U.S. gas turbine sales to bounce back by 2020
Despite the uncertainty surrounding the country’s regulatory scenario and the overcapacity of some Combined Cycle Gas Turbine (CCGT) plants, the US is expected to remain the largest market for gas turbines in 2020, says the latest report from research and consulting firm GlobalData.
The company’s latest publication anticipates US gas turbine revenue to plummet in the near future, from $1.4 billion in 2012 to $231m in 2018. However, a large-scale decommissioning of coal burning power plants will drive the need for more environment-friendly gas-fired alternatives and push the US market value back up to $852m in 2020, forecasts GlobalData.
China’s gas turbine industry, however, can expect to demonstrate a much steadier rate of growth until the end of the decade, with revenue climbing from last year’s total of $456m to $842m in 2020.
Market revenue gains within China will be spurred on by the nation’s rising electricity demand and the continued implementation of a fuel diversification strategy aimed at reducing a burdensome dependence on coal.
Until 2004, there was virtually no gas-fired power generation in China, but with several long distance pipelines that came online between 2010 and 2011, and a number of new pipelines and Liquefied Natural Gas (LNG) import terminals currently either at planning or construction stages, the country’s gas turbine sector looks set to exhibit significant expansion in the foreseeable future.
GlobalData anticipates world gas turbine revenue to fall slightly in the coming years. Average annual global market revenue stood at $12.4 billion during 2006–2012 and is forecast to hit $11.8 billion for the period 2013-2020.
