APAC Gas Turbine Market

The APAC gas turbine market is accounted for to register a CAGR of 1.671% during the forecast period and is estimated to reach USD 14,503.82 million by 2035. Combined Heat and Power (CHP) is an energy technology that achieves high efficiencies by simultaneously generating electricity and thermal energy using various technologies and fuel sources. They offer a valuable opportunity to increase the efficiency of power plants by utilizing wasted heat from electricity generation. In traditional power plants, only around 40% of the fuel energy is effectively converted into electricity, while the remaining 60% is released as heat, often wasted through smokestacks or into bodies of water. In CHP plants, this rejected heat is captured and used to create steam, hot water, or chilled water, which can then be utilized for heating or cooling purposes in a network of surrounding buildings through a district energy system. By harnessing the thermal by-product of electricity production, CHP plants can achieve fuel efficiencies of 70% to 85% or even higher. Thus, gas turbines are well-suited for CHP Rating Capacities due to their ability to produce both electricity and high-quality heat, resulting in efficiency levels of 60-80%, compared to about 50% for conventional separate heat and power production. This increased efficiency translates into operational cost savings and makes gas turbines an attractive option for facilities seeking to maximize energy use.

Additionally, the environmental benefits of CHP systems further drive their adoption. By utilizing the heat that would otherwise be wasted, CHP systems significantly reduce greenhouse gas emissions and other pollutants. This aligns with the global push for stricter environmental regulations and sustainability goals, positioning gas turbines as a key technology for achieving these objectives. Additionally, CHP systems are versatile and scalable, catering to a range of Rating Capacities from large industrial plants to smaller commercial buildings. This flexibility opens up numerous market opportunities, including hospitals, universities, manufacturing facilities, and residential complexes, all of which can benefit from the reliable and efficient energy provided by gas turbines in CHP systems.

Furthermore, ongoing research and development efforts are focused on improving the efficiency and performance of gas turbines in CHP Rating Capacities. This includes the development of more efficient turbines, high power-to-heat ratio CHP systems, and the integration of gas turbines into micro grids and district energy systems. These advancements aim to enhance the overall effectiveness and flexibility of CHP systems, making them even more attractive for various Rating Capacities.

The demand for gas turbines in the market is driven by the increasing demand for reliable and efficient power generation solutions. As the global economy continues to expand, the need for consistent and dependable energy sources becomes more critical. Industries, businesses, and residential areas all require a stable supply of electricity to function effectively. Additionally, according to the data published by United Nations, the global population has more than tripled since the mid-twentieth century, growing from an estimated 2.5 billion in 1950 to 8.0 billion by mid-November 2022. This includes an increase of 1 billion people since 2010 and 2 billion since 1998. Over the next 30 years, the population is projected to rise by nearly 2 billion, reaching 9.7 billion by 2050, and could potentially peak at around 10.4 billion in the mid-2080s. This rise in population will result into increase in demand for electricity.

Gas turbines play a crucial role in meeting this demand, as they provide a reliable and efficient source of power generation. Moreover, according to the International Energy Administration, the global electricity demand is anticipated to witness faster growth over the next three years with an average annual growth rate of 3.4% by 2026. Thus, with growing demand is anticipated to drive the demand for reliable and efficient power generation solutions such as gas turbines over the forecast period. One of the significant advantages of gas turbines is their ability to generate power with high efficiency. Modern gas turbines achieve efficiency rates exceeding 60% in combined cycle operations, where both gas and steam turbines are used in tandem to produce electricity. This high efficiency translates into lower fuel consumption per unit of electricity generated, resulting in cost savings and reduced environmental impact. As fuel costs continue to fluctuate, the economic benefits of efficient power generation are becoming increasingly important to power producers and end-users alike.

Based on Country, the Gas Turbine market is segmented into China, India, Japan, South Korea, Australia, New Zealand, Rest of Asia Pacific.

 The China Gas Turbine market held the maximum market share and is also expected to account for the significant revenue share during the forecast period. China has emerged as a leading player in the APAC Gas Turbine Market due to its role as a global manufacturing hub. China is witnessing rapid growth in the gas turbine market, driven by increasing energy demand, urbanization, and industrialization. The shift from coal to natural gas is a key trend in the region, as governments seek to reduce air pollution and greenhouse gas emissions while ensuring energy security.

Many global, regional, and local vendors characterize the APAC Gas Turbine Market. The market is highly competitive, with all the players competing to gain market share. Intense competition, rapid advances in technology, frequent changes in government policies, and environmental regulations are key factors that confront market growth. The vendors compete based on cost, product quality, reliability, and government regulations. Vendors must provide cost-efficient, high-quality products to survive and succeed in an intensely competitive market.
The major players in the market — Siemens Energy, General Electric, Ansaldo Energia, IHI Corporation, Kawasaki Heavy Industries Ltd., Mitsubishi Heavy Industries, Ltd., Bharat Heavy Electricals Limited, Solar Turbines Incorporated, Rolls-Royce, Baker Hughes and Others strategic market developments and decisions to improve operational effectiveness.