Market for turbine upgrades forecast to grow through 2029
By Keefe Borden26 October 2022
The market for turbine upgrades to boost power and improve heat rate is estimated at around $17 billion and is expected to reach $25.3 billion by the end of 2029, according to a recent study.
Fairfield Market Research reported the market for turbine upgrades is expected to grow at a 4.9% compound annual growth rate (CAGR) from 2021 through 2025. The bulk of the demand for upgrades comes from the power sector, whose aging fleet is facing increasingly stringent CO2 emissions requirements.
At least two other factors will contribute to the demand for turbine upgrades. A growing number of combined cycle power plants seeking better performance is one factor. A second source of growth is expected to come from additional expenditures on improving residential, commercial and industrial infrastructure, Fairfield reported.
Comprehensive upgrades accounted for nearly 34% market share in 2021, followed by air inlet fogging. Asia Pacific is likely to retain the lead in global market with over 32% value share, Fairfield reported.
The report has segmented the market into simple and combined based on the turbine cycle. Research suggests that a combined cycle power plant simultaneously uses both a gas and a steam turbine for up to 52% more electricity generation from the same fuel when compared with a traditional simple cycle power plant.
Combined cycle gas turbine recorded a dominant market value share of over 65% in 2021. An increasing number of end users of gas turbines realize the advantage of upgrading their existing simple cycle gas turbine to its combined cycle counterpart with an intent to achieve superior thermal efficient, and greater power output, the gas turbine upgrades for performance enhancement market will continue to be on an uptrend.
Growing demand for amplified thermal efficiency will keep the market afloat, the report states.
Although the report projects Asia Pacific as the globally leading region for gas turbine upgrades for performance enhancement, it also highlights Europe as a market which shows high growth potential.