Global Turboexpand r Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

Turboexpanders can be characterized as a modern rotating device that converts the pressure energy of a gas or a vapour stream into mechanical work as the gas or vapour expands through the turbine.

Many turboexpanders find use in natural gas processing, energy efficiency systems, air separation units, low temperature, refrigeration, and cryogenic services. Such turboexpanders serve to efficiently reduce the temperature in a high-pressure gas stream. The expansion causes the gas to cool while providing mechanical energy to rotate equipment to do work.

Turboexpander Market Drivers

Increasing use of Natural Gas for Power Generation

Major countries are switching their coal power to gas power; the decision for power plants to switch from coal to natural gas is driven by stricter emission norms, low natural gas prices, and more efficient technological advancements to use gas as a source of power.

Natural gas is a fossil fuel, but its carbon emissions are 50%-60% less compared to coal when combusted in a power plant, so it is considered important in the energy transition to a carbon-neutral future. 

According to IEA, since 2010, switching from coal to natural gas has saved around 500 million tonnes of CO2, equivalent to putting up an extra 200 million electric vehicles running on zero-carbon electricity over the same period.

Global natural gas consumption rebounded by 4.6% in 2021, more than double the decline seen in 2020 due to the economic recovery post lockdowns and extreme weather events.

Eurasia's increasing natural gas production grew by an estimated 10% year-on-year in 2021, the largest increase since 1991. The growth was driven by strong domestic demand and restocking needs.

India's indigenous natural gas production caters to about 51% of the country's requirements. The Indian government in June 2021, announced its aim to raise domestic gas production by 75% in three years. 

In the United States, the fracking boom has had a considerable effect on natural gas supply and prices. In addition to it, some state-level, as well as federal environmental policies, have pushed gas into the energy mix while phasing out coal in the US.

The Energy Information Administration (EIA) stated that, since 2011, around 102 coal power plants had been replaced and converted to natural gas in the United States. Between 2005-2019, the use of coal for electricity generation in the US more than halved, dropping from 50% to 23%. Natural gas now forms 38% of the US power mix.

In China, the demand for gas has risen very quickly in recent times owing to the coal crisis in 2021 and the increased industrial activity post covid induced lockdown. As a result, the demand for gas has returned stronger than pre covid level.

In the first half of 2021, China's gas demand saw a 16% increase, led by strong industrial demand, tight coal supply, underperforming hydro in southwest China, and high summer temperatures, which supported the gas-fired power generation.

The use of the Natural Gas Combined Cycle (NGCC) process for electricity generation has grown over the years to make it one of the leading sources of power. The advancements in engineering have increased the overall efficiency of the process. The attributes such as high efficiency (ranging from 45% to 57%) of NGCC relative to other power generation processes, lower CO2 emissions, low shorter construction period, and lower capital requirements have helped it gain prominence in the power sector.

Some of the Other Drivers

• Surging demand for industrial gases
• Rising demand for refrigeration and cryogenic services
• Demand for energy-efficient systems

Restraints to Turboexpander Market Growth

Increasing Deployment of Renewable Energy Systems

In the energy sector, wind and solar PV power generation technologies have spread globally at a rapid pace. The International Renewable Energy Agency's (IRENA) renewable power generation costs 2019 report states that more than half of the renewable capacity added in 2019 achieved lower power costs than the cheapest new coal plant.

Innovation and low-cost finance have brought down the costs of solar PV and wind, and they are now the most economical source of electricity in most markets. On average, new solar PV and onshore wind power cost less than keeping many existing coal plants in operation.

The cost of renewable technologies continues to fall year on year, onshore wind energy by 13%, offshore wind energy by 9%, and solar PV by 7%.

Global CO2 emissions from electricity generation shot up by just 9% over the last decade despite a 23% rise in electricity demand. Renewable energy technologies met almost 65% of the electricity demand growth over the decade, led by a fivefold increase in solar PV and wind deployment.

In the last decade, solar and wind competitiveness improved substantially, with offshore wind and solar PV joining the onshore wind in the range of costs for new fossil fuel capacity and increasingly out-competing them. 

Natural gas-fired power generation in the United States has been facing increased competition from renewable generation because of the record high-capacity additions to wind and solar power plants. 

With around 22.5 GW of combined net wind and solar electric generating capacity additions which came online in the US between May 2020 and Feb 2021, the renewables registered a 15% growth. 

The Energy Information Administration (EIA) stated that the consumption of natural gas for power generation will decline by 2% in 2023. The decline is attributed to the increasing electricity generation capacity from renewables.

Some of the other restraints include:

• The high initial cost of the turboexpander

Recent Developments  

In Jan 2021, Nikkiso Cryogenic Industries' Clean Energy and Industrial Gases Group, a part of Nikkiso Co., Ltd (Japan), announces the sale of its turbo expander business line to Air Liquide (a world leader in gases, technologies and services for industry and health)

Regional analysis

The Asia Pacific region is expected to dominate the turboexpander market due to the increasing demand for natural gas in the generation of electricity and other industrial purposes, which is expected to drive the turboexpander market.

Since the recent coal crunch faced by major economies in the region like China and India are looking for cleaner alternatives to coal, such as natural gas. With the increasing use of natural gas, the demand for turboexpanders is expected to be robust.

The new Global Turboexpander Market report from Blackridge Research comprehensively analyses the Turboexpander Market and provides deep insight into the current and future state of the industry.

The report covers detailed profiles of major countries across the world. Each country's turboexpander market analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.

In addition, market size, demand forecast, and market growth rates will be provided for all regions.

Following are the notable countries covered under each region.

North America - United States, Canada, Mexico, and Rest of North America

Europe - Germany, France, United Kingdom (UK), Russia, and Rest of Europe

Asia-Pacific - China, India, Japan, South Korea, Australia, Rest of APAC

Rest of the world - Saudi Arabia, Brazil, Nigeria, South Africa, and other countries

Key Company Profiles

This report presents detailed profiles of Key companies in the Turboexpander industry. In general, each company profile includes - an overview of the company, relevant products and services, a financial overview, and recent developments. Some of the leading players in the report are Atlas Copco, Cryostar SAS, Air Products and Chemicals Inc., etc.

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Impact of COVID 19

Covid pandemic hit industries and businesses globally, and the turboexpander industry is no exception. The manufacturers suffered a huge setback in dispatches and order bookings. The restrictions in international markets and stringent travel curtailments resulted in considerable loss of order bookings and aftersales services.

The natural gas demand declined by 4% in 2020 due to the successive impacts of low heating demand from warm winter, the implementation of lockdown measures in almost all countries, and the lower level of activity caused by covid 19 induced macroeconomic crisis. 

According to the IMF World Economic Outlook published in April 2021, global growth is projected at 4% in 2022. The projection for 2022 is much stronger than October 2020 World Economic Outlook. The growth indicates the additional financial support in a few large economies, anticipated vaccine-powered recovery, and continued adaptation of economic activity to somber mobility.

High uncertainty looms over this outlook due to the probable third wave and the evolution of financial conditions. The impact of the COVID-19 pandemic on the oil & gas industry has already been profound.

Depending upon the path of the pandemic, capital availability, and financial conditions, utilities might postpone some of their generation investments, in turn affecting the turboexpander market demand.

Market Segmentation and Forecast

The report dissects the Global Turboexpander Market into various segments (By loading device, by application, and by end-use sector). A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for a "bespoke" market segmentation to better align the research report with your requirements.

Further, market size and demand forecasts will be presented along with various drivers and barriers for individual market segments.

The study examines the drivers, restraints, and regional trends influencing Global Turboexpander Market demand and growth. The critical elements of the Turboexpander industry supply chain, its structure, and participants will also be provided in the report.

Using Porter's five forces framework, the report covers the assessment of the Turboexpander industry's state of competition and profitability.

The report also addresses present and future market opportunities, global market trends, developments, and the impact of Covid-19 on the Turboexpander Market, important commercial developments, trends, regions, and segments poised for fastest growth, competitive landscape, and market share of key players in detail.

Further, the report will also provide Turboexpander Market size, demand forecast, and growth rates during the forecast period.