The gas turbine MRO market in the power sector is estimated to be valued at US$ 13.07 Bn in 2023 and is expected to exhibit a CAGR of 6.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Gas turbine is a type of internal combustion engine that uses air as the working fluid. They are used in power plants as they are more thermally efficient than steam turbines. Gas turbines provide advantages such as low fuel costs, high performance, and low emissions. Rising demand for clean energy is driving the need for gas turbine MRO services in the power sector.
Market key trends:
Growing demand for clean energy is a major trend in the gas turbine MRO market in the power sector. Governments across the globe are promoting the adoption of cleaner sources of energy to reduce emissions. Gas turbines burn natural gas or other gases to produce electricity and emit lower carbon dioxide compared to coal-fired power plants. Their high efficiencies also reduce overall emissions. Furthermore, improving service life of gas turbines through MRO activities helps power utilities lower operational costs. Advances in areas such as digital services, component repairs, dynamic component analysis, and remote monitoring are also positively impacting the market growth.
Porter's Analysis
Threat of new entrants: Entry barriers in the form of the required capital investment, technology, production infrastructure, and established relationships with customers are high.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of a variety of MRO service providers in the market. However, switching costs are also relatively high.
Bargaining power of suppliers: There exists a large number of component and spare parts suppliers globally, giving buyers more bargaining power.
Threat of new substitutes: There exists a threat from emerging technologies such as renewable energy, however established gas turbines still account for a major share of the global power generation capacity.
Competitive rivalry: Highly competitive due to the presence of global players providing integrated MRO solutions.
SWOT Analysis
Strengths: Established global infrastructure and expertise in maintenance and repair of gas turbines.
Weaknesses: High fixed costs associated with operating and maintaining a global service network. Dependence on a few large and long-term maintenance contracts.
Opportunities: Growth in the global fleet size of gas turbines in operation and increasing need for lifecycle maintenance. Emerging markets in Asia Pacific expected to drive future expansion.
Threats: Variable economic conditions and regulatory policies across regions impacting capital expenditure of utilities. Increasing adoption of renewable energy sources posing a long-term threat.
Key Takeaways
The global Gas Turbine Mro Market Share In The Power Sector is expected to witness high growth, exhibiting CAGR of 6.7% over the forecast period, due to increasing investments in expanding power generation capacities globally particularly in the Asia Pacific region.
Regional analysis
The Asia Pacific region is expected to dominate the global gas turbine MRO market in the power sector over the forecast period. Countries such as China, India and Indonesia are witnessing rapid urbanization and industrial growth which is driving the demand for power. There is significant investment planned for increasing gas-fired power generation capacities in these developing economies.
Key players
Key players operating in the 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. Major players are focusing on strengthening their aftermarket service capabilities and global footprint to leverage growth opportunities in emerging markets across Asia Pacific and Middle East & Africa.
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