Research and consulting firm GlobalData, says the global steam turbine market is forecast to grow at a moderate rate, climbing from $14.1 billion in 2013 to $19 billion by 2020, at a Compound Annual Growth Rate (CAGR) of 4.3%.
According to the company’s latest report, the steam turbine market has been boosted by the increasing demand for electricity, caused by the growing global population and economic development.
In fact, power consumption is expected to increase from 19,133.2 terawatt-hours (TWh) in 2012 to 25,747.1 TWh by 2020, at a CAGR of 4.3%.
Sayani Roy Nath, GlobalData’s Analyst covering Power, says: “Although the focus on renewables is increasing, it has so far been difficult to achieve a major shift towards alternative sources, because they are either uneconomical or incapable of generating sufficient power to meet demand.”
“Furthermore, global coal reserves are much larger than oil and gas reserves, reaching almost 861 billion tons in 2012. Therefore, thermal power is still the dominant source of energy, and with clean coal technology gaining ground, the steam turbine market is set for steady growth in the future.”
China’s Harbin Electric Machinery Company has led the global steam turbine market for the last few years. In 2012, it accounted for a share of 20% in the 120-350 Megawatt (MW) segment and a 31% share in the 350-660 MW segment. Shanghai Electric Group Company and Dongfang Electric Corporation were the other two important Chinese players boasting considerable shares.