The global turboexpander market was valued at USD 953.6 million in 2021 and is predicted to surpass around USD 1,404.1 million by 2030, growing at a CAGR of 4.8% from 2022 to 2030.
The market growth can be attributed to the increasing demand for energy-efficient turboexpanders for geothermal, waste to recovery, natural gas production, and other gas processing applications. Favorable government initiatives to curb the Green House Gases (GHG) emissions have encouraged the economies worldwide to consume natural gas by-products such as Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG). This would eventually increase the demand for the turboexpanders in the oil & gas sector over the forecast period.
The surge in investments in hydrogen liquefaction is expected to create the demand for hydrogen turboexpanders during the forecast period. Unprecedented demand for clean and green energy resources associated with growing concerns to curb GHG emissions and favorable government initiatives under the influence of Net Zero Emission by 2050 undertaken by the United Nations (UN) is presumed to drive demand for clean hydrogen. Furthermore, the rising popularity of green hydrogen in automotive and aerospace and limiting the dependency on crude oil from Organization of the Petroleum Exporting Countries (OPEC) countries is also likely to bode well for the market growth over the next few years.
The Original Equipment Manufacturers (OEMs) in the market for turboexpanders are adopting a customer-centric approach to manufacturing customized turboexpanders for hydrogen liquefaction to serve their customers. For instance, in May 2021, PBS Group, one of the key vendors in the market, developed CTE 300, a new turboexpander explicitly designed for hydrogen applications. The newly developed product will have a maximum inlet pressure of over 5 MPa with a cooling power of up to 100 kW.
Scope of the Turboexpander Market
|Market Size in 2021||USD 953.6 Million|
|Revenue Forecast by 2030||USD 1,404.1 Million|
|Growth Rate from 2022 to 2030||CAGR of 4.8%|
|Oil & Gas Segment Market Share in 2021||30%|
|Compressor Segment Market Share in 2021||40%|
Product Type Insights
The axial flow segment is projected to reach USD 623 million by 2030. The growth of the segment can be attributed to the increase in demand for high power applications such as geothermal and heat recovery applications. Moreover, the axial flow turboexpanders are dominated and extensively used for large gas turbine applications.
Based on product type, the market has been further bifurcated into the axial flow and radial flow. The radial flow segment accounted for more than 50% of the overall market in 2021. The large-scale adoption of radial expanders for low output power applications such as hot gas expanders used in refineries, binary cycle geothermal plants, and other low power cryogenic plants contributed to the high share of the segment. The demand for radial flow turboexpanders in binary cycle geothermal plants is intended to produce carbon dioxide-free electricity. It is expected to favor market growth.
Loading Device Insights
The compressor segment accounted for more than 40% of the global market share in 2021, growing at a CAGR of 4.7% from 2022 to 2030. Compressor-loaded turboexpander is the most common arrangement in industries and is extensively used in LNG feed-gas treatment (onshore and floating), high-demanding cryogenic, and energy recovery applications. Based on loading devices, the market has been further categorized into the compressor, generator, and hydraulic/oil brake.
The generator segment is expected to register the highest CAGR over the forecast period. The market growth can be ascribed to a surge in demand for hydrogen turboexpanders used during the hydrogen liquefaction process. Furthermore, an increase in demand for blue and green hydrogen in aerospace and automotive is further expected to drive market growth over the forecast period. Owing to the surge in demand for hydrogen generations, OEMs in this space are focused on offering customized turboexpanders to their customers.
Power Capacity Insights
Combined, the less than 1 MW, 1 MW-4 MW, and 5MW -9 MW power capacities accounted for 70% of the overall market in 2021. These segments are expected to grow at a CAGR exceeding 4-5% over the forecast period.
End users primarily focus on low power capacity turboexpanders, preferably less than 10 MW, across the economies. Due to a low product development cycle and low costs, less time is taken for installation, commission, and maintenance during downtime.
The cryogenic applications are expected to dominate the market over the forecast period. The market for cryogenic applications recorded growth in late 2020 and H1/2021 due to the pent-up demand and backlog orders resulting from the pandemic. However, in H2 2021, owing to supply chain disruptions still posed a threat due to low inventory levels at an OEM level for the short term.
The oil & gas processing segment is expected to witness a moderate 4.9% CAGR over the forecast period. Delay in new construction for LNG projects is expected to be one of the bottlenecks for the OEMs over the short term.
The oil & gas segment accounted for the largest market share with more than 30% in 2021 and is expected to maintain its dominance over the next eight years. The oil & gas segment includes on-shore and offshore LNG applications. The surge in demand for LNG for industrial, commercial, and residential sectors is one of the primary factors for the market growth.
Favorable government initiatives to promote clean energy and net zero emissions by 2050 are anticipated to surge the demand for LNG gas, expected to drive market growth over the forecast period. The energy & power segment is expected to register a CAGR of 4.9% during the forecast period. Due to soaring carbon prices, utility companies in Europe are transiting to cleaner-burning gas. The rising popularity of Cryogenic Energy Storage (CES) and, in particular, energy storage with liquid air is also anticipated to drive the market growth over the forecast period.
Asia Pacific to register the highest CAGR of 5.8% in the market over the forecast period. The surge in demand for cryogens for ultra-high vacuum environments required for semiconductor production processes is expected to drive the market in the forecast period. Furthermore, favorable government initiatives to boost and promote the hydrogen economy across the automotive sectors are expected to drive market growth.
Europe accounted for the second-largest market share of 27.1% in 2021 and is expected to register a CAGR of 4.3% from 2022 to 2030. The market is primarily driven by Russia, the U.K., Germany, and the rest of Europe. It is ascribed to the dominance of natural gas production and favorable government policies to boost clean energy projects and curb GHG emissions across European economies.
List of Key Players in the Turboexpander Market
By Product Type
By Loading Device
By Power Capacity
By End Use
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
The study objectives of this report are:
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