The gas turbine MRO market caters to the power generation sector. Gas turbines burn natural gas or other fuels to generate power through rotation of blades attached to a shaft. These turbines require scheduled maintenance, repair, and operations (MRO) activities to ensure smooth functioning and high-performance levels over their lifetimes. Regular servicing helps maintain efficiency, reduces downtime, and extends the lifespan of gas turbines. The growing power demand globally has led to an increase in midstream and downstream activities in oil and gas. Countries are investing heavily in new pipelines, processing facilities, and power plants based on natural gas to meet rising electricity needs. This widespread infrastructure expansion has augmented the installed base of gas turbines used in power plants.
The global Gas Turbine MRO Market in the Power Sector is estimated to be valued at US$ 17.5 billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing investments in deployment of advanced turbine technologies that deliver superior output is a major trend. Next-generation gas turbines feature advanced materials, improved aerodynamics, and higher operational efficiencies. Their sophisticated design requires specialized servicing by OEM-certified technicians to maintain safety and performance standards. This is driving demand for comprehensive long-term service agreements between turbine owners and maintenance providers. Companies are also focusing on development of digitalization and IIoT solutions for remote operational monitoring of gas turbines. Predictive maintenance techniques based on analytics of sensor data help schedule maintenance activities before impending issues occur, reducing unexpected breakdowns.
Porter’s Analysis
Threat of new entrants: Gas turbine MRO requires significant capital investment and long-term experience in servicing complex machinery, creating high barriers to entry.
Bargaining power of buyers: Large utility companies have significant bargaining power over component and service providers due to the scale of their operations.
Bargaining power of suppliers: Major OEMs like GE and Siemens dominate the supply of parts and services, giving them strong bargaining power over buyers.
Threat of new substitutes: While renewable energy sources are growing, gas turbines will continue playing a major role in power grids, facing limited threats from substitutes in the short term.
Competitive rivalry: Intense competition exists among global heavyweights for parts supply and long-term service contracts from large utilities.
Key Takeaways
The Global Gas Turbine MRO Market Size in the power sector is expected to witness high growth. The global Gas Turbine MRO Market in the Power Sector is estimated to be valued at US$ 17.5 billion in 2023 and is expected to exhibit a CAGR of 6.1% over the forecast period 2023 to 2030.
Regional analysis: North America currently dominates gas turbine MRO spending for power generation due to aging infrastructure and increasing outsourcing of services by utilities. Europe and Asia Pacific are other major markets, with the latter experiencing fastest spending growth due to expanding energy demand and installation of new gas-fired power plants.
Key players: Key players operating in the Gas Turbine MRO market in the power sector are GE, Siemens, Mitsubishi Heavy Industries, Ansaldo Energia, and Wood Group. GE and Siemens have the largest global servicing footprint and long-term contracts with major utilities. Mitsubishi Heavy Industries also has a growing share in the Asia Pacific region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it