Huge innovation in Natural Gas Turbines and Engines Market 2015–2023 With Top Players: General Electric, Ingersoll-Rand and Dresser-Rand Group, Mitsubishi Hitachi Power Systems
The positive outlook of the gas industry in Asia and the MEA will positively influence the demand for natural gas engines, natural gas compressors, centrifugal gas compressors, and gas turbines. Algeria was seen to be the highest contributor to revenue reported from the Asia and MEA gas turbines market. These trends are analyzed in detail in a market research report recently published by Transparency Market Research (TMR). The natural gas engines market in Asia and the Middle East and Africa (MEA) approximated US$283.6 mn in 2013 and will report unprecedented growth to surpass US$2.1 bn by 2022, says TMR in its report. This translates to an impressive 25.2% CAGR between 2015 and 2022. The report is titled, ‘Natural Gas Compressors, Natural Gas Engines, Gas Turbines, Centrifugal Gas Compressors Market – Asia and MEA Industry Analysis, Size, Share, Growth, Trends and Forecast, 2015–2023.’
The report also studies the natural gas engines market in terms of volume. From the volume standpoint, shipments in the natural gas engines market stood at 23,893 units as of 2013. Kazakhstan was identified as the largest revenue contributor to the gas engines market in Asia and MEA in 2013, in which year the valuation of the Kazakhstan natural gas engines market was pegged at US$27.7 mn. A growing number of vehicles that run on natural gas is the key driver for the natural gas engines in the Central Asian country. This growth is further fuelled by the increasing adoption of natural-gas fuelled reciprocating engines in various gas processing plants, storage stations, and pipeline compressors.
The gas turbines market, on the other hand, was pegged at US$6.6 bn in 2013, and a CAGR of 8.9% is forecast for this particular market from 2015 through 2022. The market will rise to US$11.1 bn by 2022. The report states that the market for gas turbines in Asia and MEA will benefit from the preference given to gas turbines in combined cycle and co-generation plants.
Algeria was seen to be the highest contributor to revenue reported from the Asia and MEA gas turbines market. The fastest growth in both unit shipments and revenue in the Asia and MEA gas turbines market will be seen in Nigeria and Algeria through the report’s forecast period. The market will benefit from the introduction of various programs geared toward boosting natural gas production and consumption. In Nigeria, for instance, the government has laid out a plan to achieve a threefold increase in natural gas production capacities by 2020. This initiative is being undertaken expressly to meet the soaring energy demand from fast-industrializing nations in West Africa.
On the overall dynamics, the report states that a surge in gas exploration activities in Asia and MEA will stimulate demand for a variety of gas equipment such as natural gas engines, natural gas compressors, centrifugal gas compressors, and gas turbines. This will prompt countries with large natural gas reserves to make a foray into natural gas production and distribution, which will cause the demand for gas compressors to rise in the near future.
The report finds that the Asia and MEA market for gas compressors is currently characterized by consolidation among leading players. A case in point would be GE Oil and Gas’ acquisition of Cameron International Corporation’s line of reciprocating compressors in 2014. In the same year, Ingersoll Rand purchased Cameron International Corporation’s centrifugal compressor business. Given the few players in the market, companies in the gas equipment market in Asia and MEA enjoy a relatively high degree of bargaining power. This position will likely not change anytime soon considering that the demand for natural (especially as an alternative energy source) will only rise in the coming years.