Market Definition
A gas turbine is a combustion engine that converts natural gas & other fuels into mechanical energy for generating electrical energy. These highly efficient engines are gradually replacing the oil & gas-fired power plants with a combined cycle power plant that utilizes such turbines. The services provided by the gas turbine are called gas turbine services. Moreover, they can work under high operating temperatures and mechanical stress, which instigates the need for turbine repair & maintenance services. Gas turbines are used most commonly for distributed energy applications. The need to ensure the peak performance of the turbines is driven by the ever-increasing higher peak loads in utilities. Frequent maintenance is the highly preferred way for ensuring the highly effective performance of gas turbines.
Market Insights
The Global Gas Turbine and Turbine Services Market is projected to grow at a CAGR of around 4% during the forecast period, i.e., 2023-28. Most of the market would be driven by the uplifting demand for highly efficient gas turbines, reduction in the prices of natural gas, and surging shale gas production. Gas turbine services provide reduced operational costs and improved safety & life of the equipment. However, the need for specialized & trained human power to stimulate the turbines makes it an expensive process. Moreover, increasing environmental concerns due to rising carbon emissions via coal-based power generation are propelling the adoption of natural gas-based turbines, globally.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 4% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, UK, France | |
| Asia-Pacific: China, India, Japan, South Korea, Indonesia, Vietnam, Singapore, Malaysia | |
| South America: Brazil, Argentina | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Iran, Iraq, Oman, Kuwait, Egypt, Qatar | |
| Key Companies Profiled | General Electric, Alstom, Siemens AG, Mitsubishi Hitachi Power Systems, Ltd., Kawasaki Heavy Industries, Ltd., Ansaldo Energia S.P.A., BHEL, Westinghouse, Sulzer AG, MH Power, Ethos Energy, MJB International, MTU Aero Engines AG, Turbine Services and Solutions LLC, Solar Turbines Incorporated, Centrax Gas Turbines |
| Unit Denominations | USD Million/Billion |
Companies are providing multi-year service contracts to their end-users that include either Basic or Overall Maintenance. Basic maintenance only involves preventive measures and overall maintenance includes repairing defective equipment. Since these multi-year agreements are quite economical, their growing adoption worldwide is creating lucrative opportunities for the market.
Natural gas-powered turbines are enjoying a significant increase in demand, especially across Europe & North America. However, emerging economies like India & China are still under coal-based power generation owing to lower costs. This factor might doesn't seems to be a prominent restraint for sales & maintenance contracts of new gas turbines. Besides, limited natural gas reserves shall also hinder market growth in the years to come.
Recent Developments in the Gas Turbine and Turbine Services Market
Covid-19 Impact Analysis for the Global Gas Turbine and Turbine Services Market
The advent of Covid-19 limited the expansion of the gas turbine service market worldwide. The imposition of lockdown due to the wake of the Covid-19 pandemic has impacted major economies. It halted the production activities of most end-user industries and significantly reduced oil & gas demand. Governments worldwide restricted cross-border trade, which impacted the installation of power generation machinery & equipment. Moreover, delays (more than usual) in the commercial operation schedules in the proposed electric generator projects, including natural gas combustion turbines.
Additionally, the lockdown led to the overcapacity in the power generation equipment and the softness of prices means companies were selling lower power generation gas turbines and receive fewer unit prices for each sale. However, the impact of overcapacity, reduced demand, and soft prices are slowly recovering themselves.
