Market Trends of Asia-Pacific Gas Turbine MRO Industry in Power Sector
This section covers the major market trends shaping the APAC Gas Turbine MRO Market according to our research experts:
Maintenance Sector to Dominate the Market
- The increase in the production of natural gas has shifted the global focus on the development of gas-fired power plants. The greenhouse gases emitted from gas-fired power plants are comparatively lower than that emitted from coal-fired power plants. Moreover, the demand for peak power is increasing globally, which can be most effectively met by gas-based power generation.
- The increase in the number of gas-based power generation plants leads to growth in the gas turbine MRO market. While a gas turbine may need an engine repair or replacement in 4-5 years, the maintenance starts soon after installation. Electricity generation from gas in the region grew from 1001.7 TWh in 2008 to 1485.8 TWh in 2018, registering a growth of over 45%.
- Asia-Pacific holds over 48% of the global revenue passenger kilometers in airplanes, with significant growth in recent years and China leading the region with an 18% share. This increase in the aviation industry goes hand in hand with the gas turbine MRO industry.
- Furthermore, the electricity demand is expected to increase in the future, fueled by the electrification of the automobile. Several countries have adopted targets of phasing out the sale of passenger cars running on fossils.
- Therefore, factors, such as increased access to electricity, rise in the number of electric vehicles, and increased concerns over greenhouse gas emissions from coal-based power plants, are expected to help drive the gas turbine market in power sector, which is expected to drive the Asia-Pacific gas turbine maintenance market.
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China to Dominate the Market
- China is expected to be the fastest-growing market in the region during the forecast period, due to an increase in energy demand and natural gas usage in the region. There has been a major increase in the use of gas for power generation in the region, aiming at reducing greenhouse gas emissions.
- Electricity generation from gas in China grew from 34.6 TWh in 2008 to 223.6 TWh in 2018, registering a growth of over 546% in just a decade. The refining capacity of China is also on the rise, with a recent contract for 1 MTA ethylene and refinery expansion project of Sinochem Quanzhou Petrochemical.
- With the rising pollution concerns due to industrialization in the country, the shift toward clean energy generation from gas turbines has gained considerable momentum.
- The country's aviation industry is also on the rise, with 236.5 billion revenue passenger kilometer flown in the domestic sector in 2008, and with a growth of 235% reaching 800.7 billion revenue passenger kilometer flown in the domestic sector in 2018. This has created a huge market for gas turbine MRO in the country, as almost all of the modern airplanes use gas turbine for motive power for jet propulsion.
- Therefore, the aforementioned factors are expected to drive the market during the forecast period, similar to the trend witnessed in recent years.
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