The turbine and turbine generator sets market is set to reach a worldwide projected total of US $173.3 billion by the year 2017 says the report “Turbines and Turbine Generator Sets: A Global Strategic Business Report.” When looking at installations to the same period, the market has been forecast to reach 232 thousand megawatts. The growth in the market can be put down to a number of factors including growing energy needs as a result of continuous industrial development, improving living standards, and an ever growing population.
Asia-Pacific represents the largest and the fastest growing sector for the Turbines and Turbine Generator Sets market. The region continues to remain a key growth area, displaying a robust CAGR of about 8.5% over the coming years. As a bridge that connects to the envisioned clean energy future, Wind Turbines represent the fastest growing product segment growing at a robust CAGR of about 9.5%.
Asia Pacific, supported by China and India’s staunch growth in wind energy, will continue to drive future growth in this segment. Chinese manufacturers particularly are surging ahead in the wind turbine manufacturing sector, driven primarily by the favourable government policies favouring the local turbine manufacturers.
United Technologies Corp is looking to sell power generation assets within its Pratt and Whitney subsidiary in a deal that could fetch around $1 billion, according to three people familiar with the matter.
The business, called Pratt & Whitney Power Systems, manufactures industrial gas turbines and geothermal power systems based on Pratt & Whitney’s aircraft engine technology, and helps generate electricity for businesses and cities.
Deutsche Bank is advising United Technologies on the potential divestiture, one of the people said.
The three sources spoke on Monday. All of them asked not to be named because they were not authorized to speak publicly about the matter. A United Technologies spokesman declined to comment and Deutsche Bank also declined to comment.
The potential sale is part of the diversified industrial conglomerate’s effort to focus more on the aerospace and propulsion segments and move away from businesses that are not seen as core, according to the people familiar with the matter.
“While this is a good and profitable business, it’s not part of the core aerospace and propulsion business,” said a second source, adding that some potential buyers were already showing interest in the business, although it was still early in the process.
A third source said the Pratt & Whitney power systems business needed some investment to get to the next phase of its growth plan, but United Tech preferred to put its capital more directly into the aerospace propulsion sector.
The sale would likely occur after United Technologies closes its planned $16.5 billion purchase of aircraft components maker Goodrich Corp, that person added.
Pratt & Whitney Power Systems has more than 2,000 industrial gas turbines installed in some 50 countries, according to its website.
United Technologies is already selling several other noncore businesses in an effort to fund its Goodrich takeover, including the industrial businesses of its Hamilton Sundstrand unit that make pumps and compressors.
Hartford, Connecticut-based United Technologies also owns Otis elevators and escalators, as well as helicopter maker Sikorsky, among other holdings.
Chief Financial Officer Greg Hayes also said last week that the company has recently completed a review of its fire and security operations and is considering selling some of that portfolio as well.
KEVTA will continue to monitor the situation and keep our customers informed should there be a change in ownership of any of our key UTCFS suppliers.