Global Steam Turbine Market Grows at a CAGR of 2.9%

Introduction

Fundamentally, steam turbines work in tandem with gas turbines to improve plant efficiency by generating additional power from the heat contained in exhaust gases. The market revenue share of steam turbines will increase due to strict emission regulations to reduce GHG emissions and fall natural gas prices. The government's ongoing initiatives to support domestic manufacturing will also boost the sector's potential during the forecast period. These initiatives are consistent with the prospects for long-term political stability. Over the course of the forecast period, these factors will significantly aid the market's growth. A key element in improving the steam turbine's thermodynamic efficiency is the use of numerous stages in the expansion of the steam, which leads to an early iteration of the potential response expansion process. Because it produces rotating motion, the turbine is especially well suited to power an electrical generator. Many nations want to convert their coal-fired plants to gas-fired ones because renewable energy sources cannot continuously supply energy. This could result in more modest steam turbines since gas-fired plants could replace coal-fired plants. The development of steam turbines has improved the efficiency of natural gas-fired combined-cycle plants. As a result, interest in power-age steam turbines is anticipated during the forecast period.

Market Dynamics

Rise In the Demand for Power

The demand for steam turbines is anticipated to rise along with the power demand. Steam-electric power plants produce the vast majority of the world's electricity. As the world's population rises, the electricity demand is expected to skyrocket. This is expected to lead to an increase in the demand for steam turbines. On the other hand, the global market for steam turbines still hasn't reached its full potential. Rapid industrialization and rising electricity demand, particularly in developing economies, will also support industry growth. Rising electricity consumption and increasing thermal power capacities hasten market expansion. Along with the steadily increasing electricity consumption, thermal capacity additions are increasing annually. Another factor boosting demand for steam turbines is the growth of the renewable energy sector, particularly in the biomass sector. The demand for steam turbines for power generation has increased due to frequent power outages, blackouts, and load shedding. The steam turbine for the power generation market is expected to grow as combined cycle and co-generation activities increase globally.

The Rise in Government Policies

Numerous government policies support the greener energy initiative. Many multinational corporations are working to reduce their carbon footprint to promote sustainability and a greener world. For instance, Equinor (Norway) wants to cut its carbon emissions in half by 2050. One aspect of the strategy is an expansion of its renewable energy businesses, particularly steam turbines, which could reach 6,000 megawatts in six years and 16,000 megawatts in fifteen. As a result of the expansion of various government policies and regulations related to greener energy initiatives and the reduction of carbon footprint, the market is now presented with several opportunities.

Regional Analysis

Asia Pacific is the most significant contributor to the global steam turbine market and is anticipated to grow at a CAGR of 2.4% during the forecast period. Throughout the forecast period, it is anticipated that the Asia Pacific region will maintain its lead in terms of both volume and value due to the large number of fossil and biomass power plants being built in nations like Indonesia, South Korea, Bangladesh, Thailand, and Japan, which will support the market's expansion. Power demand in the area is increasing due to the expanding population and quick industrialization. According to the India Brand Equity Foundation, India has the world's fifth-largest capacity for power generation. The country's electricity demand is anticipated to have tripled by 2040 when India's electricity production will have reached 1,201.543 billion units (BU).

North America is expected to grow at a CAGR of 3.5% during the forecast period. Steam turbines are frequently used in CHP applications in the United States. In contrast to gas turbines and reciprocating engine CHP systems, which produce heat as a byproduct of the power generation process, steam turbine-based generators typically produce electricity as a byproduct of heat (steam) generation. Steam turbines use various heat sources, so they do not convert fuel into electricity. High-pressure steam transfers energy from boilers to turbines, which also power generators. It is anticipated that growth in the manufacturing industry and a rise in the integration of combined cycle technologies for captive power generation will be the primary factors driving the demand for steam turbines in North America.

Key Highlights

• The global steam turbine market was valued at USD 22.3 billion in 2022. It is projected to reach USD 28.8 billion by 2031, growing at a CAGR of 2.9 % during the forecast period (2023-2031).
• Based on the design, the global steam turbine market is bifurcated into reaction and impulse. The impulse segment is the highest contributor to the market and is expected to grow at a CAGR of 3.1% during the forecast period.
• Based on type, the global steam turbine market is bifurcated into condensing and non-condensing. The condensing segment is the highest contributor to the market and is expected to grow at a CAGR of 2.86% during the forecast period.
• Based on application, the global steam turbine market is bifurcated into power generation, petrochemical, oil and gas, and others. The power generation segment owns the highest market share and is expected to grow at a CAGR of 2.7% during the forecast period.
• Asia Pacific is the most significant contributor to the global steam turbine market and is expected to grow at a CAGR of 2.4% during the forecast period.

Competitive Players

Competitive Players

The global steam turbine market’s major key players are GEA, U Siemens, MANA, Toshiba, Mitsubishi Hitachi Power Systems, Eliott Group, Bharat Heavy Electricals Limited, Harbin Turbine, Kawasaki Heavy Industries, TurboTech, General Electric, Mitsui, Man Diesel & Turbo, Ansaldo Energia, Fuji Electric, and Doosan Skoda Power and Dongfang.

Recent Developments

Market News

• In October 2022, Carbon neutrality, or the reduction of greenhouse gases to zero, has become a popular concept in Europe and other parts of the world due to efforts to combat the global problem of climate change.

• In June 2022, GE Steam Power will supply three nuclear steam turbines under a USD 165 million agreement with state-run engineering company BHEL. To supply three of the six nuclear steam turbines for NPCIL's domestic nuclear program-phase 1, developed at Gorakhpur, Haryana, and Kaiga, Karnataka, GE Steam Power has signed a USD 165 million contract with BHEL.

Segmentation

Global Steam Turbine Market: Segmentation

By Component

• Software
• Service

By Deployment

• On-Premise
• Cloud

By Organization Size

• Large Enterprises
• SMEs

By Applications

• Sales and Marketing Analytics
• Supply Chain Operations Management
• Merchandising Analytics
• Customer Analytics
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA