North America Gas Turbine Market - Forecasts from 2024 to 2029

The North American gas turbine market is expected to grow at a CAGR of 4.99%, reaching a market size of US$7.463 billion in 2029 from US$5.821 billion in 2024.

The North American market is anticipated to expand due to increased shale gas exploration efforts and quick improvements to industrial gas turbine capacities in the area. Moreover, the demand for gas turbines would grow during the projection period because of increased shale gas production and a rise in electricity demand. However, market expansion would be limited by an increasing preference for wind power and solar power among other renewable energy sources for electricity generation. Technological advancements in the oil and gas industry have increased recoveries per well and shale gas production, heralding many prospects for gas turbine manufacturers.

Moreover, greater materials, enhanced combustion systems, and cutting-edge cooling technologies are among the innovations that manufacturers are concentrating on to create gas turbines with increased efficiency. Their competitiveness is increased as a result of reduced fuel consumption and operating expenses.

Combined Cycle Power Plants (CCPPs) with gas and steam turbines are undergoing continuous development, leading to extremely high-efficiency levels that surpass 60%. Nitrogen oxide (NOx) emissions are being reduced by advances in dry low-NOx (DLN) combustors and lean pre-mixing. Broad investigations into hydrogen-fueled gas turbines may result in almost pollution-free electric power generation, which will be by ecological statutes. Carbon capture and storage (CCS) techniques are being examined as well to enhance environmental friendliness by capturing and stocking away the emissions from gas turbines.

North America Gas Turbine Market Drivers:

• The growing adoption of energy-efficient technologies and a declining dependence on coal-fired power plants.

The firms are under pressure to lower their already low prices, though, as the demand for gas turbines is below capacity. Therefore, the North American gas turbine market is expected to grow while revenue is expected to decrease. Businesses are struggling to stay afloat in an increasingly competitive gas turbine sector, with cheap renewables representing the most formidable challenge to gas-powered electricity generation.

On the other hand, constructing sizable combined facilities in developed nations may eventually help with installed capacity recovery. Additionally, the recovery of this market may be aided by replacing outdated and inefficient turbines installed in the 1960s and 1970s. Furthermore, the North American shale revolution plays a significant role in its gas turbine sales.

• Increasing demand for power generation

Natural gas prices have been under pressure due to increased production, which is likely to result in a rise in the proportion of power produced using natural gas. Both combined-cycle and open-cycle plants use gas turbines. Due to their higher power output, combined-cycle power plants are more efficient than steam turbines.

Governments are enforcing stronger regulations on carbon dioxide emissions, which are reduced in power produced by combined cycle power plants. Therefore, the power generation segment will grow as there is a greater demand for natural gas power plants.

• High use of heavy duty technology

Growing together with the integration of large-scale economic zones across developing nations is the rapid growth of manufacturing plants. The growing need for electricity in the industrial sector is driving the global expansion of captive-generating power plants. The electricity demand is met in part by these power plants, which will promote growth in the heavy-duty market.

The expansion of the aero-derivative market is fueled by the widespread availability of extremely flexible and mobile technologies. The application portfolio of the aero-derivative segment is broad and includes district heating, marine propulsion, and utility generation.

North America Gas Turbine Market Restraint:

• Reduction of electricity consumption to control pollution emissions

This market's growth is restricted by the U.S.'s focus on decreasing power use so that pollution emissions are minimized. The country is transitioning from coal to natural gas, which it heavily relies on. However, its authorities are finding ways of using it as an environmentally sustainable source of energy, which could have an unprecedented effect on this market.

North America Gas Turbine Market Geographical Outlook

• The United States is expected to grow rapidly during the forecast period.

The expectant demand for gas turbines is due to the expansion in production activities in the natural gas industry. The maritime industry, which propels ships using aero-derivative gas turbines, is another potential market for gas turbine producers in the USA.

These gas turbines are expected to be highly demanded as the natural gas industry intensifies its production activities. Additionally, vessels operating on Aero-derivative Gas Turbines power the marine sector, presenting a big market base for American Turbine manufacturers. This will make natural gas more popular in power generation areas, which is anticipated to generate a massive demand for gas turbines over the forecast period.

North America Gas Turbine Market Developments:

• In September 2021, Bakken Energy LLC and Mitsubishi Power Americas, Inc. signed a strategic partnership agreement to create a clean hydrogen hub in North Dakota, the U.S. Through this partnership, Mitsubishi aims to bring hydrogen-enabled gas turbine technology to Entergy in Southeast Texas.
• In June 2021, Air Products, a global leader in industrial gases and megaproject development, announced a strategic global collaboration with Baker and Hughes. Through this collaboration, Baker Hughes has agreed to provide Air Products with advanced hydrogen compression and gas turbine technology for Air's global projects. These include a net-zero hydrogen energy complex in Edmonton, Canada, and Alberta.

North America Gas Turbine Key Market Segmentation:

The North American Gas Turbine Market is segmented and analyzed as below:

By Type

• Gas Cycle
• Combined Cycle
• Cogeneration

By Power Rating

• <100 MW
• >100 MV- <300 MV
• >300 MW

By Application

• Power Generation
• Oil & Gas
• Others

By Technology

• Heavy Duty
• Light Industrial
• Aero-derivative

By Country

• United States of America
• Canada
• Mexico