Turboexpander Market

Turboexpander Market Outlook from 2024 to 2034

The turboexpander market is estimated to be valued at USD 1.2 billion in 2024 and is projected to reach USD 2 billion by 2034, exhibiting a modest CAGR of 5.40% over the forecast period.

Key Market Drivers:

The turboexpander market generated an estimated revenue of USD 800 million in 2019. Over the span of four years, the market developed at a pace of 7.00% CAGR and added revenue of USD 400 million in 2023. Several reasons can be attributed to this growth:

• Increased demand for efficient natural gas processing plants, where turboexpanders play a crucial role in gas processing and liquefaction
• The expansion of LNG infrastructure, including liquefaction plants, regasification terminals, and LNG carriers, which require turboexpanders for various processes
• Rising emphasis of industries on optimizing energy usage and minimizing waste, where turboexpanders are used to harness the energy from high-pressure gas streams and convert it into mechanical power or electricity
• Surging demand for cryogenic applications in industries such as healthcare (medical gases), food processing (cryogenic freezing), and electronics (semiconductor manufacturing)
• Ongoing advancements in turboexpander design and manufacturing is leading to significant improvements in efficiency, reliability, and performance
• The exploration and production of oil and gas which require efficient processing technologies like turboexpanders to extract and process hydrocarbons effectively
• Stringent environmental regulations to reduce emissions, pushing industries to install turboexpanders in their plants to recover waste energy and reduce overall energy consumption and emissions

Attributes	Key Statistics
Estimated Market Size (2024)	USD 1.2 billion
Forecasted Market Year Value (2034)	USD 2 billion
Projected Growth (2024 to 2034)	5.40% CAGR

Consumption Analysis of Turboexpanders

• The global oil and gas sector is increasingly adopting turboexpanders, especially by companies involved in natural gas processing plants, LNG facilities, and oil refineries for gas processing, gas liquefaction, and hydrocarbon recovery processes.
• The sales of turboexpanders are also growing among chemical plants. Companies in this group use turboexpanders for cryogenic applications, such as the separation and purification of gases, as well as for energy recovery from high-pressure gas stream.
• Turboexpanders are also experiencing increasing demand from power plants, particularly those utilizing combined-cycle or cogeneration systems to recover waste heat from exhaust gases and convert it into electricity.
• Petrochemical facilities also incorporate turboexpanders for various processes, including ethylene and propylene production, gas separation, and hydrogen recovery.
• The growing adoption of turboexpanders is also observed in geothermal power plants, biomass facilities, and waste heat recovery systems, where they help generate electricity from renewable sources and improve overall energy efficiency.
• The sales of turboexpanders are also soaring in healthcare for the production and purification of medical gases, such as oxygen, nitrogen, and argon, used in medical facilities and laboratories.

Restraining Factors Adversely Affecting the Turboexpander Market

The market is anticipated to surpass a valuation of USD 2 billion by 2034, with a growth rate of 5.40% CAGR. While the market is expected to experience remarkable growth, several restraining factors could adversely affect its development:

• The upfront cost associated with acquiring modern turboexpanders is keeping a substantial number of consumers away from the market, particularly smaller companies or organizations with limited budgets.
• Integrating turboexpanders into existing industrial setups is a very cumbersome and costly process. This complexity increases implementation time and costs, posing a barrier to adoption for some industries.
• Turboexpanders require precise engineering and maintenance to ensure optimal performance and reliability. The lack of a skilled workforce is another challenge, hindering the widespread adoption of turboexpanders in industries.
• Alternative technologies for energy recovery and waste heat utilization, such as organic Rankine cycle (ORC) systems and absorption chillers, are also diverting potential consumers away from the market.

Category-wise Insights

Axial Flow Turboexpanders to Gain Impetus in Industrial Units

Depending on the product type, the turboexpander market is bifurcated into axial and radial flow. The axial flow segment is anticipated to grow at a modest CAGR of 5.10%.

• The demand for axial flow turboexpanders is skyrocketing among manufacturing units as they offer higher efficiency, a compact design, and better performance in handling large volume flows and variable operating conditions.
• These turboexpanders also find their place in various industrial applications, including natural gas processing, liquefied natural gas (LNG) production, and petrochemical refining.
• Manufacturing units seeking energy-efficient and reliable solutions for energy recovery and process optimization are also adopting turboexpanders, further contributing to the market value.

Attributes	Details
Product Type	Axial Flow
Forecasted CAGR (from 2024 to 2034)	5.10%

The Sales of Compressor Turboexpanders to Skyrocket in the Coming Decade

The turboexpander market is categorized by loading devices into compressors, generators, and hydraulic/oil-brakes. The compressors segment dominates the market and is anticipated to grow at a modest CAGR of 4.80%.

• Businesses are increasingly preferring turboexpanders as they offer significant energy savings by recovering and utilizing waste energy from high-pressure gas streams. This energy can be converted into mechanical power or electricity.
• The world is constantly pushing toward sustainability, and with increasing awareness of environmental issues and the need to reduce greenhouse gas emissions, factory units are installing turboexpanders to mitigate energy costs.

Attributes	Details
Loading Devices	Compressors
Forecasted CAGR (from 2024 to 2034)	4.80%

Country-wise Insights

The section provides an analysis of the turboexpander market by country, including Japan, China, the United States, South Korea, and the United Kingdom. The table presents the CAGR for each country, indicating the expected growth of the market in that country through 2034.

Countries	Forecasted CAGR (from 2024 to 2034)
South Korea	7.40%
The United Kingdom	6.90%
China	6.40%
The United States	5.80%
Japan	4.00%

Turboexpander Market in South Korea

South Korea is one of the leading countries in this market. The market in South Korea is anticipated to retain its dominance by progressing at an annual growth rate of 7.40% until 2034.

• South Korea's government has been actively promoting energy efficiency measures to reduce greenhouse gas emissions for the past few years. This creates a favorable environment for companies to invest in turboexpanders, which help in energy recovery and process optimization.
• In recent years, South Korea has also experienced exponential expansion in its petrochemical industry, with significant investments in refining and processing facilities. The expansion of these industries drives the demand for turboexpanders, which are essential for gas processing, liquefaction, and hydrocarbon recovery.

Turboexpander Market in the United Kingdom

The United Kingdom has also emerged as an important market for turboexpanders. The market is anticipated to maintain its strength by progressing at an annual growth rate of 6.90% until 2034.

• Similar to South Korea, the United Kingdom's government is also investing heavily in renewable energy sources to reduce dependence on fossil fuels and combat climate change. Turboexpanders play a role in renewable energy applications such as geothermal power plants and waste heat recovery systems, driving market growth.
• The United Kingdom also maintains a significant oil and gas sector, particularly in the North Sea region. This naturally generates excellent demand for turboexpanders as they are essential components in gas processing and liquefaction plants.

Turboexpander Market in China

China is a significant player in the turboexpander industry, closely following the United States in dominance. The Chinese turboexpander market is anticipated to exhibit an annual growth rate of 6.40% till 2034.

• China has experienced rapid industrialization and modernization in the last few decades. This has led to an increased demand for energy across various sectors. Turboexpanders are utilized in industries such as oil and gas, chemicals, and power generation for energy recovery and process optimization, fueling the market growth.
• China has also been investing heavily in the expansion of natural gas pipelines, LNG terminals, and petrochemical facilities. This infrastructure investment drives the demand for turboexpanders for gas processing, liquefaction, and energy recovery applications.

Turboexpander Market in the United States

The turboexpander market is primarily led by the United States, and it is expected to witness a CAGR of 5.80% through the year 2034.

• The United States has experienced a boom in shale gas production, leading to increased investments in gas processing and LNG export facilities. Turboexpanders are critical components in these facilities for gas processing, driving the market growth.
• Just like China, the United States is also undergoing a period of industrial modernization. This has amplified the adoption of turboexpanders as they offer energy-saving solutions for industries such as petrochemicals, chemicals, and power generation.

Turboexpander Market in Japan

Japan also makes a significant contribution to the turboexpander industry. Over the next ten years, the Japanese demand for turboexpander is projected to rise at a 4.00% CAGR.

• Japan, as a country, is very concerned about its energy sources, being an island nation with limited natural resources. This is why companies in Japan emphasize turboexpanders in LNG terminals and gas processing plants to support energy imports and ensure efficient resource utilization.
• Japan is also known for its technological innovation and engineering expertise. Scientific advancements in turboexpander design and manufacturing have enhanced their efficiency and reliability, making them attractive solutions for energy recovery in industrial processes.

Competitive Landscape

The turboexpander market has numerous players that cater to both international and domestic consumers. Some of the prominent companies in the market, such as Atlas Copco, Cryostar, Air Products and Chemicals, Inc., Baker Hughes, and General Electric, are continuously investing in research and development activities to enhance the efficiency, functionality, and sustainability of their products.

Along with this, these companies often receive grants and subsidies from the government to promote the adoption of turboexpander technology in various industries.

Recent Developments

• In June 2023, Sapphire Technologies shipped its largest batch of turboexpanders yet, partnering with Tallgrass and Evolve Energy. The delivery of four turboexpanders marked the beginning of a significant milestone, with plans for a 400% production increase by year-end.
• In May 2023, Iranian experts and technicians at Shazand Petrochemical Company in Markazi Province domestically designed and produced a turboexpander, breaking the West's monopoly. The feat, announced by Iran's Ministry of Petroleum's Shana news agency, involved collaboration with a local knowledge-based firm, offering significant cost savings.
• In August 2023, Nikkiso Clean Energy & Industrial Gases Group's Cryogenic Service unit, Nikkiso Cryogenic Services (NCS), partnered with Neuman & Esser (NEA) Brazil, expanding local support for Nikkiso products like ACD cryogenic pumps and turboexpanders in Brazil, aiming to streamline repairs and enhance customer service.

Key Companies in the Market

• Atlas Copco
• Cryostar
• Air Products and Chemicals, Inc.
• Baker Hughes
• General Electric
• Siemens
• Elliott Group
• Turbogaz
• L.A. Turbine
• Kobelco
• Hangyang
• ACD
• Cryoquip
• Cryodynamics
• GE Oil & Gas
• Sulzer
• R&D Dynamics Corporation
• Howden
• Toshiba
• Voith Turbo

Key Coverage in the Turboexpander Market Report

• Turboexpander Market Pricing Strategy
• Top Companies and Manufacturers in the Turboexpander Market
• Analytical Adjacent Study on Hydrogen/Helium Turboexpander Market and Turboexpander Compressor Market
• Raw Material Price Variation in the Market

Turboexpander Market by Segmentation

By Product Type:

• Axial Flow
• Radial Flow

By Loading Device:

• Compressor
• Generator
• Hydraulic/Oil-brake

By Power Capacity:

• Less than 1 MW
• 1MW - 4 MW
• 5MW - 9MW
• 10MW - 19MW
• 20MW - 24 MW
• 25 MW - 40 MW
• Above 40 MW

By Application:

• Air Separation
• Oil & Gas Processing
• Cryogenic Application
• Others

By End Use:

• Oil & Gas
• Energy & Power
• Chemical & Petrochemicals
• Others

By Region:

• North America
• Latin America
• Asia Pacific
• Middle East and Africa (MEA)
• Europe

Frequently Asked Questions

What is the Current Worth of the Turboexpander Market?

The market is expected to be worth USD 1.2 billion by 2024.

What is the Sales Forecast for Turboexpander through 2034?

The market for turboexpander is expected to reach USD 2 billion by 2034.

What is the Projected Growth Rate for the Turboexpander Market?

The market is set to grow at a CAGR of 5.40% from 2024 to 2034.

Who are the Key Manufacturing Companies Offering Turboexpander?

Atlas Copco, Cryostar, Air Products and Chemicals, Inc., Baker Hughes, and General Electric are some of the major players in the market.

What was the Overall Value of the Turboexpander Market in 2023?

The valuation for the turboexpander industry in 2023 was USD 1.1 billion.