China Gas Turbines Market - Forecasts from 2025 to 2030

The China gas turbine market is projected to grow at a CAGR of 3.81% over the forecast period, increasing from US$1.09 billion in 2025 to US$1.34 billion by 2030.

China's rapidly growing economy requires more power generation. Gas turbines, known for their efficiency and flexibility, are well-positioned to meet this rising demand. Additionally, the Chinese government's commitment to carbon emission reduction is well-aligned with the lower environmental impact of gas turbines compared to coal-fired power plants. This policy push is driving the adoption of gas turbines as a cleaner energy source.

The expansion in China's industrial sector, from oil and gas to steel to chemicals, has also put up demand for gas turbines as these sectors need secure power and process heat and are well-serviced by the gas turbine. In this regard, data from the National Energy Administration shows that China's total installed power generation capacity reached 3.16 billion kilowatts by the end of September 2024, a 14.1 percent increase from a year ago.

Moreover, from January to July 2024, major power enterprises in China invested a total of 415.8 billion yuan (about 58.27 billion U.S. dollars) in power supply projects, a 2.6 percent increase over the same period in 2023. China's investment in power grid projects reached 294.7 billion yuan during the first seven months, up 19.2 percent year on year.

Moreover, advances in gas turbine technology have improved efficiency, reliability, and reduced emissions. These technological advancements are increasing the attractiveness ofgas turbinesfor power generation.

China gas turbine market drivers

Growing demand for power generation owing to the increasing energy economy in China is fueling the gas turbine market.

Rising Natural Gas Production

Rising domestic natural gas production in China fuels the demand for gas turbines in the nation since increased domestic gas supplies boost requirements for gas-fired power plants. so demand for gas turbines would augment. As per EIA, China is one of the major pipeline natural gas-importing countries and is also the world's largest LNG importer. Over the past 10 years, the Chinese government actively promoted the development of unconventional natural gas resources to reduce dependence on imported supplies and ensure enhanced energy security.

China domestically produced 232.4 bcm in 2023, which was 12.3 bcm, or 5.6 percent, more than in 2022. This met 59% of the total demand for the country and thus maintained import dependence at 41%, the same level as in 2022. As reported, 43 percent of domestic gas production came from unconventional sources, reaching 97 bcm. Following this, industries such as manufacturing and petrochemicals, which are increasingly using natural gas for their processes, will be inclined to use gas turbines both for power generation and heating processes.

Manufacturers further focus on developing more energy-efficient and environmentally eco-friendly gas turbines for the growing demand, strictly adhering to environmental regulations. Four new technologies are worth noting. The first two are to support energy transition and emission reduction, whereas the last two are in the quest for oil and gas exploration and development, either in deepwater settings or deep-seated reservoirs:

• Simultaneous power generation using geothermal energy from hot water encountered in deep oil and gas development wells.
• Power generation using pressure difference from natural gas. This is alleged to be a net zero-emission technology.
• Independently developed a "Hai-Jing" system to bring noise levels down for ultra-deepwater 3D seismic surveys (>3,000m) such as the South China Sea.
• Automated rigs for ultra-deep (>12,000 m) drilling, deployed in the Tarim Basin in western China.

This expanding market presents opportunities for both domestic and international gas turbine manufacturers. Domestic manufacturers can capitalize on the growing demand to capture a larger market share, while international players will see increased export opportunities as China becomes a major natural gas exporter.

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Report Coverage:

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China's gas turbines market is analyzed into the following segments:

By Power Rating

• < 100 MW
• >100 MV-< 300 MV
• >300 MV

By Type

• Gas Cycle
• Combined Cycle
• Cogeneration

By Application

• Power Generation
• Oil and Gas
• Others