Market Trends of North America Gas Turbine MRO Industry in Power Sector
This section covers the major market trends shaping the North America 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.
- 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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