Market Trends of North America Gas Turbine Industry
This section covers the major market trends shaping the North America Gas Turbine Market according to our research experts:
Power Generation Application is Expected to Dominate the Market
- North America region is anticipated to exceed an annual installation of approximately 1,100 MW by 2025. The increase in natural production has put downward pressure on natural gas prices which is expected to lead an increased share of power generated through natural gas.
- Gas turbines are used in the open cycle and combined cycle plants. Combined cycle power plants are more efficient than steam turbines as they generate more power.
- The power generated from combined cycle power plants have lower carbon dioxide emissions and governments are implementing stricter norms on such emissions. Thus, an increase in the demand for natural gas power plants will lead to the growth of the power generation segment.
- In 2018, North America's Power generation was about 5447.3 TWh and is showing a growth of 2.9% from the previous year. Individually the power generated from gas was 1833.9 TWh in 2018.
- Moreover, factors, such as upcoming gas-based power plants are Cascade Combined-Cycle Gas Turbine (CCGT) Power Plant, Alberta and South Field Energy's Combined-Cycle Power Plant, Ohio, are expected to drive the market for gas turbines in the region in the coming years.
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United States to Dominate the Market Growth
- The United States, the world's largest gas consumer and producer, is projected to account for 40% of the extra gas produced by 2022, due to the significant growth in its domestic shale industry. The power generated was 4460.8 TWh in 2018.
- The US government planned to increase natural gas-fired generating capacity by 25.4 GW in 2018, which follows net reductions of total coal-fired electricity generating capacity over the next five years. Also, the low natural gas prices are expected to further propel the demand for natural gas over the forecast period.
- The increasing production activities in the natural gas industry are likely to augment the demand for gas turbines. Further, the marine industry, which uses aero-derivative gas turbines to power ships, presents a major opportunity for gas turbine manufacturers in the United States.
- In the field of power generation, the use of natural gas is poised to increase, and natural gas-fired combined-cycle gas turbine power plants are expected to account for over 50% of the power generated in the United States in coming years. This is expected to create an enormous demand for gas turbines during the forecast period.
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