Combined Cycle Power Plant Market size is expected to grow substantially between 2022 and 2028, as a result of its high cycle efficiency, large output, cost-effectiveness, low emission levels, and other attractive features. Escalating demand for energy worldwide due to the rapid surge in industrial activities, increasing population, and economic development in emerging economies will further drive the market growth.
The combined-cycle power plant is a compound gas-steam turbine system, wherein the extremely hot exhaust from the gas turbine is deployed to operate a boiler, while the produced steam is fed into the steam turbine to generate electricity. Various types of combined cycle power plants are available to efficiently deliver increased power output and produce more power as compared to the simple-cycle power plant.
Implementation of stringent environmental norms and regulations to limit the GHG emissions from the coal-based thermal power sector, along with the rapid technological advancements, are the key trends bolstering the combined cycle power plant market share. The next-gen power plants can leverage machine learning technology to ensure the precise modeling of their core operational functions.
In terms of segmentation by capacity, the > 200 MW combined cycle power plant segment is poised to depict an appreciable growth rate through 2028, owing to its compact design and resistance to high-temperature oxidation & corrosion. Gas turbines installed in these power plants are estimated to reach the unit capacity of over 250MW-350-MW and witness a 40% increase in efficiency in the coming years.
Europe combined cycle power plant market will hold a considerable share by 2028 on account of the rapid and industrialization, which is the driving force of the energy economy of the region. European nations are likely to emerge as a rapidly expanding natural gas market, with the demand anticipated to boost considerably over the coming decades, and in turn, providing scope for the CC power plant businesses to grow exponentially during the forecast period.
Key combined cycle power plant market players worldwide include Wartsila, Araner, ATCO, Bechtel Corporation, Solar Turbines (Caterpillar), Siemens, Mitsubishi Hitachi, Kawasaki Heavy Industries, General Electric, and Ansaldo Energia, among others. These market participants are incorporating varied strategies such as M&As and business expansions to sustain their strong position across the global market.
The facilitation of new social norms and practices such as physical distancing, lockdown, and other initiatives undertaken during the coronavirus pandemic have posed great challenges to a range of industrial markets worldwide, including the energy sector. The supply chain disruptions and economic downturn have plummeted the energy demand from the industrial sector, thereby posing critical challenges to combined cycle power plant market dynamics.
However, the consumption of industrial and commercial power is likely to increase considerably after the gradual relaxation of tough lockdowns and a decline in coronavirus cases. For example, the electricity consumption in India witnessed a hike of 8.2% year-on-year in May 2021 at 110.47 BU (billion units), indicating its slow recovery in demand. These factors, alongside the rising awareness about the natural gas combined cycle power plant efficiency, may result in the steady growth of the market in the years ahead.