Global market for boilers, turbines, and generators (BTG) is set to decline thanks to the growing focus on renewable energy sources and awareness about the environmental issues associated with fossil fuel-based power plants, says a new research from GlobalData.
Countries are also looking at nuclear power to meet the growing demand for electricity, which in turn, contributes to the decline of BTG.
The market is expected to decrease from a cumulative $318 billion during the period 2010-2015, to $241 billion during 2016-2020, the report said.
China will be the leader in the BTG market, although its market is forecast to decline from around $17.7 billion in 2015 to $14.9 billion by 2020.
Aside from a transition towards cleaner sources of power generation, the other factors affecting the global BTG market are environmental concerns, tough economic conditions, and fluctuations in fossil fuel prices.
“Indeed, the gas power equipment market, although small when compared to the coal market, will register considerable growth over the forecast period, as China moves towards cleaner sources of power generation,” said Swati Gupta, GlobalData’s Analyst covering Power.
Gupta continues, “As a means to achieve this, in its 12th Five-Year-Plan (FYP), China has set a target to increase the share of natural gas in its energy mix to 10% by 2020. The government also plans to replace conventional coal power plants with advanced technology large capacity power plants, which will represent new opportunities for market players.”
Although the BTG market will continue to be dominated by China, with an expected 31% share of this $47.8 billion market in 2020, challenges will remain, GlobalData said. The market’s poor outlook in other regions, however, will ensure China remains dominant.
In Europe, for example, declining electricity consumption coupled with increased emphasis on green energies will drive the BTG market down.