LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global combined cycle gas turbine (CCGT) 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 CCGT market for 2016-2020. The capacity additions of new CCGT as well as aftermarket CCGT, and the average price of various types of CCGTs have been considered in determining the market size.
CCGT is a power generation technology that incorporates a gas turbine in conjunction with a steam turbine. A steam turbine is used to supplement the electricity generated from a gas turbine, which is driven by the steam generated from waste heat recovered from the gas turbine exhaust.
In the last decade, new market conditions and vital changes have been brought about by liberalization and deregulation accompanied by competitive forces as well as with manufacturers' R&D spending. These changes are determining the technological innovations in CCGT power generation systems. Owing to these innovations, CCGT power plants have evolved from the early CCGT power plants like BBC, ABB, GE, KWU-Siemens, WEC, and MHI through the “B,” “C,” “D,” “E,” “F,” “G” and “H” technology in the 21st century.
Technavio heavy industry analysts highlight the following four factors that are contributing to the growth of the global CCGT market:
- Increasing efficiency and durability of gas turbines
- Regulations on carbon emissions
- Consolidation of market vendors
- Lower initial cost than other low-carbon emission substitutes
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Increasing efficiency and durability of gas turbines
The increasing efficiency of gas turbines is projected to drive their adoption in power generation applications. Factors such as stringent carbon emission regulations worldwide, focus on high performance and lower power generating cost, and volatility in fuel costs are driving demand for highly efficient gas turbines.
Anju Ajaykumar, a lead tools and components analyst at Technavio, says, “Major manufacturers such as GE and Siemens are investing heavily in the development of high-efficiency gas turbines. The 9HA/7HA-series CCGTs developed by GE's Power and Water division and the SGT5-8000H developed by Siemens offer more than 60% efficiency levels in a combined cycle configuration.”
Regulations on carbon emissions
Government bodies worldwide are working toward reducing GHG emissions. International agreements such as the Kyoto Protocol have reduced the future outlook for coal-fired generation of energy. Agencies and regulations such as the EPA, the Intergovernmental Panel on Climate Change, and the Climate Change Act, 2008, have laid down certain targets for reducing emissions.
“These regulations provide an impetus to the ongoing shift toward gas-fired, gas turbine-driven power plants and CCGTs. The regulations will also drive long-term growth as they are bound to becoming increasingly stringent with regard to carbon-intensive technologies in the coming years. Therefore, vendors are increasingly focusing on gas turbine technologies and processes to reduce harmful emissions,” adds Anju.
Consolidation of market vendors
In the last decade, the global CCGT market has undergone considerable changes. Mergers have played a crucial role in this transformation, with many large players acquiring gas turbine contracting companies. This has led to the expansion of operations of major manufacturers on the global scale.
This transformation has had its impact on equipment and components manufacturers, which need to be effective globally in terms of their product offerings and support services. Therefore, these manufacturers are increasingly offering global products and services based on international guidelines. Expansion of product portfolios and increasing prominence in various end-user segments have been the top priorities for manufacturers in the market that is characterized by a small number of players.
Lower initial cost than other low-carbon emission substitutes
One of the major challenges to the growth of the global CCGT market is the high threat of substitution from low-carbon emission alternatives such as renewable and nuclear energy. With the increasing focus on carbon emissions, the world is shifting toward renewable energy to meet the growing energy demand. However, in the current scenario, renewable energy's high initial cost hinders its adoption on a significant scale. This challenge for renewable energy is proving to be a major driver for the global CCGT market that offers a lower cost of power installation than renewable and nuclear energy.
- Ansaldo Energia
- Kawasaki Heavy Industries
- Mitsubishi Hitachi Power Systems (MHPS)
- Solar Turbines
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