Market Trends of Europe Turbo Generator Industry
This section covers the major market trends shaping the Europe Turbo Generator Market according to our research experts:
Gas-fired Power Plants to Dominate the Market Growth
- In 2021, the electricity generation from natural gas as fuel recorded a growth rate of 4.7% in the region. Thus, with an increase in the demand for a peak power source, natural gas is expected to be the significant fuel type, thereby promulgating the number of gas-fired power plants in Europe.
- The gas-fired power plants can be synchronized with the electricity grid within minutes. This makes it a peak-load power plant. Therefore, increasing demand for peak power is expected to pose an increased requirement for gas-fired power plants. This, in turn, is likely to drive the market for turbo generators in the future.
- In 2021, Europe's electricity from natural gas amounted to 799 TWh, which was about 4.1% more than coal. In Spain, gas has almost overtaken coal as an energy source. Germany, primarily a coal and lignite consumer, has significantly used gas as a power source.
- Moreover, in countries such as the United Kingdom, Germany, and France, there has been a significant expansion due to rapid industrialization, which has increased the installation of gas-fired power plants in Europe.
- These development are expected to drive the gas-fired power plants during the forecast period.
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Germany to Drive the Market Demand
- Germany is one of the largest markets for turbo generators, with consistent economic growth, growing industrialization, and improving business potential. Moreover, Germany has been investing in gas-fired power plants, in order to reduce power production from nuclear and coal-fired power plants.
- The country is one of the biggest crude oil refiners in Europe, with several upcoming projects and investments to increase refining capacity. Therefore, Germany is expected to drive the demand for turbo generators in refineries, and further promulgate the turbo generators market during the forecast period.
- Additionally, after the outbreak of the Russia-Ukraine conflict leading to a supply disruption of Russian gas, the country has reopened several coal power plants in order to maintain energy security.
- In October 2022, German Chancellor Olaf Scholz announced that Germany was reopening five power plants that burn lignite, while extending the lives of three of its nuclear power plants.
- On the other hand, increasing share of renewable energy in the electricity generation mix is epxetcd to restraint the market growth in the country. As of 2021, solar energy installed capacity stood at around 58 GW and wind energy stood at around 63.7 GW.
- Therefore, with the increased investments and upcoming projects that increase the demand of turbo-generators, Germany is expected to be the largest market during the forecast period.
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