Market Challenges And Opportunities

However, high research and development costs involved in designing and manufacturing high speed engines poses a challenge for market players. Developing an engine capable of withstanding high revolutions per minute requires extensive testing before commercial production. The market is also facing restraints due to availability of alternative fuel-efficient solutions.

High Speed Engine Market- Drivers

Increasing adoption of gas turbines for power generation: The growing adoption of gas turbines for power generation around the world is a key factor driving the growth of the high speed engine market. Gas turbines offer benefits like operational flexibility, high power output, low emissions and ability to use different fuels. These are increasingly being used in combined cycle power plants, owing to their high electrical efficiency of over 60%. For instance, in June 2022, GE, an American multinational company announced that Toshiba Energy Systems & Solutions Corporation had selected its 7HA gas turbines to add over 1.4 GW capacity to the Omuta Power Station in Japan. Such installations will create significant demand for heavy duty gas turbines.
Rising exploration activities and investments in oil & gas sector: Increasing investments in the exploration of new oil and gas reserves along with shale gas production are contributing to the growing deployment of high speed engines. Gas turbines are extensively used to power compressors and pumps in upstream, midstream and downstream oil & gas operations. According to the IEA, global oil & gas upstream investment increased by around 10% in 2022, led by increases in North America shale as well as higher spending on offshore projects. This boosts adoption of efficient and flexible turbine systems.
Advancements in turbine cooling technologies: The enhancements in turbine blade cooling technologies are leading to improved efficiency and performance of high speed engines. Effective cooling protects turbine components from high temperatures and allows higher firing temperatures. For instance, GE’s Advanced Turbine Cooling system circulates air through internal cooling circuits in turbine blades. Such innovations are enabling high speed engines to operate at higher powers and efficiencies.
Growth in marine sector: The steady growth of international seaborne trade and rising vessel construction activities are boosting demand for high power marine turbines. According to UNCTAD estimates, the operation of the world’s merchant fleet is expected to expand at a CAGR of 3.4% over 2021–2026. High speed marine engines are used in marine propulsion systems as these offer benefits like compact size, fuel flexibility and lower emissions. This boosts its adoption in naval vessels, cargo ships and passenger liners.

High Speed Engine Market- Restraints

High capital and operating costs: The high capital expenditure required for procuring high capacity gas turbines coupled with significant operating costs related to maintenance and fuel act as challenges. The huge investment needed for setting up a gas turbine power plant delays new builds. Additionally, skilled personnel are required to perform complex maintenance. These factors related to cost and workforce restrain adoption among smaller end users.
Evolving emission regulations: The imposition of strict emission-related regulations on engine exhausts like NOx, SOx, CO₂ to improve air quality poses challenges. Manufacturers have to carry out design changes to reduce emissions and test compliance. This increases lead times and affects mass production. Although emission control technologies exist, constantly evolving regulations worldwide increase compliance costs for players.
Supply chain disruptions: The COVID-19 pandemic exposed vulnerabilities of global supply chains and logistical barriers are still persisting. With high speed engines being heavy equipment, transportation poses problems. Localized lockdowns and port congestions lead to production delays. The Russia-Ukraine conflict has also constrained raw material supplies. Such supply chain uncertainties restrain production volumes to some extent.

High Speed Engine Market- Opportunities

Integration of renewable fuels: The integration of renewable fuels like green hydrogen and sustainable biofuels in high speed engines presents significant opportunities. With increasing focus on decarbonization across industries, major manufacturers are developing hydrogen-capable turbines that can transition from natural gas to clean hydrogen. In March 2021, MAN Energy Solutions announced the successful testing of hydrogen combustion in its MGT6400 gas turbine. The ability to leverage green fuels will increase sustainability and favorably impact the high speed engine market outlook.
Technology enhancements through digitalization: The increasing utilization of industrial internet of things (IIoT), artificial intelligence, 3D printing and other digital technologies is creating opportunities for performance enhancements in high speed engines. Predictive maintenance enabled by AI improves reliability while 3D printed components with complex geometries increase efficiency. Siemens Energy’s HL-class gas turbines leverage digital analytics to optimize efficiency. Ongoing digitalization and automation will enable turbine manufacturers to achieve faster product development and customization.
Renewable energy integration: The integration of high speed engines with renewable energy technologies such as wind, solar, hydropower, and others to develop hybrid renewable power systems represents a major opportunity. High speed engines can provide continuous and flexible power generation to complement renewable energy’s intermittent nature. For instance, GE’s Integrated Hydropower-Solar solution combines hydropower plant modernization with solar PV and battery storage. Turbines also find use in distributed power generation with renewables.
Deployment of micro turbines: The emerging application of micro turbines with power ratings below 500 kW offers promising growth prospects. Their compact size and scalability make micro turbines suitable for distributed electricity generation. Key players such as Capstone, Toyota and Ansaldo are launching product in this niche segment for use in small-scale CHP plants, remote power systems, and mechanical drives. With energy access still being a challenge in some areas, micro turbine systems will see wider adoption.