STEAM TURBINE MARKET ANALYSIS

The global steam turbine market size was valued at US$ 16.27 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 2.2% from 2023 to 2030. The global steam turbine market is expected to grow at a rapid pace during the forecast period. It is expected to be driven by the growing need for electricity in emerging economies and the growing demand for small steam turbines in the petrochemical industry. The increasing focus on renewable energy technologies and government regulations to reduce carbon emissions will also contribute to the expansion of the steam turbine market.

Global Steam Turbine Market: Regional Insights

Based on geography, the global steam turbine market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Asia Pacific is predicted to lead the global steam turbine market during the forecast period, as it has a high population and is the world's manufacturing hub. The region is expected to benefit from increasing demand for electricity, which will spur government and private investments in power generation.

Europe is also expected to witness moderate growth in the steam turbine market during the forecast period, owing to the shift in focus from traditional energy sources towards renewables. This is expected to result in the expansion of power generation facilities using advanced technologies and new turbine designs.

Global Steam Turbine Market Drivers:

Growing demand for electricity to foster market growth

According to the United Nations, the global population was 7.8 billion in 2020. Of this, around 1 billion people are deprived of electricity. The global population is projected to reach 8.6 billion by 2030, thus leading to growing energy requirements. The global electricity demand is projected to experience an increase of nearly two-thirds of the current electricity demand during the forecast period. Moreover, growing awareness regarding sustainable energy sources has shifted the manufacturers focus toward large- scale use of natural gas as a fuel for generation of electricity.

Growing focus on efficient power generation technology to propel market growth

One of the primary advantages of a steam turbine is that it is a reliable source of mechanical power. Steam turbines are often used to power equipment for extended periods of time. They also produce a large amount of energy with very little operating costs. This is because the work produced by a steam turbine is dependent on the speed of the turbine's rotor. Other advantages of a steam turbine include high efficiency, which can reduce operational costs and emissions. These factors are particularly relevant in a context where heat source prices are increasing, and where there is a growing focus on sustainability.

Global Steam Turbine Market Opportunities:

Increasing number of natural gas combined cycle plants and thermal coal power plants are expected to provide significant growth opportunities. This is influenced by the increasing demand for electricity in emerging economies and the growing demand of small steam turbines in the petrochemical and oil and gas industries. These two industries are a primary end-user of steam turbines, and the growth of these sectors will provide substantial revenue opportunities for market players.

Growing awareness regarding the advantages of steam turbine is predicated to offer significant growth opportunities. The primary advantage of a steam turbine over a gas turbine is the ability to generate electricity. Steam turbines normally operate with a boiler as the source of heat for steam generation, which allows them to use an array of fuels, including natural gas, coal and biomass such as sugar cane bagasse or rice hulls. This also allows them to be combined with a generating plant to form a complete CHP system, or Combined Heat and Power system, which is the most efficient type of power generation system in terms of energy production.

Global Steam Turbine Market Trends:

Growing popularity of combined cycle

Combined cycle is one of the most popular power plant in the global steam turbine market. This segment will be the most profitable over the forecast period, as it is primarily used in natural gas-fired power plants to generate more electricity. These plants utilize exhaust steam from the turbines to generate more electricity, which is then returned to the boiler to be used again in the steam cycle.

Increasing use of natural gas-fired power plants is a recent trend

Increasing use of natural gas-fired power plants, which are seen as environmentally friendly are expected to positively shape the market growth. Moreover, ongoing industrial revolution and expanding manufacturing industries will again propel the market growth. This trend will lead to an increase in the need for steam-electric power generation equipment, and this will fuel the market growth over the forecast period.

Global Steam Turbine Market Restraints:

Strict environmental regulation to curtail market growth

Regulatory and policy restrictions on fossil-fuel fired power plants are projected to restrain the growth of the steam turbine market during the forecast period. These measures aim to reduce carbon emissions and increase use of cleaner fuels such as natural gas and renewable energy. Nevertheless, the growing popularity of coal-fired power plants is likely to support the steam turbine market in the near future.

High installation costs to hamper market growth    

High installation cost is another challenge for the market growth. These high costs include the foundation, grid connection, control systems, land, road development, and electrical installation. These costs vary between regions and technologies, making it difficult for companies to develop the market. Despite these challenges, the steam turbine market is projected to expand at an impressive rate during the forecast period due to increase in the need for steam turbines in the renewable energy industry and the rise in government initiatives for clean and efficient energy.            

Figure 1. Global Steam Turbine Market, By Capacity, 2022

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Global Steam Turbine Market Segmentation:

The global steam turbine market report is segmented into Capacity, End Use, and Region

Based on Capacity, the market is segmented into Up to 150 MW and 151 MW to 300 MW. Out of which, Up to 150 MW is expected to dominate the global market over the forecast period and this is attributed to the growing demand for industrial CHP units

151 MW to 300 MW segment is also expected to witness significant growth in the near future and this is owing to the growing demand from captive power plants, combined heat and power, biomass fired plants, and others. The 151 MW to 300 MW segment was estimated at revenue US$ 2,220.6 million in 2020 and is expected to grow at a CAGR of 4.2% over the forecast period.

Based on End Use, the market is segmented into Power & Utility and Industrial. Out of which, Power & Utility is expected to dominate the global market over the forecast period and this is attributed to the closure of various old coal-fired power plants globally which is projected to create demand for new fossil fuel-based power plants.

Industrial segment is also expected to witness significant growth in the near future and this is owing to the growing industrial activities worldwide. Steam turbines are widely used in industrial applications in the form of CHP units.

Figure 2. Global Steam Turbine Market, By End Use, 2022

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Global Steam Turbine Market: Key Developments

In June 2022, GE Steam Power announced that it has signed a US$ 165 million contract with BHEL for the supply of three nuclear steam turbines out of six units for NPCIL's domestic nuclear program- phase 1 being developed at Gorakhpur, Haryana (units - 1 to 4 (GHAVP)) and Kaiga (Kaiga-5&6) Karnataka

In February 2019, Toshiba wins order to supply steam turbine and generator for Montgomery County Power Station in the USA

Global Steam Turbine Market: Key Companies Insights

The global steam turbine market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global steam turbine market are General Electric (GE), Siemens Energy, Mitsubishi Power, Ltd., Toshiba Corporation, Doosan Škoda Power, Ansaldo Energia S.p.A., Bharat Heavy Electricals Limited (BHEL), and Fuji Electric Co., Ltd.

*Definition: Steam turbines are power-generating machines that use heat energy to generate electricity. They are used in thermal power plants and combined cycle systems. They can operate on a variety of fuels, including coal, geothermal, atomic, and flammable gas. They are also commonly applicable in the renewable energy sector, such as solar electric power plants, biomass-based independent power plants, waste-to-energy plants, and seawater desalination power plants.