Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Gas Turbine Market Overview

Research on Gas Turbine market trends and key players

Gas Turbine Market Overview

  1. 1. Gas Turbine Engines Market and Applications Overview
  2. 2. Executive Summary Market Size: • in 2015 - $64 bn. • in 2020 - $82 bn. • CAGR = 4,13 % Market segments: • Turbofan engines- 46% applied on long and medium-range commercial aircrafts as well as on military-transport aircrafts . • Turboprop engines– 9% applied on short and medium range civil and transport aircrafts, as well as on general aviation aircrafts • Turboshaft engines– 18% mainly applied on helicopters • Turbojet engines – 7,5% applied on military aircraft, missiles and targets. • APU – 19% applied on majority of aircrafts Market Drivers • Re-equipment of modern aviation • Increasing demand for commercial aircrafts Key Global Market Players: • Rolls-Royce • Pratt&Whitney • GE Aviation • CFM International Market Size: • in 2015 - $34,8 bn. • in 2020 - $37,7 bn. • CAGR = 1,93 % Market segments : • Most applied gas turbines are ones with capacity up to 10 MW and above 60 MW. • Microturbines are considered to be one of the most promising segments (units up to 300 kW and modular units up to 1 MW). This segment is growing with about 16% CAGR, 3 players on the market (Capstone - 55%, FlexEnergy - 34% and Ansaldo Energy - 10%). Russia is one of the main consumers of power units of this class, yet, Russian producers are practically not represented ion the market (96 % of Russian market volume is import). Market Drivers • Phased renunciation of coal-fired power stations (because of polluting emissions) and atomic power stations (because of low security level and recent events in Japan). Key Global Market Players: • Mitsubishi Heavy Industries • Solar Turbines (Caterpillar) • GE Energy • Siemens Aviation Gas Turbines Industrial Gas Turbines
  3. 3. Aviation Gas Turbines Part 1
  4. 4. The main types of gas turbine engines Source: www.avia-simple.ru Turboshaft engines Application: Mainly on helicopters (sometimes turboshaft engines called "helicopter turbine engine"), also used as auxiliary power unit. Turboprop engines Application: short-haul / medium-haul civil aviation trasport aircrafts (if there is no need for high speed or economical operation is important) Turbofan engines Application: The most common ДУ, it provides economical operation with good traction performance, quieter in comparison with turboprop engines. Applied on long and medium-haul commercial aircrafts and military transport aircrafts. Turbojet engines Application: Most actively developed as a generator for all kinds of military and commercial aircrafts in 70-80s, now lost in popularity in the aviation industry being pushed out by effective dual-circuit turbofan engines (turbofans).
  5. 5. Key Players in the Aviation Gas Turbine Market Source: Forecast International, Vision Gain, Technavio, Flightglobal Commercial Airlines 2015 Report The joint venture of General Electric and Snecma (Safran), founded in 1974. It is a manufacturer of engine CFM56, one of the most common aviation gas turbine engine (51% of the market). Division of General Electric, the first engine was manufactured in 1941. Currently, the company occupies about 25% of the total market production of aviation gas turbine engines. The company was founded in 1906, the first aircraft engine was manufactured in 1914, it is one of the majors in the market. The joint venture of Pratt & Whitney, Rolls- Royce, MTU Aero Engines and Japanese Aero Engine Corporation, was founded in 1983. Currently, the main shareholder is the Pratt & Whitney. The company was founded in 1925, it produces engines for commercial and military aircraft and is one of the largest players in the market. Currently is a part of United Technologies The joint venture of General Electric and Pratt & Whitney, was founded in 1996
  6. 6. Gas Turbine Engines Market Source: Forecast International, Vision Gain, Technavio, Flightglobal Commercial Airlines 2015 Report Market size– $63,5 bn. in 2015, CAGR =4,13%, commercial gas turbine engines market: $28 bn. in 2015 ,CAGR = 5,85% 48 64 78 23 28 43 0 10 20 30 40 50 60 70 80 90 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Overall Aviation Gas Turbine Engines Commercial Aviation Gas Turbine Engines $bn. Sales volume of manufacturers The world market for aviation gas turbines is in the midst of a tremendous re-equipment cycle. During the period 2016–2029, this total market is forecast to comprise the production of well over 220,000 gas turbine engines, with a combined total value in excess of $1.2 trillion. This market is being driven by world re- equipment cycles in three civil market segments and one military segment as follows: • Large Jet Transports • Regional Transport (both jet and turboprop) • Business Jets • Fighter Aircrafts 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 2015 2016 0 2 4 6 8 10 12 14 16 18 20 2015 2016 # of Gas Turbines Produced Sales Values $bn.
  7. 7. Historical aviation gas turbine engines production volumes of various types 0 1000 2000 3000 4000 5000 6000 7000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Turbofan Turboshaft APUs Turboprop Turbojet Source: Forecast International # of units The market shares forecast for the different types of engines Aviation Gas Turbines Market Segmentation by Engines Types 46,00% 18,00% 19,50% 9,00% 7,50% Turbofan Turboshaft APUs Turboprop Turbojet Turbofan engines: Boeing predicts growth in the air travel market by about 5% per year over the next two decades owing to the growing global economy. At the same time, airlines profits are also rising due to the growing demand for air travelling. According to the forecast of the International Air Transport Association (IATA), consolidated net returns of the market participants in 2015 will reach $ 29.3 billion., While in 2014 it was $ 16.4 billion., In 2012 - $ 7.4 billion. The industry’s trends mentioned above will allow airlines to place large orders for new aircrafts, which causes the demand for engines. Turboshaft engines : Demand for turboshaft engines will grow stably in the medium term, owing to the demand for light commercial helicopters (therefore driving engine production), which are increasingly being used for utility tasks. Military’s segment demand will fall. APU: Demand for auxiliary power units (APUs) will steadily increase due to the fact that such systems are used in many types of aircraft. However, despite the fact that the APU occupies 19.5% of the produced gas turbine engines, because of their low cost, it is a tiny fraction of the value of the aviation gas turbine market overall. Turboprop engines: In the period from 2016 to 2029 the volume of production of turboprop engines will be reduced by the fact that, in view amalgamation and strengthening of the major airlines operating, both on local routes, the opportunity for local air carriers will be reduced. This will cause the decline in demand for regional aircrafts (Cessna, Beechcraft King Air, etc.), and as a consequence, decrease in demand for turpoprop engines. Turbojet Engines : Aircraft manufacturers abandoned turbojet engines for most applications long ago due to their lower efficiency compared with turbofan engines, but they remain useful for applications requiring a high power-to-weight ratio specifically for missile / air targets and to a lesser extent in UAVs since turbojets have a high power-to-weight ratio, but low fuel efficiency, that makes turbojets unsuitable for many UAVs tasks.
  8. 8. Source: Forecast International Aviation Gas Turbines Market Segmentation by Engines Types: Manufacturers Turbofan engines (2016-2029 forecast) Turboshaft (2016-2029 forecast) 30,61% 19,91%20,19% 20,93% 8,36% CFM International Rolls-Royce GE Aviation Pratt & Whitney Other 26,74% 16,68% 16,47% 22,46% 9,38% 8,27% Turbomeca (Safran) Klimov GE Aviation P&W Canada Rolls-Royce Other Other types of gas turbine engines (forecast for the period 2016-2029) Turbojet APU Turboprop In this segment, three companies will hold 90% of the market in the forecast period, namely: Teledyne (35%), P&W Aero Power, a subsidiary of Pratt & Whitney (29%) and Safran via 2 subsidiaries, Microturbo and Turbomeca (28% ). In this segment, two companies, Honeywell and Pratt & Whitney Aero Power will produce practically all the APUs volume in the forecast period, as well as Safran will hold a small proportion, through its subsidiary Microturbo. In this segment, the leading company is Pratt & Whitney Canada (the subsidiary of Pratt & Whitney), which produces 80% of all engines in this segment (PT6A and PW100 engines)
  9. 9. 41% 22% 12% 11% 9% 4% CFM International General Electric Rolls-Royce International Aero Engines Pratt & Whitney Остальные Manufacturer # Aircrafts # Engines CFM International 9 395 19 088 General Electric 4 767 10 314 Rolls-Royce 2 594 5 636 International Aero Engines 2 658 5 316 Pratt & Whitney 1 844 4 150 Остальные 595 2 029 Total 21 850 46 533 Turbofan Engines Market Segmentation Shares of turbofan engines manufacturers for commercial aircrafts Shares of turbofan GTE manufacturers for commercial aircrafts (by the type of aircrafts) 48% 24% 19% 5% 3% General Electric Rolls-Royce Pratt & Whitney CFM International Engine Alliance Wide-body aircrafts 69% 20% 7% 4% CFM International International Aero Engines Pratt & Whitney Rolls-Royce 66,2% 23,0% 5,8% 3,3% General Electric Rolls-Royce Honeywell Lycoming Powerjet Pratt & Whitney Narrow-body aircraft Regional Airliners Source: Flightglobal Commercial Engines 2015 report
  10. 10. Industrial Gas Turbines Part 2
  11. 11. Industrial Gas Turbines Market Source: Forecast International; The forecast of the development of the market for gas turbine equipment in the years 2013-2021 by V. V. Goncharov; “Bring on the boom times” powerengineeringint.com 0 200 400 600 800 1 000 1 200 1 400 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 more than 180 МW 125 - 180 MW 50 - 125 МW 20 - 50 МW 10 - 20 MW 3,0 - 10 MW 0,2 - 3,0 MW Market segmentation by capacity Market Size – $34,8 bn. in 2015, CAGR =2,16% The world market for industrial gas turbines is quite complex and occupies a large portion of the production capacity of several very large firms in Europe, Asia, and the United States. This activity is rapidly becoming ever more important, as gas and steam turbines (often in combined cycle applications) are increasingly sought as prime movers for application within the world's power and energy industries. Faced with potential global warming as well as pollution problems, the energy industry is phasing out hundreds of coal burning plants in favor of clean burning gas turbines powered by natural gas or other fuels that provide far less noxious emissions. At the same time, many countries, having experienced or witnessed harrowing near disaster nuclear scenarios, have made the decision to phase out nuclear facilities in favor of much safer and controllable gas turbines. Therefore, the trend of increasing demand for gas-turbine power plant can be marked. # of units # of units $bn. 20 35 38 40 1858 2773 2638 2682 0 500 1000 1500 2000 2500 3000 0 5 10 15 20 25 30 35 40 45 50 Market Size ($) Market Size (# of units)
  12. 12. Key Players in the Industrial Gas Turbine Market Source: Forecast International Key players Manufacturers’ sales 42,84% 18,00% 13,82% 10,41% 7,73% 7,20% GE Siemens Mitsubishi Heavy Industries Alstom Solar Others * In 2015 GE Energy completed Alstom Power Acquisition 0 100 200 300 400 500 600 700 800 900 2015 2016 0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 2015 2016 $bn. # of Gas Turbines Produced Sales Values
  13. 13. Microturbines is a Rapidly Growing Segment of the Industrial Gas Turbines Market Source: "Microturbine Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019”, Transparency; 2012-2015 Capstone Turbines Annual Reports 144 229 497 0 100 200 300 400 500 600 2012 2013 2014 2015E 2016F 2017F 2018F 2019F 2020F Microturbines Market Size Capstone Historical Sales +16,7% Market volume – $229M in 2015, CAGR = 16,7% $M Microturbines market segmentation by units’ capacity Microturbines segment is growing almost 8 times faster than the market of industrial gas turbine equipment in general (16.7% vs. 2.16%). The key player at the moment is the company Capstone Turbines (market share in 2012. - 76%, 2015 – around 50%). Based on this, knowing the sales structure of Capstone Turbines in 2012-2015 the following can be indirectly estimated: • Demand for microturbines of various capacities for the entire market, • Geographical segmentation of microturbines market. According to the data presented in the annual reports of Capstone Turbines, the following market segments (by units’ capacity) are the most promising: By revenue  65 kW  1 MW By sold items  65 kW  30 kW  1 MW 23,03% 28,63% C30 C65 C200 С600 С800 С1000 18,69% 61,56% 6,44% C30 C65 C200 С600 С800 С1000 Revenue Sold units
  14. 14. Microturbines: Specs and Application Source: 2015 Capstone Turbines Annual Report, “Catalog of CHP Technologies”, US Environmental Protection Agency Generation of on-site power for all phases of extraction of natural reSources. Potential market $310M Потенциальный рынок $310M Потенциальный рынок $310M Capture and utilize thermal energy from clean exhaust in CHP and CHPP applications Potential market $440M Power generation utilizing biogas and other waste products Potential market $340M Uninterruptible power supply for mission critical businesses (data centers, hospitals, etc.) Potential market $250M An additional source of power for different types of vehicles Potential market $90M An additional source of heat and electricity for different types of vessels Potential market $100M O&G and Other Natural Resources Energy cogeneration Renewable energy Reserved power supplies Vehicles electricity supply Vessels electricity supply • Electric power: 30 to 330 kW, as well as modular units with a capacity of up to 1 MW • Thermal power: exhaust temperature up to 350 ºC, that allows to use microturbines as a source of thermal energy (cogeneration) • Fuels: Can operate on various fuels, such as natural gas (primary and processed) and liquid fuels (gasoline, kerosene, diesel), as well as various kinds of biofuels • Life cycle: 40 000 – 80 000 hours with overhaul • Emissions: Low NOx combustion when operating on natural gas; capable of meeting stringent California standards with carbon monoxide/volatile organic compound (CO/VOC) oxidation catalyst. • Dimensions: 0, 06-0,07 м3 и 18-22 kg per kW of power.
  15. 15. Key players in the market of micro-turbines and the parameters of products Source: “Catalog of CHP Technologies”, US Environmental Protection Agency Capstone Turbine Corporation – microturbine manufacturer, founded in 1988 (US), the key player on the market (market share in 2012 - 76% at the moment - about 50%). It produces a wide range of microturbines in the power range from 30 kW to 1 MW. FlexEnergy – The company was founded in 2004 (US) as a spin-off Ingersoll Rand, currently the main competitor of Capstone. It produces microturbines with capacity of 250 and 333 kW. Ansaldo Energy – Italian power engineering company, founded in 1853. Currently holds around 10% share of microturbine market. Capstone C30 Capstone C65 Capstone C200 FlexEnergy MT250 FlexEnergy MT330 Capstone C1000-LE Capacity Nominal Capacity (kW) 30 65 200 250 333 1000 Net Capacity (kW) 28 61 190 240 320 950 Equipment Cost of Equipment ($) 75 300 129 300 401 900 441 200 556 400 1 627 600 $ / kW 2 689 2 120 2 120 1 840 1 770 1 710 Installation Installation Cost ($) 45 100 67 100 196 600 211 400 259 900 747 300 Total 120 400 196 400 598 500 652 600 826 300 2 374 900 $ / kW 4 300 3 220 3 150 2 720 2 580 2 500
  16. 16. US and Russia are the main consumers of Microturbines Source: Capstone Turbines 2015 Annual Report ;

×