Hotting up: projected growth in the global boiler, turbine and generator market

29 June 2013

The global boiler, turbine and generator market is expected to grow, with China leading the way, according to a recent report by GlobalData, ‘Boiler, Turbine, Generator (BTG) Equipment for Thermal Power – Market size, Competitive Landscape and Forecasts to 2020’.

The average annual revenue of the global boiler, turbine and generator (BTG) market between 2006 and 2012 amounted to $62.4 billion. This is expected to increase to $64 billion over the forecast period from 2013-20. Rising global electricity demand and high dependency upon thermal power are the major drivers for the market. Apart from tough economic conditions, the major factors affecting the global BTG market are fuel diversification, a move towards cleaner sources of power generation, and fluctuations in fossil fuel prices.

China continues to lead market

China is the biggest BTG market in the world. Its electricity options are skewed towards thermal power generation, making it a major market for BTG equipment. Robust economic growth over the last decade has led to a rise in electricity demand, especially from the industrial sector, benefitting the BTG market.

GlobalData estimates an annual growth rate of 5.3% for the market between 2013 and 2020, driven by the targets of the 12th and 13th five-year plans. Rising electricity demand and heavy reliance upon thermal power will continue to be the major growth drivers over the forecast period.

The gas power equipment market, although small compared with the coal market, will register considerable growth over the forecast period, as China moves towards cleaner sources of power generation. Over the period 2013-20, the gas turbine and heat-recovery steam generator (HRSG) markets are expected to grow at respective compound average growth rates of 9.4% and 8.8% to reach $1.02 billion and $186 million by 2020.

Fuel diversification

In order to achieve climate targets, maintain electricity reliability and reduce reliance upon coal, many countries are diversifying their energy generation markets, incorporating renewable, nuclear and hydro sources. The fluctuation of fossil fuel prices is also one of the major factors working against thermal power generation. A number of countries are looking to a low-carbon economy as a more sustainable source of economic growth.

Coal power generation is expected to gradually lose its prominence, as renewable and nuclear power gain shares in global energy generation, except in countries like India and China, where electricity consumption is increasing and energy generation is biased towards coal power. However, gas power generation is expected to continue to grow, as various governments see gas as a cleaner source of electricity generation than coal.

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