The document provides an overview of the gas turbine engines market, including aviation gas turbines and industrial gas turbines. It states that the aviation gas turbine engines market was worth $64 billion in 2015 and is projected to reach $82 billion by 2020, growing at a CAGR of 4.13%. The main segments are turbofan engines, turboprop engines, turboshaft engines, and auxiliary power units. The key drivers are the re-equipment of modern aviation and increasing demand for commercial aircraft. The largest players are Rolls-Royce, Pratt & Whitney, GE Aviation, and CFM International. The industrial gas turbines market was worth $34.8 billion in 2015 and is projected to reach $37.7

1. Gas Turbine Engines Market and Applications Overview

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. Aviation Gas Turbines
Part 1

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. 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. 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. 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. 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. 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. Industrial Gas Turbines
Part 2

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. 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. 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. 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. 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. US and Russia are the main consumers of Microturbines
Source: Capstone Turbines 2015 Annual Report ;