The global Steam Turbine Market is estimated to be valued at US$16.27 billion in 2023 and is expected to exhibit a CAGR of 2.2% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Steam turbines are devices that convert thermal energy from steam into mechanical energy. They are widely used in power generation plants, industrial processes, and marine propulsion systems. Steam turbines offer several advantages such as high efficiency, reliability, and versatility, making them a preferred choice in various applications. The increasing demand for electricity due to industrialization and urbanization is driving the market growth. Moreover, the shift towards clean and sustainable energy sources is further fueling the adoption of steam turbines.
Market Key Trends:
One key trend in the steam turbine market is the growing focus on enhancing efficiency through technological advancements. Manufacturers are investing in research and development activities to develop advanced steam turbine designs that offer improved performance and higher energy conversion efficiency. For instance, the development of combined-cycle power plants, which combine gas turbines with steam turbines, has significantly increased the overall efficiency of power generation. This trend is expected to continue, driven by the continuous need for energy efficiency and sustainability.
Porter’s Analysis
· Threat of new entrants: The threat of new entrants in the steam turbine market is low. This is due to high entry barriers such as high capital requirements, technological expertise, and regulatory approvals. Existing market players have established brand reputation and customer loyalty. Therefore, it is difficult for new entrants to compete effectively in the market.
· Bargaining power of buyers: The bargaining power of buyers in the steam turbine market is moderate. Buyers have the option to choose from a wide range of suppliers, which gives them some leverage in negotiating prices and terms. However, the high switching costs associated with steam turbines limit the buyer's power to some extent.
· Bargaining power of suppliers: The bargaining power of suppliers in the steam turbine market is high. There are a limited number of suppliers with specialized manufacturing capabilities, and they hold a significant market share. As a result, suppliers have the ability to dictate terms regarding pricing, delivery schedules, and product quality.
· Threat of new substitutes: The threat of new substitutes in the steam turbine market is low. Steam turbines are widely used in various applications such as power generation, industrial processes, and marine propulsion. There are limited alternatives that can provide the same level of efficiency and reliability as steam turbines.
· Competitive rivalry: The competitive rivalry in the steam turbine market is intense. The market is dominated by a few key players who compete on the basis of product offerings, pricing, and technological advancements. The industry is characterized by constant product innovation and strategic alliances to gain a competitive edge.
Key Takeaways
The Global Steam Turbine Market Size is expected to witness high growth, exhibiting a CAGR of 2.2% over the forecast period. This growth can be attributed to the increasing demand for electricity generation from thermal power plants and the growing focus on renewable energy sources.
In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the steam turbine market. The region has a high demand for electricity and is investing in the expansion of power generation capacities, especially in countries like China and India. The Middle East and Africa region also show significant growth potential due to ongoing infrastructure development projects.
Key players operating in the steam turbine market include General Electric (GE), Siemens Energy, Mitsubishi Power, Ltd., Toshiba Corporation, Doosan Škoda Power, Ansaldo Energia S.p.A., Bharat Heavy Electricals Limited (BHEL), and Fuji Electric Co., Ltd. These players have a strong market presence and are constantly investing in research and development to enhance their product offerings and maintain a competitive position.
In conclusion, the steam turbine market is poised for steady growth in the coming years. The industry is characterized by intense competition among key players, high bargaining power of suppliers, and moderate bargaining power of buyers. Regional analysis highlights Asia Pacific as the fastest-growing region, while key players continue to invest in innovation and strategic alliances to gain a competitive advantage.
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