Technological Advancements to Bring Significant Trends in Turboexpander Market in Future
Turbine efficiency is one of the major parameters that determine the efficiency and competence of a turboexpander system. As a turboexpander consumes high power, a slight improvement in turbine effectiveness leads to a major betterment in system efficiency. The aerodynamic performance of turbomachines varies on the mean-line design methodology of the rotor and stator. The flexibility and competence of turboexpanders led to a diversity of configurations, which make them flexible in diverse applications. Increasing focus on turbines with high speed and precision is one of the major turboexpander market trends. With increasingly varying applications, the demand for advanced turboexpanders consisting of advanced active magnetic bearings, a high-frequency variable-speed drive, and a high-speed permanent magnet generator is also on the rise. Moreover, the elevating demand for high-end machinery in large-scale refineries and gas processing stations is anticipated to boost the turboexpander market growth during the forecast period.
Raw material suppliers, component manufacturers, and end users are among the major stakeholders in the turboexpander market ecosystem. A wide range of raw materials is required in the manufacturing of a turboexpander, which results in a large number of raw material suppliers competing with each other. Turboexpanders are mostly fabricated with stainless steel. Acerinox, S.A., Nippon Steel Corporation, POSCO, Yieh Corp, and ArcelorMittal S.A. are a few major raw material suppliers in the turboexpander market ecosystem. Component manufacturers hold a potential share of the turboexpander supply chain. The manufacturers procure raw materials from the preferred suppliers through direct or indirect sales channels to produce turbines, rotors, compressors, and generators used in a turboexpander. They also make sure that their products comply with domestic and international regulatory standards. Key turboexpander component manufacturers include Air Products Chemicals Inc., Atlas Copco AB, Elliott Co, Cryostar SAS, Sapphire Technologies, Turboden SpA, and Siemens Energy.
End users are the final category of stakeholders contributing to the turboexpander market value. Gas processing facilities, power generation, and energy recovery facilities are the major end users of turboexpanders. In addition, the manufacturing sector is also one of the notable end users of these systems.
Turboexpander Market: Regional Overview
The energy crisis in Europe, particularly the gas crisis caused by Russia’s aggression against Ukraine, has had a significant impact on the German energy sector. As a result, there have been notable changes in the structure of Germany’s gas imports and consumption. These changes are expected to drive the turboexpander market growth in the country. In 2022, Germany’s natural gas consumption stood at 866.2 billion kWh, with domestic production meeting only 5.5% of the country’s demand. The volume of domestic gas production decreased by 6.3% in 2022 compared to 2021. Additionally, Germany’s gas imports fell significantly by 13.9%, while gas exports recorded a bigger decrease of 30.3% in the said year. These changes in gas consumption and imports highlight the need for alternative energy solutions to meet the country’s energy demands. A dropped natural gas consumption and an energy crisis have prompted Germany to explore other energy sources. The utilization of renewable energy sources (RES), including solar, geothermal, and biofuels, has increased. This shift toward renewable energy sources presents an opportunity for the turboexpander market, as turboexpanders play a crucial role in energy recovery and power generation.
The Russia–Ukraine war has led to discussions about reducing dependence on Russia for gas and diversifying energy sources. Germany, along with other European countries, is exploring options such as scaling up the imports of liquefied natural gas (LNG) from the US. This diversification of energy sources and the potential increase in LNG imports are likely to create a favorable impact on the turboexpander market size, as they are commonly used in LNG production and processing facilities.
The need for crisis management measures and the search for alternative energy suppliers have highlighted the importance of energy security and resilience. Governments and businesses in Germany are likely to invest in infrastructure and technologies that can aid energy independence and stability. Turboexpanders, with their ability to improve energy efficiency and contribute to energy recovery, can play a significant role in achieving these goals.
Turboexpander Market, by Power Capacity: Overview
In terms of capacity, the turboexpander market is segmented into less than 1 MW, 1 MW to 20 MW, and more than 20 MW. In addition, the less than 1 MW segment is further bifurcated into up to 500 kW and 500 kW to 1 MW. The increasing application of turboexpanders in refineries, gas processing facilities, liquefaction of gases, and energy recovery facilities fuels the market growth and is anticipated to augment the demand for turboexpanders in industrial sectors over the forecast period. Turboexpanders with a capacity of 1 MW to 20 MW are suitable for operations in extreme temperatures and pressure conditions. Turboexpanders with a capacity of up to 20 MW are primarily designed to transform natural gas pressure energy into electricity. They have potential applications in waste-heat recovery plants to recover gas turbine exhaust heat.
Turboexpander Market: Competitive Landscape and Key Developments
Atlas Copco AB, Air Products & Chemicals Inc., Elliott Group, Cryostar SAS, Sapphire Technologies Inc, Turboden SpA, L’Air Liquide SA, ZJ-Tibo, R and D Dynamics Corporation, and Siemens Energy are among the key players profiled in the turboexpander market report, which includes growth prospects owing to the current marketdynamics and their foreseeable impact during the forecast period.
Inorganic strategies such as mergers and acquisitions are highly adopted by companies in the turboexpander market. The market initiative is a strategy adopted by companies to expand their footprint across the world and to meet the growing customer demand. The market players present in the turboexpander market are mainly focusing on product and service enhancements by integrating advanced features and technologies into their offerings.