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

The Market is Segmented by Service Type (Maintenance, Repair, and Overhaul) and Geography (United States, Canada, and Rest of North America).

Market Snapshot

Study Period:

2018-2025

Base Year:

2019

CAGR:

3 %

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Market Overview

The North American gas turbine MRO market in power sector is expected to register a CAGR of over 3% during the forecast period of 2020–2025. Factors, such as an aging fleet of gas turbines, need to maintain operational efficiency, and stringent emissions norms from power plants are expected to be the major drivers for the market. The rising demand for cleaner energy from gas turbines, over concerns of the environmental impact of energy generation from coal-fired plants, is expected to boost the North American gas turbine MRO market. However, an increasing shift toward renewable energies, such as solar and wind, for power generation, lack of retention of skilled labor, and increased durability of modern gas turbines have somewhat hampered the growth of the market.

  • The maintenance sector is expected to dominate the market during the forecast period, owing to various factors, such as the growth of the aviation industry in the region, increase in power generation from gas-based plants due to rising concerns over greenhouse gas emissions, maintaining the efficiency of the turbines, and stringent emission 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 the growth of the market for gas turbines MRO significantly in recent years, and it is expected to do so during the forecast period.
  • The United States is expected to dominate the market, owing to the factors, like economic growth, growth of the aviation industry, increase in the number of gas-based power generation plants, and the aging gas-based power plants.

Scope of the Report

The scope of the North American gas turbine MRO market in power sector report includes:

Service Type
Maintenance
Repair
Overhaul
Geography
United States
Canada
Rest of North America

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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 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.
  • North America holds over 35% of the global revenue passenger kilometers in airplanes, with significant growth in recent years, and the United States is leading the region with a big 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 future, fueled by the electrification of the automobile. Several countries have adopted targets of phasing out the sale of passenger cars running on fossils. Electricity generation from gas in the region grew from 1122.5 TWh in 2008 to 1833.9 TWh in 2018, registering a growth of over 63%.
  • 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 North American gas turbine maintenance market.

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United States to Dominate the Market

  • The United States is expected to maintain its dominance 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.
  • With the rising pollution concerns due to industrialization in the country, the shift toward clean energy generation from gas turbines has gained considerable momentum. Electricity generation from gas in the United States grew from 949.4 TWh in 2008 to 1578.5 TWh in 2018, registering a growth of over 66% in just a decade.
  • The country’s aviation industry is also on the rise, with 1717.1 billion revenue passenger kilometers flown in the domestic and international sectors in 2008, and with a growth of over 41% reaching 2428 billion revenue passenger kilometers flown in the domestic and international sectors in 2018. This has created a huge market for gas turbine MRO market in the country, as almost all of the modern airplanes use gas turbines 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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Competitive Landscape

The North American 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 are General Electric, Siemens AG, Mitsubishi Heavy Industries Ltd, Rolls-Royce Holding PLC, and 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 United States

      2. 5.2.2 Canada

      3. 5.2.3 Rest of North America

  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

      10. 6.3.10 MTU Aero Engines AG

      11. 6.3.11 United Technologies Corporation

      12. 6.3.12 MAN SE

      13. 6.3.13 Rolls-Royce Holding PLC

      14. 6.3.14 Honeywell International Inc.

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

** Subject to Availability

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