Turbines & Turbine Generator Sets: A Global Strategic Business Report
San Jose, CA (Vocus) October 20, 2010
Although energy demand has recorded varying patterns across individual countries, a bigger theme that emerges over the region-by-region variations is the overall decline in energy consumption in almost every region across the world, with the exception of Asia-Pacific and the Middle East. The decelerating patterns are thrown into sharper relief by the fact that OECD countries recorded a 6% decline in consumption, as a result of the recession’s disproportionate impact on industrial production. This weakening of energy demand has reduced the need, although temporarily, for new capacity additions. Drying up of the debt markets, and the resulting shortages of credit availability to finance huge projects, decline in new orders, delays in completion of turnkey projects, have taken their toll on the turbines and turbine generator sets market, particularly hydraulic turbines, and gas turbine markets, which hurt the most.
Glut in energy capacities, decline in energy consumption, lower wholesale energy prices, and recession induced weakened focus on climate change goals, have temporarily reduced the emphasis on renewable energy sources. However, wind turbines have escaped the recession relatively unscathed. New capacity additions in wind energy although slowing down as a result of the tough macro-economic environment, has performed relatively better than other energy sources. This is primarily the result of the long gestation period required for bringing new capacities on-stream. Therefore, carry-forward of project completions and additions planned and commenced in the year 2007 and 2008 has helped largely offset the impact of current project delays and cancellations. Additionally, the impact has been further cushioned by the fact that wind power projects in most countries are government owned and supported, unlike other private project ownerships, which are more acutely sensitive to changes in the economic, and financial climate.
In a world beyond the recession, continued and prolonged cutbacks in energy investments is seen as unlikely, since although current weak demand increases spare production capacity and reduces need for new capacities, continued lower energy investments will result in acute capacity storages when demand recovers post recession. Additionally, inadequate injection of funds in energy infrastructure will derail global economic performance by creating demand-supply gaps, increasing energy costs, and igniting inflation across all economic sectors. Energy security, and environmental (climate change) issues in the post recession period will re-emerge led by a sharp recovery in energy consumption as a result of strengthening of longstanding energy growth fundamentals. Post recession resurgence in infrastructure and construction projects will drive up energy demand, for instance, in cement and steel production, thus encouraging the need for new installed capacity. With most economic stimulus programs being heavily skewed towards reviving energy intensive activities, a sharp rebound in energy demand, and new capacity additions are forecast to be on cards in the upcoming years. These factors in turn will aid in putting growth of turbines, and turbine generator sets back on track.
As stated by the new market research report, Asia-Pacific is the largest and the fastest growing regional market for turbines and turbine generator sets. The region continues to remain a key growth area, displaying a robust CAGR of more than 9.0% over the analysis period. By product segment, Gas Turbines, make up for the largest product segment. Growth in this segment will be driven by benefits such as, environmental advantages, superior efficiency of combined-cycle gas turbine (CCGT) plants, low capital requirement of CCGT plants, shorter construction time, falling gas prices, and tried & tested gas power generation technologies, among others. Easier access to gas reserves in comparison with oil reserves against a backdrop where resource nationalism in oil-rich countries are limiting access to oil deposits, and ongoing infrastructural developments in gas pipelines transmission and distribution is already resulting in energy producers shifting towards natural gas. Wind Turbines, represent the fastest growing product segment growing at a robust CAGR of more than 16% over the analysis period, driven by China’s staunch growth in wind energy. With the recession now at its tails end, wind turbine equipment manufacturers are seeking to invest in production capacity expansions, product development projects, and marketing strategies tailored to capture orders in emerging markets.
Major market participants include ABB Ltd, Alstom SA, Bharat Heavy Electricals Limited, DeWind Inc., Dongfang Turbine Co. Ltd, Enercon India Ltd., Gamesa Eólica SA, GE Energy, Goldwind Science & Technology Co. Ltd, Mitsubishi Heavy Industries Ltd, Pratt & Whitney Canada Corp, REpower Systems AG, Rolls Royce Group Plc, Siemens AG, Suzlon Energy Limited, and Vestas Wind Systems A/S, among others.
The research report titled “Turbines & Turbine Generator Sets: A Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, drivers, issues, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in new capacity addition in Megawatts for US, Canada Japan, Europe Asia-Pacific, Middle East and Latin America. Product markets analyzed include Hydraulic Turbines, Steam Turbines, Gas Turbines, and Wind Turbines, among others. Dollar sales estimates and projections are exclusively provided for global market across the aforementioned geographic market verticals.
For more details about this comprehensive research report, please visit –
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc.
Web Site http://www.StrategyR.com/
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