Gas Turbine Service Market Size, Regional Outlook, Growth Potential, COVID-19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3614
Gas Turbine Service Market size is slated to proliferate commendably over 2021-2027. This is driven by the myriad benefits of using gas turbines, such as low maintenance costs, gas fuel flexibility, high combined cycle efficiency, and low combustion emission levels. In addition, the increasing production of shale gas will further augment the industry share, as most of the gas turbine power plants are powered by pipeline natural gas.
A gas turbine refers to a combustion engine at the core of power plants, which can convert natural gas and other fuels to mechanical energy. The higher operating temperatures, in addition to the mechanical stresses of this combustion engine, have resulted in the need for refurbishment processes and advanced technology components. Repair activities generally consist of the rejuvenation of the material condition via appropriate heat treatments.
Strong focus on the adoption of natural gas turbines as an alternative to coal-powered generators is one of the prominent trends bolstering the overall gas turbine service market expansion. For instance, in February 2021, Malaysian utility Southern Power Generation became the first power producer across the globe to use two of GE’s 9HA.02 natural gas turbines to generate electricity. Likewise, the rising awareness about the benefits of solar gas turbines, including high power density and low emissions, will also amplify the need for solar gas turbine maintenance services over the coming years.
Considering the service, the repair segment will account for an appreciable share of the gas turbine service market by 2027. This can be credited to the availability of Centers of Excellence from prominent entities like Thomassen Energy, equipped with advanced tools and machinery for repairing gas turbine components. The deployment of advanced reconditioning technologies to repair combustion engine parts and the rapid implementation of reconditioning process will further drive the segmental growth in the years ahead.
From a regional perspective, the Europe gas turbine service market is set to depict a strong growth rate through 2027. This is attributable to the significant shift of power plants in the European Union from coal to natural gas to generate electricity. Moreover, rising concerns regarding the increasing levels of air pollutants and implementation of strict emission norms will escalate the adoption of natural gas in gas turbine power plants. This, in turn, may boost the demand for natural gas turbine engine maintenance services in the region.
The competitive landscape of the gas turbine service market comprises companies such as EthosEnergy, Mitsubishi Motors Corporation, Hitachi, Ltd., Ansaldo Energia S.A, Siemens AG, Centrax Ltd., General Electric, Kawasaki Heavy Industries Ltd., Sulzer Ltd., and Rolls-Royce Holdings plc, among others. Innovative service launches and business expansions are some of the key initiatives being employed by these firms to strengthen their presence across the global market.
For instance, in May 2021, Rolls-Royce and Hindustan Aeronautics Ltd. inked an MoU to establish the installation, packaging, marketing, and services support for the MT30 marine engines of Rolls-Royce. The MT30 was developed as the best-in-class naval gas turbine presently in-service with the global naval programmes in varied propulsion arrangements. In April 2021, General Electric announced the delivery of digital solutions and maintenance services for a 718-MW combined-cycle power plant, powered by gas turbines and other generators, at Meghnaghat, Bangladesh.
Drop in Oil Demand During COVID-19 May Assert Influence on Gas Turbine Service Market Trends:
The novel coronavirus pandemic and its resultant containment measures have led to a significant drop in global oil demand, due to mobility and production slowdown. In April 2020, the International Energy Agency estimated the demand was down by 30% as compared to 2019 levels. This significant drop in consumption of oil may create a hindrance to the gas turbine service industry outlook, as the oil and gas sector is a significant end-user of gas turbines.
However, the gradual recovery in electricity demand across the globe, despite restrictions and lockdowns to curb COVID-19 transmission, may aid the industry recovery in the near future. In August 2020, the EU registered a sustained recovery in electricity demand bringing it closer to the 2019 levels, which may influence the functioning of gas turbine power plants. Factors such as these could, in turn, enhance the business environments for the gas turbine maintenance service providers over the upcoming years.
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