Gas Turbine Mro Market In The Power Sector Analysis

The global Gas Turbine MRO Market In The Power Sector size was valued at USD 11.56 Billion  in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 6.70% from 2022 to 2030. The global gas turbine MRO market in the power sector industry is witnessing significant growth due to presence of aging gas turbines in the long-serving power plants which require to modernization and minimal maintenance investments. For instance, according to the International Energy Agency (IEA), several gas-fired power plants existing currently have been under operation for around 20-50 years or more. The United States 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 In The Power Sector: Regional Insights

Based on geography, the global Gas Turbine MRO Market In The Power Sector is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East &Africa. North America is expected to dominate the global market and this is attributed to the increasing investments in new large gas-fired combined cycle power generation owing to 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 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. In the region, countries, such as Denmark, Austria, France, the United Kingdom, and five other countries, have adopted or announced laws to replace coal in their energy mix. For instance, in  July  2020,  Ansaldo  Energia  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 1. Global Gas Turbine MRO Market In The Power Sector Value Share (%), By Region, 2021

Global Gas Turbine MRO Market In The Power Sector Drivers:

Need for maintenance service of gas turbine MRO in power sector in aging fleet of gas turbine is a prime factor expected to drive global Gas Turbine MRO Market In The Power Sector. Moreover, growing consumption of natural gas in the power industry, shift from coal to gas-based power generation, and growing number of gas-fired power plant infrastructure are other key factors expected to foster growth of the market over the forecast period.

Various power utilities and independent power producers are entering into long-term service agreements to meet their plant requirements across a range of services. This is expected to spur the market growth. For instance, 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 services range includes management, maintenance, parts repair, parts supply, and remote monitoring services for the gas turbines, and thus provide power supply security in the country.

Gas Turbine MRO Market In The Power Sector Report Coverage

Report Coverage	Details
Base Year:	2020	Market Size in 2021:	US$ 11.56 Bn
Historical Data for:	2017 to 2020	Forecast Period:	2022 to 2030
Forecast Period 2022 to 2030 CAGR:	6.70%	2030 Value Projection:	US$ 16.78 Bn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC Countries, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Central Africa
Segments covered:	By Service Type: Maintenance, Repair, Overhaul By Provider Type: OEM, Independent Service Providers, In-house
Companies covered:	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
Growth Drivers:	Need for maintenance service of gas turbine MRO in power sector Increasing shut down of coal fleet and shifting to a net-zero electricity mix
Restraints & Challenges:	Growth in renewable source of energy sector

Global Gas Turbine MRO Market In The Power Sector Opportunities:

Rise in industrialization and urbanization worldwide is projected to offer significant growth opportunities for the players of energy gas turbine MRO market. Also, significant rise in energy demand across the world from the last few years has raised investment in gas turbine power plants which is again playing important role in the overall development of market.

Companies and power plant operators are performing regular maintenance services such as periodical inspections, parts replacement, diagnosis, and renovations to enhance operational performance and ensures the long-term and stable operation of the facility. This is expected to bring profitable market opportunities in the near future.

Global Gas Turbine MRO Market In The Power Sector Trends:

Growing environmental concerns is encouraging key players to increase number of natural-gas-based power generation plant. This will favor the market growth in the near future. It is a low carbon power source emitting lesser CO2 emission compared to the other fossil fuel sources.

Increasing shut down of coal fleet and shifting to a net-zero electricity mix is again expected to foster 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 units 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 In The Power Sector Restraints:

High demand for renewable source of energy is expanding renewable energy sector. Moreover, rise in investment in renewable source of energy such as solar PV and wind turbine is again fueling market expansion. This is expected to restrict the market.

Negative impact of Covid-19 on wide range of industries is again restricting market growth.

Figure 2. Global Gas Turbine MRO Market In The Power Sector Value Share (%), By Provider Type, 2021

Global Gas Turbine MRO Market In The Power Sector Segmentation:

The global Gas Turbine MRO Market In The Power Sector report is segmented into Service Type, Provider Type, And Geography

Based on Service Type, the market is segmented into Maintenance, Repair, and Overhaul. Out of which, Maintenance is expected to dominate the global market over the forecast period and this is attributed to the increasing number of companies providing maintenance service for improving operational performance and ensures the long-term and stable operation of the facility. Moreover, major companies, such as GE, Siemens, Mitsubishi Heavy Industries Ltd, and other players, offers maintenance services for gas turbines to help enhance the efficiency and reliability of the systems.

Repair segment is also expected to witness significant growth in the near future and this is owing to the increasing number of power plant which is creating bigger market for servicing, which is a crucial part of gas turbine repair. According to the 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, Independent Service Providers 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 offer facilities for gas turbines instead of an expensive OEM and may reduce spending by around 25 to 40%. This, will defiantly benefit the operating managers struggling to streamline their annual budgets

In-house service providers is also expected to witness significant growth in the near future and this is 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 lost time and manpower.

Global Gas Turbine MRO Market In The Power Sector: Key Developments

1. 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.
2. 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.

Global Gas Turbine MRO Market In The Power Sector: Key Companies Insights

The Gas Turbine MRO Market In The Power Sector is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global Gas Turbine MRO Market In The Power Sector 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.