Global Steam Turbine Market

Greater Industrial Development all over the World Powers the Steam Turbine Market

The significant growth in industrial activities all over the world has spurred demand for power, due to which, companies tap the waste heat produced to generate power for their needs. This higher energy requirement, along with the considerable market share of coal power plants in the future energy mix, has boosted the global steam turbine market. Low raw material cost coupled with higher efficiency when used in a combined cycle plant makes the steam turbine an ideal solution for generating more power from the available amount of fuel. This is a particularly attractive benefit in the current economic condition, as investments in steam turbines have been hard to come by.

Clean coal technology, carbon capture storage and carbon sequestration is expected to go a long way in helping participants win new projects across the globe, as these methods are clean and highly efficient compared to the existing techniques. Steam turbine companies will be looking to take advantage of every opportunity since they are in the midst of a credit crunch. "Stringent environmental regulations combined with the fiscal packages announced by the governments for renewable technologies are also likely to constrain the market," says the analyst of this research. "However, they can offset these issues and stabilize their business by expanding in the aftersale services market." Vendors can enhance customer loyalty and establish themselves in this segment by rewarding customers by involving them in product development and design.

To stay afloat in the market, companies should target developing markets where the number of blackouts has increased substantially due to economic development. Vendors in these regions have been particularly affected by the economic slowdown, making them open to partnering or takeovers by financially sound companies. Such joint ventures and acquisitions will be a big shot in the arm to participants that wish to entrench themselves in the market. "Companies could focus more on the services market, which is expected to provide stable revenue when the order levels are low and production overcapacities are looming," notes the analyst. "The lack of liquidity is also expected to influence plant operators to extend the life of their ageing assets rather than go for new builds, which bodes well for steam turbine vendors."

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Noncondensing turbines
• Condensing turbines
• Reheat turbines
• Extracting type turbines
• Induction turbines