|Fastest Growing Market:||Asia Pacific|
|Largest Market:||North America|
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The gas turbine MRO market size in the power sector was estimated at about USD 26.85 billion by the end of this year and is projected to register a CAGR of about 3.28% during the forecast period.
The market was moderately impacted by COVID-19 in 2020. Presently, the market has now reached pre-pandemic levels.
- Over the long term, the major driving factors of the market are the aging gas turbine fleet in the long-serving power plants and reliability requirements with regard to turbomachinery.
- On the flip side, growth in the renewable energy sector is likely to restrain the applications of gas turbines, thus, hindering the growth of gas turbine MRO services.
- The increasing natural gas consumption in the power industry, the shift from coal to gas-based power generation, and the rise in the gas-fired power plant infrastructure are expected to create massive opportunities for the gas turbine MRO players in the future.
- The Asia-Pacific region is expected to witness fastest growth during the forecast period, as the natural gas-based power generation industry is highly concentrated in the region, with many aging power plants.
Scope of the Report
A gas turbine in power sector is used to convert the kinetic energy from gas into mechanical energy and then to electrical power. Gas turbine is the heart of power generation industry. The basic operating principle of a gas turbine are relatively simple, but the components involved must handle high temperatures and work within very fine tolerances. Highly specialized parts and manufacturing processes are used to create the turbine’s components and these need to be properly maintained to ensure continued efficiency and reliability. As the turbine is made of multiple rotating parts, it needs continuous maintenance services. Moreover, turbines are constantly exposed to steam or gas and therefore the blades are prone to micro pitting, abrasive wear, foreign object debris (FOD) damage, surface corrosion, and fretting corrosion. This demands for gas turbine maintenance, repair and overhauls (MRO) at periodic intervals for the smooth functioning of turbines as well as the power plants. The gas turbine MRO market in the power sector is segmented by service type, provider type, and geography. By service type, the market is segmented into maintenance, repair, and overhaul. By provider type, the market is segmented by OEMs, independent service providers, and in-house. The report also covers the market size and forecasts for the gas turbine MRO market in the power sector across major regions. For each segment, the market sizing and forecasts have been done based on revenue (USD Billion).
|Provider Type (Qualitative Analysis Only)|
|Independent Service Providers|
|Middle-East and Africa|
Key Market Trends
Maintenance Segment Expected to Witness Significant Market Growth
- To ensure that power equipment works in good condition, companies and power plant operators need to perform regular maintenance services, including periodical inspections, parts replacement, diagnosis, and renovations. This improves operational performance and ensures the long-term and stable operation of the facility.
- A large number of power utilities and independent power producers enter into long-term service agreements (LTSA) to meet their plant requirements across a range of services, which include all aspects of support, such as fleet management, inventory management, maintenance, repair, and overhaul, and the provision of day-to-day technical support of gas-turbines.
- Turbine manufacturers recommend users to perform three quarterly inspections of the turbines, followed by an annual inspection for the first two years. Such agreements help reduce the overall costs, thereby enhancing the capacity of gas turbines through higher performance parts. This is expected to increase the demand for maintenance services.
- Due to clean fuel properties, its demand is growing in almost every major country. However, only deploying gas turbines does not guarantee any flexibility in operations for the long term, and here, MRO services come into the picture. Thus, many countries have started using maintenance services, either at the beginning of the plant commencement or after crossing a certain period.
- In June 2021, Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries (MHI) Group, signed a 16-year long-term service agreement (LTSA) for the MOR services of six M701F gas turbines at Sidi Krir Power Station, El Atf Power Station, and Cairo North GTCC plants in Egypt. The company will provide services like maintenance, management, parts supply, parts repair, and remote monitoring services for the gas turbines, and thereby provide power supply security in the country.
- In March 2021, Siemens Energy bagged a 15-year service support contract from Saudi Aramco to ensure secure power supply at the power generating station of four oil fields. The contract includes full-fledged support services for the gas turbines and generators at the power supply center. The Siemens Energy’s Service Workshop will offer services like inspections, repairs, modifications & upgrades, and emergency services under 24/7 conditions.
- Owing to such developments, the maintenance services are expected to have robust growth in the near future.
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Asia Pacific Expected to be the Fastest Growing Market
- The Asia-Pacific region is among the largest consumers of natural gas for power generation. The consumption of natural gas has been rising since the last decade primarily due to the growing demand for electricity and the growing efforts to reduce emissions from the power generation sector.
- The Chinese government is strategizing to transition from coal to gas, with an aim of reducing emissions. Such factors are expected to drive the demand for the gas turbine MRO services in the country during the forecast period.
- Similarly, India’s requirement for electricity has been growing tremendously over the past decade, primarily due to the continuous economic growth and numerous government initiatives targeted at increasing the access to electricity for the larger population in the country. In India, as of December 2021, 6.33% of the electricity generated is from natural gas, with a generating capacity of approximately 25,000 MW. The gas fired power stations are regularly maintained and overhauled to minimize the risks of sudden outages.
- Japan is among the largest importer of natural gas as of 2021. The country generated 20% of its electricity from natural gas. Japan operates numerous gas-fired power stations, which are regularly maintained to minimize the risks of outages in the country.
- For instance, in March 2022, the Japanese government announced that three gas-fired power plants with a combined power generation capacity of 1,900 MW would be shut down for a period of two months to conduct regular maintenance activities. The drop in power generation capacity will have a limited impact on the power consumption pattern in the country as the country has started experiencing warmer weather in March, at an average temperature of 21°C in Tokyo, decreasing the need for electric heating services.
- In March 2021, General Electric signed a 22-year agreement with Reliance Bangladesh LNG and Power Ltd. to provide maintenance services at the upcoming "Meghnaghat Power Plant" in Bangladesh. It includes equipment maintenance on the gas and steam turbines, and auxiliaries, with the implementation of plant-wide digital solutions. The plant is expected to come into service by 2023.
- Owing to such developments, the Asia-Pacific is expected to be the fastest growing region during the forecast period.
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The gas turbine MRO market in power sector is moderately consolidated in nature. Some of the major players in the market (in no particular order) include General Electric Company, Siemens Energy AG, Mitsubishi Heavy Industries Ltd, Sulzer Ltd, Solar Turbines Incorporated, among others.
- In February 2022, Energy technology firm Siemens AG entered a joint venture initiative with metrology device manufacturer ZEISS to launch a one-stop-shop on-demand 3D printing fulfillment platform called MakerVerse. This is expected to be used by the company in the maintenance, repair, and operations (MRO) development of its gas turbines.
- In February 2022, Optomec announced the receipt of a USD 1.25 Million order for a production Metal Additive Manufacturing machine to maintain industrial gas turbine components. Optomec’s Metal Additive repair solutions are currently used in high volume production in approximately 100 MRO installations for power generation applications.
Table of Contents
1.1 Scope of the Study
1.2 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.2 Market Size and Demand Forecast, in USD billion, till 2027
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Service Type
5.2 Provider Type (Qualitative Analysis Only)
5.2.2 Independent Service Providers
5.3.1 North America
5.3.4 South America
5.3.5 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 General Electric Company
6.3.2 Mitsubishi Heavy Industries Ltd.
6.3.3 RWG (Repair & Overhauls) Limited
6.3.4 Metalock Engineering Group
6.3.5 Goltens Worldwide Management Corporation
6.3.6 Siemens Energy AG
6.3.7 Sulzer Ltd
6.3.8 Doosan Heavy Industries and Construction
6.3.9 Solar Turbines Incorporated
6.3.10 Ethos Energy LLC
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Gas Turbine MRO Market in the Power Sector market is studied from 2019 - 2027.
What is the growth rate of Gas Turbine MRO Market in the Power Sector?
The Gas Turbine MRO Market in the Power Sector is growing at a CAGR of 3.28% over the next 5 years.
What is Gas Turbine MRO Market in the Power Sector size in 2019?
The Gas Turbine MRO Market in the Power Sector is valued at 24 Billion USD in 2019.
What is Gas Turbine MRO Market in the Power Sector size in 2027?
The Gas Turbine MRO Market in the Power Sector is valued at 31 Billion USD in 2027.
Which region has highest growth rate in Gas Turbine MRO Market in the Power Sector?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Gas Turbine MRO Market in the Power Sector?
North America holds highest share in 2021.
Who are the key players in Gas Turbine MRO Market in the Power Sector?
General Electric Company, Siemens Energy AG, Mitsubishi Heavy Industries Ltd., Sulzer Ltd, Solar Turbines Incorporated are the major companies operating in Gas Turbine MRO Market in the Power Sector.