Market Overview
- According to DataM Intelligence's latest research report on the industrial gas turbine MRO market in North America for the historic period, 2019 and the forecast period 2020–2030, the growing upgradation of aging gas turbines and rising demand for electricity is a factor expected to boost the market in North America during the forecast period.
- In terms of revenue, the industrial gas turbine MRO market size in North America is estimated to surpass US$ XX Bn by 2030, expanding at a CAGR of XX% throughout the forecast period.
Market Dynamics
Growing upgradation of aging gas turbines to expand the market value for industrial gas turbine MRO
The gas turbine is a combustion turbine that burns natural gas to produce electrical energy. A gas turbine burns the mixture of air and fuel with the help of high temperature, which makes the turbine blades spin, generating electricity. Gas turbines are used mostly in power generation and in the oil & gas industry to force oil up to the surface.
Power generation and oil mining are uninterrupted processes; therefore, the gas turbine requires maintenance, repair and overhaul services, leading to improved performance and well-organized work. The gas turbine market has grown in many plant establishments over the last few years. However, these plants over the year require maintenance services. The gas turbine plants follow preventive and predictive maintenance techniques to ensure their plants' proper functioning in the future.
The up-gradation of aging gas turbines has been crucial to ensuring the smooth functioning of the gas-turbine setup. Various gas turbine power plants procure service provider companies to get their power plants' required maintenance, repair and overhaul activities. For instance, in 2018, GE’s Power Services business Introduced New DLN2.6+ Flex Upgrade Solution for 7F Gas Turbines. It introduced the product at the annual 7F Users Group Annual Conference in Atlanta.
Uplifting GE's industry-leading DLN 2.6+ combustor and merging it with new Axial Fuel Staging (AFS) technology, the emerged Flex solution resulted from extensive advancement within GE's group of offerings for 7F gas turbines. It integrates several hardware and software technologies into one new flexibility package to help GE's global 7F fleet customers be more profitable, especially those in high renewable penetration regions like North America and those with aging technology in highly competitive energy markets. The upgrade will also help power producers hold the flexibility gas technology offers to complement rather than compete with solar and wind. The up-gradation of aging gas turbines is a significant factor responsible for the growth of the industrial gas turbine MRO market during the analysis period.
Growing government authorities focusing on clean energy generation is expected to augment market growth for industrial gas turbine MRO in the forecast period
Governments from various nations emphasize that power producers adopt clean and efficient power generation technologies as these authorities are concerned over the depletion of fossil fuels such as coal. Moreover, the coal power plant is environmentally not fit owing to the pollution created in the surroundings. Gas power plants are comparatively more efficient and create less environmental pollution as compared to coal power plants
The Department of Energy (US) has announced an advanced turbine program that has enabled us to break down the preceding limitations on turbine temperatures, using an amalgamation of innovative cooling technologies and progressive resources. The advanced turbines that arose from the Department of Energy research program were able to increase the turbine inlet temperatures to as high as 2600 degrees F - roughly 300 degrees hotter than in earlier turbines and attain proficiencies of 60%.
The mentioned and many more significant initiatives taken by the government and concerned authorities to generate clean and efficient energy with the help of modernizing and enhancing the gas turbine power plant have paved the way for the industrial gas turbine MRO market towards growth during the forecast period.
The rising demand for electricity in North America augments the growth of the industrial gas turbine MRO market
The growing industrial sector and infrastructure building activities in North America have resulted in a massive increase in electricity demand. North American countries are growing their power generating capacity by building new plants or boosting the capacity of existing ones as demand for electricity rises. Companies are more likely to employ industrial gas turbine MROs due to rigorous government regulations addressing greenhouse gas emissions. These factors are expected to drive the industrial gas turbine MRO market in North America in the forecast period.
North America is one of the world's largest natural gas consumers for electricity generation. In 2020, U.S. consumed around 30.5 trillion cubic feet (Tcf) of natural gas, equivalent to approximately 31.5 quadrillion British thermal units (Btu) and accounting for 34% of total energy consumption. Natural gas use has increased during the last decade, owing to rising energy demand and increased attempts to minimize emissions from the power generation industry.
Natural gas is used in the industrial sector as a process heating fuel, in combined heat and power systems, as a raw material (feedstock) to produce chemicals, fertilizer and hydrogen and as a lease and plant fuel. In 2020, the industrial sector consumed around 33% of total natural gas consumption in U.S. and natural gas provided about 34% of the industrial sector's total energy consumption. Thus growing dependency on natural gas for electricity generation has escalated the market demand for gas turbine MRO services.
COVID-19 Pandemic had a negative impact on the market
The industrial gas turbine MRO market growth is based on the energy infrastructure investment, specifically on gas power production plant establishment. At the start of 2020, as per IEA (International Energy Agency), power producers expected capital expenditure planning and ongoing capacity expansion activities suggest a rise of around 2%. Therefore, the gas turbine market in the Pre-COVID era was anticipated to increase due to various factors such as increased power generation from gas-based plants due to rising concerns over greenhouse gas emissions, maintaining the turbine's efficiency and stringent emissions norms on power plants.
Moreover, the increasing demand for electrical energy to sustain global development requires consistent heavy spending on power supply generation. It has aided the gas turbines MRO market in the power sector has grown considerably in the recent period and is expected to do so in the forecast period. Thus the industrial gas turbine MRO market was anticipated to exhibit sustainable growth in the pre-COVID era.
Along with other industries, the COVID-19 has also impacted the energy infrastructure investment segment, resulting in a small decline in 2019. According to a report released by International Energy Agency (IEA), regional power spending fell to its lowest level in over a decade in 2020. By reversing the expectations of an uptick in spending in 2020, almost all the parts of the power sector will be affected by mobility restrictions, delays in project development and lower demand.
Largely power investment in North America has declined due to the Covid-19 pandemic. Power investment shows the ongoing capital expenditures on the projects under construction. The decline is predisposed not just by the new capacity additions and refurbishments expected this year but also by spending on industrial and power production setups that would be delivered in the years ahead.
DataM Analysis Report
North America industrial gas turbine MRO market is expected to expand at a CAGR of XX% during the forecast period. The North American industrial gas turbine MRO market is expected to record significant growth during the forecast period. It is due to factors such as the region's aging fleet of gas turbines. Moreover, requirements to maintain operational proficiency and severe emissions regulatory standards, specifically power plants, are expected to be the key development factors for the market. The budding demand for cleaner energy from gas turbines than coal-fired plants safeguards the environment from harmful gases. The factors are attributed to the growth of the North American gas turbine MRO market.
North American region is swiftly adopting the gas-fired power plants to align with environmental protection and abide by industrial gas emission standards. For instance, between 2008 and August 01, 2019, U.S. installed 120,498 MW of natural gas-fired capability to its power generation fleet, including nearly 26,000 MW capacity established in 2018 and 2019 alone. Moreover, 200 new gas plants are scheduled or in the development stage across U.S., totaling nearly 70,200 MW of additional capability.
Key Driver
- A rise in the gas-fired power plant infrastructure in North America is expected to create massive opportunities for the industrial gas turbine MRO to grow in the forecast period.
- Increased shale gas production across the region has compelled the power generation industry to shift its attention from other fuels to natural gas for power generation.
- Furthermore, laws and regulations targeting lowering carbon emissions and converting to natural gas as a power generating source over coal are likely to boost natural gas-fired power plants in the region. These elements are projected to improve North American economy in the next years.
- Thus, increasing gas-fired power plant infrastructure development is expected to offer lucrative opportunities for the industrial gas turbine MRO in North America during the forecast period.
Increase in Number of Combined Cycle or Plants
- Increase in number of combined cycle power plants is growing in North America
- A combined-cycle power plant uses gas and a steam turbine to produce nearly 50% more electricity from the same fuel than a traditional simple-cycle plant
- The heat generated from the gas turbine is routed to the steam turbine nearby, which generates extra power
- Combined cycle power plants meet the growing energy demand and hence special attention must be given to the optimization of the whole system
- Moreover, developments for the gasification of coal and use in the gas turbine are in progressive stages
- The power production and efficiency, which are primary focus areas of power producers, are being met by combined cycle power plants, which in turn act as an opportunity for the gas turbine plant's growth along with its MRO contract.
Competition Landscape
- Detailed profiles of major market players providing industrial gas turbine MRO are provided in the report, including financials, company profile analysis, market revenue analysis, import and export, recent developments and market strategies analysis, key product/service offerings and an overview of the company
- Key players operating in the region's industrial gas turbine MRO market are GENERAL ELECTRIC, Fluor Corporation, Mechanical Dynamics & Analysis LLC, Bechtel Corporation and Solar Turbines Incorporated
Strategic Partnerships
- Major industrial gas turbine MRO market players in North America include GENERAL ELECTRIC, Fluor Corporation, Mechanical Dynamics & Analysis LLC and Bechtel Corporation, focusing on strategic partnerships and acquisitions to expand their footprint. Some other key market strategies in the industrial gas turbine MRO market in North America are highlighted below:
- On December 09, 2020, GE offered Critical Service Works at Al Qudus Power Plant in Iraq.GE announced the completion of a significant overhaul of a 9E.03 gas turbine at the Ministry of Electricity's Al Qudus Power Plant. This refurbishment will help secure the distribution of up to 125 megawatts (MW) of power from the unit to the national grid, catering to electricity with more reliable power.
- General Electric and Reliance Bangladesh LNG and Power Ltd. signed a 22-year agreement in March 2021 to supply maintenance services at the future "Meghnaghat Power Plant" in Bangladesh. It comprises gas and steam turbine maintenance, as well as auxiliaries, as well as the installation of plant-wide digital solutions. By 2023, the plant is projected to be operational.
- On November 12, 2020, GE offered additional repair services to the PT GE Nusantara plant by building turbine blade competence within the plant and increasing the overall center capacity of the plant electricity generation.
- The focus of key organizations is on collaboration and cooperative efforts to strengthen commercial presence.
- In North America industrial gas turbine MRO market report, we have discussed individual strategies, followed by company profiles of industrial gas turbine MRO providers. The 'Competitive Landscape' section is included in report to provide the readers with a dashboard view and competitive analysis of key players operating in North America industrial gas turbine MRO market.
