GE vs Siemens in Gas Turbines: Siemens Surges YTD in Large Power
Preliminary Market Data Shows Siemens and GE Gaining Share - Preliminary data from McCoy, a leading provider of industry data on Gas Turbines shows a surge in Siemens market share in Large Power gas turbine orders YTD. While we partially discount the surge given the lumpiness of the data, and in long cycle terms a relatively short 6 months, it is still noteworthy. The data also shows the market overall is still weak, with a 31% decline yr/yr in megawatts (MW) ordered in H1. In total, Siemens ended H1 with 34.6% of global gas turbine orders, measured in MW (up 7.3pts), with GE at 31.7% (up 1.3pts). We remain neutral on both GE and Siemens reflecting our cautious view on Power Generation markets.
Figure 1: SIE & GE Gain Share in H1 Global Gas Turbine Orders
Source: McCoy Power Reports
Big Siemens Gains in Large Power - Siemens posted a strong surge within the Large Power segment (Utility scale) of the gas turbine market, picking up ~7pts of share to 30.7% in H113 from 23.8% in H112. The gain was not all at GE's expense however, with GE losing ~3pts of share to 15.6% this year, versus 18.4% last year. Mitsubishi was another notable share loser on large power in the first half, losing over 15 points of share yr/yr. Mitsubishi has enjoyed some accolades for its new J turbine and we suspect the large share drop is due to the lumpiness we noted above. It is also easier for share percentages to move around dramatically, when overall activity is low.
Figure 2: SIE Share in Large Power Up 7pts Yr/Yr in H1, to 39.7%, Outpacing GE
Source: McCoy Power Reports
GE Dominates Oil & Gas/Industrial - Aside from the Large Power GTs, GE still dominates in industrial purpose gas turbines, with nearly 4x the share of SIE, the next largest competitor in industrial. Combining GE's aero-derivative and oil & gas turbines, the company's share of the market increased ~4pts yr/yr to 16.1%. Siemens combined oil & gas/other gas turbine share increased 0.4pts to 3.9%.
Figure 3: GE Still Dominates Oil & Gas/Industrial Use Gas Turbines
Source: McCoy Power Reports
Siemens Orders Today in Saudi/Russia - Siemens booked 8 units today with Yamal in Russia for the SGT-800 industrial gas turbines, which is 45-50MW machine. Siemens has generally had a stronger position than GE in Russia, so this looks like a natural win for Siemens. In addition, Siemens booked a contract for 10 SGT6-5000F turbines designed for synthesis gas and diesel fuel with Saudi Aramco. These are F frame machines in the 200+ MW range each. Interestingly, 6 of the units will be manufactured in Saudi Arabia. Siemens constructed a facility in Dammam to manufacture and provide servicing for gas turbines and related equipment in Saudi. Siemens called it their largest order ever with Aramco and a validation of the regionalization strategy. We don't know if GE directly competed for this order, but Saudi has historically been a strong GE bastion that perhaps will get split more evenly with Siemens over time.
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