Expanding Gas Turbine Market Forecasted to Reach USD 27.9 Billion by 2030

In the dynamic landscape of the global energy sector, gas turbines are playing a pivotal role in the transition towards cleaner and more efficient energy solutions.

Mitsubishi Heavy Industries (MHI) reported an impressive annual revenue of approximately JPY 4.2 trillion in 2023, with a substantial portion attributed to its energy systems division. This division, specialising in gas turbines, is at the forefront of this transition.

Gas turbines are the backbone of combined cycle power plants, which utilise both gas and steam turbines to generate electricity. These plants, with their thermal efficiencies reaching up to 64% during base-load operation, are making a significant impact on reducing fuel consumption and emissions.

The global transition towards clean energy has spurred the adoption of hydrogen as a fuel for gas turbines. This shift is highlighted by recent multi-billion-dollar deals secured by General Electric and Siemens Energy to develop gas turbines compatible with hydrogen, a move that emphasises a strong focus on decarbonization.

Research indicates that blending natural gas with up to 30% hydrogen reduces CO2 emissions significantly. Plans are underway to achieve 100% hydrogen compatibility in the coming decade for gas turbines, a development that could revolutionise the industry.

The Asia-Pacific region, with its growing energy demands, has heavily invested in combined cycle power plants to transition towards cleaner energy sources. In 2023, the region captured a 38.2% share of the global gas turbine market, with a market valuation of approximately USD 7.0 billion.

China, in particular, has been an active player in this transition, with significant market traction achieved by Siemens Energy's high-efficiency gas turbines designed for power generation and industrial applications in 2023.

The power and utilities sector holds the largest share in the market at 48.3%, with the "Above 300 MW" segment being the largest capacity segment. Combined cycle technology dominates the market with an 87.4% share.

Advanced sensors and AI-based analytics are now being integrated into gas turbines to monitor performance, predict failures, and optimise operations. This technology, along with predictive maintenance, can reduce downtime by 20-30% while lowering operational costs.

Aeroderivative gas turbines, adapted from jet engines, are gaining traction due to their smaller size, lightweight design, and enhanced flexibility. These turbines are ideal for decentralized power generation and industrial uses, with thermal efficiencies exceeding 40%.

In the marine sector, gas turbines are increasingly being adopted for propulsion in military vessels and high-speed ferries. Their high power-to-weight ratio and ability to operate on liquefied natural gas (LNG) make them a cleaner alternative to traditional diesel engines.

Moreover, gas turbines are used to provide "peaking power" during periods of high demand in electricity grids. Their ability to start quickly (within 10 minutes) and operate flexibly makes them essential for stabilising power supply, particularly during periods of variable renewable energy supply.

In the industrial sector, gas turbines are widely used in combined heat and power (CHP) systems, simultaneously generating electricity and useful heat, achieving overall efficiencies of up to 85%.

The global gas turbine market is projected to exceed 90,300 MW of installations by 2034. Key players in the market include General Electric, Siemens Energy, Mitsui Power, Ansaldo Energia, and Opra Turbines, among others.

The U.S. Department of Energy announced $100 million in funding for research on high-efficiency turbines to support the energy transition, further emphasising the importance of gas turbines in the global energy landscape.

One niche player in the market is Opra Turbines, specialising in high-efficiency, small-scale gas turbines, typically used in industrial and commercial applications.

Meanwhile, Wärtsilä's energy business generated approximately EUR 5.8 billion in 2023, with gas-based systems being a core contributor. Japan and South Korea are also actively incorporating advanced gas turbine technologies to enhance energy efficiency and reduce carbon emissions.

In conclusion, gas turbines are playing a crucial role in the global energy transition, offering increased efficiency, reduced emissions, and the flexibility needed to balance traditional and renewable energy sources. As the world moves towards a cleaner and more sustainable future, the importance of this technology is set to grow.