GAS TURBINE MRO MARKET ANALYSIS

The global gas turbine MRO market was valued at US$ 12.25 Bn in 2022 and is expected to exhibit a CAGR of 6.6% over the forecast period (2023-2030) to reach US$ 20.51 Bn by 2030. The global Gas Turbine MRO Market industries is witnessing significant growth due to the presence of aging gas turbines in long-serving power plants, which requires modernization and minimal maintenance investments. For instance, according to the International Energy Agency (IEA), several gas-fired power plants has been used for about 20-50 years or more. The U.S. accounts for more than 26% of the aged gas power plants globally. These existing power plants require regular maintenance and repairs to keep them in proper operating conditions.

Global Gas Turbine MRO Market- Impact of Coronavirus (COVID-19) Pandemic

COVID-19 had a significant impact on the market in 2020. Today, the market is back to pre-COVID levels. The main drivers of the market growth over the long term are the aging gas turbine fleet of long-lived power plants and the demand for turbo machinery reliability. On the other hand, the growth of the renewable energy industry is likely to limit the use of gas turbines. Therefore, the demand for gas turbine maintenance, repair, and installation (MRO) services is likely to slow down. The growing consumption of natural gas in the power sector, the transition from coal-based to gas-based power generation, and the growth of the gas-fired power plant infrastructure will create huge opportunities for gas turbine maintenance and repair (MRO) services in the coming years. Asia Pacific is expected to have the fastest growth in the global market over the next few years due to the high concentration of the natural gas-based power generation industry in the region, which has many ageing power plants.

Figure 1. Global Gas Turbine MRO Market Value Share (%), By Provider Type, 2022

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Global Gas Turbine MRO Market: Drivers

• In the power sector there is need for maintenance service of gas turbine MRO: The need for maintenance service of gas turbine MRO in the power sector for the aging fleet of gas turbines is a prime factor expected to propel the global gas turbine MRO market growth in the power sector. Moreover, the growing consumption of natural gas in the power industry, the shift from coal to gas-based power generation, and the growing number of gas-fired power plant infrastructure are the other key factors expected to foster the growth of the market over the forecast period.

• Gas turbines' aging infrastructure is driving market expansion: Gas turbines are an essential part of energy production, and there are currently several gas turbine power plants operating all over the world for several decades. These turbines must be maintained, repaired, and overhauled as they get older in order to maintain their efficiency and dependability. MRO services aid with resolving problems that would otherwise result in damaged turbines. Performance of aging gas turbines suffers as a result of worn-out parts, efficiency losses, or out-of-date technologies. MRO vendors provide services targeted at enhancing these turbines' performance.

Restraints

• Growth in renewable Global Gas Turbine MRO Market source of energy sector: High demand for renewable sources of energy is expanding the renewable energy sector. Moreover, the rise in investment in renewable sources of energy, such as solar PV and wind turbines is again fueling the market expansion. This is expected to restrict the market. However, the lack of land and infrastructure to install renewable energy could limit Global Gas Turbine MRO Market growth. Furthermore, the high development and maintenance costs of renewable energy projects could also limit market growth.

Market Trends/Key Takeaways:

• Rise in environmental concerns: Growing environmental concerns are encouraging key players to increase the number of natural gas-based power generation plants. This will favor market growth in the near future. It is a low-carbon power source, emitting less CO2 compared to other fossil fuel sources.
• Shift towards the net-zero electricity mix: Increasing shutdown of coal fleet and shifting to a net-zero electricity mix is again expected to foster the market growth. For instance, in November 2021, Southern Co. announced that it would shut down roughly 55% of its coal fleet by 2030, as the company shifted to a net-zero electricity mix. The closures include the unit’s two largest coal-fired power plants and the earlier-announced Plant Daniel, one of the last coal generators in Mississippi.

Global Gas Turbine MRO Market: Market Segmentation

• The global Gas Turbine MRO Market report is segmented into service type, provider type, and region.
• Based on service type, the market is segmented into maintenance, repair, and overhaul. Out of which, the maintenance segment is expected to dominate the global gas turbine MRO market over the forecast period, and this is attributed to the increasing number of companies providing maintenance services for improving operational performance and ensuring the long-term and stable operation of the facility. Moreover, major companies, such as GE, Siemens, Mitsubishi Heavy Industries Ltd, and other players, offer maintenance services for gas turbines to help enhance the efficiency and reliability of the systems.
• The repair segment is also expected to witness significant growth in the near future, and this is owing to the increasing number of power plants, which is creating a bigger market for servicing, which is a crucial part of gas turbine repair. According to the International Energy Agency (IEA), the total power generation from gas is likely to reach about 9000 TWh by 2040.
• Based on provider type, the market is segmented into OEM, independent service providers, and in-house. Out of which, OEM is expected to dominate the global market over the forecast period, and this is attributed to the fact that independent service providers offer much more flexibility by offering various service options. Moreover, an independent service provider offers facilities for gas turbines instead of an expensive OEM and may reduce spending by around 25 to 40%. This will definitely benefit the operating managers struggling to streamline their annual budgets.
• Independent service providers is also expected to witness significant growth in the near future, owing to the advantage of flexibility over the MRO services of a gas turbine. Moreover, in-house service team ensures its 24/7 availability, along with prompt maintenance and overhaul services, without losting time or manpower.

Global Gas Turbine MRO Market: Regional Analysis

• Based on region, the global Gas Turbine MRO Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is expected to dominate the global gas turbine MRO market, and this is attributed to the increasing investments in new large gas-fired power plants, combined with cycle power generation, owing to the upsurge in electricity demand in the region. Additionally, North America remains the largest market for funding and commercializing advanced and innovative technologies and already attracts many technology firms engaged in the energy market.
• At the same time, Europe is expected to experience the fastest growth over the forecast period, and this is attributed to the large shift from coal-fired power generation to natural gas-fired power generation. Countries, such as Denmark, Austria, France, the U.K., and five other countries have announced laws to replace coal in their energy mix. For instance, in  July 2020, Ansaldo  Energia   is an Italian power engineering company was  awarded an EPC (Engineering, Procurement, and Construction) and LTSA (Long Term Service Agreement) contracts for the design, supply, installation, and servicing of an open-cycle power plant with an installed power of 300 MW in Marbach, Baden-Württemberg (Germany). The plant will be operational by October 2022.     

Figure 2. Global Gas Turbine MRO Market Value Share (%), By Region, 2022

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Global Gas Turbine MRO Market: Recent Developments

• In September 2021, Siemens Energy, an energy company, partnered with Taiwanese EPC firm CTCI Corp. to build the Sun Ba Power Phase II, a combined cycle power plant. Siemens may also provide long-term service for the plant’s core components. The service contract includes long-term service over 25 years for both gas turbines, the generators, the steam turbine, and the heat recovery steam generators.
• 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 offer services like maintenance, management, parts supply, and parts repair for gas turbines.
• In March 2021, General Electric, a company operates in aviation, power, renewable energy, digital industry, additive manufacturing, venture capital and finance, 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.
• In February 2022, in order to develop MakerVerse, a one-stop on-demand 3D printing fulfillment platform, Energy technology company Siemens AG entered a joint venture project with metrology instrument manufacturer ZEISS. The company anticipates using this in the development of its gas turbines' maintenance, repair, and operations (MRO).​                                                                      

Global Gas Turbine MRO Market: Key Companies

Key players active in the global gas turbine MRO market are General Electric Company, Mitsubishi Heavy Industries Ltd, RWG (Repair & Overhauls) Limited, Metalock Engineering Group, Goltens Worldwide Management Corporation, Siemens Energy AG, Sulzer Ltd, Doosan Heavy Industries and Construction, Solar Turbines Incorporated, and Ethos Energy LLC.

*Definition: Gas turbine MRO includes overhaul, repair, and maintenance. MRO involves disassembling and rebuilding the entire turbine. MRO services are an important part of their maintenance and repair.