After hitting an all-time low in 2009″10, western Europe’s steam and gas turbines market will pick up from 2012 to 2014 and hit $2bn in revenue by 2017, finds new research from Frost & Sullivan.
Uncertainties over carbon trading, electricity sector legislation and imminent rises in commodity prices will not prevent a recovery in the medium-to-long term, saids Frost & Sullivan industry analyst Pritil Gunjan.
“Electricity demand from both mature and emerging economies and decommissioning of not only old conventional thermal power plants but also nuclear power facilities are the key factors driving the western European gas and steam turbines market,” he said.
“High replacement needs across the United Kingdom, Germany, France and Italy due to decommissioning capacity and the need to comply with legislation will fuel the demand for both gas and steam turbines in these regions.”
Orders placed with manufacturers during the buoyant market conditions of 2007″08 had sustained them during the difficult times. However, these legacy orders have now been fulfilled. New orders are still low in number, but they are anticipated to increase from 2012.
Frost & Sullivan’s Western European Gas and Steam Turbines Market finds that the market earned revenues of $473m in 2010 and estimates this to reach $2138m in 2017.
“In addition, other forms of environment-friendly technologies such as cogeneration are poised to develop further, contributing to the demand for steam turbines,” said Gunjan.
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