New research from Frost & Sullivan, a company that specializes in market research and analysis, found the central and eastern European steam and gas turbine markets earned revenues of $1.52 billion in 2006. Frost & Sullivan estimates market revenue to reach $5.34 billion in 2013.
“The market for steam and gas turbines in central and eastern Europe is at a mature stage. However, it is expected to grow dynamically in the immediate future,” said Lukasz Stepien, Frost & Sullivan research analyst. “The rising demand for electricity, coupled with the pressing need to replace power plant equipment, will drive the regional market and generate investment opportunities.”
Improved efficiency will be the focus of investments in the region. To meet the increasing demand for electricity, aging and inefficient equipment will need to be replaced, even as the generation of additional capacity becomes critical.
“The creation of the European internal electricity market will compel power plants to boost the efficiency of their electricity generation in order to be more competitive,” Stepien said. “Since most of the equipment in the region was installed in the 1960s and 1970s, a majority of the turbines will need to be replaced in the immediate future.”
Establishing a local presence and building long-term relationships with power plants in the region remain key to succeeding in the central and eastern European energy sector. This could be an opportunity for contractors looking to expand internationally. EC