Gas Turbine Services Industry Overview
The global gas turbine services market size is expected to reach USD 55.1 billion by 2027, according to a new report by Grand View Research, Inc., registering a CAGR of 9.8% over the forecast period. The increasing adoption of gas turbines on account of their ability to produce low exhaust gas pollution is expected to drive market growth. These systems are increasingly being used owing to their tremendous energy-producing capacity and multiple fuel capability. They also have the capacity to operate continuously at baseload for numerous hours. Furthermore, low operational cost and high efficiency and durability offered by these systems is expected to drive gas turbine service market growth.
Gas Turbine Services Market Segmentation
Grand View Research has segmented the global gas turbine services market on the basis of turbine type, turbine capacity, service type, service provider, end-use, and region:
Based on the Turbine Type Insights, the market is segmented into heavy duty, industrial, aeroderivative.
Heavy duty turbines emerged as the largest segment, which accounted for a share of over 52.0% in the global market. It is also projected to witness the fastest growth rate over the forecast period.
The growth of the segment is mainly attributed to the wide application scope of these turbines in chemical plants, refineries, and power utilities.
Furthermore, heavy-duty turbines provide improved thermodynamic cycles and an optimized production process.
Advancements in technology have also enhanced the power output, efficiency, and environmental compatibility of these turbines. These factors are projected to drive the demand for heavy-duty turbine services over the forecast period.
Industrial turbines accounted for a share of more than 38.0% in 2019 and are projected to register the second-highest CAGR over the forecast period.
Positive trends regarding the development of key manufacturing sectors across the globe are supporting the growth potential for industrial gas turbine services. This is due to the development of both heavy and light industries, which is projected to increase the need for services for gas turbines.
Moreover, the growing population and rapid urbanization are creating an increased demand for electricity, which in turn drives the demand for industrial gas turbines and the subsequent need for services for these systems.
Based on the Turbine Capacity Insights, the market is segmented into <100 mw, 100 to 200 mw, >200 mw.
The >200 MW segment emerged as the largest segment with a share of over 39.0% in 2019. The development of the power generation sector along with an increased focus on generating electricity through sustainable energy resources is the major growth driver for this segment.
Growing urbanization has a significant impact on the development of the building and cement industries. The projected growth of these end-use industries is estimated to drive the demand for large and heavy-duty turbines.
The 100 to 200 MW segment accounted for the second-largest share in 2019. This is primarily attributed to the growth of end-use industries such as sugar mills, pharmaceuticals, oil and gas, plastic and resin manufacturing, glass manufacturing, and intermediate chemicals.
The growth of the <100 MW segment is primarily driven by the rise in aerospace activities and the increasing application scope of turbines in the oil and gas sector.
The smaller size of <100 MW turbines make them an ideal product for offshore locations where the power-to-weight ratio is an important parameter while determining which turbine unit would be the most suitable option.
Based on the Service Type Insights, the market is segmented into maintenance & repair, overhaul, spare parts supply.
Spare parts supply emerged as the largest service type segment, which accounted for a share of more than 63.0% of the global gas turbine services market in 2019.
The components of the gas turbine have a specific lifespan after which they require periodic replacement, thereby driving the growth of the segment.
Maintenance and repair activities are performed regularly in developed regions such as Europe and North America.
The rise in awareness regarding the benefits of periodic maintenance and development in data collection technologies are expected to drive the growth of this segment over the forecast period.
An overhaul is projected to be the second-fastest-growing segment in the global market from 2020 to 2027. Overhaul comprises the inspection, repair, replacement, and disassembly of subcomponents.
A gas turbine operates under harsh operating conditions which include corrosion, temperature, and stress. The power turbine and generator of the unit are exposed to high-temperature gases, along with vibration and thermal cycling which produce mechanical and thermal stress in turbine components.
Exposure to combustion gases results in the corrosion of the power turbine and gas generator units and therefore requires replacing after a certain interval. These factors are expected to drive the need for overhaul services over the forecast period.
Based on the Service Provider Insights, the market is segmented into oem, non-oem.
OEM dominated the service provider segment of the market in 2019. This dominance is mainly attributed to factors such as technological capability, wide geographical presence, skilled workforce, and brand value of original equipment manufacturers (OEMs).
OEMs have well-established R&D infrastructure as well as data management centers that enable them to observe the unit from remote locations to determine the accurate real-time health of the unit. OEMs also offer multiyear service agreements to buyers which cover a range of services.
OEMs generally offer multiyear agreements to buyers during new gas turbine installations. Most buyers prefer OEMs owing to their technological and service capabilities and opt for multiyear agreements, further enabling OEMs to consolidate their market position.
Furthermore, OEMs are aggressively expanding their presence by acquiring small-scale companies.
Non-OEMs service providers accounted for a market share of about 39.0% in 2019. They have a presence in price-sensitive markets such as India, China, and Thailand as consumers in emerging countries are shifting from OEMs to independent service providers to cut operational costs.
Based on the End-use Insights, the market is segmented into power generation, oil & gas, other industrial.
Power generation emerged as the largest end-use segment in the global market with a share of over 62.0% in 2019. The increasing need for electricity drives the demand for gas turbines in the power generation sector.
Key competitors are still skeptical regarding the demand for gas turbines in the power generation segment. Volatility in the prices of natural gas acts as a restraint for the growth of the market in this segment.
Factors such as growing population, rise in industrial activities, and increasing vehicle ownership ratio are leading to high demand for oil production.
This is projected to increase the application of gas turbines in the oil and gas industry, which faced a major challenge in the past owing to the drop in oil prices.
Gas Turbine Services Regional Outlook
North America
Europe
Asia Pacific
Commonwealth of Independent States
Central & South America
Middle East & Africa (MEA)
Key Companies Profile & Market Share Insights
The key players adopt strategies such as providing multiyear services contracts to existing and new power plant owners to further enhance their market position. Competition among key vendors is based on the performance and efficiency of their manufactured gas turbines as well as associated services provided by them to their customers.
Some prominent players in the global gas turbine services market include
General Electric
Siemens AG
Mitsubishi Hitachi Power Systems, Ltd. (MHPS)
MAN Energy Solutions
Kawasaki Heavy Industries, Ltd.
Ansaldo Energia S.p.A.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.