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The global gas turbine MRO market size was valued at USD 14.21 billion in 2022. The market is projected to grow from USD 14.64 billion in 2023 to USD 18.21 billion by 2030, exhibiting a CAGR of 3.2% during the forecast period.
A gas turbine is an engine that uses combustion to spin a turbine and generate electricity. The process involves heating a mixture of air and fuel to high temperatures, causing the turbine blades to rotate. These engines are commonly used in the energy and oil & gas industries for power generation and oil extraction. Regular Maintenance, Repair, and Overhaul (MRO) services are necessary to keep the gas turbine operating efficiently and effectively.
Outbreak of COVID-19 Moderately Impacted Market Due to Reduced Operations of Major Gas Turbine End-users
The COVID-19 pandemic caused significant disruptions across all major global economies. The energy sector was slightly affected during the initial phase of this outbreak due to sudden announcement of lockdowns. Commercial and industrial sectors witnessed a major decline in electricity demand; however, the demand for electricity from residential end-users was high. Furthermore, since the need for constant power supply is growing each year, the market growth was less affected.
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Gas Turbines Upgrades to Drive Market Growth
Gas turbines are gaining traction in the energy and oil & gas industry verticals as they are used to power oil extraction operations. To maintain peak performance and efficient operations, these engines require regular maintenance, repair, and overhaul services. In the energy sector, preventive and predictive maintenance techniques are often utilized to ensure the smooth functioning of gas turbines. Upgrading older gas turbines is an important aspect of maintaining the overall system.
Companies and power plant operators perform regular maintenance services, such as periodic inspections, component replacement, diagnosis, and renovation, to enhance the facility’s performance and ensure its long-term and stable operation.
Increasing Replacement of Nuclear and Coal Driven Turbines with Gas Turbines to Propel Market Expansion
Coal-fired power plants are known to release significant amounts of harmful pollutants into the atmosphere. These emissions contribute to environmental dangers such as global warming and climate change. Similarly, nuclear energy-powered turbines produce toxic waste that can harm the environment for a long time. To tackle these issues, many governments are working on various plans to reduce greenhouse gas (GHG) emissions and move away from coal-fired and nuclear power plants in favor of gas-fired turbines. While these turbines still produce emissions, they tend to be less harmful as compared to those used in coal-fired power plants.
The trend of decommissioning coal-fired power plants and transitioning to cleaner ways of generating electricity is expected to fuel the market growth of gas turbine MRO. For example, in November 2021, Southern Co. announced plans to close a significant portion of its coal-fired power plants by 2030 as it planned to move toward a zero-emission electricity mix. This plan included the shutdown of the company's two largest coal plants and the previously announced closure of the Daniel plant, which was one of the last coal generators in Mississippi.
Growing environmental concerns have encouraged key players to increase the number of natural-gas-based power generation plants, thereby favoring the market. Natural gas is a low-carbon power source, which means it emits less CO2 emissions as compared to other fossil fuels. For instance, according to an order issued by the Central Environment Ministry panel on air pollution, India has temporarily shut down a few coal-fired power plants near New Delhi to combat air pollution.
Aging Energy Generation Infrastructure to Augment Market Progress
The aging energy generation infrastructure is a major factor surging the demand for gas turbine MRO services. Gas turbines have experienced significant growth in demand in recent years, leading to an increased need for gas turbine MRO services. The rising demand for electricity across the world, driven by urbanization and infrastructure development, is contributing to the market progress of gas turbine MRO.
The growing number of smart building and city projects is increasing the need for electricity, and the global demand for energy has led to increased investments in gas turbine power plants. To meet the high demand, both public and private sectors are expanding their power plant capacity through new installations and upgrades, often opting for gas turbines due to their efficiency and low environmental impact. Strict emission regulations are also boosting the adoption of gas-based turbines. These factors are expected to increase the gas turbine MRO market share.
Increasing Emphasis of Renewable Energy Generation to Restrain the Global Gas Turbine MRO Market Growth
Growing focus on renewable energy generation is expected to inhibit the global market growth. Natural gas power plants mainly utilize gas turbines for energy production. However, renewable energy sources, such as wind and solar have become increasingly important due to rising global warming and climate change concerns. Renewable energy systems do not need gas turbines, plummeting the demand for gas turbine MRO services. High adoption of green sources of energy is also accelerating the renewable energy sector growth. Moreover, heavy investment in renewable energy projects, such as solar PV panels and wind turbines, will fuel the market expansion of gas turbine MRO.
The world is increasing its inclination toward clean energy sources. With the aim of reducing dependence on conventional and unsustainable energy sources, such as oil and coal, many countries are expanding their renewable energy capacities. A report from the International Energy Agency predicted that the global renewable power generation capacity would witness a growth of over 8% in 2022. China currently holds the top position in solar power generation, with an installed capacity of more than 300 GW. Many nations have set ambitious solar power production goals and are constructing large-scale power plants to meet their energy demands.
Growing Use of Mobile Technologies to Boost Demand for Aero-derivative Technology
Based on technology, the has been segmented into heavy duty, light industrial, and aero-derivative. The aero-derivative segment is anticipated to record considerable CAGR during the forecast period. The growing accessibility of mobile and flexible technologies might boost the adoption of aero-derivative technology. This technology has numerous applications such as district heating, marine propulsion, and power generation.
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Increasing Coal Turbine Replacements to Make Power Utility Sector a Major End-user
Based on end-user, the market is divided into power utilities, oil & gas, manufacturing, aviation, and others. There is a strong focus on replacing traditional coal-fired and steam turbines with gas ones in different power generating stations. These turbines offer higher efficiency in electricity generation as compared to the conventional power generation plants, which will bolster their installation.
North America Gas Turbine MRO Market Size, 2022 (USD Billion)
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The global market is studied across five regions, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America is expected to capture a large industry share during the forecast timeframe. The region has a substantial number of power generation plants that utilize gas turbines. Due to the rising shale gas exploration activities, the region also has several gas-driven turbine plants that operate mainly on natural gas.
For instance, the U.S. Energy Information Administration (EIA) stated that more than 40% of the nation’s power comes from coal and around 25% from natural gas. The EIA anticipates that natural gas might become the primary electricity generation fuel by 2035. In North America, the majority of electricity is generated from gas turbine-powered plants, and this trend is predicted to continue in the future as well. This will likely increase the regional gas turbine MRO market share.
The Asia Pacific market is expected to witness substantial growth in the future due to robust growth in investments for gas turbine power plants. Japan has a mature natural gas-based power generation industry, and the sector’s veterans are concerned about the service life of the power equipment. The country has recently witnessed a notable spike in gas turbine MRO projects, which will further accelerate the regional market development.
For example, in February 2021, Kanamoto was awarded a contract to supply seven C65 microturbine systems to a Japanese chemical company. These systems, which run on high-pressure natural gas, will generate both heat and power for the production process and aim to maximize efficiency. Newer investments in the sector are expected to provide the market with much-needed impetus to recover from the effects of the COVID-19 pandemic.
The Europe market might experience substantial progress over the coming years. Countries across the region are focusing on reducing their carbon emissions, leading to a shift away from coal-powered energy generation and adoption of gas-driven turbine plants.
The Middle East & Africa and Latin America markets are predicted to grow at a steady pace over the forecast period due to increase in power generation capacities in these regions.
GE Service Solutions to Increase Reliability and Flexibility of Gas Turbines while Reducing their Environmental Footprint and Production Costs
Some of the prominent gas turbine MRO companies are focusing on executing a wide range of inorganic growth strategies, such as product launches, partnerships, and mergers & acquisitions, to increase their presence in the industry.
General Electric is one of those key market players as it offers a wide range of high-performance and aero-derivative gas turbines for utilities, independent power producers, and numerous industrial applications. These applications range from small, mobile power plants to utility-scale power generation facilities. In addition, it provides maintenance & service solutions throughout the operational life cycle of its products. Its gas turbine upgrade solutions can boost the system performance, reliability, efficiency, flexibility, and extend the equipment’s lifespan.
An Infographic Representation of Gas Turbine MRO Market
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The report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the latest market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the market growth in recent years.
CAGR of 3.2% from 2023 to 2030
Value (USD Billion)
By Technology, End-user, and Region
The Fortune Business Insights study shows that the global market size was valued at USD 14.21 billion in 2022.
The global market is projected to grow at a CAGR of 3.2% in the forecast period.
The market size of North America stood at USD 4.73 billion in 2022.
Based on the end-user, the power utilities segment holds a dominating share in the global market.
The global market size is expected to reach USD 18.21 billion by 2030.
An increase in multiyear gas turbine services contracts as well as regular checkups and maintenance to avoid operational failures are some of the key market drivers.
The top players in the market are General Electric, Siemens Energy, Mitsui power, Ansaldo Energia, and others.
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