Gas Turbine MRO Market in the Power Sector - Growth, Trends, and Forecast (2020-2025)

The market is segmented by Service Type (Maintenance, Repair, and Overhaul), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa)

Market Snapshot

Study Period:

2018-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

3 %

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Market Overview

The gas turbine MRO market in the power sector is expected to grow at a CAGR of over 3% during the forecast period of 2020 – 2025. The global industrial gas turbine market was estimated at over USD 9 billion in 2018. Factors such as aging fleet of gas turbine, need to maintain operational efficiency and stringent emissions norms from power plants are expected to be major drivers driving the market. The rising demand for cleaner energy from gas turbines over concerns of environmental impact of energy generation from coal fired plants, is expected to help grow the gas turbine MRO market in power sector. However, increasing shift towards renewable energy such as solar and wind for power generation have somewhat hampered the growth of the market. 

  • Maintenance sector is expected to dominate the market in forecast period, owing to various factors such as increase in power generation from gas based plants due to rising concerns over greenhouse gases emissions, maintaining efficiency of turbine and stringent emissions norms on power plants.
  • The increasing demand for electrical energy to sustain global development requires consistent heavy investments in power supply generation. This has helped the market for gas turbines MRO market in power sector grow significantly in recent and is expected to do so in forecast period.
  • Asia-Pacific is expected to dominate the market growth with majority of the demand coming from the countries such as the China and India, owing to the factors like economic growth in the emerging nations, increase in number of gas based power generation plant, and aging gas based power plants.

Scope of the Report

The gas turbine MRO market in power sector report include:

Service Type
Maintenance
Repair
Overhaul
Geography
North America
Europe
Asia-Pacific
South America
Middle-East and Africa

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Key Market Trends

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 number of gas based power generation plants leads to growth in the gas turbine MRO market, while a gas turbine might need an engine repair or replacement in 4-5 years, the maintenance starts soon after installation.
  • The most recent wave of additions, gas based power plants saw a peak in 2002, with majority of them added between 1998 and 2008. Thus, the equipment installed in approximately all the gas-fired power plants, across the globe, are expected to require significant MRO services during the forecast period.
  • 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. Among the first to set targets are Costa Rica and Norway, with 2021 and 2025 defined as targets, respectively.
  • Therefore, factors such as increased access to electricity, rise in 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 in turn is expected to drive the gas turbine maintenance market in power sector.

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Asia Pacific to Dominate the Market

  • Asia-Pacific is expected to be the fastest growing market in forecast period, due to increase in energy demand, and natural gas usage in the region.
  • There has been a major increase in use of gas for power generation in the region, aiming at reducing greenhouse gas emissions. Asia-Pacific region have crossed it’s expected LNG import, with China importing three times the expected LNG in 2018. 
  • 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%.
  • With the rising pollution concerns across the world due to industrialization, especially in Asia-Pacific, the shift towards clean energy generation from gas turbines has gained considerable momentum.
  • Therefore, the aforementioned factors are expected to drive the market in forecast period, similar to the trend witnessed in recent years.

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Competitive Landscape

The gas turbine MRO market in power sector is partially consolidated with major players holding a big share of the market. Some of the major companies areGeneral Electric Company, Siemens AG, Mitsubishi Heavy Industries Ltd, John Wood Group PLC among others.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast, in USD billion, till 2025

    3. 4.3 Recent Trends and Developments

    4. 4.4 Market Dynamics

      1. 4.4.1 Drivers

      2. 4.4.2 Restraints

    5. 4.5 Supply Chain Analysis

    6. 4.6 Porter's Five Forces Analysis

      1. 4.6.1 Bargaining Power of Suppliers

      2. 4.6.2 Bargaining Power of Consumers

      3. 4.6.3 Threat of New Entrants

      4. 4.6.4 Threat of Substitutes Products and Services

      5. 4.6.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Service Type

      1. 5.1.1 Maintenance

      2. 5.1.2 Repair

      3. 5.1.3 Overhaul

    2. 5.2 Geography

      1. 5.2.1 North America

      2. 5.2.2 Europe

      3. 5.2.3 Asia-Pacific

      4. 5.2.4 South America

      5. 5.2.5 Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 General Electric Company

      2. 6.3.2 Mitsubishi Heavy Industries Ltd

      3. 6.3.3 Bechtel Corporation

      4. 6.3.4 Flour Corporation

      5. 6.3.5 John Wood Group PLC

      6. 6.3.6 Siemens AG

      7. 6.3.7 Sulzer AG

      8. 6.3.8 Babcock & Wilcox Enterprises Inc.

      9. 6.3.9 Weg SA

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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