Gas Turbine Market

Sector & Sovereign Research

November 15, 2018

A Primer on How the Power Market Shapes the Market for Gas Turbines - Historical Developments & Their Implications for the Future

In this note, we explain how trends in the market for gas turbine can be traced to their underlying drivers in the power market. The first of a two-part primer for investors unfamiliar with power markets and their impact on power equipment demand, this note traces the timing and composition of past generation capacity additions and explains their implications for future gas turbine orders. Part two will trace shifts in the mix of generation over time, how these have affected the operating profiles of existing power plants and the implications for utilities’ choice of generation technology, including the level and composition of gas turbine orders. Readers interested in reviewing our underlying models and data, or discussing our analysis, are invited to contact the authors.