'Second-Tier' EMs Primed For Gas Power Growth
BMI View: Ongoing consolidation in the power turbine manufacturing industry will leave the companies that emerge better placed to capitalise on growth in gas-fired capacity in middle- to low-income power markets. While growth in gas-fired capacity in many developed markets is likely to remain tepid, there are vast opportunities in markets such as Saudi Arabia, Mexico and Nigeria.
Middle- to low-income countries hold significant opportunities for manufacturing companies in the power sector and will drive global demand for gas turbines. Our view is predicated on the untapped demand for electricity in emerging markets and the potential for the expansion of thermal power capacity, as demographic and economic fundamentals drive electricity demand higher. While China and India will undoubtedly be the biggest sources of new demand - many 'second-tier' markets will also need new turbines in order to utilise their gas (and coal) resources.
Amongst these second tier markets the potential for growth in gas-fired generation is significant, albeit not on the same scale as in China or India.
|Gas To Grow Globally|
|Global Growth In Gas Generation - By Region (TWh)|