February 20, 2023
By:EmpoweringCPO Insights Team

Gas Turbines

The gas turbine is a mechanical device that harnesses energy from working fluid or gas by utilizing its kinetic energy or potential energy. These turbines run on Brayton Cycle which basically consists of a compressor, heater, cooler, and turbine. The working fluid undergoes a thermodynamic process where the system converts mechanical / heat energy into rotating energy which in turn produces electricity as output. This report on Gas turbines gives in-depth information about the global market overview, market growth, cost variations, leading vendors, and many other additional insights into this category. In this report, we have also presented information on the impact of the recent COVID – 19 pandemic and industry analysis using porters five forces model. This procurement management report can help your team to benchmark your current prices with the market.

Abstract

  • The gas Turbine Market Size exceeded USD 6 billion in 2019 and is anticipated to grow at a rate of over 8% through 2026.
  • Increasing sustainable energy demand across the power and process plants as well as a growing inclination toward energy optimization will drive this market.
  • Sales in the ten-year period 2019 to 2028 will total $96.045 billion, 10.6% less than last year’s sales projection for the 2018 to 2027 period.
  • A growing number of large turbines are deployed with heat recovery units in combined cycle power plants claiming efficiencies of more than 60%.
  • Industry growth can be attributed to the increasing demand for electricity, availability of efficient power generation technology, rising demand for natural gas-fired power plants, the impact of the shale gas revolution, and reduction in the emission of carbon dioxide.
  • Gas turbines are feasible in larger-scale cogeneration wherever natural gas is available at costs less than 3 to 4 times the equivalent energy cost of solid fuels.
  • The U.S. gas turbine industry is set to play a critically important role in power generation, aircraft propulsion, and the oil and gas industry for decades to come.
  • The increase in the production of natural gas has shifted the global focus on the development of gas-fired power plants.
  • Gas turbine orders are going to have a difficult year; the most dramatic reduction is likely to be in unit orders though MW will take a significant hit, too.
  • GE Energy is a clear market leader with 46.809% market share; followed by Siemens with 22.024% and MHPS with 15.89%.
  • In near future (by 2028), GE is expected to control up to 47.4% of the Gas Turbine Electrical Power Generation, Siemens 21.9%, and MHPS 19.3%; These three OEMs might control around 88.6% of the total market.

Table of Content

Content Slide No.
Executive Summary 3
Introduction 4
Advantages and Disadvantages 5
Market Overview 6
Market Overview By Size 7-8
Gas Turbine Market: Reasons for Growth 9
Cost Variation 10
Cost Break-up 11
Current Scenario 12
Current Scenario and The Future 13
Opportunities 14
Competitive Analysis 15
Supplier Landscape 16-17

If required EmpoweringCPO can support with additional information and the next steps with executing sourcing projects for categories like Gas Turbines and many others. Also, feel free to reach us if a similar procurement management report is required for any other category. We can also your organization with other tools and services like Procurement Dashboard, Spend Management System, Procurement Intelligence, and Procurement Consultancy Services.

EmpoweringCPO is a team of experienced sourcing and procurement professionals with hands on experience of having worked with many fortune 500 companies. The company was founded in 2011 and since then has executed multiple strategic sourcing projects and have achieved average savings of 10-12% so far. In addition to Strategic Sourcing their other offerings are Spend Analysis, Procurement Intelligence, Procurement Analytics, Best Cost Country Sourcing, Procurement Outsourcing, Built Operate Transfer, Supplier Diversity, Sustainable Procurement, Tail Spend Management, Item Master Optimization, Collective Buying, Compliance Tracking and Managed Procurement Services.

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Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:

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