Gas Turbine Service Market Research, 2031
The global gas turbine services market size was valued at $19.6 billion in 2021, and gas turbine services industry is projected to reach $32.1 billion by 2031, growing at a CAGR of 5.1% from 2022 to 2031.
A gas turbine is a combustion engine, which primarily runs on natural gas and converts this chemical energy produced from this combustion of natural gas to mechanical energy. This mechanical energy is further converted into electrical energy. The services provided to these gas turbines in order to maintain their operating condition are called gas turbine services. Strict government regulations toward clean power generation coupled with introduction of pollution control systems are expected to drive the market growth. Ongoing technological advancements resulting in design & development of highly efficient gas turbine units will in turn propel the industry outlook. Moreover, advanced technologies in overhauling coupled with abundant availability of natural gas will have a positive impact on the market expansion.
Gas turbines are less expensive, environment-friendly, and more reliable and efficient than engines based on other fuel sources. According to Eurostat, natural gas accounts for more than 25% of energy consumption in the U.S. Elevated use in applications such as heating, electricity generation, and vehicle functioning is bolstering the demand for natural gas turbines. The increasing demand for the gas turbine service market in the global market is owing to increase in awareness about the toxic-free production of electrical and mechanical energy. The advancement in technology is another factor that provides further scope for improvement in the working of the market in the global industry related to efficiency. Thus, a continuous surge in demand from developing and developed countries is one of the key factors driving the gas turbine service market growth.
The market is growing at a fast pace but some factors such as uncertainty in the demand or supply for natural gas and geopolitical tensions regarding variation in the prices of natural gas are expected to hamper the growth of the gas turbine service market in the global market. Another factor that restrains the growth of the market is the enhanced efficiency of renewable-based power generation in the global market.
The gas turbine service market forecast is segmented on the basis of turbine type, turbine capacity, service type, sales channel, end use and region. On the basis of turbine type, it is segmented into heavy duty, industrial, and aeroderivative. On the basis of turbine capacity, the market is segmented into less than100 MW, 100-200 MW, and more than 200 MW. On the basis of service type, it is segmented into maintenance & repair, overhaul, spare parts supply. On the basis of sales channel, the market is bifurcated into OEM and aftermarket. In addition, on the basis of end use, the global gas turbine service market is segmented into power generation, oil & gas, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, North America accounts for the largest gas turbine services market share, followed by Asia-Pacific and Europe.
The major companies profiled in this report include Siemens AG, General Electric, Mitsubishi Heavy Industries, Ansaldo Energia, MAN Energy Solutions, Kawasaki Heavy Industries, Baker Hughes Company, Caterpillar, Opra Turbines, MTU Aero Engines AG, EthosEnergy, PROENERGY, MJB International LLC, Sulzer, and Centrax Gas Turbines. These are the most prominent key market players in the gas turbine service market and use different strategies and policies such as product innovation and modification, improvement in the style of production, collaboration and partnership and mergers and acquisitions for attracting the potential market for increasing customer base to get a competitive edge in the global market. Due to rapid development of industrialization, modernization has led to the development of demand for power from heavy manufacturing industries, and light manufacturing industries, which in-turn has fueled the demand for gas turbine. The presence of the demand for gas turbine and on-going upgradation of various thermal power plants in the developing countries is driving the demand for gas turbine service market. Additional growth strategies such as expansion of production capacities, acquisition, partnership and research & innovation in the gas fired power generation systems, have led to attain key developments in the global gas turbine service market.
The heavy duty turbine type segment dominates the global gas turbine service market. Heavy-duty gas turbines are capable of burning a variety of liquid fuels, ranging from light petroleum distillates to heavy residuals. The heavy duty gas turbines are primarily utilized in oil & gas, power generation, aerospace, marine, and others. The oil & gas segment is projected to hold a substantial portion of the industry, owing to need for high output continuous power sources across onshore & offshore assets for continuous operation. Increase in utilization of heavy duty gas turbines in the oil & gas industry is a major factor that drives the demand for heavy duty gas turbines. Increase in demand for oil & gas for power generation and transportation has augmented the growth of heavy gas turbine industry, thereby driving the demand for gas turbine service market.
More than 200 MW power output segment dominates the global gas turbine service market. 200 MW of gas turbines are utilized in the combined heat and power plant industry. Combined heat and power is a productive and clean way to deal with creating electric power and thermal power from a solitary fuel source. The rising utilization of gas fired systems inferable from low fossil fuel to clean energy will drive the demand for the combined heat and power system. The development of CHP power plants, oil & gas, mining, waste to gas plants, and other large facilities in various end-user industries is expected to drive the demand for the gas turbines. The presence of above mentioned factors are expected to provide ample opportunities for the development of the market.
The spare parts supply segment dominates the global gas turbine service market. Spare parts are those parts that can be bought separately to replace old or broken parts in a piece of equipment. They are usually parts that are designed to be easily fitted. The spare parts for gas turbine consists of conventional packaging & spill strips, tilt pad thrust, elliptical journal, oil deflectors, legacy turbine circuit boards, and IBECS systems. Growth in awareness regarding benefits related to the usage of natural gas for the power generation across both developed and developing countries are some of the factors expected to boost the demand for gas turbine industry, hence augmenting the market growth. In addition, gas turbines are utilized in the continuous operations for power generation or in other heavy work load industries; hence, leading to aging of the working components, and thereby an increase in demand for spare parts in gas turbine services market. The presence of above mentioned advantages is expected to drive the growth of the market.
The OEM segment dominates the global gas turbine service market. Original Equipment Manufacturer or OEM is a company that manufactures and sells products or parts of the products to their own customer. The OEM service provider segment is set to register around 7.6% growth rate till 2030. The major manufacturers have established an R&D infrastructure along with data management centers, enabling them to observe the system from remote locations to determine the accurate real-time health of gas turbines. In addition, OEMs offer multiyear service agreements with operators covering a range of services, accelerating the industry potential. Surge in demand for gas turbines in power generation sector is expected to provide ample opportunities for the development of the OEM sales channel in gas turbine service market.
The power generation segment dominates the global gas turbine service market. Power generation can be defined as the process of transforming various forms of energy into electrical energy. Power is consumed in most modern applications (residential, commercial, and industrial), and in general, the sources for power generation can be categorized into renewable and non-renewable energy. Gas based engines are also used in the power generation; for instance, CNG and LPG are non-renewable energy that is produced from fossil fuel; bio gas is renewable energy which is produced form organic waste. The rising population across the globe, followed by the rapid urbanization in emerging regions, the rising number of consumers has resulted in a steady rise in the electricity demand is a crucial factor driving the growth of the power generation in gas turbine service market. Surge in demand for power generation systems and the presence of advantages is expected to provide ample opportunities for the development of the market.
North America is analyzed across the U.S., Canada, and Mexico. U.S. and Canada are the major players in this region. The North America gas turbine service market revenue is estimated to surpass $12 billion by 2030. The availability of abundant & affordable natural gas along with a shifting focus toward clean energy generation is expected to foster the market outlook. Stringent emission norms imposed by the government for gas turbines along with surge in up-gradation of gas turbine fleet is expected to energize the industry dynamic. Ongoing shale gas evolution is projected to fuel the installation of gas turbine units, and in turn will favor the market expansion. The shift from the coal-based for power production to clean energy sources will drive the market growth. The government targets to reduce GHG emissions along with rapid urbanization & industrialization, which is expected to boost the industry penetration. The rapid economic growth across developing nations along with rise in energy demand across developing nations will further amplify the market revenue. The above mentioned are major factors driving the growth of the market in this region during the forecast period.
Impact of COVID-19 on Global Gas Turbine Service Market:
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies and caused lockdown in many countries, which has limited the growth of the market. The shutdown of industrial manufacturers led to decline in the production of gas turbine, and hence led to decline in the demand for the gas turbine service market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak had a negative impact on the development of the market.
In several countries, the renewable sector is mainly dependent on imports from other regions, primarily China. Around 60% of engines and generation sets are produced in the U.S. and are supplied across the globe. Gas based engines project developers worldwide are worried about project delays due to the slowdown of manufacturing in the U.S. Major suppliers are also observing production delays due to COVID-19, thereby causing a huge backlog for fulfilling orders. These factors hampered the growth of the market during the forecast period.
After global vaccination, the government of various countries has taken initiatives to increase the investment in the renewable energy related industries especially gas fired power systems. The increase in the investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to outbreak of the pandemic is expected to have a positive impact on the development of the market during the forecast period.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the gas turbine service market analysis from 2021 to 2031 to identify the prevailing gas turbine service market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the gas turbine service market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global gas turbine service market trends, key players, market segments, application areas, and market growth strategies.
Gas Turbine Service Market Report Highlights
| Aspects | Details |
 By Turbine Type |
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| By Turbine Capacity |
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 By Service Type |
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 By Sales Channel |
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 By End Use |
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 By Region |
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 Key Market Players | PROENERGY, Centrax Gas Turbines, Caterpillar Inc., Siemens AG, MAN Energy Solutions, EthosEnergy, MJB International LLC, Ansaldo Energia, MTU Aero Engines AG, Sulzer AG, Baker Hughes Company, Mitsubishi Heavy Industries, VERICOR, General Electric, Opra Turbines, Zorya-Mashproekt, Kawasaki Heavy Industries |
Analyst Review
According to CXO Perspective, the global gas turbine service market is expected to witness increased demand during the forecast period, due to rapidly growing awareness among the people regarding the advantages of the gas powered systems and high efficiency conversion of gas turbine.
The rapidly growing investment of the individuals towards oil & gas, and manufacturing industries has led to the demand for power and the presence of power recovery technology have driven the demand for the gas turbines for the combined heat and power industry. The increase in utilization of the small gas turbines in the small and large scale manufacturing industries especially in regards to steel, chemicals, and paper industries is boosting the development of the gas turbine service market.
A gas turbine is an internal combustion engine that runs on a gaseous fuel such as coal gas, biogas, landfill gas, or natural gas. The demand for energy in the modern society due to surge in the industrialization and urbanization in the developing countries such as India, and China has driven the demand for the gas turbines. The increase in the demand for gas turbines will in turn drive the demand for the gas turbine service market.
Gas turbines have a wide range of applications in heavy manufacturing and light manufacturing industries, marine and military sectors. The surge in demand for mechanical drive and power generation in marine vehicles for the power is one of the factors that are likely to drive the growth of the gas turbine service market.
The environmental impact of the coal fired power plants and ban over these plants in the developed countries have positive impact on the development of the market. The rapid innovation in alternatives such as electric and renewable power generation system is one of the factors hampering the growth of the gas turbine service market.
Rise in shale gas production and the shift towards the generation of power through gas fire are the key factors boosting the Gas turbine service market growth.
Power generation application is projected to increase the demand for Gas turbine service Market
Siemens AG, General Electric, Mitsubishi Heavy Industries, Ansaldo Energia, MAN Energy Solutions, Kawasaki Heavy Industries, Baker Hughes Company, Caterpillar, Opra Turbines, MTU Aero Engines AG, EthosEnergy, PROENERGY, MJB International LLC, Sulzer, and Centrax Gas Turbines.
Upgradation of aging fleets of gas turbines and reduction dependency on conventional coal fired plants is the Main Driver of Gas turbine service Market.
The global gas turbine service market is segmented on the basis of turbine type, turbine capacity, service type, sales channel, end use and region. On the basis of turbine type, it is segmented into heavy duty, industrial, and aeroderivative. On the basis of turbine capacity, the market is segmented into less than100 MW, 100-200 MW, and more than 200 MW. On the basis of service type, it is segmented into maintenance & repair, overhaul, spare parts supply. On the basis of sales channel, the market is bifurcated into OEM and aftermarket. In addition, on the basis of end use, the global gas turbine service market is segmented into power generation, oil & gas, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The market value of Gas turbine service in 2031 is expected to be $32.1 billion
In several countries, the renewable sector is mainly dependent on imports from other regions, primarily China. Around 60% of engines and generation sets are produced in the U.S. and are supplied across the globe. Gas based engines project developers worldwide are worried about project delays due to the slowdown of manufacturing in the U.S. Major suppliers are also observing production delays due to COVID-19, thereby causing a huge backlog for fulfilling orders. These factors hampered the growth of the market during the forecast period.
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