The global gas turbine market is projected to decline from $8.49bn in 2016 to $7.73bn by 2021, witnessing a negative compound annual growth rate (CAGR) of 1.87%, according to a report by GlobalData.

Titled ‘Gas Turbine Market, Update 2017 – Global Market Size, Competitive Landscape, Key Country Analysis, and Forecasts to 2021’, the report highlights major causes for the decline and growth opportunities in the market.

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Anticipated decline in the market is due to global economic recession, decreases in the price of gas turbines, cancellation of projects, and delays in maintenance projects.

Therefore, gas turbine companies are focusing on emerging markets of the Asia-Pacific (APAC) for growth opportunities. Power analyst for GlobalData Subha Krishnan states extensive power plant capacity additions and the need to improve access to electricity are driving growth in the gas turbine markets of the APAC region

Energy demand in this region is forecast to increase at a rate of 2.1% a year between 2010 and 2035, compared to the global average of 1.5%. APAC countries are designating coal and natural gas production for domestic markets. Focus is being placed on gas-based power plants, which is expected to increase natural gas demand from 11.4% in 2010 to 17.5% by 2035.

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APAC countries, including China, India, Indonesia, and Thailand, are planning to add new generation capacity due to the low price of gas. The use of gas and renewable energy is also being encouraged by governments to meet the rising energy demand and to reduce carbon emissions.

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However, commercialisation of renewable energy poses a major hurdle for utility companies, says the report. Coal-based generation technologies will continue grow in the region along with the gas power market, which is projected to expand significantly in the future.