What specific markets did GE fail to adapt to?

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GE's Failure to Adapt to Shifting Energy Markets Led to Significant Financial Losses

General Electric (GE) experienced substantial financial losses, amounting to US$193 billion between 2016 and 2018, primarily due to its failure to adapt to the accelerating pace of the green energy transition. This failure stemmed from a misjudgment of the declining costs of renewable energy technologies and a subsequent collapse in the markets for its traditional fossil fuel-related products and services.
Collapse of Gas Turbine and Thermal Power Construction Markets

GE's power division continued to invest in gas turbine units even as global demand for these products began to fall. This investment strategy proved detrimental as the company failed to anticipate or adequately respond to the contraction of the gas turbine and thermal power construction markets. The report by the Institute for Energy Economics and Financial Analysis (IEEFA) highlighted that GE's principal shareholders misjudged the falling price of renewables, leading to a significant decline in demand for fossil fuel-based power generation solutions.
Misjudging Demand for Natural Gas and Coal

A critical error in GE's strategy was the assumption that demand for natural gas and coal would continue to grow in line with global economic expansion. This assumption proved incorrect as the world increasingly transitioned towards cleaner, lower-cost alternatives. The 2015 Paris climate deal underscored the global commitment to curbing greenhouse gas emissions, a commitment that directly impacted the long-term viability of fossil fuels.
Stranded Fossil Fuel-Related Assets

As the price of renewable energy technologies like wind and solar plummeted, GE found itself with billions of dollars in stranded fossil fuel-related assets. The growing industry demand for cheaper renewable alternatives directly curbed the need for coal and gas, rendering GE's substantial investments in these areas less valuable. The company also failed to account for advancements in energy efficiency, largely driven by renewables, which further decoupled energy demand from overall economic activity, exacerbating the decline in demand for its fossil fuel infrastructure.

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What specific markets did GE fail to adapt to?

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