Instrumentation and Control for Steam Turbine Retrofit Market Outlook
The global Instrumentation and Control for Steam Turbine Retrofit market was valued at USD 450.3 million in 2022 and is projected to reach USD 659.0 million by 2030, expanding at a CAGR of 4.2% during the forecast period 2023 – 2030.
In 2021 and 2022, a significant surge in electricity demand was registered, driven by the global economic recovery. Electricity demand rose by 2.6% in 2022 in the US. Rising electrification of the transportation industry globally is increasing the electricity demand, driving the demand for instrumentation and control for steam turbine retrofit as retrofitting allows companies to increase their power generation capacity.
Old steam turbines undergo modifications that compromise safety, as they are frequently run with some degree of mechanical wear to the OEM governor and mechanical overspeed device.
A retrofit also increases the unit's dependability and availability by minimizing frequent nuisance trips and cutting down on repair time related to outdated and inefficient equipment. Old equipment maintenance is costly, and replacement service parts are not always easily accessible. These retrofits also address issues with contamination from oil. The steam turbine is retrofitted to address several control problems.
A steam turbine mechanical retrofit involves the turbine shaft speed measurement (speed sensor), the control (high-speed digital controller), and the control element (the actuator for the steam turbine governor valve).
Driver: Increasing Demand for Power
Electricity demand decreased by 1% in 2020 globally, owing to the prevalence of the COVID-19 pandemic as well as mild temperatures across major developed and developing countries. In 2021 and 2022, a significant surge in electricity demand was registered, driven by the global economic recovery. Electricity demand rose by 2.6% in 2022 in the US.
Rising electrification of the transportation industry globally is increasing the electricity demand. Steam turbines are typically installed to generate power. The average efficiency of a large steam turbine is more than 45%, which makes it economical to utilize steam turbines.
Thus, consistent growth has been registered in the demand for steam turbines for electricity generation. Steam turbines work on various parameters, such as temperature, pressure, load, speed, and other vital control processes.
The retrofit service is crucial in maintaining the instrumentation and control systems to enhance the operations of the steam turbine. Moreover, the increasing number of steam turbines across industries is contributing to the revenue of retrofitting services. Maintenance of the control systems is mandated after a period of 6-month intervals. Thus, an ever-increasing demand for electricity adds to the revenue generation in the market.
Driver: Increasing Environmental Awareness
Steam electric power plants release large volumes of wastewater, containing huge quantities of pollutants, into water. The pollutants include both toxic and bio-accumulative pollutants, such as arsenic, lead, mercury, selenium, chromium, and cadmium.
Pollutants discharged by this industry result in severe health and environmental problems in the form of cancer and non-cancer risks in humans, lowered IQ among children, and deformities and reproductive harm in fish and wildlife.
Thus, retrofitting services have been mandated in several nations to improve the capabilities of the power plants, due to increasing awareness regarding the negative consequences of steam turbine-based electric plants.
Today's commercial transactions are interconnected, which raises the cost of downtime (the time during which a machine or plant is unavailable for use). The average annual cost of application downtime among Fortune 1000 organizations ranges from USD 1.25 billion to USD 2.5 billion. Critical application failure costs USD 500,000 to USD 1 million per hour, with infrastructure failure costing an average of USD 100,000 per hour.
These statistics are considerably impacted by abnormalities in the power supply. Thus, retrofitting of the obsolete instrumentation and control systems is crucial for increasing the efficiency of the plants. Power plant owners are consistently looking for upgrades, thus fostering the market growth.
Equipment modernization does not always require significant capital expenditure. Retrofit operations cost up to 65% less than new installations. They require less manpower and are quick to install, reducing installation risks and production downtime. They are also affordable.
Upgrading coal-fired power stations with a simple control system lowers emissions by more than 80%. Most coal-fired power plants in the US have been able to cut sulfur oxides (Sox) and particulate matter emissions by up to 90% to 99%, as the control system has improved over the past several decades. According to a study conducted by Harvard University, replacing coal-fired power stations with alternatives that have Sox control systems lowers the prevalence of the cardiovascular disease globally.
Each 10% reduction in Sox emissions from coal-fired power stations is expected to reduce the prevalence of the cardiovascular disease by 0.75 %. Although it is unlikely that the coal power plants are shut down permanently, retrofitting the well-developed control systems can help the local resident’s health to a significant extent. Thus, the market for retrofitting is expected to grow in the near future.
Restraint: Emissions from Coal-based Power Plants
Coal is widely used in developing nations such as India and China as a low-cost fuel for power generation. The adjacent figure represents the operating number of coal power plants in major nations. These also represent the upcoming retrofit projects in the respective regions. Steam turbines are extensively used in these plants as a mechanism for electricity generation.
However, coal-fired power plants emit greenhouse gases, such as carbon dioxide, as well as various air pollutants, such as particulate matter and heavy metals, most of which are known carcinogens. Sulfur dioxide (SO2) is emitted over 2,500 times more from coal-fired power plants than from natural gas plants, and one thousand times more than from oil plants.
This adds up to the healthcare expenditure for people exposed to it, or for those residents who live far away from power plants. Thus, a rapid phase-out of coal-based power plants impacts the market to a significant extent. Additionally, maintaining old equipment is expensive and spare service parts are not always readily available. These factors restrain market growth.
Opportunity: Increasing Emphasis on Renewable Energy
Steam turbines are frequently utilized in the renewable energy sector. Power generation plants, including solar, geothermal, biomass, waste-to-energy, and seawater desalination, employ steam turbines for the purpose of electricity generation. In the past decade, developing, as well as advanced nations, faced gas scarcity and high fuel prices.
This resulted in high deployment of renewables. Additionally, this has resulted in a phase-out of coal plants rapidly. However, coal plant phase-out has been a complex task for nations that are highly reliant on coal, and the emphasis on renewable energy has been increasing significantly at a global level.
According to the reports of The International Renewable Energy Agency (IRENA) on World Energy Outlook 2022, energy security concerns, especially in Europe, are pushing policymakers to look for rapid deployment of alternatives, with renewables, energy efficiency, and hydrogen leading as source.
Moreover, the cost of solar photovoltaic (PV) modules, has decreased by 99% over the past 40 years, due to technological advancements and the mass production of solar panels, and is projected to continue to do so during the forecast period as well. Moreover, upcoming projects for renewable energy generation are anticipated to create growth opportunities in the market.
Scope of the Report
The report on the global Instrumentation and Control for Steam Turbine Retrofit market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Instrumentation and Control for Steam Turbine Retrofit Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
by Instrumentation and Controls (sensors, actuators, software, controllers, and others)), by Function (temperature control, speed control, load control, pressure control, and others), by Application (power and mechanical), by Power Range (1-5 MW, 6-20 MW, 21-100 MW, 101-250 MW, 251-700 MW, 701-1200 MW, and >1200 MW), by End-use Industry (oil and gas, shipping, power generation, fertilizers, and others).
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered
ABB, C.C. JENSEN A/S, CCC LLC., Doosan Corporation, Emerson Electric Co., General Electric, MAN Energy Solutions, MITSUBISHI HEAVY INDUSTRIES, LTD, MSHS, Rockwell Automation, Siemens Energy, Turbine Controls Ltd., TOSHIBA CORPORATION.
The global Instrumentation and Control for Steam Turbine Retrofit market is segmented on the basis of Instrumentation and Controls, Function, Application, Power Range, End-use Industry.
In Terms of function, the global instrumentation and controls for the steam turbine retrofit market is segmented into temperature control, speed control, load control, pressure control, and others.
The speed control segment held a market share of XX% in 2021. The most crucial component of motors or turbines is speed control, as it reduces the amount of power needed to run the machine. In steam turbines, the speed control segment, which also performs acceleration and speed limiting, is frequently favored. The demand for speed control is increasing, as it is possible to maintain the desired output power while reducing stress on the components of the turbine by adjusting the speed of it.
The load control segment held a market share of XX% in 2021. Rapidly growing population and developing economies are driving the demand for power. Power plants are expected to produce additional electricity to meet this increasing demand.
Load controls help to ensure that steam turbines are operating at maximum efficiency, which help in increasing their output to meet the high demand for electricity.
In Terms of application, the global instrumentation and controls for steam turbine retrofit market is segmented into power and mechanical.
The mechanical segment held a market share of XX% in 2022. The mechanical drive steam turbine has applications in refineries, iron & steel, fertilizers, ethylene, gasification / air separation units (ASU), purified terephthalic acid (PTA), and others.
The power output of mechanical drive turbines varies from around 25 hp (18 kW) or less to about 150,000 hp (110 MW). They are widely utilized in petrochemical and refinery plants, as the processes in these plants generate additional heat to drive steam. Mechanical drive steam turbines are used in marine propulsion, district heating, textile mills, sugar mills, paper mills, and oil & gas industry.
In terms of the end-use Industry, the global instrumentation and controls for the steam turbine retrofit market is segmented into oil and gas, shipping, power generation, fertilizers, and others.
The oil and gas segment is expected to expand at a CAGR of XX% during the forecast period, as steam turbines are well suited as prime movers for driving boiler feedwater pumps or air compressors, and support dozens of operations in the oil and gas industry. Maintaining reliable and repeatable control of turbines is essential for refineries to meet efficiency targets and avoid downtime for costly maintenance. This is made possible by identifying and implementing appropriate propulsion technology, which is creating high demand for refinery retrofits.
The shipping segment held XX% market share in 2022, due to the increasing adoption of Combined Gas Turbine, Electric, And Steam Systems (COGES) on ships. Switching to the COGES propulsion system is expected to increase the ship's fuel efficiency by 30%. This allows shipowners to raise charter rates and recapture opportunities in a market dominated by dual-fuel diesel engines. The average retrofit period is 10 to 15 years for LNG carriers.
The Instrumentation and Control for Steam Turbine Retrofit market in Asia Pacific is estimated to expand at a CAGR of XX% during the forecast period, due to the rising retrofits in power plants and sugar plants. China has 946 coal control plants that majorly works on steam turbines. These turbines are in operation for 20 to 25 years, which requires retrofitting to be effective. This factor drives the market in China. China is the major manufacturer of polyolefin.
Increasing unused on-purpose propylene capacity in the country is expected to drive the market in China in the coming years. The market in Asia Pacific is increasing, due to the rising significance of thermal capacity additions and the beneficial impact of the utilization of geothermal energy. The increasing utilization of cogeneration technology along with the flourishing industrial sector boost the market in the region. For instance, China has a 1.0 million MW power plant capacity.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Instrumentation and Control for Steam Turbine Retrofit Market
- Historical, Current, and Projected Market Size in terms of Value
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Instrumentation and Control for Steam Turbine Retrofit Market Performance
By Instrumentation and Controls
- Temperature Control
- Speed Control
- Load Control
- Pressure Control
By Power Range
- 1-5 MW
- 6-20 MW
- 21-100 MW
- 101-250 MW
- 251-700 MW
- 701-1200 MW
- >1200 MW
By End-use Industry
- Oil and Gas
- Power Generation Plants
Key Market Players Profiled in the Report
- C.C. JENSEN A/S
- CCC LLC.
- Emerson Electric Co.
- General Elec
- MAN Energy Solutions
- MITSUBISHI HEAVY INDUSTRIES, LTD
- Rockwell Automation
- Siemens Energy
- Turbine Controls Ltd.
- TOSHIBA CORPORATION
- Doosan Corporation
- Key players operating in the market are ABB, C.C. JENSEN A/S, CCC LLC., Doosan Corporation, Emerson Electric Co., General Electric, MAN Energy Solutions, MITSUBISHI HEAVY INDUSTRIES, LTD, MSHS, Rockwell Automation, Siemens Energy, Turbine Controls Ltd., TOSHIBA CORPORATION. These companies are considered as key manufacturers of Instrumentation and Control for Steam Turbine Retrofit based on their revenue, research development (R&D) activities, product offerings, regional presence, and supply chain management system.
- Players are adopting key strategies such as acquisitions, collaborations, and geographical expansion for potential opportunities in the Instrumentation and Control for Steam Turbine Retrofit market.