Interest In Renewable Energy Expected to Boost Market by 13% Annually
WELLESLEY, Mass. , Dec. 12, 2017 (GLOBE NEWSWIRE) —
The global turbine and turbine generator sets market grew an average of 11.4% annually between 2012 and 2016, according to an industry report by BCC Research. Due to an increase in power generation capacity and a shift toward renewable resources, Turbine and Turbine Generators Set Units Manufacturing: Global Markets to 2020 indicates that the market will grow at a rate of 13.2% annually and will reach $181.8 billion by the end of 2020.
Political instability and violence in some of the world’s largest untapped markets—Africa and the Middle East—is having a negative impact on power generation investments, and some governments in the West are reducing their support for alternative energy solutions.
Companies mentioned in this report include Caterpillar, Dongfang Electric Corporation, General Electric, MAN SE, Mitsubishi Heavy Industries, Siemens AG and Vestas Wind Systems, among others.
- A growing middle class stimulated the demand for electricity, particularly in markets such as China and India, while the low price of gas and oil improved the margins for companies operating in the utilities market.
- Government subsidies to encourage renewable energy increased demand for wind turbines, and wind turbine capacity was aided by technological advancements which increased electrical generation.
- Utility company debt could restrain growth and deter the demand for gas and wind turbines. Other downward forces include lessening demand for steam and gas turbines and the possible imposition of trade restrictions and import tariffs.
“The cost to manufacture wind turbines and install them has drastically declined in just the last few years,” said Gordon Nameni, Senior Editor, BCC Research. “Wind turbine manufacturers can benefit from this by making their products more affordable and accessible—while also maintaining or increasing their revenues.”
BRIC Nations Helping to Drive Growth
Projected growth through 2020 will be respectable in developed nations, but real growth will come from developing nations such as Brazil, Russia and China. Forecast compound annual growth from 2016-2020 is 7.7% in North America and 10.5% in Western Europe. In Eastern Europe, however, growth will average 17.2%, and in the Asia-Pacific Region growth will average 16.4% over the forecast period. India has been ranked the second most attractive market for renewable energy investment, and the country plans to build 175GW of renewable energy capacity by 2022, with 60GW coming from wind.
About BCC Research
BCC Research is a publisher of market research reports that provide organizations with intelligence to drive smart business decisions. By partnering with industry experts worldwide, BCC Research provides unbiased measurements and assessments of global markets covering major industrial and technology sectors, including emerging markets. For more information about BCC Research, please visit bccresearch.com. Follow BCC Research on Twitter at @BCCResearch.