Gas Turbine Upgrades for Performance Enhancement Market

Global Industry Analysis (2017 - 2020) - Growth Trends and Market Forecast (2021 - 2025)

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Industry: Energy & Natural Resources | Author Name: Hrishikesh

Performance and Efficiency in Centre Stage Drive Adoption of Gas Turbine Upgrades

Upgrades of gas turbines are necessary to boost power and improve the heat rate of gas turbines, either by increasing their inlet air density or by boosting specific power. Innovative solutions are being carried out by OEMs to meet the requirements of various end-use customers due to the evolution of the electricity market, changing environmental requirements, and the globalization of the energy market. They also help in reducing the overall environmental impact of a plant through lowered COemissions.  A combined cycle delivers better efficiency when compared to a simple cycle. Preference for gas turbine upgrades for performance enhancement creates a worldwide market and a majority of end users are doing the same either by upgrading the existing simple cycle or choosing a combined cycle gas turbine.

Demand for gas turbine upgrades to enhance the performance and efficiency of a plant has been rising due to the increase in number of combined cycle power plants and rising awareness about the benefits of technological intervention among end users. Furthermore, higher adoption of gas turbine upgrades in new power plants is estimated to present new opportunities in the market.

Upgrades of Ageing Fleet of Gas Turbines in Oil & Gas Sector Boost Market Growth

Increasing awareness about greenhouse gas (GHG) emissions and the need to reduce carbon footprint has led OEMs to upgrade the performance of gas turbines, with the latest developments, to meet demands for clean energy and reduce the overall environmental impact through lowered CO2 emission. This is expected to fuel the growth of market for gas turbine upgrades. Moreover, stringent government norms regarding GHG emissions for gas turbines have been driving the end users’ shift towards gas turbines with lower CO2 emissions and better efficiency.

Electricity consumption is projected to increase significantly for another two decades in line with unprecedented urbanisation and industrialisation. The global power generation industry has expanded considerably over the past decade and plays a major role in economic growth of respective nations. Furthermore, increasing spending on improving residential, commercial, and industrial infrastructure along with several energy conservation initiatives are expected to propel the power generation industry during the forecast period. Being among the key end users of gas turbines, the expansion of power generation industry would significantly push the gas turbine upgrades for performance enhancement market.

Significant Adoption Expected by Oil & Gas Industry

Besides, gas turbine upgrades are required in a wide variety of industrial, commercial, and infrastructural sectors such as petrochemicals, oil & gas, plastic, paper, and food & beverage. Carbon emission reduction has been the top priority of the oil & gas industry over the recent past, encouraging the companies to look for alternatives or new technologies that are likely to provide them with better performance efficiency and reduce the carbon emission rate. This would enable the industry operators to comply with stringent government norms related to carbon and GHG emissions. Major OEMs are thus continuously innovating new technologies to upgrade the existing gas turbines that are operating in the industry. This, in turn, is anticipated to drive the market for gas turbine upgrade for performance enhancement during the forecast period.

Comprehensive Upgrade to have an Edge; Costs a Premium over Other Upgrades

Government regulations related to the minimisation of carbon emissions have spurred investments in upgrading outdated gas turbines. In 2020, comprehensive upgrades led the market, followed by air inlet fogging. However, the investment costs involved in a comprehensive upgrade of existing gas turbines is way higher when compared to other types of upgrades.

A comprehensive upgrade deals with the replacement of flange-to-flange parts such as rotor, casting, compressor blades and stator, piping & auxiliaries, and inlet filter house. There are several companies such as General Electric Company and Siemens AG that offer flange-to-flange solutions for comprehensive upgrades of existing gas turbines. A compressor is more efficient at lower air temperatures, and due to inlet air fogging, the cooler air becomes dense, leading to increased mass flow. Air inlet fogging thus remains in demand for its ability to increase the overall power output.

Expanding Ageing Gas Turbine Fleet Upholds Market in Asia Pacific

Asia Pacific has been the key regional market for gas turbine upgrades. A majority of gas turbines across industries in Asia Pacific require upgrades in order to achieve regulatory compliance. Asia Pacific houses a large number of companies providing small- and large-scale gas turbine upgrades. China is the leader in terms of new orders and upgrades of existing gas turbines. Fast-developing economies in Asia Pacific such as China, India, and Japan have been combating GHG emissions through old and outdated system upgrades, which were initially high on carbon emission.

North America and Europe also house several outdated gas turbines, which is expected to propel the demand for gas turbine upgrades in the near future. In North America, the gas turbine industry is likely to benefit from the thriving industrial sector as end users generate extensive demand for efficient gas turbines in the US and Canada. The European market for gas turbine upgrades for performance enhancement is governed by stringent regulations related to carbon emissions and a huge base of outdated gas turbines which require comprehensive upgrades. The region predominantly witnesses upgrades of simple cycle gas turbines into more efficient combined cycle gas turbines, stimulating the growth of the gas turbine upgrades for performance enhancement.

Global Gas Turbine Upgrades for Performance Enhancement Market: Competitive Landscape

Some of the key players in the gas turbine upgrades for performance enhancement market include General Electric Company (GE), EthosEnergy Abu Dhabi LLC, JASC Corporation, GTE, Hitachi, Ltd., Mitsubishi Power, Ltd., Siemens AG, ENRGISTX, Mee Industries Inc., and Stellar Energy. Top companies such as GE operating in the US are rapidly expanding outside North America, further targeting potential markets such as Asia Pacific, the Middle East & Africa, and Latin America in order to strengthen the global foothold.

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