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.
Market Segmentation
By Type:
Of them all, Heavy Duty Turbines dominate the Global Gas Turbine and Turbine Services Market with the largest share. It owes to their high-capacity operations, economic cost structure, & lower pressure ratios to yield high specific power, as well as the surging number of manufacturing plants globally. Moreover, smaller dimensions, low investment costs, & maximum cycle efficiency associated with heavy-duty turbines make them suitable for heat recovery power generating plants and the power & utility industry. Additionally, the rapid expansion of captive generating power stations owing to the growing electricity demand in the industrial sector is another prominent aspect boosting the demand for heavy-duty turbines.
On the other hand, the demand for aeroderivative turbines is expected to witness the fastest growth in the global market over the forecast years, owing to their ever-growing utilization in utility generation, district heating, and marine propulsion. These turbines are lighter in weight, take up less space, & emit low emissions and enable renewables to operate when needed, which helps save fuel. Besides, they are designed for immediate removal & replacement facilitating fast maintenance & greatly reduced downtimes. Hence, considering these aspects, aeroderivative turbines are very likely to witness increasing demand in the years ahead.
Based on Application:
Here, power Generation carries the largest share in the Global Gas Turbine and Turbine Services market. With the rising government focus on reducing the use of coal-based power plants to minimize carbon emissions, the demand for gas turbines for power generation application is dramatically rising worldwide.
On the other hand, the increasing consumption of oil & gas worldwide is also contributing to the burgeoning demand for gas turbines. In addition to this, stringent emission norms & low prices of natural gases would further escalate the usage of gas turbines in the oil & gas industry over the forecast years.
Regional Projection:
Of all regions globally, North America dominates the Gas Turbine and Turbine Services Market. It owes to the extensive availability of gas-driven turbine plants and a surge in shale gas exploration activities across the region. In 2020, the US Energy Information Administration (EIA) said, Natural gas generates about 40% of US electricity. Coal was the third-largest energy source for US electricity generation, accounting for around 19%. As a result, the increasing use of natural gas in North America, especially across the US is fueling the regional market growth.
On the other front, Asia-Pacific is projected to witness the fastest market growth during 2023-28 due to the increasing energy demand on account of rapid urbanization & industrialization. In addition, the shift from the coal-based for power production to clean energy sources owing to stringent government norms to reduce carbon emissions is another crucial aspect projected to boost the Asia-Pacific Gas Turbine and Turbine Services Market in the years to come.
Market Dynamics
Key Driver: Escalating Energy Requirements Worldwide
With rapid urbanization & industrialization, coupled with increasing infrastructural developments & smart home construction activities worldwide, the electricity demand is increasing enormously. To cater to these requirements, both public & private sectors are either installing new power plants or expanding the capacity of their existing ones, i.e., leading to increasing installation of gas turbines in these power plants as they are less harmful. These trends project lucrative prospects for the Global Gas Turbine and Turbine Services Market during 2023-28.
Growth Challenge: Fluctuating Prices of Natural Gas
The advent of Covid-19 in 2020 negatively impacted the demand for natural gas. Disruption in the supply of natural gas and geopolitical tensions are leading to uncertainty in the availability of gas, which has increased gas price volatility. Because of shale gas exploitation, gas prices in the US have declined dramatically. Though, prices are comparatively high in the rest of the world. These aspects are likely to restrain the growth of the Global Gas Turbine and Turbine Services Market in the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Gas Turbine and Turbine Services Market is forecast to grow at a CAGR of around 4% during 2023-28.
A. Power Generation holds the largest share of Gas Turbine and Turbine Services Market, which would create profitable growth opportunities for the leading market players in the coming years.
A. Growing environmental concerns and increasing demand for highly efficient gas turbines are the key factors projected to drive the Gas Turbine and Turbine Services Market during 2023-28.
A. 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, and Centrax Gas Turbines are the key companies participating in the Gas Turbine and Turbine Services Market.
A. Globally, Asia-Pacific would offer substantial growth prospects to the Gas Turbine and Turbine Services Market during 2023-28.
