Aeroderivative Gas Turbine Market

Aeroderivative Gas Turbine Market Outlook

The aeroderivative gas turbine market is expected to grow at a CAGR of over 6.6% over the forecast period. The market is valued at US$ 3.20 billion in 2022. By 2032, it is expected that the aeroderivative gas turbine industry to be worth USD 6.06 billion.

The dynamics of the industry will be positively impacted by the rising expansion and development of manufacturing techniques along with the growing emphasis on sustainable energy development.

Increased investments in regenerative gas turbine facilities along with favorable regulatory body policies, such as subsidies, tax breaks, and incentives, to boost product demand. The adoption of the product to be aided by rising investments across the aviation sector and the use of contemporary technology in gas-fired turbines.

Due to stoppage of processing and manufacturing operations, disrupted distribution channels, and lack of labor, the COVID-19 pandemic had a significant impact on the overall aeroderivative gas turbine market’s operations. The industry has since recovered its lost strength, though, thanks to a booming industrial sector and rising electricity demand in 2021.

The growth of the industry is also being complemented by the appropriate government initiatives to resume operations across key industries, manufacturing facilities, and infrastructure projects.

Report Attributes	Details
Market Size (2022)	USD 3.20 billion
Projected Market Value (2032)	USD 6.06 billion
Global Market Growth Rate	6.6%
Aviation Aeroderivative Gas Turbine Market Revenue	$400 million
Middle East Market Revenue (2030)	USD 1.4 billion
≤ 50 kW Capactiy Market Growth Rate	7.5%
Open Cycle Aeroderivative Gas Turbine industyry Revenue (2030)	USD 700 million
Key Companies Profiled	General Electric Ansaldo Energia Nanjing Turbine & Electric Machinery Baker Hughes Company Harbin Electric Corporation Capstone Green Energy Corporation UEC-Saturn, OPRA Turbines MAN Energy Solutions VERICOR Bharat Heavy Electricals Limited (BHEL) Kawasaki Heavy Industries, Ltd. Wärtsilä Mitsubishi Heavy Industries Siemens

Ample Gas Resources to Be Advantageous for the Business Scenario

Market growth for aeroderivative gas turbines with a ≤ 50 kW capacity is predicted to be 7.5% until 2030. This expansion is attributable to the ongoing technological developments at cogeneration power plants.

The main factors accelerating the product portfolio are lower operational costs, smaller carbon footprints, and compact size. In the upcoming years, it is anticipated that the deployment of these units across the process industry and small-scale generating plants will increase.

Technology adoption will be aided by the ongoing development of co-generating systems to support heat and energy consumption across industrial, commercial, and remote grid network facilities. The adoption of aeroderivative gas turbine will also increase due to government initiatives and policies to reduce carbon footprints in accordance with abundant natural gas reserves.

Business growth is set to be significantly impacted by the growing shale supply, which is being driven by large-scale exploration and production facilities in accordance with low carbon emissions when compared to other fossil fuels.

Favorable Government Regulations to Aid the Aviation Industry

By 2030, it is expected that the open cycle aeroderivative gas turbine market will be worth USD 700 million. The product's key advantages include a faster start-up time, higher operational flexibility, and reduced warm-up time, all of which support industry advancement.

Additionally, the continued use of light weight aircrafts and rising power demands in offshore applications will fuel potential industry growth for open cycle technologies.

Increased industrialization across major economies as a result of rising energy demand will affect the market penetration of aeroderivative gas turbines.

The use of ammonia as a carbon-free fuel will be encouraged by the ammonia roadmap in order to cut carbon emissions from both the newest and older gas turbines.

Curbed - Carbon Emission

Reduced carbon emissions and the use of gas turbine power plants to generate electricity are two factors that are anticipated to propel the growth of the global aero-derivative gas turbine market. As a result, many power plants have replaced their conventional turbines with aero-derivative gas turbines.

The ability to produce a lot of power with less waste and more efficiency, which promotes the growth of the global aero-derivative gas turbine market. Aeroderivative gas turbines are easier to install because they are smaller, lighter, and require less space. Compared to other turbines, aeroderivative gas turbines are robust and require little maintenance.

Every nation is boosting its military might, and aircrafts are essential for this. Aeroderivative gas turbine is frequently used in military aircraft because of its cutting-edge feature. These are the driving forces behind the expansion of the global aeroderivative gas turbine market.

What Do Market Players Need to Watch Out for?

The element that is anticipated to impede the growth of the global aeroderivative gas turbine market, as compared to other turbines is that it has a limited ability to use other fuels. The materials needed to construct the turbine must be pricy, stronger, and more heat resistant. With solid fuels like coal, it is not compatible.

Segmentation Insights

How Will the Demand for Aeroderivative Gas Turbine Be Affected in the Application Segment?

A thriving aviation industry to accelerate market growth.

In 2021, the aeroderivative gas turbine market for the aviation sector generated US$ 400 million in revenue. This expansion is attributed to ongoing efforts to maintain an aircraft at a weight that is efficient and constant.

Rapid industrialization and strict energy efficiency regulations have compelled industries to build more efficient power generating systems. The expansion of processing and manufacturing facilities around the world has increased due to the rising demand for manufactured goods, which will ultimately affect the growth of self-regulated power generating units.

Additionally, government programs to introduce a sustainable energy mix could fuel aeroderivative gas turbine growth. Due to rising migrants and tourism mobilization in line with rising travel and living standards across major economies, the industry has experienced significant growth.

Additionally, the continued demand for aircrafts in the defence sector as a result of increasing national security and safety compliance is set to fuel market dynamics.

How does the Technology Sector Contribute to the Market?

The global aeroderivative gas turbine industry is divided into two categories based on technology- open cycle and combined cycle. The open cycle aero-derivative gas turbine is lightweight is small in size.

Aeroderivative gas turbines are tough and highly effective options for power generation and mechanical drive on land and at sea. They are employed in LNG liquefaction, gas re-injection, offshore platforms, and pipeline compression.

Additionally, it is made to be very simple to maintain and fast to install. It is a low-carbon innovation. To reduce the weight of the aircraft, an open-cycle aero-derivative gas turbine is installed across them.

Which Capacity Segment is Estimated to Support Market Growth?

The aeroderivative gas turbine market in the aforementioned segmentation is anticipated to be dominated by aero-derivative gas turbines with capacities between 1MW and 30MW. It is widely used in on-site electricity generation facilities like combined heat and power plants, among other things.

The system of an aero-derivative gas turbine above the 30MW category is small in size, light in weight, has few moving parts, and is very effective. Additionally, it uses very little electricity and produces little carbon during the process.

These are the driving forces behind the expansion of the aero-derivative gas turbine market.

Country Insights

Why is the Market for Aeroderivative Gas Turbines Prominent in Middle East?

By 2030, the Middle East and Africa aeroderivative gas turbine market is expected to reach more than US$ 1.4 billion. Favorable government plans to increase power capacity are primarily driven by industrialization and population growth.

The business outlook will accelerate as energy-efficient technology trends change and there is a greater emphasis on replacing inefficient coal-fired power plants. Additionally, the aeroderivative gas turbine market will expand as a result of ongoing infrastructure modernization and rising electricity demand.

North America

The market for aeroderivative gas turbines in North America will grow significantly as a result of a growing regional emphasis on CCGT power plant technology solutions.

How is the Market Performing in the US?

The largest regional market is the United States. Increased investment is needed to upgrade conventional power plants and reduce carbon emissions, particularly through the installation of combined cycle gas turbine plants.

The US shale revolution increased natural gas production, which led to advancements in the region's drilling and extraction techniques. Due to this, gas-fired technology is seen as an affordable and dependable source of energy.

Additionally, the USA is home to the largest aerospace company and the largest fleet of aircrafts in the world. These are the driving forces behind the expansion of the aero-derivative gas turbine market.

How is the Generator Market Performing in Canada?

The demand for aeroderivative gas turbines is complemented by the growing applicability of gas-based technology across extraction and drilling techniques due to lower energy generation costs and longer product lifecycles. The need to replace outdated coal-fired power plants in order to reduce carbon emissions will spread throughout the industry.

What is the market outlook for aeroderivative gas turbine in Europe?

The infrastructure for generating electricity in Europe was switched from coal to gas. Demand for aero-derivative gas turbines is anticipated to increase as a result of such a change in a gas-based power plant. To reduce carbon emissions from coal-based power plants in Europe.

Asia-Pacific

China and Japan are the two most important aeroderivative gas turbine markets in the Asia-Pacific region.

Japan is overhauling its electrical infrastructure. Gas turbines are now a well-liked energy source for manufacturing facilities that require both heat and electricity.

How is China’s Contribution to the Market Giving East Asia the Highest Market Share?

Due to the region's reduction in carbon emissions, traditional power generation facilities in China have been upgraded to gas-fired electricity generation facilities. Additionally, the region's aeronautical sector has been expanding, which is anticipated to fuel the market for aero-derivative gas turbines.

Comparative View of Adjacent Aeroderivative Gas Turbine Market

Aeroderivative Sensor Market :

Attributes	Aeroderivative Sensor Market
CAGR (2022-2032)	6.6%
Market Value (2027)	US$ 4.40 Billion
Growth Factor	Trending in the direction of energy optimization
Opportunity	Positivity regarding the production of electricity, using gas.
Key Trends	Increasing attention being paid to decentralized generation technologies

Aeroderivative Sensor Market :

Attributes	Aeroderivative Sensor Market
CAGR (2022-2032)	10%
Market Value (2027)	US$ 442.89 Million
Growth Factor	Increase in the use of energy-saving technologies in industry
Opportunity	Green energy-based turbines are being adopted more widely in the aviation sector.
Key Trends	Increasing investment in the marine industry's development to cut greenhouse gas emissions

Gas Turbine Service Market :

Attributes	Gas Turbine Service Market
CAGR (2022-2032)	8%
Market Value (2027)	US$ 27.77 Billion
Growth Factor	Government restrictions on the production of clean energy, along with the introduction of pollution control technologies.
Opportunity	The expansion of the market to be positively influenced by cutting-edge overhauling technologies combined with the abundant supply of natural gas.
Key Trends	The outlook for the industry to be boosted by on-going technological developments that result in the design and development of extremely efficient gas turbine units.

Competitive Landscape

Due to the presence of domestic and regional competitors, the global market is extremely competitive and fragmented. Leading players have adopted a wide range of marketing tactics, including partnerships, expansions, mergers and acquisitions, and collaborations.

Major companies also use cutting-edge product development techniques as a strategic move to improve their market positioning with consumers.

Recent Development :

Date	Company Name	Strategy	Details
March 2019	Siemens	Agreement	Siemens to supply power equipment for the gas power plant at the Bayat Power Plant in Afghanistan in March 2019. An aero-derivative gas turbine is used in the plant's mobile solution to generate up to 41 MW of electricity.
June 2019	Baker Hughes	Expansion	In Luanda, Angola, Baker Hughes opened its multimodal oil and gas facility in June 2019. This new facility supports the capabilities of BHGE's product companies in digital services, turbomachinery and process solutions, oilfield service, and oilfield equipment. Additionally, a wide variety of equipment like drilling, wellbore, wireline, and aero-derivative turbomachinery is to be delivered for the development of infrastructure.
November 2018	General Electric and Baker Hughes	Contract	In November 2018, General Electric and Baker Hughes signed a contract to increase sales of vital rotating equipment like aero-derivative and heavy-duty gas turbine technology as well as access to General Electric Digital's software and technology, both of which are extensively used in the oil & gas industrial spaces.
June 2021	General Electric and IHI Corporation	Memorandum of Understanding	A Memorandum of Understanding (MoU) for the cooperative development of gas turbine business arrangements was signed by General Electric and IHI Corporation, a heavy industry manufacturer in Japan, in June 2021.

Key Segments

• By Capacity :

  • ≤ 50 kW
  • 50 to 500 kW
  • 500 kW to 1 MW
  • 1 to 30 MW
  • 30 to 70 MW
  • 70 MW

• By Technology :

  • Open Cycle
  • Combined Cycle

• By Application :

  • Power Plants
  • Oil & Gas
  • Process Plants
  • Aviation
  • Marine
  • Others

• By Region :

  • North America
  • Middle East
  • Europe
  • Asia Pacific
  • Latin America