The advanced utility boilers market is expected to rise at a CAGR of more than 2% during 2020 - 2025. Factors such as rapidly increasing energy demands in the developing regions such as Asia-Pacific and the requirement of cleaner technology for energy generation are likely going to drive the advanced utility boilers market. However, the increase in the production of cleaner energy from renewable sources in comparison to advanced utility boilers is expected to restrain the advanced utility boilers market.
- Ultra-supercritical boiler segment, due to its higher plant efficiency and lower carbon emissions, is expected to be the fastest-growing segment for the advanced utility boilers market during the forecast period.
- New technologies such as advanced ultra-supercritical boilers having cycle efficiency over 50%, thus emitting less carbon emission are likely to be highly accepted by the power plant owners and are expected to create several opportunities for the future's advanced utility boiler market.
- Due to the rapid and most significant growth in energy consumption, Asia-Pacific is expected to be the largest and fastest-growing market for the advanced utility boilers market during the forecast period. In 2018, approximately 42% of the global primary energy was consumed by the Asia-Pacific region.
Key Market Trends
Ultra-Supercritical Segment Expected to be the Fastest Growing Market
- Ultra-supercritical boilers operate at the pressure and temperature conditions that are way higher than the critical point of water, i.e., above the temperature and pressure at which the liquid and gas phases of water coexist in equilibrium. At this point, there is no difference between water gas and liquid water, which results in higher cycle efficiency of 45% or above.
- Many countries in the world have planned to decrease carbon emissions into the environment to reduce the greenhouse gas effect. For the above cause, countries are upgrading their several power plants to use the ultra-supercritical boiler.
- Due to the increasing electricity demand, countries are finding it more profitable to use ultra-supercritical boiler having more cycle efficiency, low fuel consumption, and less flue gas emissions.
- In 2019, India’s state-owned National Thermal Power Corporation (NTPC) commissioned unit-1 of Khargone Super Thermal Power Station in Madhya Pradesh. Khargone thermal power station is India's first ultra-supercritical plant that operates at an efficiency of 41.5% and an installed capacity of 660 megawatts (MW).
- Hence, owing to the above points, the ultra-supercritical segment is likely to be the fastest-growing segment in the advanced utility boilers market during the forecast period.
Asia-Pacific Expected to Dominate the Market
- Asia-Pacific, due to increasing industrialization and urbanization, has a rapid increase in the energy demand and has several power plant expansion capacity projects to meet those energy demands, which is likely to be the fastest-growing and largest growing market for the advanced utility boilers.
- Moreover, countries such as China, India, and Japan are either upgrading their power plants or announced to use advanced boilers in their ongoing or upcoming power generation projects. Such developments are likely going to drive the advanced utility boilers market.
- In 2018, the total electricity generation in Asia-Pacific was 12273.6 terawatt-hours (TWh), which was higher than what was generated in 2017, 11578.2 terawatt-hours (TWh). Out of the total electricity generated in the region in 2018, around 73% was generated from fossil fuels such as coal, natural gas, and oil. This exhibits the dominance of Asia-Pacific for using the massing amount of fossil fuels, which needed boilers to generate electricity.
- In 2019, National Thermal Power Corporation (NTPC), the country’s largest state-owned power generator and Bharat Heavy Electricals Limited (BHEL) signed an MoU for forming a joint venture (JV) company, to set up an 800 megawatts (MW) technology demonstration plant (TDP) at NTPC’s existing power plant in Sipat, Chhattisgarh. The purpose of this JV is to demonstrate the home-grown advanced ultra-supercritical (AUSC) technology, which is expected to reduce CO2 emission by 20%.
- In 2019, Malaysia’s national utility Tenaga Nasional Bhd (TNB) commissioned one of the two ultra-supercritical coal-fired power plants in Port Dickson. The total capacity of the two plants is expected to be 1000 megawatts (MW).
- Hence, owing to the above points, Asia-Pacific is expected to dominate the advanced utility boilers market during the forecast period.
The advanced utility boilers market is moderately consolidated. Some of the key players in this market include General Electric Company, Sumitomo Corp, Mitsubishi Corp, Larsen & Toubro Limited, and Doosan Corp.
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