STEAM TURBINE MARKET ANALYSIS

Market Challenges And Opportunities

Global Steam Turbine Market Drivers:

Growing demand for electricity to foster market growth

According to the United Nations, the global population was 7.8 billion in 2020. Of this, around 1 billion people are deprived of electricity. The global population is projected to reach 8.6 billion by 2030, thus leading to growing energy requirements. The global electricity demand is projected to experience an increase of nearly two-thirds of the current electricity demand during the forecast period. Moreover, growing awareness regarding sustainable energy sources has shifted the manufacturers focus toward large- scale use of natural gas as a fuel for generation of electricity.

Growing focus on efficient power generation technology to propel market growth

One of the primary advantages of a steam turbine is that it is a reliable source of mechanical power. Steam turbines are often used to power equipment for extended periods of time. They also produce a large amount of energy with very little operating costs. This is because the work produced by a steam turbine is dependent on the speed of the turbine's rotor. Other advantages of a steam turbine include high efficiency, which can reduce operational costs and emissions. These factors are particularly relevant in a context where heat source prices are increasing, and where there is a growing focus on sustainability.

Global Steam Turbine Market Opportunities:

Increasing number of natural gas combined cycle plants and thermal coal power plants are expected to provide significant growth opportunities. This is influenced by the increasing demand for electricity in emerging economies and the growing demand of small steam turbines in the petrochemical and oil and gas industries. These two industries are a primary end-user of steam turbines, and the growth of these sectors will provide substantial revenue opportunities for market players.

Growing awareness regarding the advantages of steam turbine is predicated to offer significant growth opportunities. The primary advantage of a steam turbine over a gas turbine is the ability to generate electricity. Steam turbines normally operate with a boiler as the source of heat for steam generation, which allows them to use an array of fuels, including natural gas, coal and biomass such as sugar cane bagasse or rice hulls. This also allows them to be combined with a generating plant to form a complete CHP system, or Combined Heat and Power system, which is the most efficient type of power generation system in terms of energy production.

Global Steam Turbine Market Restraints:

Strict environmental regulation to curtail market growth

Regulatory and policy restrictions on fossil-fuel fired power plants are projected to restrain the growth of the steam turbine market during the forecast period. These measures aim to reduce carbon emissions and increase use of cleaner fuels such as natural gas and renewable energy. Nevertheless, the growing popularity of coal-fired power plants is likely to support the steam turbine market in the near future.

High installation costs to hamper market growth    

High installation cost is another challenge for the market growth. These high costs include the foundation, grid connection, control systems, land, road development, and electrical installation. These costs vary between regions and technologies, making it difficult for companies to develop the market. Despite these challenges, the steam turbine market is projected to expand at an impressive rate during the forecast period due to increase in the need for steam turbines in the renewable energy industry and the rise in government initiatives for clean and efficient energy.