The global gas turbine market is forecast to fall by 2021.
That would be from $8.49 billion (£6.6bn) in 2016 to around $7.73 billion (£6bn) in the next four years, according to research and consulting firm GlobalData.
It states global economic recession and the decrease in the price of gas turbines have “heavily impacted” market value, with a large number of projects being cancelled or postponed and delays in maintenance projects.
It adds gas turbine companies are now concentrating on expanding their operations in emerging markets, which it believes offer the best opportunities for growth.
Its report suggests extensive power plant capacity additions, economic growth and the need to improve access to electricity in the emerging economies of Asia-Pacific (APAC) are driving the gas turbine market.
The region’s primary energy demand is projected to grow at a rate of 2.1% per year between 2010 and 2035 – faster than the forecast world average growth rate of 1.5% per year during the same period.
Due to an increased deployment of gas-based power plants, natural gas demand is expected to increase at a faster rate than coal and oil, with its share rising from 11.4% in 2020 to 17.5% by 2035.
Subha Krishnan, Power Analyst for GlobalData said: “As most APAC economies, including China, India, Indonesia and Thailand, are looking to build new generation capacity, the low price of gas is also projected to boost its share in the overall energy generation mix of many countries. The use of gas and renewable energy is increasingly promoted by governments in the region to address the rising energy demand and need for reducing carbon emissions.
“Despite the rising price of coal, the commercialisation of renewable energy continues to be an expensive option for utility companies.”