The global gas turbine services market potential will be boosted by a greater emphasis on the performance of equipment linked with the complete combustion and hot gases generated by gas turbines.
Covid-19 Impact & Market Status
The COVID-19 pandemic has had a minor impact on the industry expansion due to the application of lockdowns and a significant decrease in overall capital spending across power generation upgrade and expansion operations. The rise in the count of cases, along with the prospect of new varieties, is causing businesses to fear, potentially affecting global gas turbine services market growth. However, due to a thriving industrial sector and rising electricity demand, the industry is expected to restore its lost strength from 2021.
>200 MW Turbine Capacity Gained The Largest Market Share
In 2019, the >200 MW sector emerged as the largest, accounting for more than 39.0% of the global gas turbine services market. The rise of the power generation industry, as well as a greater emphasis on generating electricity from renewable energy sources, is the primary growth driver for this area. Growing urbanisation has a substantial impact on the growth of the construction and cement sectors. These end-use industries' predicted growth is expected to increase demands for higher and heavy-duty turbines. Furthermore, major OEMs such as General Electric and Siemens AG are growing their worldwide presence, distribution, and aftersales facilities. They also provide multiyear maintenance contracts throughout the construction of new gas-powered power plants.
Spare Part Supply Service Type Will Dominate The Global Gas Turbine Service Market
Spare parts distribution emerged as the most important service category, accounting for even greater than 63.0% of the global gas turbine market globally in 2019. This tendency is expected to continue during the projection period. The elements of the turbine have such a short lifespan and so they must be replaced on a regular basis, propelling the segment's growth.
OEM As A Service Provider Controlled The Gas Turbine Service Market
In 2019, OEMs controlled the market for service providers. This dominance is mostly due to characteristics such as technical capabilities, broad geographical presence, skilled labour, and original equipment manufacturer brand value (OEMs). Furthermore, OEMs have a well-established Research and innovation infrastructure as well as data management centres that allow them to monitor the unit from remote locations in order to assess the unit's actual real-time health. OEMs also provide buyers with multiyear service agreements that cover a variety of services. Furthermore, with new gas turbine installations, OEMs typically offer multi-year agreements to consumers. Because of their technology and service skills, most customers favour OEMs and opt for multi-year agreements, allowing OEMs to further foster their global gas turbine services market position.
Heavy Duty Turbine Type Dominated Gas Turbine Service Market
Heavy-duty turbine emerged as the most important segment, accounting for more than 52.0% of the global gas turbine services market. It is also expected to increase at the quickest rate during the projection period. The segment's expansion is primarily due to the wide range of applications for these turbines in chemical industries, refinery, and power utilities. Furthermore, heavy-duty turbines offer enhanced thermodynamic cycles and a more efficient manufacturing process. Technological developments have also improved the power production, efficiency, and environmental friendliness of these turbines. Over the projection period, these factors are expected to drive market for heavy-duty turbine services.
Energy Sector Propelled Gas Turbine Service Market
In 2019, energy production emerged as the biggest end-use category in the global market, accounting for more than 62.0% of the global gas turbine services market. The growing need for electricity increases the market for gas turbines in power generation. Over the forecast period, this segment is expected to grow at a CAGR of 9.1%. However, important competitors remain cautious of gas turbine demand in the power generating sector. The volatility of natural gas prices acts as a limitation on the global gas turbine services market growth in this segment.
Factors such as rising population, increased industrial activity, and an increase in car ownership ratio are driving up demand for oil output. This is expected to expand the use of gas turbines in the gas and oil sector, which has previously experienced significant challenges due to the reduction in oil prices. In 2014, for example, a gallon of oil cost more than USD 100.0. However, the price fell below USD 40.0 in the start of 2016. In comparison, oil prices began to rebound in 2016 and began to rise slowly in 2018. These factors point to a resurgence in the gas and oil sector, which will drive the segment's growth.
APAC Lead The Global Gas Turbine Service Market
In 2019, Asia Pacific overtook Europe as the biggest global gas turbine services market share. The market for these services in countries like China, Japan, Indonesia and India is driving the regional market, driven by the rapid urbanisation and an expanding middle-class population. Furthermore, increased demand in these countries for sustainable energy sources for energy generation is likely to fuel regional gas turbine services market expansion.
China has historically relied significantly on coal. Unfortunately, coal usage in this region decreased, as the Chinese authorities implemented a nationwide plan of action to slow the rise of coal usage and decrease overall emissions. This contributed to the gradual increase of gas turbine installations in China, particularly in medium - sized business and large-scale businesses.
The increased environmental concern due to a high amount of co2 emissions from coal-based energy production has resulted in the development of low emission powered generation systems such as energy turbines. This has led to increase in demand for gas turbine services around the world furthering the development of global gas turbine services market.
The global gas turbine services industry was valued USD 26.0 billion in 2019 and reach nearly 7.5 Bn by 2029 and is expected to grow at a 9.8% CAGR between 2022 and 2028.
Despite the fact that natural gas-powered generators are predicted to garner attention globally, notably in North America and Europe, growing nations in Asia Pacific including such India and China keep relying on coal-based power generation due to lower costs. This aspect is projected to impede future gas turbine sales and service contracts in the region. Furthermore, limited gas reserves are projected to impede global gas turbine services market expansion in the next years.
The United States have a very well developed natural gas infrastructure as well as established main end-use sectors, which are the country's major impact on the sales of gas turbine services. Natural gas surpassed coal as one of the most frequent sources of electricity generation in the United States in 2016, according the Energy Information Administration. As a result, demand for gas turbine repair services in the country has increased.
In 2019, heavy-duty gas turbines held the greatest market share, following by industry and aero-derivative turbines. Although aero-derivative turbines have a smaller global gas turbine services market share than other versions in the United States, the future of tiny aero-derivative power generation appears good due to the country's expansion of the aerospace and defence sectors, where these turbines are deployed on a big scale. This would drive the global gas turbine services market for maintenance for aero-derivative gas turbines in the United States in the coming years.
One of the primary factors boosting the global gas turbine services market is the increase of multiyear service contracts. Multiyear agreements are seen by plant operators as a cost-effective long-term solution. These contracts can be negotiated for a variety of services, including basic repair and maintenance costs. Basic maintenance ranges from preventative maintenance through full-service maintenance, whereas overall maintenance covers equipment repair.
MAN Energy Solutions, General Electric, Kawasaki Heavy Industries, Siemens AG, Mitsubishi Hitachi Power, Ltd. (MHPS), Systems and Ansaldo Energia S.p.A. are among the market's leading participants.
To strengthen their market position, these businesses employ techniques such as offering multiyear service contracts to new and existing power plant owners. The ef?ciency and performance of their manufactured gas turbines, as well as the associated services they give to their customers, drive competition among important vendors. Due to the quick changing technology and severe competition, technological ability and Research and development are some of the most essential focal areas for organisations to improve their market position.
Latest Innovation in the Global Gas Turbine Services Market: A snapshot
- General Electric introduced a new 6B Repowering improvement for turbines in September 2018, which can improve performance in both gas turbines and consolidated-cycle operation. This advancement will allow General Electric to increase its market share.
Gas Turbine Services Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 7.5 billion|
|Growth Rate||CAGR of 9.8 % during 2021-2028|
|Segment Covered||Turbine Capacity, Service Type, Service Provider, Turbine Type, End-use, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||MAN Energy Solutions, General Electric, Kawasaki Heavy Industries, Siemens AG, Mitsubishi Hitachi Power, Ltd. (MHPS), Systems and Ansaldo Energia S.p.A.|
Key Segments of the Global Gas Turbine Services Industry
Turbine Capacity Overview (Revenue, USD Billion, 2019- 2029)
- <100 MW
- 100 to 200 MW
- >200 MW
Service Type Overview (Revenue, USD Billion, 2019- 2029)
- Maintenance & Repair
- Spare parts supply
Service Provider Overview (Revenue, USD Billion, 2019- 2029)
Turbine Type Overview (Revenue, USD Billion, 2019- 2029)
- Heavy Duty
End-use Overview (Revenue, USD Billion, 2019- 2029)
- Power Generation
- Oil & Gas
- Other Industrial
Regional Overview, 2019-2029 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa