North American Large Gas Turbine Markets

SUMMARY

Research Overview

Government's Regulatory Framework to Encourage Exploration and Development of Large Gas Turbine Markets

In recent years, prices of natural gas have risen due to steady growth in demand and insufficient supply. High prices and the inability to find natural gas at secure locations are the greatest challenges faced by the gas turbine industry. To protect the environment, the governments in North America have refrained from developing the vast potential areas of natural gas in Alaska, the Mountain West on-shore area, as well as off the Atlantic, Pacific, and Gulf coasts. Therefore, to sustain growth, market participants need to put pressure on the governments to create conducive environment to tap the enormous resources of natural gas available in North America. For advancement of the gas turbine industry, the governments need to provide companies with greater opportunities to explore resource-rich federal lands that are currently unavailable as well as create a regulatory framework that encourages exploration and development to take place more quickly.

Environment Friendliness of Gas Turbines Likely to Drive the Market

Apart from gas turbines being among the cleanest fossil-fueled power generation equipment commercially available, they have the innate advantages of very low emission as well as the ability to adapt to any type of fuel. This environmental friendliness gives gas turbines an edge over competing fuels -- particularly that of coal -- in an era of stringent emission standards. The advancement in the gas turbine industry is expected to further reduce the green house gas emissions in the future.

"Since gas turbine technology is mature and proven, manufacturers are likely to strive to ensure that there are continuous improvements," says the analyst of this research service. "In fact, many participants are currently engaged in attempting to improve the efficiency of gas turbines to combat the constant rise in prices as well as to focus on the usage of alternative fuels."

Technological Advancements and Competitive Pressures to Revive the Market

In 2000, the power industry experienced unprecedented expansion due to over building of power plants following the electricity deregulation policy by the U.S. Government. High prices of natural gas and frequent supply disruptions due to weather anomalies restrained the growth of gas turbines. The gas turbine market is expected to experience a rise in electricity demand due to the resurgent economic policy after 2008.

"In the existing circumstances, it is imperative that original equipment manufacturers (OEMs) focus on continuous technology improvements, as they are vital in helping market participants achieve higher growth rates in an environment that is bound to get increasingly intense with the high prices of natural gas and the increased focus on competing fuels such as coal," says the analyst. However, efficiency and technology improvements are likely to continue taking place and are expected to be the key factors in the gas turbine industry's continued competitiveness.

TABLE OF CONTENTS

• 1. Executive Summary
  • 1. Introduction
    • 1. Introduction to the NA Large Gas Turbine Market
    • 2. Turbine Technology
  • 2. Summary of Major Findings
    • 1. Industry Challenges
    • 2. Market Forecasts
    • 3. Market Drivers and Restraints
    • 4. Technology Trends
    • 5. Pricing Trends
    • 6. End User Trends
    • 7. Competitive Analysis
• 2. Industry Dynamics
  • 1. Industry Challenges
    • 1. Challenges Facing the North American Large Gas Turbine Market
    • 2. Analysis of Challenges
• 3. Total North American Large Gas Turbine Market
  • 1. Market Analysis
    • 1. Market Overview
    • 2. Definitions
  • 2. Market Engineering Research
    • 1. Market Engineering Research Measurement System
    • 2. Market Drivers
    • a. Environmental Friendliness is Likely to Help the Gas Turbine Industry In An Increasingly Stringent Regulatory Environment
    • b. Efficiency Improvements is Likely to Help Gas Turbines To Compete With Competing Technologies
    • c. Robust Conditions in Oil and Gas Industry
    • d. Favorable Spark Spread is Likely to Result in Increased Use of Gas Turbines
    • e. Low Capital and Operating Costs is Likely to Help the Gas Turbines to Face Increased Threat from Competing Technologies
    • 3. Market Restraints
    • a. High Natural Gas Price Has Reduced the Feasibility of Gas Turbine Business
    • b. Long Pay Back Period is a Deterrent to Potential Investors
    • c. Weather and Delivery Disruptions
    • d. Surplus Power Has Led to a Stable Power Scenario
    • e. Lack of Project Financing Has Hit the Development of New Power Plants
    • f. Diversity in Supply Has Left the Large Competitors Chasing too Few Buyers
    • 4. Market Engineering Unit and Revenue Forecasts 2001-2011
    • 5. End User Trends
    • 6. Technology Trends
    • 7. Pricing Trends
  • 3. Competitive Structure
    • 1. Competitive Analysis
    • 2. Market Share Winners and Why?
    • 3. Product Demand Analysis
• 4. North American 50-100 MW Gas Turbine Market
  • 1. Introduction
    • 1. Market Overview
    • 2. Definitions
  • 2. Market Engineering Research
    • 1. Market Engineering Measurement Research System
    • 2. Market Drivers and Restraints
    • 3. Market Engineering Unit and Revenue Forecasts 2001-2011
  • 3. Competitive Structure
    • 1. Competitive Analysis
    • 2. Market Share Winners and Why?
    • 3. Product Demand Analysis
• 5. North American 100-180 MW Gas Turbine Market
  • 1. Introduction
    • 1. Market Overview
    • 2. Definitions
  • 2. Market Engineering Research
    • 1. Market Engineering Research Measurement System
    • 2. Market Drivers and Restraints
    • 3. Market Engineering Unit and Revenue Forecasts 2001-2011
  • 3. Competitive Structure
    • 1. Competitive Analysis
    • 2. Market Share Winners and Why?
    • 3. Product Demand Analysis
• 6. North American 180-250 MW Gas Turbine Market
  • 1. Introduction
    • 1. Market Overview
    • 2. Definitions
  • 2. Market Engineering Research
    • 1. Market Engineering Research Measurement System
    • 2. Market Drivers and Restraints
    • 3. Market Engineering Unit and Revenue Forecasts 2001-2011
  • 3. Competitive Structure
    • 1. Competitive Analysis
    • 2. Market Share Winners & Why?
    • 3. Product Demand Analysis
• 7. Appendix
  • 1. Decision Support Database
    • 1. Introduction
    • 2. Electricity Revenue
    • 3. Power Industry Structure
    • 4. Power Sector Reforms Status
    • 5. Electricity Prices
    • 6. Major Power Generation Companies