The global steam turbine market registered a market value of $13.06bn in 2017 and is expected to decline to $8.9 billion in 2022. According to GlobalData, the global steam turbine market is expected to hold an aggregate market value of $52.27bn during the period 2018–2022. The Asia-Pacific region was the largest market for steam turbines during the year 2017 registering 73.2% of the global market share. Europe, the Middle East, and Africa (EMEA) was the second-largest market, representing 17.5%, followed by the Americas with 9.3%.
The company’s latest report Steam Turbines for Thermal Power, Update 2018 – Global Market Size, Competitive Landscape, Key Country Analysis, and Forecast to 2022 reveals that the global steam turbine market is projected to decline in the forecast period due to transition to renewable and clean energy technologies from coal based power technologies in countries across the globe. Frequent power cuts, blackouts, and load shedding are the few factors that contribute to the existing demand for steam turbines for power generation in countries dominated by traditional power generation technologies.
Increasing demand for uninterrupted power from developing countries such as China and India is expected to contribute to the market value of steam turbines during the forecast period. Developments with respect to coal capacity additions from countries like Turkey, Egypt, South Africa, Saudi Arabia, Indonesia, and Vietnam also contribute to the projected market trends for the forecast period.
Key drivers in the global steam turbine market include governments’ mandated use of clean coal technologies for new coal-fired power plants, increased demand for combined-cycle gas turbine plants, cheap coal prices, and supportive policies in some countries for coal-fired power plants.
Steam turbines, global, market value ($bn), 2012, 2017, and 2022
|Source: GlobalData, 2018|
GlobalData’s report also finds that the Asia-Pacific region led the global steam turbine market in the past and is expected to continue holding its top position through the forecast period. In 2017, China was identified as the top country for steam turbines in terms of shipment capacity followed by India, the US, Saudi Arabia, and Vietnam.
In 2017, China added 44.27 megawatts (MW) of new thermal capacity. The country’s total operating coal power capacity was 979.72 gigawatts (GW) in 2017. China has canceled most of its new coal power projects and aims to reduce 2020 coal-fired capacity to below the current operating and under construction amount. In the 13th Five-Year Plan (FYP), the major change is the contrast between promotion of renewables and the control over coal development. As a solution to the curtailment and to increase system flexibility, natural gas consumption will be boosted to about 10% of total energy consumption, from 5.9% in 2015.
The Chinese government is now stringently holding back the construction of new coal-fired power plants to become a global leader in clean energy, deal with the capacity glut in the coal sector, and reduce the country’s CO2 emissions. However, the new builds are increasingly of ultra-supercritical plants, with the government’s announcement on approving new projects above 600MW based on the usage of advanced technologies such as supercritical and ultra-supercritical technology. Beijing is steadily improving the emissions requirements and efficiency standards for its older plants. Also, the country plans to add around 210GW of new coal power capacity by 2020 which has made it a one of the dominant markets for steam turbines globally through the study period.
India ranked second in terms of market volume witnessing 17.5GW in 2017. The market is expected to decline in the forecast period due to a gradual shift toward cleaner technologies. The Indian government is also promoting supercritical technology for coal-fired power plants, which has higher efficiency than conventional subcritical technology, thereby ensuring lower CO2 emissions. Supercritical power plants are more efficient than subcritical ones and require lower quantities of coal. A number of utilities now prefer this technology. Around 39% of total coal installed capacity in the 12th FYP is based on supercritical technology and almost all coal-fired power plants in the 13th FYP are planned to use supercritical technology.