Japan Heat Exchangers Market Assessment, By Type [Shell and Tubes, Plate and Frames, Air Cooled, Others], End-use Industry [Chemicals and Petrochemicals, Oil and Gas, Power Industry, HVAC, Food and Beverages, Others], By Region, Opportunities and Forecast

Japan Heat Exchangers Market Assessment, By Type [Shell and Tubes, Plate and Frames, Air Cooled, Others], End-use Industry [Chemicals and Petrochemicals, Oil and Gas, Power Industry, HVAC, Food and Beverages, Others], By Region, Opportunities and Forecast, FY2018-FY2032F

Saudi Arabia turbo generators market is projected to witness a CAGR of 5.41% during the forecast period 2024-2031, growing from USD 303.50 million in 2023 to USD 462.61 million in 2031.

A turbo generator is a device that includes a turbine and an electrical generator to produce electricity. The demand for turbo generators is on the rise due to several factors, such as growing energy needs, industrial expansion, and efforts to diversify the power sector. The country is more focused on expanding power generation capacity to meet the growing demand for electricity. Moreover, Saudi Arabia has been modernizing the existing thermal power plants by upgrading them with more efficient power generation technologies, which is why the demand for reliable and efficient solutions is experiencing high demand. The government is implementing advanced turbo generator technologies in power plants as the equipment offers better efficiency and reduces fuel consumption and environmental impact.

Furthermore, Saudi Arabia is looking for the transition to a sustainable energy system, which includes integrating turbo generators with renewable sources in combined power plant systems. In large utility-scale power plants, turbo generators can generate substantial amounts of electricity, which makes the equipment an essential component for the plants. Moreover, the rise in energy demand in the country will uplift the investment for an expansion of hybrid power generation plants, boosting the turbo generator market size in the coming years. The government is investing in the country to increase the production of power generation equipment locally, which will drive the production of turbo generator components in the coming years.

For instance, in 2022, in Saudi Arabia, the per capita consumption is very high, reaching 6.5 toe in 2022. The total energy consumption increased by 2.5% to 228 Mtoe in 2022, after remaining stable from 2018 to 2021. The rise in energy consumption will increase the investment in power plants to boost energy production, which further boosts the turbo generator market in the country.

Adoption of Renewable Energy Integration in Existing Power Plants to Boost Market Growth

Saudi Arabia is focusing on modernizing the power plants to improve efficiency and reduce emissions. Combined-cycle power plants are becoming more common in the country, which drives the demand for advanced turbo generators in the market. Turbo generators are highly efficient in converting fuel into electricity, particularly in combined-cycle plants. Turbo generators ensure grid reliability by providing power backup even at low renewable energy sources. Energy providers are making investments in natural gas power plants as a cleaner alternative to oil for power generation.

Traditional power plants that use coal or oil for power generation are being retrofitted to integrate renewable energy sources for production in the country. For the upgradation of plants, turbo generators are installed to work alongside renewable systems, which create an integrated power generation solution. The retrofit of existing power plants trend boosts the demand for turbo generator equipment in the market.

Moreover, Saudi Arabia is focusing on expanding its power generation capacity by integrating renewable energy sources into the existing power plant to meet the growing demand for electricity. Combining renewable energy with turbo generators in a hybrid power plant will enhance the overall efficiency of the power plant. Turbo generators are utilized to manage energy loads and provide baseload power while reducing fuel consumption and emissions. Turbo generators are used in large-size power plants, particularly in gas and steam power plants, and are becoming a critical component in power expansion plans.

Thus, expanding existing power plants with the integration of renewable energy sources will boost the demand for turbo generators in the Saudi Arabian market.

For instance, in September 2024, the Saudi Arabian government came up with Round 6 of the National Renewable Energy Program (NREP), which invited companies to bid for the development of 4.5 GW of wind and solar PV capacity. The program outlines a roadmap for the deployment of renewable energy projects to generate a significant portion of the Kingdom’s electricity from renewables.

Focus on Energy Security and Resilience to Expedite Market Growth

Energy systems are becoming more complex and vulnerable to various natural risks. On the contrary, industries, governments, and energy providers are looking for reliable, efficient, and sustainable power generation solutions. Saudi Arabia is investing in power infrastructure and power generation technologies to ensure energy security and resilience against disruptions due to grid failures. Turbo generator technology ensures an uninterrupted power supply, especially in outages or grid instability, which boosts the demand for turbo generators in the market.

Turbo generators are ideal solution for low power generation scenarios as equipment can provide rapid power generation in emergencies. Governments and energy providers are investing in robust power generation systems which could withstand extreme weather events. Turbo generators technology integrated into hybrid power plants combine energy with gas or steam turbines. Furthermore, Turbo generators provide power backup when energy sources fluctuate and maintain the energy supply, which boosts the market demand for turbo generator equipment. Turbo generators can generate the power and provide the stable supply which drive its demand in the market.

For instance, in September 2024, Saudi Arabia is looking to build its first nuclear power plant. Nuclear power plants will contribute to the national energy mix and help achieve sustainable national development. With the opening of a new power plant in the country, the demand for turbo generators is expected to increase.

Investment and Support from Government is Amplifying the Market Prosperity

Governments and higher authorities support and invest in power infrastructure to boost energy production. Governments in remote areas are supporting the upgradation of existing power plants and decentralized power generation solutions such as small-scale turbines, which are based in small power plants and microgrids. The support for such initiatives is given through grants and subsidies, which will create the demand for turbo generators in the coming years.

The government is focusing on investing in power plant modernization by combining renewable and conventional energy sources for energy production. Turbo generators are critical in modernized power plants to produce electricity at low cost. The government of Saudi Arabia is looking to promote the deployment of combined gas power plants, which could create the opportunity for turbo generators in the coming years. Moreover, international organizations such as the World Bank and IMF are collaborating with the government to fund power infrastructure projects in Saudi Arabia. The power infrastructure projects include the installation of turbo generators, expansion of production capacity, and support to open new power plants in urban areas, which creates additional opportunities for manufacturers in the turbo generator market.

For instance, in June 2024, Siemens Energy and GE Vernova decided to create gas-fuelled power plants, Taiba 1 and 2 and Qassim 1 and 2 in the western and central regions of Saudi Arabia over the next few years.

Air-cooled Turbo Generators to Dominate Market Share

Air-cooled turbo generators have a high adoption rate, which leads the segment to dominate the market share. In Saudi Arabia, decentralized power generation systems and small power plants are becoming more prominent due to which the demand for air-cooled generators is high in turbo generator market. The adoption of air-cooled turbo generator involve low installation and operating costs and transportation of equipment is easier than other turbo generators which attract more electricity provider to adopt the technology. Moreover, the demand for air-cooled generators is high in Saudi Arabia due to the country's extreme climate, growing industrial base, urban expansion, and the need for low-maintenance power generation solutions in the country.

Riyadh to Lead the Turbo Generators Market Share

Riyadh dominates the Saudi Arabia turbo generator market and has the highest market share. The region is undergoing rapid urbanization and infrastructure development, which demand reliable power backup systems. In addition, Riyadh is transitioning from coal-based power generation to cleaner energy sources, including natural gas and renewables. Turbo generators are vital in transition as they are efficient in converting thermal energy from natural gas into electricity. The shift towards cleaner technologies aligns with local policies aimed at reducing carbon emissions, which drive its demand in the region.

Advancements in turbo generator technology have improved the equipment’s efficiency, reliability, and adaptability to various fuel sources. Turbo generators are used in power plants as standby power sources, which ensure resilience and minimize downtime in case of power failures. Governments and energy providers emphasize on resilience and stable power source, which are expected to continue to boost the market for turbo generators in the coming years.

Moreover, the shift towards more low-carbon power generation solutions will create the opportunity for the modern turbo generators to grow in the forecast period.

Future Market Scenario (2024 – 2031F)

Saudi Arabia is moving toward renewable energy integration, which makes turbo generators an essential component of hybrid energy systems, driving its demand in the coming years.

Witnessing environmental concerns, energy providers are adopting more sustainable technological solutions for power generation, which is why turbo generators are gaining significance.

Saudi Arabia is investing in retrofitting existing power plants with modern turbo generators to improve their operational efficiency, which is creating long-term opportunities for turbo generator manufacturers.

The government’s focus on sustainability and carbon emissions reduction will drive demand for efficient power generation technologies such as turbo generators.

Key Players Landscape and Outlook

In Saudi Arabia turbo generators market, companies compete with one another to outperform in terms of producing high-quality turbo generators for the power sector. Turbo generator manufacturers are concerned with supply chain resilience, energy efficiency, and environmental practices, which will define the industry's future. Manufacturers are investing heavily in research and development (R&D) to design turbo generators, which could lead to the adoption of more equipment in power generation operations. The upcoming portfolio expansion, collaborations, joint ventures, agreements, and developing technologies are projected to increase competition in this fast-paced market.

For instance, in June 2024, Siemens Energy received an order of around USD 1.5 billion to supply key power plant technologies and components that will be used in combined cycle power plants in Saudi Arabia. Additionally, Siemens Energy has entered a long-term maintenance contract for 25 years for the two power plants. This development will help the company to increase revenue.