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A47448 | Pages: 473 | Charts: 81 | Tables: 158 |
The global power plant maintenance market size was valued at $20.7 billion in 2021, and is projected to reach $33.2 billion by 2031, growing at a CAGR of 4.8% from 2022 to 2031.
Power plant maintenance entails inspecting, maintaining, repairing, and replacing machinery, equipment, and other assets that help power plants run continuously. Every single piece of equipment in a power plant, regardless of size, is essential to achieving daily objectives and sustaining the facility's overall operations. Equipment maintenance is a primary responsibility for power plants, because failing equipment can have disastrous effects ranging from decreased plant production to complete outages.
The daily operations of power plants are supported by a variety of gear and equipment. Functional assets are essential to the success of these facilities, from the wind turbines on wind farms to the nuclear reactors in nuclear power plants. Any minor issue can have a negative impact on productivity, efficiency, or finances, which can lower plant performance, diminish customer happiness, and damage a company's brand. Thus, to avoid these factors, power plant maintenance plays crucial role in power plants.
Moreover, continuous supply of energy, development of varieties of maintenances and services, transforming human behavior toward renewable sources are expected to create lucrative opportunity for market growth during the forecast period. In addition, increase in popularity of transition technology owing to its employment in electricity generation, to provide electricity for residential buildings at a low cost is anticipated to drive the growth of the power plant maintenance market.
Other factors driving the global power plant maintenance market growth are increase in demand for gas turbine, steam turbines and other equipment along with focus on carbon emission reduction are fueling global power plant maintenance growth during the forecast period. Moreover, rise in concern from governments across the globe on increased global warming issues is expected to augment the demand for electric power, which fosters the growth of the power plant maintenance market.
The use of power plant maintenance such as monitoring & control, preventive/scheduled maintenance, and predictive maintenance to reduced cost of power plant as well as improve the life span of power plant is gaining traction. Moreover, surge in use of solar energy and growth in solar farm in developing nations are expected to generate electricity in an efficient way and offer optimistic opportunity for the global market growth during the forecast period.
During 2020-2021, the power plant maintenance market was moderately impacted due to the spread of pandemic, however, the market has gained momentum through investments post lockdowns owing to the presence of its beneficial features. Also, the major disruptions to travel, trade and economic activity brought about by the pandemic led to the decline of global carbon emission with huge international health crisis and widespread economic trauma. Since the outbreak in December 2019, the disease has spread to almost 213 countries around the globe with the World Health Organization declaring it a public health emergency on March 11, 2020.
The rise in demand for electricity from the energy sector to decarbonize and expand accessibility for the millions of people who still live without electricity, especially in low-income areas is expected to drive the global power market growth during the assessment period. Moreover, the resilience of the climate and power systems may be improved, and digital technology can guarantee that energy is delivered at the lowest cost which results in significant growth of power industry during the upcoming years. This power has been generated from various types of energy power plant, which include renewable energy, solar energy, thermal, geothermal, nuclear, solar, wind, hydropower, and other types of power plant.
To optimize and improve reliability condition, productivity, safety, and energy consumption of power plant, maintenance and services market plays a crucial role. For instance, thermal power provides about 50% of the world's electricity. Almost all reports on future energy supply from major organizations suggest increasing role for electric power as an environmentally benign way of producing reliable electricity on a large scale. In addition, rise in population, industrialization, and urbanization increased the demand for electricity, which in turn increases the demand for power plant maintenance, thus acting as the major factor driving the market growth.
The renewable fuels market is experiencing an increased demand worldwide. Government assistance has greatly influenced the demand for biomass-based fuels because biomass-based diesel combustion is less negative than crude oil-based diesel combustion. In India, the Union Budget 2022-23, the allocation for the Solar Energy Corporation of India (SECI), which is currently responsible for the development of the entire renewable energy sector, stood at US$132 million. Similarly, in the U.S., the investment tax credit (ITC) is earned when qualifying equipment, including solar hot water, photovoltaics, and small wind turbines, are placed into service.
The credit reduces installation costs and shortens the payback time of these technologies. The Consolidated Appropriations Act (2016) extended the ITC for three years, but Congress then passed a two-year delay in 2020. It is supposed to phase down to 10% in 2024 (from 26% in 2021). Aforementioned benefit initiatives from governing bodies encourage market growth for renewable fuels, and boost the growth of the power plant maintenance market during the forecast period.
Significant development by major key players across the globe is expected to have a positive impact on the growth of the power plant maintenance market during the forecast period. Several developing countries across the globe are implementing and expanding manufacturing lines with the aim to achieve the digitization of entire value chain – from design to production and maintenance and services of its power plant, which are expected to meet the increase in demand from the industrial sector. These further fuel the demand for power plant maintenance.
For instance, in 2022, RES is pleased to announce the signing of its first offshore maintenance contract in France with Ailes Marines (subsidiary of Iberdrola) and in partnership with VALEMO, for the maintenance and maintenance in operational conditions of the offshore electrical substation of the park of Saint-Brieuc. The strategic initiatives taken by major players in the global power plant maintenance market are expected to shift from moderate to high during the forecast period. Moreover, the increase in use of predictive maintenance services in the steam turbine, gas turbine, and boilers equipment is expected to offer lucrative opportunities for power plant maintenance market, thereby creating opportunities for key players in the global power plant maintenance market.
The power plant maintenance market forecast is segmented on the basis of power plant type, service, equipment, and region. On the basis of power plant type, it is segmented into thermal, nuclear, combined cycle, hydropower, renewable energy, and other type of energy.The other segment includes those type which are very help full in the power plant maintenance such as hydrogen, geothermal, and bioenergy sources. Bio-energy plays a very important role in power plant maintenance as it lowers the dependency on the non-renewable source of energy.
Geothermal energy accounts for a sizable portion of the demand for electricity in nations like Iceland, El Salvador, New Zealand, and Kenya, the geothermal energy source is reliant on the geographical areas. The future of geothermal energy will be shaped by worries about rising carbon emission levels and a transition to clean and sustainable energy sources. With emerging market and developing economies increasing their share of global nuclear output to about one-third, up from 29% in 2019, the expansion in 2021 pushes nuclear output to 8% over 2019 levels. Renewable energy type is further segmented into solar energy, wind energy, and other sources. According to the International Energy Agency, the overall capacity of renewable energy sources worldwide is expected to rise by 50% between 2019 and 2024.
On the basis of service, the market is classified into monitoring & control, preventive/scheduled maintenance, predictive maintenance, breakdown maintenance, and others. On the basis of equipment, steam turbine, gas turbine, wind turbine, boilers, generators, condenser, feedwater pump, and other equipment.
Region wise, the power plant maintenance market analysis is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest power plant maintenance market share, followed by North America and Europe. Asia-Pacific has emerged as a global leader in the power plant maintenance market industry, due to surge in electricity demand in the developing economies such as India, China, and Thailand, owing to decrease in dependency on conventional energy sources, including coal & crude oil, and increase in urbanization. In addition, development of rural electrification activities in countries such as India, China, & Thailand and rise in government initiatives to promote the use of renewable energy are anticipated to boost the growth of the global power plant maintenance market during the forecast period.
[POWERPLANTTYPEGRAPH]
The nuclear segment was the highest revenue contributor to the market, with $6,070.5 million in 2021, and is estimated to reach $10,077.3 million by 2031, with a CAGR of 5.1%.The nuclear power plant and equipment market is driven by increase in energy demand and generation for clean electricity across the globe. Countries look for clean and efficient ways, such as nuclear power to produce energy as the demand for energy continues to increase. Furthermore, technological advancements in nuclear power equipment have fueled the growth of the market. However, difficulty in management of nuclear waste that includes radioactive waste limits the market growth. Increase in reliability on nuclear energy by the countries in Asia-Pacific is expected to create lucrative opportunities for the growth of the market in the future.
[SERVICESGRAPH]
The predictive maintenance garnered 39.7% in terms of revenue in 2021 and expected to grow at a CAGR of 5.0% during the forecast period. The increase in use of predictive maintenance for the power plant maintenance is increasing in the power sector to enhance productivity and reduce costs of power plant, which in turn, is expected to fuel global power plant maintenance market growth over the forecast period.
[EQUIPMENTSGRAPH]
The gas turbine market is driven by increase in energy demand and increase in focus towards distributed power production technologies. As the demand for power continues to increase, government support for power generation technologies that minimize carbon dioxide (CO2) emissions around the world, the gas turbine market is anticipated to expand significantly over the projected period. Henceforth, increase in power production across the globe is expected to create lucrative opportunities for the growth of the market in the future.
[REGIONGRAPH]
Rise in industrialization in the region led to increase in the power generation infrastructural development, which in turn increased the demand for power plant maintenance. Thus, acting as the major driving factor for the market growth. In addition. However, rise in development in monitoring and control services in the developing countries, such as India will led to creating wide opportunities for the power plant maintenance market.
Russia’s invasion of Ukraine has disrupted global and European energy markets. The crisis could both push countries to expand nuclear power to reduce dependence on imported fuels but also complicate the use and expansion of nuclear power in Europe. Nuclear expansion has been discussed in France, the Czech Republic, the Netherlands, Poland, Romania and the UK, and Belgium extended the lifetime of two reactors set to be closed in 2025. Joe Biden, The U.S. President, met with Andrzej Duda, the president of Poland, shortly after the war broke out to establish a new nuclear power collaboration, which may be good news for the US nuclear industry.
The major companies profiled in this report include ABB Ltd, General Electric, Mitsubishi Electric, Siemen AG, ENEL S.P.A, RES Group, RWE, Engie Inc, Shell, and Emerson. Additional growth strategies such as expansion of production capacities, acquisition, partnership, and research & innovation in the solar energy application have led to the development in the global power plant maintenance market trends.
Key Market Segments
Key Market Players