Market Insight-Global Gas Turbine Service Market Overview 2024
Global Gas Turbine Service Market Was Valued at USD 22.67 Billion in 2023 and is Expected to Reach USD 32.83 Billion by the End of 2030, Growing at a CAGR of 5.68% Between 2024 and 2030.– Bossonresearch.com
Gas Turbine Service, Maintenance, Repair, and Overhaul (MRO) refer to a set of activities and processes aimed at ensuring the optimal performance, reliability, and longevity of gas turbine engines used in various applications such as power generation, aviation, marine propulsion, and industrial processes. Gas turbine MRO encompasses a wide range of services, including routine maintenance, inspections, troubleshooting, repairs, component replacements, and comprehensive overhauls. These activities are conducted by specialized technicians and engineers who possess the expertise and training required to address the complex systems and components of gas turbines. The primary goals of gas turbine MRO are to minimize downtime, maximize operational efficiency, ensure compliance with regulatory requirements, and extend the service life of gas turbine assets.
The gas turbine services market is witnessing significant trends driven by various factors. Firstly, the increased consumption of natural gas in electricity generation is propelling market growth. Urbanization is also contributing as expanding cities require reliable power generation, leading to an accelerated demand for gas turbine services. Technological advancements, especially in sustainable solutions, are shaping the market, with companies focusing on clean energy preferences, digitalization, and predictive maintenance. Moreover, there's a notable emphasis on environmental sustainability and efficiency improvements, reflecting a shift towards eco-friendly gas turbine services. These trends collectively highlight a dynamic and evolving landscape within the gas turbine service market.
The global Gas Turbine Service market size is projected to reach US$ 32,826.52 Million by 2030 from US$ 22,672.92 million in 2023 at a CAGR of 5.68% during 2024-2030. Key drivers fueling the gas turbine service market include the growing global energy demand, especially in power generation, driven by economic growth and industry expansion. The rising adoption of aero-derivative gas turbines, along with the need for their specialized services, is also contributing significantly. Furthermore, the aging infrastructure of gas turbines necessitates maintenance and upgrades, creating a market for service providers. Technological advancements in gas turbine technology and the shift towards digitalization and predictive maintenance are driving the demand for advanced gas turbine services, enhancing operational efficiency and performance.
Figure Global Gas Turbine Service Market Size
Source: Bossonresearch.com, 2024
Driving Factors
Growing Energy Demand
The increasing global demand for electricity and power drives the installation and operation of gas turbines in power plants. As economies grow and industries expand, the need for reliable and efficient power generation rises, boosting the demand for gas turbine services. The wide-ranging power plant applications in the turbine service market will surge during the forecast period. Due to strict energy production rules, constraining ventures to deploy reliable power generating frameworks. In line with government reforms, the demand for clean energy is rising to curtail emissions. The expansion of manufacturing and processing plants worldwide will fuel the market size. Additionally, government initiatives to teach a sustainable energy mix will pose an immense potential for market growth. The reinforcement of protocols coupled with rapid technological enhancements will drive the gas turbine service market growth.
Rising Demand for Aero-derivative Gas Turbine Services to Propel the Market Growth
The market for aero-derivative gas turbine services is observing a heathy growth. The rising installation of aero-derivative gas turbines, owing to their multiple advantages such as lightweight, higher fuel efficiency, and lower emissions, is bolstering the gas turbine services market growth. Moreover, the growing need to meet industry-specific requirements in aero-derivative gas turbine applications is enhancing the demand for reliable gas turbine services with enhanced performance levels.
Aging Gas Turbine Infrastructure
The aging infrastructure of gas turbines worldwide serves as another major driver for the gas turbine service market. Many gas turbine power plants installed several decades ago are now reaching their operational limits and require extensive maintenance, upgrades, or replacements. This creates a substantial market opportunity for service providers offering maintenance, repair, and modernization solutions for aging gas turbine assets, driving the market forward.
Technological Advancements and Innovations
Continuous technological advancements and innovations in gas turbine technology are significant drivers for the gas turbine service market. Newer gas turbines are designed to be more efficient, environmentally friendly, and digitally integrated, requiring specialized services for installation, maintenance, and performance optimization. Additionally, advancements in digitalization, data analytics, and IoT enable predictive maintenance capabilities, reducing downtime and enhancing overall turbine performance, thus boosting the demand for advanced gas turbine services.
Key Development Trends
The Surge in Gas Turbine Services Market Driven by Increased Natural Gas Consumption in Electricity Generation
An increase in natural gas consumption in electricity generation is expected to propel the growth of the gas turbine services market going forward. Electricity generation refers to the creation of energy utilizing several technologies. Natural gas is used to create energy in natural gas power plants. A gas turbine is used in all-natural gas facilities. Natural gas and air are injected into the turbine; they burn and expand to generate power by rotating a generator and a magnet. For instance, according to U.S Department of Energy, natural gas accounts for about 30% of the energy used in the United States. About 40% of the fuel goes to electric power production and the remainder is split between residential and commercial uses, such as heating and cooking, and industrial uses. Therefore, an increase in natural gas consumption in electricity generation is expected to drive the growth of the gas turbines market.
The Accelerating Demand for Gas Turbine Services in Expanding Cities
Rising urbanization is expected to propel the gas turbine services market going forward. Urbanization refers to the process of increasing the population concentration in urban areas, typically resulting from rural-to-urban migration and natural population growth within cities and towns. In the context of urbanization, gas turbine services play a pivotal role in meeting the growing energy demands of expanding urban centers. As cities experience rapid population growth and increased industrialization, the demand for reliable and efficient power generation escalates. Gas turbines are integral to urban power plants, providing a versatile and efficient means of electricity production. Gas turbine services, including maintenance, repairs, and upgrades, become essential to ensure the continuous operation and optimal performance of these turbines. According to Statista, in 2023, the degree of urbanization worldwide was at 57%. Therefore, the rising urbanization is driving the gas turbine services market.
Pioneering Technological Advancements in Gas Turbine Services for A Sustainable Future
Technological advancements are a key trend gaining popularity in the gas turbine services market. Major companies operating in the gas turbine services market are focused on developing new solutions that are flexible across other elements driving the expansion of gas turbine services. For instance, in January 2022, Mitsubishi Power, a Japan-based energy solutions company, launched three types of gas turbine combustors with unique technologies that can be used for co-firing hydrogen blended with natural gas and for burning hydrogen. One of the most recently developed combustors for hydrogen is the Dry Low NOx (DLN) multi-nozzle combustor. Its foundation is traditional DLN technology that has been altered to stop flashbacks. The design allows for quick mixing by introducing fuel through tiny holes in the swirler's wing surface and creating a swirling flow with combustion air.
Preference for Clean Energy to Boost Market Demand
Gas turbine services are primarily needed for utilization, independent industrial and cogeneration plant operators to sustain the availability of gas turbine engines. The rising focus associated with the combustion process and hot gasses released from the gas turbines will propel the market potential as the demand for associated equipment rises. It also includes the testing operation of combustion liners, allowing for the continued & safe operation for a period, which will fuel the industry outlook.
Adoption of Digitalization and Predictive Maintenance
Another key trend in the gas turbine service market is the adoption of digitalization and predictive maintenance technologies. Companies are leveraging data analytics, IoT sensors, and AI algorithms to monitor turbine performance in real time, predict potential issues, and schedule proactive maintenance activities. This shift towards predictive maintenance helps reduce downtime, improve operational efficiency, and lower maintenance costs for gas turbine operators, driving the demand for advanced service solutions.
Focus on Environmental Sustainability and Efficiency Improvements
With increasing environmental concerns and regulations, there is a growing emphasis on environmental sustainability and efficiency improvements in the gas turbine service market. Companies are developing and offering solutions that help reduce emissions, enhance fuel efficiency, and optimize overall turbine performance. This includes the adoption of cleaner fuels, retrofitting older turbines with advanced emission control technologies, and implementing energy-efficient upgrades. As sustainability becomes a priority for industries, the demand for eco-friendly gas turbine services is expected to continue growing.
Global Gas Turbine Service Market: Competitive Landscape
According to our calculations, the two indicators used to measure market concentration, CR5 and HHI, have reached 66.66% and 16.01% respectively in 2023. This means that leading companies occupy a major market share, but the overall market concentration is not high, and companies in the industry are still in fierce competition. Currently, major players in the Gas Turbine Service market include, Siemens, General Electric, MTU Aero Engines AG, Shanghai Electric, Mitsubishi Power, Baker Hughes Company, Ansaldo Energia S.p.A., Doosan Enerbility, Proenergy Services, Kawasaki Heavy Industries, Sulzer Ltd, RWG (Repair & Overhauls) Limited, Centrax Gas Turbines, Sanad Powertech, Goltens Worldwide Management Corporation, Mechanical Dynamics & Analysis LLC, Wood Group, Solar Turbines, Stork B.V., and Honeywell Aerospace.
Key players in the Gas Turbine Service Market include:
Siemens
General Electric
MTU Aero Engines AG
Shanghai Electric
Mitsubishi Power
Baker Hughes Company
Ansaldo Energia S.p.A.
Doosan Enerbility
Proenergy Services
Kawasaki Heavy Industries
Sulzer Ltd
RWG (Repair & Overhauls) Limited
Centrax Gas Turbines
Sanad Powertech
Goltens Worldwide Management Corporation
Mechanical Dynamics & Analysis LLC
Wood Group
Solar Turbines
Stork B.V.
Honeywell Aerospace
Others
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