LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global industrial turbocharger market to grow at a CAGR of more than 4% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global industrial turbocharger market for 2016-2020. The report also lists mining and construction equipment, agricultural equipment, power, oil and gas, and marine as the five major end-user segments where the first two segments accounted for almost 73% of the market share. The oil and gas segment accounted for approximately 13% of the market share while the power and marine segments accounted for the remaining 11% and 3% respectively.
Governments worldwide are wary of environmental pollution caused by various industrial activities. Various greenhouse gas emission laws are enforced by governments and standalone agencies that need to be adhered by all industries. Emission laws, such as Industrial Emission Directive 2010/75/ EU (European Union), Canadian Protection Agency Act and Bharat Stage Emission Standards, are some of the common laws enforced to control carbon emissions. “Adherence to such regulations is driving the adoption of industrial turbochargers as the technology reuses exhaust gases, limiting carbon emissions from diesel engines,” says Bharath Kanniappan, a lead analyst at Technavio for automation research.
Technavio industrial automation analysts highlight the following three factors that are contributing to the growth of the global industrial turbocharger market:
- Stringent emission regulations
- Increased demand for efficient fuel usage
- Energy recovery and cost benefits
Stringent emission regulations
Emission standards and regulations are designed to maintain human health, protect the environment, and ensure efficient use of resources. Governments across the world have drafted emission regulation acts which mandate the use of efficient technologies, such as industrial turbochargers, to minimize air emissions.
Diesel engines emit several toxic gases such as sulfur dioxide, nitric oxide, and greenhouse gases like carbon dioxide and carbon monoxide via exhaust gas. Industrial turbochargers redirect the same for further combustion and significantly reduce their release into the atmosphere. It is estimated that nearly 60% of nitric oxide emissions will be reduced with the use of industrial turbochargers. As regulations have become more stringent, most end-users have started adopting solutions such as industrial turbochargers, which is positively impacting the market.
Increased demand for efficient fuel usage
Despite the wide availability and popularity of renewable sources of energy, fossil fuels like gasoline and diesel continue to dominate the market. The US, China, and Russia are some of the leading producers and utilizers of world energy. The Institute of Energy Research has calculated more than 3.5% increase in global energy usage in 2015 as compared to 2014.
With the current rate of consumption of fossil fuels, it has been estimated by 2015 BP statistical review of world energy that the proved reserves of coal will be depleted in 113 years, natural gas by 2069, and crude oil by 2067. Hence, G7 countries (Japan, the US, Germany, the UK, France, Italy, and Canada) are trying to gradually decrease the use of fossil fuels. Energy consumption is now strictly regulated across all industries by stringent international guidelines.
ISO 14001: 2004 is a global regulatory standard, which dictates specifications for environment management by reduction of waste and optimum use of fuel resources. It encourages the incorporation of technologies to make machine processing and functioning more efficient and cost effective. It also keeps the best interest of the environment in mind. Vendors, such as ABB, Honeywell, Mitsubishi, and Napier among others are competing for recognition by this international regulatory body for favorable impression on end-users.
Similarly, industrial turbocharger service providers and distributors, such as Alamo and Turbodynamics, are making efforts to obtain ISO accreditation BS EN ISO 9001: 2008, which is an international set of guidelines that ensure customer service and satisfaction by providing enhancements and upgrades to optimize fuel usage.
Energy recovery and cost benefits
Industrial turbochargers are among the most popular examples of energy recovery systems as they redirect exhaust gas for combustion and energy generation unlike naturally aspirated systems where it gets wasted. Hence, they enable the end-user to achieve energy efficiency.
Unlike automotive turbos, industrial turbos are relatively larger in size and can direct larger amounts of exhaust gas and generate significantly higher energy and power. Most industrial turbochargers reduce energy consumption by 20%-30%.
It is estimated that the use of industrial turbochargers can save up to USD 1 billion in energy costs annually. Retrofit case studies have proven energy recovery of more than 45% after adopting industrial turbochargers with the return of investments within 18 months. For instance, the adoption of AT turbocharger at the Udupi thermal power plant, India, resulted in an annual 8,750,000 kilowatt-hour (kWh) of energy saved, which maximized overall profit to a significant extent.
“Due to the current fluctuating scenario on fuel and emphasis on energy consumption, energy recovery strategies are becoming popular, which act as a major driver for the industrial turbocharger market during the forecast period,” says Bharath.
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