures. For instance, GE’s Advanced Turbine Cooling system circulates air through internal cooling circuits in turbine blades. Such innovations are enabling high speed engines to operate at higher powers and efficiencies.
• Growth in marine sector: The steady growth of international seaborne trade and rising vessel construction activities are fueling the demand for high power marine turbines. According to UNCTAD estimates, the operation of the world’s merchant fleet is expected to expand at a CAGR of 3.4% over 2021–2026. High speed marine engines are used in marine propulsion systems as they offer benefits like compact size, fuel flexibility and lower emissions. This is driving their adoption in naval vessels, cargo ships and passenger liners.

High Speed Engine Market Opportunities:  

• Integration of renewable fuels: The integration of renewable fuels like green hydrogen and sustainable biofuels in high speed engines presents significant opportunities. With increasing focus on decarbonization across industries, major manufacturers are developing hydrogen-capable turbines that can transition from natural gas to clean hydrogen. In March 2021, MAN Energy Solutions announced the successful testing of hydrogen combustion in its MGT6400 gas turbine. The ability to leverage green fuels will increase sustainability and favorably impact the high speed engine market outlook.
• Technology enhancements through digitalization: The increasing utilization of industrial internet of things (IIoT), artificial intelligence, 3D printing and other digital technologies is creating opportunities for performance enhancements in high speed engines. Predictive maintenance enabled by AI improves reliability while 3D printed components with complex geometries increase efficiency. Siemens Energy’s HL-class gas turbines leverage digital analytics to optimize efficiency. Ongoing digitalization and automation will enable turbine manufacturers to achieve faster product development and customization.
• Renewable energy integration: The integration of high speed engines with renewable energy technologies such as wind, solar, hydropower etc. to develop hybrid renewable power systems represents a major opportunity. High speed engines can provide continuous and flexible power generation to complement renewable energy’s intermittent nature. For instance, GE’s Integrated Hydropower-Solar solution combines hydropower plant modernization with solar PV and battery storage. Turbines also find use in distributed power generation with renewables.
• Deployment of micro turbines: The emerging application of micro turbines with power ratings below 500 kW offers promising growth prospects. Their compact size and scalability make micro turbines suitable for distributed electricity generation. Key players such as Capstone, Toyota and Ansaldo are coming up with product offerings in this niche segment for use in small-scale CHP plants, remote power systems, and mechanical drives. With energy access still being a challenge in some areas, micro turbine systems will see wider adoption.

High Speed Engine Market Trends:

• Development of turbine systems for hydrogen: The rapid development of high-hydrogen and 100% hydrogen fueled turbines is an important trend. Leading companies like Siemens Energy, GE and Mitsubishi Power are extensively working on designing turbine systems capable of combusting hydrogen blended fuels and pure hydrogen. This is driven by the increasing global focus on hydrogen economy. In 2021, Mitsubishi Power achieved a hydrogen blending ratio of 30% in gas turbines. The ability to leverage green hydrogen will be a key trend.
• Rising deployment of aero-derivative gas turbines: The growing utilization of aero-derivative gas turbines designed from aircraft engines is a major trend. They provide benefits like light weight, smaller size, lower emissions and flexible operation. These systems find wide applications in power generation, mechanical drives and oil & gas industry. Key companies in this space include GE, Siemens, Kawasaki Heavy Industries, etc.
• Advancements in turbine coatings: Continual improvements in thermal barrier coatings (TBCs) and environment-resistant coatings used in high speed engines to enhance durability, efficiency and performance is a key trend. For instance, Chromalloy’s Engineered Coatings help prevent oxidation and corrosion in turbine components. Meanwhile, developments in TBCs focus on properties like high-temperature stability. Such coating advancements will push the operational boundaries of turbine systems.
• Growing repair, maintenance and retrofitting: The rising repair, maintenance, refurbishment and upgrading activities pertaining to industrial gas turbines is a noticeable trend. Owners are focused on enhancing the efficiency, output and lifespan of aging assets. For instance, Ansaldo Energia provides upgrade solutions to improve GT performance by 6% to 10%. Major players have service infrastructure to offer spare parts, repairs and modernization along with new turbine sales.

High Speed Engine Market Restraints:

• High capital and operating costs: The high capital expenditure required for procuring high capacity gas turbines coupled with significant operating costs related to maintenance and fuel act as challenges. The huge investment needed for setting up a gas turbine power plant delays new builds. Additionally, skilled personnel are required to perform complex maintenance. These factors related to cost and workforce restrain adoption among smaller end-users.
• Evolving emission regulations: The imposition of strict emission-related regulations on engine exhausts like NOx, SOx, CO2 to improve air quality poses challenges. Manufacturers have to carry out design changes to reduce emissions and test compliance. This increases lead times and affects mass production. Although emission control technologies exist, constantly evolving regulations worldwide increase compliance costs for players.
• Supply chain disruptions: The COVID-19 pandemic exposed vulnerabilities of global supply chains and logistical barriers are still persisting. With high speed engines being heavy equipment, transportation poses problems. Localized lockdowns and port congestions lead to production delays. The Russia-Ukraine conflict has also constrained raw material supplies. Such supply chain uncertainties restrain production volumes to some extent.

Recent Developments:

New product launches:

• In March 2022, GE announced the launch of its 7HA.03 gas turbine, which delivers 64% efficiency in combined cycle power plants. The new turbine offers improved flexibility, reliability, and lower emissions for power generators.
• In January 2021, Ansaldo Energia introduced its new AE94.3A gas turbine, offering power outputs up to 571 MW and electrical efficiency levels exceeding 64%. It is well-suited for natural gas and hydrogen flexibility.

• In June 2020, Siemens Energy launched the SGT-800 industrial gas turbine, featuring a simplified design and improved efficiency up to 39%. It aims to meet the needs for flexible power generation.

Acquisition and partnerships:

• In October 2022, Wärtsilä partnered with ExxonMobil to develop lower-emission technologies for the marine sector including advanced combustion technologies.
• In December 2021, Rolls-Royce acquired Siemens' eAircraft business to strengthen its position in the emerging market for electrically powered and hybrid-electric aerospace propulsion systems.

• In March 2021, Mitsubishi Heavy Industries announced the acquisition of Siemens Energy's stake in Mitsubishi-Hitachi Power Systems to become its sole owner. This aims to expand its presence in power generation systems.

Figure 2. Global High Speed Engine Market Share (%), by Engine Type, 2023

Top companies in High Speed Engine Market:

• GE
• Siemens
• Rolls-Royce
• Kawasaki Heavy Industries
• MAN Energy Solutions
• Wartsila
• Mitsubishi Heavy Industries
• Harbin Turbine Company
• Solar Turbines
• Ansaldo Energia

*Definition: High speed engines refer to advanced turbomachinery systems such as gas turbines, steam turbines, hydraulic turbines, and reciprocating engines that operate at high rotational speeds of over 1000 rpm and power ratings above 500 kW. They are used across power generation, oil & gas exploration, aviation, marine, and various industrial applications for mechanical drives. High speed engines offer benefits such as high power density, fuel efficiency, operational flexibility and reduced emissions. Key players in this market manufacture industrial gas turbines, aero-derivative gas turbines, marine turbines and steam turbines used in electricity generation, marine propulsion, gas compression and for powering large pumps and compressors in various facilities.

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