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Power Generation Equipment Market Expected to Reach $173.1 Billion by 2032—Allied Market Research

 
2022
Power Generation Equipment Market

Report Code : A45918

quote The global power generation equipment market is expected to witness high growth potential in coming years due to surge in demand for decentralized power generation and rise in industrialization and urbanization. However, high initial costs and capital intensity hinder the expansion of the market. Nevertheless, integration of energy storage solutions is expected to offer ample growth opportunities for the power generation equipment market. quote

Yerukola Eswara Prasad - Manager
Energy and Power at Allied Market Research

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According to a new report published by Allied Market Research, titled, “Power Generation Equipment Market," The power generation equipment market size was valued at $110.4 billion in 2022, and is estimated to reach $173.1 billion by 2032, growing at a CAGR of 4.8% from 2023 to 2032.

Power generation equipment refers to a diverse range of machinery and devices designed to convert various forms of energy into electrical power. This equipment plays a crucial role in meeting the ever-growing demand for electricity, powering homes, industries, and various infrastructural developments. The fundamental objective of power generation equipment is to harness energy from different sources and transform it into a usable and distributable form.

The most common types of power generation equipment include generators, turbines, and engines. Generators are essential components that convert mechanical energy into electrical energy through electromagnetic induction. In addition, turbines are widely used in power plants and harness energy from steam, water, or gas to drive a generator. Internal combustion engines, fueled by sources such as natural gas or diesel, are prevalent in decentralized power generation systems.

Rapid urbanization contributes significantly to the surge in power generation equipment demand. Urban centers attract large populations that lead to the construction of residential complexes, commercial spaces, and infrastructure projects. Increase in need for electricity in urban areas arises from residential demands and from the diverse energy requirements of businesses, institutions, and public services concentrated in cities.

In addition, increase in awareness of environmental sustainability increased the demand for cleaner and more efficient power generation technologies. As urbanization and industrialization progress, there is rise in emphasis on adopting renewable energy sources and advanced power generation equipment that minimizes environmental impact. All these factors drive the demand for the power generation equipment market opportunities during the forecast period.

However, the limited availability of fossil fuels poses a significant challenge to the growth of power generation equipment. Fossil fuels such as coal, oil, and natural gas, have traditionally been the primary sources of energy for power generation. However, their finite nature raises concerns about long-term sustainability. As these resources are insufficient, the energy sector faces increased pressure to diversify and adopt more sustainable alternatives. Moreover, the limited availability of fossil fuels contributes to the environmental challenges associated with their extraction and consumption. All these factors hamper the power generation equipment market growth.

Smart grid technology and the trend of digitalization in the energy sector create significant opportunities for power generation equipment. The integration of smart grid technologies allows for more efficient and reliable electricity distribution by leveraging advanced communication and control systems. This presents opportunities for power generation equipment manufacturers as the demand for modernized infrastructure grows.

Moreover, the digitalization of power generation enables better demand-side management that allows utilities to optimize electricity distribution in real-time. This optimization leads to improved grid stability and reliability that contributes to a more resilient energy infrastructure. Power generation equipment is seamlessly integrated with digital platforms and data analytics systems stands to gain a competitive edge in this evolving landscape. All these factors are anticipated to offer new growth opportunities in the power generation equipment market forecast.

The power generation equipment market report is segmented on the basis of type, application, and region. On the basis of type, the market is divided into turbine and engines, generators, and others. The turbine and engines segment is anticipated to grow at the fastest CAGR of 4.94% during the forecast period. The transition towards cleaner and more sustainable energy sources drives the demand for turbines and engines in the power generation equipment market research.

The rise in concerns about climate change and environmental sustainability, there is emphasis on reducing greenhouse gas emissions and transitioning towards renewable energy sources such as wind, solar, and biomass. Turbines and engines, particularly gas turbines and reciprocating engines play a crucial role in integrating renewable energy sources into the grid by providing backup power, grid stability, and balancing services.

On the basis of application, the market is segmented into utility, industrial, commercial, and residential. The utility segment is anticipated to grow at the fastest CAGR of 5.2% during the forecast period. Regulatory initiatives and policies aimed to promote clean energy that improve energy efficiency and enhance grid reliability drives the utility applications in the power generation equipment market outlook.

Governments are implementing regulations, incentives, and targets to accelerate the transition towards low-carbon energy systems and improve the performance of utility infrastructure. These regulatory drivers create opportunities and challenges for utility companies and equipment manufacturers, influencing investment decisions and technology adoption in the power generation sector.

Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific is anticipated to grow at the fastest CAGR of 5.2% during the forecast period. Rise in emphasis on electrification in rural areas and remote regions creates substantial opportunities for decentralized power generation equipment. Governments and international organizations are undertaking electrification projects to improve energy access in underserved areas, driving the demand for off-grid and mini-grid power generation solutions such as solar home systems, micro-hydro turbines, and standalone diesel generators.

Key players in the power generation equipment market include ABB, Bharat Heavy Electricals Limited (BHEL), Caterpillar, Cummins Inc., General Electric, MITSUBISHI HEAVY INDUSTRIES, LTD., Schneider Electric, Siemens Energy, Toshiba Energy Systems & Solutions Corporation, and Wärtsilä.

Apart from these major players, there are other key players in the power generation equipment industry. These include Alstom, Andritz AG, Babcock & Wilcox Enterprises, Doosan Heavy Industries & Construction, Emerson Electric Co., Harbin Electric Company Limited, Honeywell International Inc., Kawasaki Heavy Industries, MAN Energy Solutions, Rolls-Royce Holdings plc, Shanghai Electric Group Company, Sumitomo Heavy Industries, and Voith Group.

Power Generation Equipment Market Latest News:

In the global power generation equipment market, increasing number of companies have adopted expansion and product launch to expand the market or develop new products. For instance, in May 2022 General Electric secured first 9HA combined cycle power plant equipment order in Vietnam, to be powered using liquefied natural gas (LNG). This new 9HA.02 combined cycle power plant is expected to improve the reliability and stability of the energy grid to support renewables penetration.

In December 2022, Schneider Electric launched a clean, secure energy portfolio. This enables energy transition and a net-zero future via sustainability, flexibility, reliability, resilience, and efficiency. Also, in June 2021, Siemens Energy built a remote-controlled gas fired power plant to secure Germany power supply. This new gas-fired power plant serves as special grid-related equipment and a modern service center enables purely digital remote operation.

Key Market Insights

  • By type, turbine and engines segment was the highest revenue contributor to the market accounting for less than three-fifths of global power generation equipment market share in 2022.
  • On the basis of application, the utility segment was the highest revenue contributor to the market accounting for more than two-fifths of global power generation equipment market share in 2022.
  • Region-wise, Asia-Pacific was the highest revenue contributor of global power generation equipment market analysis in 2022.

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quote Power Generation Equipment Market by Type (Turbine and Engines, Generators, Others), by Application (Utility, Industrial, Commercial, Residential): Global Opportunity Analysis and Industry Forecast, 2023-2032 quote

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