Gas Turbine Upgrades for Performance Enhancement Market Heads Toward Sustained Growth amid Rising Demand for Stable Electric Supply

November 2022

Gas turbine upgrades are essential to ensure optimal power generation. Given the consistently rising demand for reliable electricity supply, companies and OEMs are heavily investing in new technologies to upgrade their existing gas turbines. This is poised to create robust demand for gas turbine upgrades for performance enhancement. A recent study by Fairfield Market Research expects the global gas turbine upgrades for performance enhancement market to witness steady growth between 2022 to 2029. In 2022, the market recorded an estimated revenue of more than US$17 Bn and is slated to register a CAGR of 5.8% with a market share of US$25.3 Bn by the end of 2029.

Over the forecast period, growth enablers such as rapid industrialization and urbanization, increasing demand for uninterrupted electricity supply, and energy conservation regulations are set to unlock promising opportunities across the gas turbine upgrades for performance enhancement market.

Key Trends Across Gas Turbine Upgrades for Performance Enhancement Market

  • Demand for comprehensive upgrades is forecasted to be higher over the projection period. In 2021, constituting a market share of 34%, this segment dominated the global market in terms of upgrade type.

  • Commanding a market share of 32.0%, the Asia Pacific dominated the global market in 2021. During 2022-2029, Europe is predicted to register a CAGR of 6.0%, emerging as a strong market contender.

  • Combined cycles commanded a significant share of US$11,101.4 million in 2021. They are predicted to attract a greater demand as opposed to simple cycles.

Flourishing Power Generation Industry, Robust Construction Activities Bode Well for Market Expansion

The exponential growth in the power generation industry has translated into fruitful opportunities for the gas turbine upgrades for performance enhancement market. Globally, positive developments in commercial, industrial, and residential construction, coupled with energy conservation efforts, are poised to surge the demand for gas turbine upgrades. In the coming years, the advanced properties and greater benefits of combined cycle gas turbines are predicted to positively impact revenue generation in the market. Combined cycle gas turbines can help end-users to achieve higher thermal efficiency which is soaring its demand across international markets. Moreover, based on upgrade type, comprehensive upgrades are set to attract higher demand as they involve adequate inspection of multiple gas turbine fixtures and parts. Regulations around the reduction of carbon emissions are also anticipated to augment the demand for comprehensive upgrades.

Asia Pacific Leads Global Market; Europe Exhibits New Promise for Market Expansion

The Asia Pacific is the leading player in the global gas turbine upgrades for performance enhancement market. In APAC, the cost of gas turbine upgrades is relatively lower than in the rest of the world which is a key factor driving the demand for gas turbine upgrades. The region also offers greater ease of doing business which is influencing the setting up of various small-and-large-scale gas turbine service providers. Meanwhile, the geopolitical situation in Europe has resulted in the reactivation of coal-fired power plants. This is expected to augment the demand for performance upgrades of old gas turbines, creating novel opportunities for Europe’s market.

Major Market Players

Prominent players in the gas turbine upgrades for performance enhancement market include GE, Siemens AG, Toshiba Corporation, Mitsubishi Heavy Industries, Ltd., Centrax Ltd, Stellar Energy, and ABB Ltd.