The global market for boilers, turbines, and generators is set to decrease from a cumulative $318bn during the 2010-2015 period to $241bn between now and 2020.
That’s the verdict of a new report which says thermal capacity declines due to an increased focus on renewable energy sources and environmental issues will drive the decrease.
In the report from research firm GlobalData, it states that to meet growing demand for electricity, countries worldwide have focused on increasing installed capacity, primarily in the nuclear and renewables sectors.
Aside from a transition towards cleaner sources of power generation, the other factors affecting the global boilers, turbines, and generators market are environmental concerns, tough economic conditions, and fluctuations in fossil fuel prices.
Swati Gupta, GlobalData’s power analyst, said: “China will be the leader in the boilers, turbines, and generators market, although its market is forecast to decline from around $17.7bn in 2015 to $14.9bn by 2020.
“Indeed, the gas power equipment market, although small when compared to the coal market, will register considerable growth over the forecast period, as China moves towards cleaner sources of power generation. As a means to achieve this, in its 12th Five-Year-Plan, China has set a target to increase the share of natural gas in its energy mix to 10 per cent by 2020. The government also plans to replace conventional coal power plants with advanced technology large capacity power plants, which will represent new opportunities for market players.”
GlobalData said that although the boilers, turbines, and generators market will continue to be dominated by China, with an expected 31 per cent share of this $47.8bn market in 2020, challenges will remain. “The market’s poor outlook in other regions, however, will ensure China remains dominant. In Europe, for example, declining electricity consumption coupled with increased emphasis on green energies will drive the boilers, turbines, and generators market down.”