The turbine control system market majorly depends on the power generation industry and is expected to grow with more than a CAGR of over 3.6% during the forecast period of 2020 – 2025. Turbine control systems play a crucial role in the energy generation, manufacturing, and process industries. The turbine control systems maximize the efficiency of turbine equipment, thereby enhancing its productivity. The abundance of natural gas, coupled with its increasing applications across various end-user industries, especially power generation, is expected to spur the growth of the global natural gas consumption. The growing use of natural gas is expected to drive the demand for turbine-based power plants, which, in turn, is likely to escalate the need for the turbine control systems market, globally. However, the increasing growth in solar power-based generation encourages the power plant generated electricity users to opt for alternate energy production methods, which, in the long run, reduces the deployment of the turbine control system, thus restraining the growth of the market studied.
- The turbine, used in steam turbine power generation (holds the highest demand for turbine control systems), oil and gas, and process facilities, often represents the most critical capital equipment investment. Moreover, production and plant safety are directly related to turbine control systems.
- Globally, the focus has increased on the adoption of automation technologies in the industrial sector, to increase productivity and efficiency. As a result, the up-gradation of existing facilities is likely to drive the demand for the turbine control systems market in the coming future.
- Asia-Pacific has the largest market share and the highest growth rate in the turbine control systems market, followed by North America, Middle East and Africa, and Europe.
Key Market Trends
Increase In Demand Of Steam Turbine Control System For Power Generation
- In order to reduce emissions, many countries, such as the United States, China, and the United Kingdom, etc., started to shift away from coal toward natural gas or renewable energy.
- With the advent of efficient gas turbines and inherent environmental benefits associated with natural gas (natural gas emissions are at the most one-third of coal or petrol), demand for natural gas jumped by 4.6% in 2018, and current natural gas-based power generation accounts for more than half of the demand growth in the world. A recent report by EIA shows that the US gas demand grew by 10% in 2018. This is the highest increase seen in the past several decades, encouraged by the power sector (approximately +15 GW of new gas-fired power plants).
- Global gas consumption is likely to reach 4.3 trillion cubic meters (TCM) by the forecast period, as compared to 3.9 TCM in 2018, particularly in Asia and the Middle East. According to EIA, China’s natural gas consumption is expected to surpass all other countries, except the United States. China is expected to account for more than 40% of the global gas demand growth by 2024, propelled by the demand for power supply and the government’s goal to improve air quality. Therefore, these countries are expected to drive high demand for turbine control systems due to the gas-fired power generation, during the forecast period.
- Therefore, the turbine control systems market is expected to grow in the coming years on account of increasing development of gas-fired power plants, increasing wind power demand and surging focus on enhancing the operational efficiency of power generation.
Asia-Pacific to Dominate the Market Growth
- Fossil fuels continue to account for a significant proportion of the energy mix in much of the Asia-Pacific region. Asia-Pacific is one of the fastest-growing regions in the world because of the increasing population, urbanization and industrialization. As a result, the demand for guaranteed power supply is high. For addressing these demands, many countries are investing in various power generation plants and for increasing their efficiency.
- As per the International Energy Agency (IEA), the world’s most populated country China is likely to install 36% of total worldwide hydroelectricity generation capacity and 40% of all global wind energy. Already, China has over 259,000 MW of new coal plants in various stages of development and accounts for more than 1/3 of the global coal plant pipeline. Moreover, in China major petrochemical plant installation is in the development phase funded by the major company such as ExxonMobil, Wood company SABIC etc. These trends likely to drive the turbine control system market in China,
- On the other side, the coal consumption rate of India registered a growth rate of 8.7%, which indicated that the country is still highly dependent on coal for energy generation. India is also investing in its refinery and petrochemical business.
- As of March 2019, refinery production was 22495.43 TMT, which is higher 6.51% when compared with March 2018. Recently, Saudi Aramco announced that it would be investing in Reliance for a 20% stake in oil-to-chemicals (O2C) division at an enterprise value of USD 75 billion for the O2C division. Similarly, in 2019, BASF announced that it is planning to set up a petrochemical production hub at the cost of INR 16,000 crore in Gujarat in a joint venture (JV) with Adani Group.
- These in turn, likely to propel the demand of the turbine control system in the region during the forecast period.
The turbine control system market is moderately fragmented due to many companies operating in the industry. The key players in this market include ABB Ltd., Emerson Electric Co., Ltd., General Electric Company, Rockwell Automation, Siemens AG, and others.
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