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Frost & Sullivan: Consumer Demand for Energy Independence and Growing Government Response Open Opportunities in the African Gas Turbine Market

- Offering robust, cost-efficient and flexible solutions will garner a strong lead for market participants

CAPE TOWN, South Africa, Feb. 5, 2014 /PRNewswire/ -- Substantial growth in energy demand and policy changes to decrease gas flaring are driving new power plants installation in Africa and fuelling the uptake of gas turbines. While lack of infrastructure and financial constraints slowed down market growth in the past, the current expansion rate of over 8 percent per annum is expected to accelerate once the gas infrastructure backbone in key gas producing countries is developed.

New analysis from Frost & Sullivan (http://www.energy.frost.com), The African Gas Turbine Market, finds that the market earned revenues of $662 million in 2012 and estimates this to reach $1 144 million in 2017. The growth in demand for turbine technology will be driven by the combination of infrastructure investment and access to natural resources – Africa has some of the globe's most substantial gas reserves.

"The desire of more players in the private sector, especially industrial clients to achieve energy independence, is widening the scope of the African gas turbine market," said Frost & Sullivan Business Unit Leader for Energy & Environment Cornelis van der Waal. "This will allow new suppliers to enter the market and existing competitors to have access to a larger pool of customers."

Although the long term outlook for gas turbine technology remains very positive, there are some challenges facing the industry including a lack of urgency among end users to expand their gas infrastructure, limited gas pipeline availability, and poorly maintained transmission infrastructure.

"In this scenario, it is crucial for gas turbine suppliers to understand end-user needs and develop cost-efficient, flexible solutions that can also run on oil or kerosene in the absence of gas," stated Van der Waal. "Market leaders, in particular, should couple quality products with robust operation and maintenance services to consolidate their position and take advantage of the numerous opportunities that are expected to open up in Africa over the next 10 years."

For a preview of this study, please visit Slideshare. If you are interested in more information on this research, please send an email to Samantha James, Corporate Communications, at [email protected], with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

The African Gas Turbine Market is part of the Energy & Power Growth Partnership Service program. Frost & Sullivan's related studies include: Power Infrastructure Tracker in East Africa, Power Infrastructure Tracker in Northern Africa, Energy Efficiency and Large South African Commercial Businesses, The Market for Power Station Maintenance Repair and Overhaul (MRO) in Key African Countries, and South Africa Renewable Energy Project Tracker, and Investment Plans for Power Utilities in Sub-Saharan Africa, among others. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

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For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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The African Gas Turbine Market

Samantha James
Corporate Communications – Africa
P: +27-21-680-3574
F: +27-21-680-3296
E: [email protected]
T: @FrostSullivanSA


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