Turboexpander Market Trends

Growth Drivers

• Growing Trend of Automotive Natural Gas Vehicles – Growing urbanization has increased the adoption of LNG vehicles across the globe and is anticipated favor market growth as turboexpander helps utilize natural gas rather than other fuels. The U.S. Department of Energy stated that natural gas powers more than 23 million vehicles worldwide.
• Increasing Awareness to Reduce Green House Gas (GHG) Emission – Recent industrialization has led to the rise in Green House Gas emissions. However, the constant government focus on reducing Green House Gas (GHG) is estimated to drive the global turboexpander market expansion in the future as turboexpanders are needed in geothermal and heat recovery from natural gas applications which is a cleaner source of energy and emit less carbon dioxide. The International Energy Agency (IEA) stated that in 2020, the total global GHG emission by fuel combustion accounted for 32,252 MtCO2eq.
• Escalation in Global Electricity Consumption – Burgeoning population along with advancements has led to the high consumption of electricity. This factor is anticipated to help in increasing the turboexpander sector value as the turboexpander is efficient in producing energy through natural gas. Global electricity consumption increased from 22,848 TWh in 2019 to 25,300 TWh in 2021 and is continue to grow by 1-2% every year, as per the International Energy Agency (IEA).

Challenges

• Easy Availability of Other Alternatives – The share of other renewable sources of energy such as solar and wind energy has grown considerably in the past few years owing to the high investments and easy-to-operate advantages. This factor is estimated to hinder the market growth during the projected timeline.
• High Cost of Installation Process
• Low Awareness Level Among the Developing Countries