Turboexpander Market is expected to reach US$ 1,751.48 million by 2030

Application in Energy Recovery and Power Generation Operations Propels Turboexpander Market Growth

According to our latest study on “Turboexpander Market Forecast to 2030 –Global Analysis – by Loading Device, Power Capacity, and End User," the market is expected to grow from US$ 1,106.97 million in 2022 to US$ 1,751.48 million by 2030; it is anticipated to record a CAGR of 5.9% from 2022 to 2030.

A turboexpander primarily reduces the pressure of a gas stream by facilitating its expansion, which results in decreased enthalpy and temperature of the gas. This decline in temperature is accompanied by the condensation of substantial hydrocarbons into liquids. Turboexpanders help attain isentropic power as high as 90%, which results in much lower discharge temperatures. The high reliability of turboexpanders is attributed to their minimalistic construction and hermetically sealed design.

Turboexpander Market Share — by Region, 2022

Source: The Insight Partners Analysis

The main advantages of turboexpanders over regulators are that the former can moderate and reduce the gas pressure to a desired level and electricity can be generated from the energy attained from a reduced gas pressure. Generally, substantial electricity is lost in a distribution network along the distance between power stations and consumers. Localized low-capacity power production is one of the key ways to eliminate energy loss. Any high-pressure gas flowing in a transmission pipeline is a promising means for energy recovery. A turboexpander applied with electrical generators and turbines can convert kinetic energy to electricity. When high-pressure gas flows into a turboexpander, it routes through the turbine and twists it. The generator starts twisting and produces electricity. Thus, by replacing a regulator valve with a turboexpander, the possible energy saved in the gas stream will be employed and converted to electricity. Therefore, the increasing concern about energy loss and the need to save more energy fuels the application of turboexpanders in energy recovery and power generation operations, thereby bolstering the turboexpander market size.

Turboexpander is an axial flow or centrifugal turbine used to expand high-pressure gas to generate work that is primarily employed to drive a compressor. This turbine system can be deployed in applications such as ethylene plants, gas transportation, air separation facilities, and refineries to convert the energy of a vapor stream or gas into mechanical work as the vapor or gas expands through the turbine. A turboexpander transforms the wasted energy in the gas into electricity. With the growing demand for cryogenic fluids and advancements in cryogenic industries, the demand for competent turboexpanders is on the rise, especially in space appliances, superconductivity, turbochargers, biomedical and petrochemical industries, and chemical instruments, among others. A turboexpander also works as a distributed generator that can be leveraged to capture the surplus energy. The turboexpander generator decreases gas pressure and transforms the kinetic energy into electrical energy, which can be sold to the grid. The growing application of turboexpanders, owing to their efficiency and competence in different applications, is anticipated to present opportunities for the turboexpander market during the forecast period.

Based on geography, the market is primarily segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South & Central America. North America held the largest turboexpander market share in 2022. The market in North America is dominated by the US, Canada, and Mexico. The turboexpander market growth in the US is ascribed to a significant rise in dry natural gas production, particularly due to advancements in horizontal drilling and hydraulic fracturing techniques in the country. These techniques have revolutionized the extraction of natural gas from shale, sandstone, carbonate, and other tight geologic formations. In 2022, US dry natural gas production reached a record high of ~36.35 trillion cubic feet (Tcf), with an average daily production of approximately 96.60 billion cubic feet. This production level was about 13% higher than the total natural gas consumption recorded in the US, indicating that domestic production fulfills the local demand. As the US continues to produce more natural gas, the turboexpander market is expected to benefit from the need to process and optimize the extraction, transportation, and storage of this abundant resource. Turboexpanders play a crucial role in natural gas processing and various other applications. They are used to recover valuable natural gas liquids (NGL) from the gas stream, liquefy natural gas for transportation and storage, control the dew point of natural gas, and enhance the energy efficiency of gas turbine power generation systems.

Advancements in horizontal drilling and hydraulic fracturing techniques have unlocked vast reserves of natural gas in shale formations, such as the Marcellus and Utica Shales. These formations contain significant volumes of natural gas that can be extracted using production techniques such as directional drilling and hydraulic fracturing. The increased production of oil and gas from shale formations, and other tight formations contributes to the overall growth of US dry natural gas production and creates opportunities for the turboexpander market expansion.

Alberta, as Canada's largest oil and natural gas producer, plays a significant role in the industry. This province accounts for ~80% of the national oil production, with vast deposits of both resources, including the oil sands in its northern region. Approximately 22% of the total estimated revenue of the Government of Alberta came from the oil & gas sector in the fiscal year 2021–2022. Capital spending in oil sands reached US$ 7.3 billion in 2020, and the provincial government has received payments totaling US$ 66 billion over the last 10 years. Alberta recorded ~437,000 barrels of conventional oil production per day in 2019, while 2.84 million barrels per day of oil was produced from oil sands in 2021. Québec, on the other hand, has an abundance of undeveloped natural gas resources, particularly in the southern flank of the St. Lawrence River, within the province's portion of the Utica shale formation. Thus, progress in the development of natural gas resources presents a growth opportunity for the turboexpander market in Québec. Additionally, Québec is home to refineries that process oil for different Canadian businesses and companies providing goods and services to the oil sands industry. Turboexpanders are essential in various applications within the oil & gas sector, including natural gas processing, liquefaction, dew point control, and energy generation systems. Thus, the diversity of oil and natural gas industries across Canadian provinces is expected to contribute to the growth of the turboexpander market in the country.

The turboexpander market analysis is carried out by identifying and evaluating key players in the market across different regions. Atlas Copco AB, Air Products & Chemicals Inc., Elliott Group, Cryostar SAS, Sapphire Technologies Inc, Turboden SpA, L’Air Liquide SA, ZJ-Tibo, R and D Dynamics Corporation, and Siemens Energy are among the key players profiled in the turboexpander market report.

The turboexpander market report includes growth prospects owing to the current turboexpander market trends and their foreseeable impact during the forecast period. Inorganic and organic strategies such as mergers and acquisitions are highly adopted by market players. The market initiative is a strategy adopted by companies to expand their footprint across the world and to meet the growing customer demand. They also focus on product and service enhancements by integrating advanced features and technologies into their offerings.

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