Global Turbines

Report Overview

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This study analyzes global supply of and demand for turbines, turbine-based engines, generators, and generator sets. Specific products covered include gas combustion turbines, steam turbines, hydraulic turbines, wind turbines, microturbines, turbine-based engines (both aircraft and marine), and turbine-based generators and generator sets.

Demand is also segmented by global region and market:

• power generation
• aircraft (including space vehicle) engines
• other markets, including marine turbine engines and specialty industrial applications found mostly in petroleum and gas-related settings, such as gas pipeline compressor drives

This study treats original equipment demand for turbine products used in aircraft or marine vessels as occurring in the nation where the vehicle is built. In contrast, aftermarket demand is counted in the nation where the vehicle is used.

The world market for turbines and related products is forecast to rise 3.2% annually to $214 billion in 2024, boosted by growth in electricity generation and turbine engine production.

Among electricity generation applications, wind turbines will offer the fastest growth prospects and the best opportunities. Many countries are increasing wind energy construction to meet renewable energy targets set by federal governments or as part of a larger signatory body such as the Paris Agreement. Many of these renewable energy targets are set for 2025 and will likely lead to a ramping up of new wind energy installations in 2023 and 2024.

Asia/Pacific Region, Led by China, Will Power Global Turbine Demand Through 2024

In 2019, China accounted for 26% of global turbine demand, and the country will continue to dominate the market through 2024. Over half of all gains in the country will stem from demand for wind turbines, as the country will continue to add substantial amounts of wind energy generation capacity to meet its growing energy requirements. China’s turbine market will also benefit from the country’s push to become a significant global supplier of commercial aircraft, which will boost sales of turbine engines.

The same factors driving turbine growth in China hold true for India, though on a much smaller scale as the country is less developed than its regional neighbor. Still, robust investment in wind energy systems (India has set a goal to almost double its installed wind energy generation capacity between 2019 and 2022) will result in the India outperforming nearly all other nations.

COVID-19 Pandemic to Slow Long-Term Growth

The coronavirus pandemic will cause a severe drop in turbine demand in 2020. Both major turbine markets will be impacted:

• The grounding of aircraft fleets around the world will delay new aircraft orders and prolong essential engine repairs until air traffic picks up. While current estimates project that air traffic will return to pre-pandemic levels in 2022, new aircraft orders may take even longer to fully rebound as it may be financially difficult for airlines to upgrade their fleets.
• Wind turbine demand is expected to also see a strong decline in 2020. The closure of “nonessential” businesses and lockdowns implemented by many countries are likely to delay planned wind farm construction in 2020. However, because this industry is more reliant on government funds and many nations are making renewable energy generation a priority, this segment is expected to bounce back more quickly than aircraft engines.

Despite short-term weakness, the turbines market is expected to rebound to pre-pandemic levels by 2024, supported by the essential nature of electricity generation and long-term trends in the expansion of the travel industry as incomes and business investment rises in developing countries.