Turbo Generator Market Size, Share & Trends Analysis Report By Type (Gas Turbine Generator, Steam Turbine Generator, Water Turbine Generator), By Cooling System (Air-cooled, Water-cooled, Hydrogen-cooled), By End-Users (Coal Power Plants, Gas Power Plants, Nuclear Power Plants, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global turbo generator industry market size was valued at USD 10,620.10 million in 2022. It is projected to reach USD 14,411.30 million by 2031, growing at a CAGR of 3.45% during the forecast period (2023-2031). 

Turbine generators are machinery that converts mechanical energy—obtained from fuel combustion (such as coal, fossil fuels, diesel, gas, and others), water, wind, and other sources—into electrical energy. An internal combustion engine, an electric generator, a mechanical coupling, a voltage regulator, and a speed regulator are all included in a turbine generator. This generator is used in various end-use industries, including manufacturing, oil and gas, energy and electricity, and chemicals. The turbine generator market is expected to expand internationally due to the rising demand for electricity from various industries, including manufacturing, chemicals, pharmaceuticals, energy, construction, and others.

Highlights

• The gas turbine generator segment is the highest contributor to the market by type.
• The air-cooled segment owns the highest market by cooling system.
• The coal power plants segment is the highest contributor to the market by end-users.
• Asia-Pacific is the most significant revenue contributor by region.

Market Dynamics

Global turbo generator market drivers

Increased demand for a reliable and constant power supply

The market for turbo generators is expanding due to an increase in consistent and ongoing energy demands from growing nations like China, India, Japan, and Brazil. This is because when main grid power is absent, turbine generators are employed as a backup power source in standalone power-generating facilities. This helps maintain manufacturing and other processing processes in companies without production loss. There has been an increase in demand for turbo generators from industries including oil and gas, power generation, and others due to benefits like high dependability, high efficiency, and high control response.

Additionally, the need for turbo generators is driven by increased infrastructure projects, road development, and other construction activities in developing and developed economies. This demand will continue to expand over the following years. The COVID-19 pandemic outbreak, however, put an end to these operations, which in turn caused a decline in crude oil prices and a reduction in electricity demand, which resulted in the slow expansion of the turbo generator industry in the recent past and the years to come.

Rapid urbanization and industrialization

Due to decades of progress in product manufacturing processes, the turbo generator market is still expanding significantly. This can be linked to the quickening industrial and urbanization processes, which have increased the need for highly effective, cutting-edge, and large-capacity turbine generator sets to satisfy emission-related regulatory standards. Rapid industrialization increased the need for electricity, leading to more power plants being built to meet the demand. This aspect is anticipated to fuel the turbo generator market's expansion during the projected period.

Global turbo generator market restraint

Stricter government measures to combat environmental degradation

An important global market limitation is the alarming increase in air pollution from diesel generators, coal-based power plants, and other sources. Due to severe health and environmental issues, the market's expansion needs to be improved. Nitrogen oxides, carbon monoxide, hydrocarbons, and particulate matter are some of the air pollutants emitted from the energy, as mentioned above production. Asthma, lung cancer, heart disease, stroke, and other conditions are a few severe health effects these air pollutants have on people.

Global turbo generator market opportunities

Investment in rural and distant areas electricity

The electrification of remote and rural areas is a priority for growing economies like China, India, and Brazil. Urbanization and population growth are the main drivers of the need for electricity in these nations, which drives up the demand for turbo generators. With the aid of on-grid and off-grid solutions, Asia-Pacific nations, including Bhutan, Afghanistan, India, Nepal, and Cambodia, recorded the highest electrification growth rate over the previous five years.

Rural electrification will aid in accelerating the expansion of rural areas in terms of economy, production, and other factors. This encourages the development of small businesses, generating employment opportunities for young people and reducing their desire to move to urban regions. Additionally, biomass made from forest wood and renewable energy sources like solar or wind has enormous potential for generating electricity in rural and distant places. This power generation, also known as solar thermal power generation, is anticipated to present an opportunity in the market for turbo generators on a global scale.

Regional Analysis

The global turbo generator market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-pacific dominates the global market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 3.40% during the forecast period. The demand for reliable and uninterrupted power from various end users, including residential, commercial, and industrial, is anticipated to increase in the Asia-Pacific region and fuel the growth of the turbo generator market. Additionally, it is projected that the turbo generator market will expand throughout the forecast period due to constant expansion in coal-based power generation, which will help to boost the energy sector and, in turn, the economy. In the following years, the rapid rise of the construction and building infrastructure in developing nations like India, China, and Japan during the past ten years is expected to fuel the need for energy.

Europe is expected to grow at a CAGR of 3.20% during the forecast period. The region's rapid industrialization and expansion of gas-fired power generation are anticipated to fuel market growth for turbine generators. The switch from coal-fired to gas-fired power plants has also increased demand for gas turbine generators, which has fueled market expansion in the European region. In 2019, Germany held the largest market share for turbo generators, followed by France and the U.K. This is due to Germany's dominance in the European region's automobile and crude oil refinery industries, among other sectors.

In North America, the U.S. dominates both turbo generator production and consumption. Canada and Mexico are other nations in the region with enormous potential for turbo generators. The main driver predicted to propel the growth of the turbo generator market during the forecast period is the rise in demand for turbo generators from several industrial sectors, including construction sites, manufacturing and operations, mining, and others. Additionally, the population and power consumption growth in the North American region has led to a rise in the demand for turbine generators, which will further fuel market expansion in the area for the forecast period.

LAMEA is one of the critical regions capturing the most significant percentage of market share in the turbo generator industry because of the fast expansion of oil and gas, building and construction, and other industries. Brazil, Saudi Arabia, and South Africa are three of the biggest economies in LAMEA that are involved in the turbogenerator business. In this region, there is an increase in demand for consistent and reliable electricity from industries including I.T., data centers, hospitals, industry and infrastructure, and other power consumers. Construction activity has increased across Latin America, the Middle East, and Africa due to the rising population and rapid urbanization.

Segmental Analysis

The global turbo generator market is segmented by type, cooling system, and end-user.

Based on type, the global turbo generator market is bifurcated into gas turbine generators, steam turbine generators, and water turbine generators.

The gas turbine generator segment is the highest contributor to the market and is estimated to exhibit a CAGR of 3.30% during the forecast period. The need for turbo generators is anticipated to develop due to increased demand for gas turbine generators for electricity generation from various industries, including oil and gas, power, big industry, and others over the forecast period. Additionally, manufacturers are paying more attention to research and development for gas turbine generators due to growing environmental concerns, which will fuel market expansion in the future. Furthermore, the market is expected to rise faster during the studied timeframe due to the increase in the switch from coal to gas power plants, which has increased demand for gas turbine generators.

The gadget that uses steam turbines to generate electricity converts steam's thermal energy. The generator and turbine have a direct coupling. In addition to solar thermal electric power plants, geothermal, gas, coal, and nuclear facilities all use steam turbine generators. Steam turbine generators are also used in other industries, such as sugar, steel, paper, and chemicals. Coal, oil, biomass, natural gas, and wood are just a few fuel steam turbine generators can run on. There are 500 kW to 1,500 MW worth of steam turbine generators.

Potential energy is converted into electricity using a type of generator called a water turbine generator. This enormous source of energy is one of many. The two primary varieties of water turbine generators are the response and impulse hydro turbines. Hydroelectric power is a significant factor in the expansion of the electric power sector. The market for water turbine generators is anticipated to rise over the forecast period due to increased demand for power produced by renewable energy sources like solar, wind, hydro, and tidal. Global hydropower installed capacity reached 1,308.0 GW in 2019 and generated 4,306.0 terawatt hours (TWh) of electricity, according to a study on hydropower by the International Hydropower Association (IHA).

Based on the cooling system, the global turbo generator market is bifurcated into air-cooled, water-cooled, and hydrogen-cooled.

The air-cooled segment owns the highest market and is estimated to grow at a CAGR of 3.60% during the forecast period. Turbine generators that are used continuously cause various parts to heat up. Therefore, air-cooled systems are more necessary due to the need for cooling systems to lessen or remove heat generated within them. As the name implies, air-cooled turbo generators use forced or ambient air to keep the generators from overheating. The air intake system is the sole additional component in the generating system used by an air-cooled turbo generator. These systems might be fully enclosed or open to the air. Numerous industries use air-cooled turbo generators, including agriculture, the military, construction, and primary power sources. Turbo generators' air-cooling systems are straightforward, hygienic, and simple to maintain.

Turbine generators generate a lot of heat when they are running continuously. This may cause serious harm to generators. The interior of the turbo generator must be kept consistently cool to avoid damage caused by the heat produced. Generators use the water-cooling system with a rating of more than 450 MW. For this kind of turbine generator, water-cooled cooling systems are employed. Additional components like a water pump and radiator are used in this cooling system. These turbine generators cost more than air-cooled turbine generator systems, but they are also more robust and long-lasting.

An increase in the utility-scale generators' use of hydrogen cooling systems to cool the windings is anticipated to propel the market for hydrogen-cooled turbo generators over the forecast period. Additionally, quick urbanization and industrialization increased electricity demand, which sparked the construction of additional power plants. Thus, there is an increase in demand for turbo generators with hydrogen cooling systems with the installation of new high-capacity power plants, which would further expand the turbo generator market in the following years.

Based on end-user, the global turbo generator market is bifurcated into coal power plants, gas power plants, nuclear power plants, and others.

The coal power plants segment is the highest contributor to the market and is estimated to exhibit a CAGR of 3.35% during the forecast period. Steam turbo generators are used in coal-based power plants to generate electricity. The International Energy Agency (IEA) estimates that coal accounts for more than 40% of carbon dioxide emissions and nearly 35% of energy generation. An increase in energy demand from both developing and developed economies is anticipated to fuel the expansion of coal-based power production, which will fuel the growth of the turbo generator market. 

Gas turbine power plants provide many benefits, including ease of construction, compact size, lower capital and operating costs, etc. The need for gas-fired power generation is anticipated to rise due to the factors above, which will propel the market for gas turbine generators during the forecast period. The ongoing expansion in the U.S. and Europe has led to a 3% increase in gas-fired power generation in 2019, according to the International Energy Agency (IEA). As a result, the need for gas turbine generators rises along with the growth of a gas-powered generation, which fuels the expansion of the turbo generator market during the projection period.

Nuclear power stations are where electricity is produced using the nuclear fission method. The nuclear fission process also uses heat to transform water into steam. The steam produced aids in the spinning of the generator and turbine. The leading nuclear power-producing nations worldwide in 2019 were the United States, France, China, Russia, and South Korea. The nuclear power industry's turbo generator market is expected to develop due to the increased acceptability of nuclear power generation over depleting fossil-fuel-based power generation. The expansion of the turbo generator market is predicted to be fueled by the surge in demand for steam turbine generators from the recently completed nuclear power plants.

Hydropower, wind turbine, solar thermal, and other power plants are also included in the analysis of the turbo generator market. Hydroelectric power plants harness the potential energy of water and transform it into usable electricity. Wind energy and wind turbine generators are used to create electricity. For maximum efficiency, wind turbine generators should be placed in windy regions. Solar thermal power plants utilize the energy from the sun to heat water to a high temperature, which is then used to turn the water into superheated steam and, ultimately, electricity through a turbine generator.

Recent Developments

• September 2022- A memorandum of understanding for the combined production of high-power, high-voltage turbogenerators was signed by Hindustan Aeronautics Ltd and Honeywell, both of whom are based in North Carolina. Turbogenerator by Honeywell "By signing an MoU (Memorandum of Understanding), the parties agree to create a business plan detailing the market potential, financial commitment, expected returns, and partnership structure. After determining the sustainability of the business concept, we will engage in contract agreements, "said R. Madhavan, former Hindustan Aeronautics chairman and managing director.
• June 2022- Rolls-Royce announced the creation of a tiny engine with a hybrid electric system and turbogenerator technology for greater efficiency.