Trends in the markets for Power Engineering
We expect the overall difficult market environment and thus the price pressure in the power engineering segment to persist in 2016.
We anticipate that the order volume for two-stroke engines, used in merchant shipping in 2016, will be similar to the prior-year figure. Calls for greater energy efficiency and low pollutant emissions will have a significant influence on ship designs in the future. We expect to see continuing high demand for special-purpose ships such as cruise ships and government vessels. Despite long-term positive growth factors for offshore applications, expectations are that new orders will be at a low level in 2016 because of the persistently low oil price. Overall, we estimate that the marine market will be on a level with the previous year. The competitive pressure will continue unabated.
Demand for energy correlates strongly with macroeconomic and demographic trends, especially in developing countries and emerging markets. The global trend toward decentralized power stations and gas-based applications shows no sign of slowing down. This development is supported in particular by increasing improvements in the liquid gas infrastructure. We anticipate that demand will increase slightly year-on-year in 2016, but will remain at a low overall level.
Both the processing and the oil and gas industries are expected to experience a persistently difficult market environment in fiscal year 2016, resulting in high price and competitive pressure. This is due to expectations that oil prices will remain low and unfavorable economic and political conditions will prevail in some relevant markets. We consequently envisage that in 2016 the market for turbomachinery will also settle at the previous year’s low level.
Any substantial improvement in the German market for wind farms cannot yet be expected for 2016.
For the period 2017 to 2020, demand is expected to grow in the power engineering market.