Asia Pacific (APAC) Gas Turbines Market Size, Share, Opportunities, And Trends By Type (Gas Cycle, Combined Cycle, Cogeneration, Others), By Power Rating (<100 MW, >100 MW - <300 MW, >300 MW), By Application (Power Generation, Oil & Gas, Others), By Technology (Heavy Duty, Light Industrial, Aero-derivative), And By Country - Forecasts From 2024 To 2029

The Asia Pacific (APAC) gas turbine market was recorded at US$5.611 billion in 2022, and the market is set to grow at a CAGR of 8.00% thereby reaching US$9.619 billion in 2029.

A gas turbine operates on the principle of air compression thereby converting natural gas or other liquid fuel into mechanical energy. This is then used to drive generators that produce electrical energy that moves in the power lines into commercial and residential sectors. The booming power demand in the region has led to appropriate investments in the energy sector in major regional economies namely China, India, and Japan which is anticipated to fuel the regional market expansion.

Market Drivers

• Upsurge in power plants in the Asia Pacific region has propelled the market growth.

Asia Pacific is witnessing a significant surge in the demand for cleaner power production owing to which the governments in the region are launching policies and providing financial support to replace coal-fired power plants. Market players are forming strategic collaboration with power operators to bolster their market image in Asia.

For instance, in March 2022, General Electrics was awarded a 9HA gas turbine order by the Shenzhen Energy Group Corporation CO. Ltd to deliver approximately 2 gigawatts (GW) of electricity in Guangdong, China. The new power plant will be operation by the end of 2023 and aims to provide electricity to approximately 126 million people in the region. Such ongoing collaborations results from the growing shift from coal-powered power plants to sustainable energy.

• Increasing demand for electricity is driving the overall market expansion.

In countries such as India, and China where almost one-third of the population in the world lives, there is an increasing electricity demand. Additionally, the rapid urbanization in major countries in the region is one of the factors driving the Asia Pacific (APAC) gas turbine market growth. For instance, according to TERI, the Rockefeller Foundation there were 410 million people in India living in the urban areas which is anticipated to double to 814 million by 2050.  

Additionally, ongoing partnership and agreement formation between major market players and power stations is expected to bolster the overall regional market expansion. For instance, in May 2023, Mitsubishi Power announced to equip Singapore’s Open Cycle Gas Turbine power station with state-of-the-art hydrogen-ready gas turbines.

The power station with a capacity of 680 MW will reach its 100% capacity by 2025 and will be a collaboration between Mitsubishi Heavy Industries and a consortium led by Jurong Engineering Limited. Hence, many such projects are anticipated to increase the market for power generation which in turn are anticipated to increase the use of gas turbines in the region in the projected period.

According to the Ministry of Power the electricity generation in India witnessed a growth of 8.87% in 2022-23 and the total electricity generation was 1,624.16 BU. Hence, the increased demand for electricity in countries such as India and China which have large populations is expected to increase the demand for gas turbines in the region in the coming years. 

The gas turbine market in China will grow steadily. 

The need for gas turbines in China is anticipated to be boosted by factors such as the increase in electricity consumption brought on by high levels of urbanization, industrialization, and infrastructure development, as well as the consequent investments in creating massive new gas-fired combined cycle power generation.

Moreover, according to the U.S. Energy Information Administration, China’s domestic natural gas production increased from 8.9 Bcf/d to 20.5 Bcf/d between 2010 and 2022, covering approximately half of the rise in demand.  These favorable outlooks for clean energy along with the ongoing construction of large-capacity gas-fired power facilities around the country and the production of gas have increased the demand for gas turbines.

China is the world's largest importer of natural gas, and as the country works to lessen its reliance on coal-fired power plants to produce electricity, natural gas demand rises to meet the country's energy needs. Additionally, as per Global Energy Monitor June 2023 press release, China will double its utility-scale solar and wind power capacity and surpass its 2030 target of 1,200 gigawatts (GW) five years earlier than expected. These advancements are probably going to influence the China gas turbine market during the forecast period.

Key Developments

• In October 2023: GE Gas Power and Harbin Electric built a new 2-GW natural gas-fired power plant in China to help replace a sizable regional coal-fired facility. The power plant will equipped with three GE 9HA.01 gas turbines.

Asia Pacific (APAC) Gas Turbine Market Scope:

Segmentation:

• By Type
  • Gas Cycle
  • Combined Cycle
  • Cogeneration
  • Others
• By Power Rating
  • <100 MW
  • >100 MV- <300 MV
  • >300 MW
• By Application
  • Power Generation
  • Oil & Gas
  • Others
• By Technology
  • Heavy Duty
  • Light Industrial
  • Aero-Derivatives
• By Country
  • Japan
  • China
  • India
  • South Korea
  • Indonesia
  • Others