Natural Gas Fired Electricity Generation Market Trends and Forecast
The future of the global natural gas fired electricity generation market looks promising with opportunities in the power & utility and industrial markets. The global natural gas fired electricity generation market is expected to grow with a CAGR of 4.8% from 2024 to 2030. The major drivers for this market are increasing demand for reliable and flexible power generation, advances in natural gas turbine technology, such as combined cycle gas turbine (CCGT) systems, and stricter environmental regulations and move toward cleaner energy sources.
Natural gas is the main fuel source for turbines or engines used in construction and operation of plants. These include metals for turbine parts like blades and casings, ceramics and composites for high temperature operations, as well as concrete and steel that make up plant structural components. The monitoring of plant performance to ensure optimal production through sensors and control systems that have been equipped with electronic components is essential in this industry. However, the cost competitiveness of automotive as well as transportation connectors hinges on aspects like material composition, manufacturing complexity, and market demand among others. Consequently, their cost vis-à-vis rivals fluctuates due to such variations such as quality; dependability; compliance with industry standards; which greatly determines where they stand within the market.
• Lucintel forecasts that combined cycle is expected to witness higher growth over the forecast period.
• Within this market, power & utility is expected to witness the higher growth.
Country Wise Outlook for the Natural Gas Fired Electricity Generation Market
The natural gas fired electricity generation market is witnessing substantial growth globally, driven by increasing energy demand. Major players in the market are expanding their operations and forming strategic partnerships to strengthen their positions. Below image highlights recent developments by major natural gas fired electricity generation producers in key regions: the Canada, UK, Brazil, India, and China.
Emerging Trends in the Natural Gas Fired Electricity Generation Market
Emerging trends in the natural gas fired electricity generation market shaping its future applications and market dynamics:
• Unified Cycle Plants: Growing trend of Combined Cycle Gas Turbine (CCGT) plants that have higher efficiency and lower emissions than conventional thermal power plants.
• Hybridization for Renewable Energy Utilization: Hybridisation of gas fired power plants with sources of renewable energy such as solar and wind in order to improve grid stability and help reduce carbon footprints.
• Digitalisation and Smart Grid Technologies: Power station digital technologies’ installation and setting up smart grids to decrease operational costs, increase productivity, and work from remote areas easily.
• Emission Cut Prioritization: This involves adoption of advanced emission control technologies including carbon capture storage (CCS) for reducing environmental impact while complying with stringent regulatory requirements.
• Integration of Energy Storage Systems: Incorporation of energy storage systems will make natural-gas fired power plants more flexible in managing peak loads besides helping to support grid reliability.
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Recent Development in the Natural Gas Fired Electricity Generation Market
Ongoing innovations and advancements in various sectors of the natural gas fired electricity generation market which have been highlighted by recent developments:
• General Electric (GE) : Launch of new HA gas turbine models GE has introduced advanced HA gas turbine models, known for their high efficiency and lower emissions, catering to the growing demand for cleaner and more efficient natural gas-fired power generation solutions. These turbines leverage advanced technologies such as additive manufacturing and digital controls to improve performance and operational flexibility in power plants worldwide.
• Siemens Energy : Introduction of digital twin technology for gas turbines Siemens Energy has pioneered the use of digital twin technology for gas turbines, enabling real-time monitoring, predictive maintenance, and optimization of plant operations. This innovation allows power plant operators to enhance efficiency, reduce downtime, and extend the lifecycle of gas turbine assets, thereby improving overall reliability and performance in natural gas-fired power generation facilities.
• Baker Hughes : Collaboration with power plant operators to enhance gas turbine efficiency Baker Hughes has collaborated with power plant operators to implement advanced technologies and solutions aimed at enhancing the efficiency and performance of gas turbines. This includes the integration of digital solutions for condition monitoring, data analytics, and operational optimization to achieve higher operational reliability, lower fuel consumption, and reduced emissions in natural gas-fired power plants.
• Shell : Investment in natural gas-fired power generation projects Shell has made significant investments in natural gas-fired power generation projects globally, aligning with its strategy to expand its presence in the energy transition towards cleaner energy sources. These investments include the development of combined cycle gas turbine (CCGT) plants and the integration of renewable energy technologies to support grid stability and meet the growing demand for reliable and sustainable electricity generation.
Strategic Growth Opportunities for Natural Gas Fired Electricity Generation Market
Some key strategic growth opportunities for this market include
Growth of Developing Economies: The growing need for dependable power supply in developing nations creates possibilities for new installations of gas-based power plants.
Collaboration with Green Energy: Blending with environmentally friendly solar and wind for stabilized power supply towards a sustainable increase in demand.
Technological Progress: Embracing advanced gas turbine technologies and digital solutions to improve efficiency, flexibility, and environmental friendliness.
Upgrading Infrastructure: Replacing old coal-fired power stations that are less efficient and contain too many pollutants with modern facilities that operate on natural gas.
Supportive Regulatory Policies: Enabling regulations of governments emphasizing the uses of natural gas as an eco-friendly “bridge fuel” to cut down on pollution and guarantee energy independence.
Natural Gas Fired Electricity Generation Market Driver and Challenges
Global energy production has a great role in the natural gas fired electricity generation market especially due to its cost effectiveness, low emissions level compared to other fossil fuels, and flexibility for grid stability. In view of the need to meet energy requirement and conserve our environment, natural gas fired power plants have emerged as significant elements in the switch to greener forms of energy.
The factors responsible for driving the natural gas fired electricity generation market include:
Cost Efficiency: Thus, natural gas- powered electricity is oftentimes more cost-effective than other fossil fuels since there are adequate supplies and the prices are competitive.
Lower Emissions: This renders it attractive in terms of environmental regulations as compared to coal and oil because of few greenhouse gases and pollutants emitted by natural gas.
Flexibility: Therefore, essential grid stability requires power plants that can change their capacity swiftly. These facilities also help absorb the intermittency in renewable energy sources.
Challenges in the natural gas fired electricity generation market are:
Fuel Price Volatility: It is possible for natural gas price fluctuations to impact the economic viability of natural gas power plants.
Concerns about the Environment: Though cleaner than coal, methane leaks and greenhouse gas emissions caused by natural gas are still a problem for environmentalists.
Infrastructure Problems: Difficulties in logistics and in meeting regulations may be encountered when building pipelines and other infrastructure needed for transporting natural gas or integrating natural-gas fired generators into existing grids.
it is cost-effective, emits fewer pollutants making it appealing to users however its price is unpredictable, affects climate change as well as energy systems development. To continue developing naturally occurring gaseous substance based electric power stations in the global energy map, technological improvement solutions shall be required to address these challenges coupled with supportive policies and strategic investments.
Natural Gas Fired Electricity Generation Suppliers and Their Market Shares
In this globally competitive market, several key players such as General Electric, Siemens AG, Mitsubishi Hitachi Power System, Kawasaki Heavy Industries, etc. dominate the market and contribute to industry’s growth and innovation. These players capture maximum market share. To know the current market share of each of major players contact us.
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies natural gas fired electricity generation companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the natural gas fired electricity generation companies profiled in this report include-
• General Electric
• Siemens AG
• Mitsubishi Hitachi Power System
• Kawasaki Heavy Industries
• Bharat Heavy Electricals
• Ansaldo Energia
• Solar Turbines Incorporated
• Opra Turbines B.V
• Man Energy Solutions
• Centrax Gas Turbines
These companies have established themselves as leaders in the natural gas fired electricity generation industry, with extensive product portfolios, global presence, and strong research and development capabilities. They continually strive to enhance their market positions through strategic partnerships, mergers and acquisitions, and product innovations.
The market share dynamics within the natural gas fired electricity generation market are evolving, with the entry of new players and the emergence of innovative natural gas fired electricity generation technologies. Additionally, collaborations between material suppliers, manufacturers, and end-users are fostering technological advancements and expanding market opportunities.
Natural Gas Fired Electricity Generation Market by Segment
Major segments of the Natural Gas Fired Electricity Generation Market that are currently experiencing growth include Combined Cycle Gas Turbines (CCGT), which are known for their high efficiency in converting natural gas into electricity. This category combines gas turbines and steam turbines so as to maximize energy yield from fuel while reducing emissions per unit of electricity produced. Furthermore, Flexible Gas Turbines are gaining interest because they can adjust power output rapidly in response to changes in electricity demand hence making them well suited for balancing intermittent renewable energy sources such as solar and wind. Another is Cogeneration (CHP), where Combined Heat and Power plants utilize natural gas to produce both electricity and useful heat concurrently used in industrial and district heating processes. These categories identify a movement within the industry toward more efficient, environmentally friendly natural-gas-based power generation methods.
Natural Gas Fired Electricity Generation Market by Technology [Value from 2018 to 2030]:
• Open Cycle
• Combined Cycle
Natural Gas Fired Electricity Generation Market by Application [Value from 2018 to 2030]:
• Power & Utility
• Industrial
• Others
Natural Gas Fired Electricity Generation Market by Region [Value from 2018 to 2030]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Features of the Global Natural Gas Fired Electricity Generation Market
Market Size Estimates: Natural gas fired electricity generation market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2018 to 2023) and forecast (2024 to 2030) by various segments and regions.
Segmentation Analysis: Natural gas fired electricity generation market size by technology, application, and region in terms of value ($B).
Regional Analysis: Natural gas fired electricity generation market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different technologies, applications, and regions for the natural gas fired electricity generation market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the natural gas fired electricity generation market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What is the growth forecast for natural gas fired electricity generation market?
Answer: The global natural gas fired electricity generation market is expected to grow with a CAGR of 4.8% from 2024 to 2030.
Q2. What are the major drivers influencing the growth of the natural gas fired electricity generation market?
Answer: The major drivers for this market are increasing demand for reliable and flexible power generation, advances in natural gas turbine technology, such as combined cycle gas turbine (CCGT) systems, and stricter environmental regulations and move toward cleaner energy sources.
Q3. What are the major segments for natural gas fired electricity generation market?
Answer: The future of the natural gas fired electricity generation market looks promising with opportunities in the power & utility and industrial markets.
Q4. Who are the key natural gas fired electricity generation market companies?
Answer: Some of the key natural gas fired electricity generation companies are as follows:
• General Electric
• Siemens AG
• Mitsubishi Hitachi Power System
• Kawasaki Heavy Industries
• Bharat Heavy Electricals
• Ansaldo Energia
• Solar Turbines Incorporated
• Opra Turbines B.V
• Man Energy Solutions
• Centrax Gas Turbines
Q5. Which natural gas fired electricity generation market segment will be the largest in future?
Answer: Lucintel forecasts that combined cycle is expected to witness higher growth over the forecast period.
Q6. In natural gas fired electricity generation market, which region is expected to be the largest in next 5 years?
Answer: APAC is expected to witness the highest growth over the forecast period.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the natural gas fired electricity generation market by technology (open cycle and combined cycle), application (power & utility, industrial, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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