Global Industrial Gas Turbine MRO Market - 2022-2029

Market Overview

The global Industrial Gas Turbine MRO market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of 4.0% within the forecast period (2022-2029).

IGT are industrial gas turbines used in the industrial segment of oil and gas and marine, among others. IGT is further classified into the frame and aeroderivative segments. The IGT installations are done in various captive power plants for independent power production. The extensively held installations are used within the oil and gas industries. Oil and gas platforms require these engines to drive compressors to insert gas into the wells to force oil via another bore or to compress the gas for transport.

It is also often used to provide power for these industrial platforms. The platforms do not need to use the engine in partnership with a CHP system due to the gas's availability at an enormously lower cost. The same companies use pump sets to drive the fluids to land and across pipelines at various intervals.

However, many companies have also designed gas turbine engines, especially for oil and gas applications. For instance, in September 2017, Siemens introduced a gas turbine for the oil and gas industry. Using the joint skill from its acquisitions of Dresser-Rand and Rolls-Royce Energy business, Siemens launched the latest development of its gas turbine suite - the SGT-A35 RB. The entity manages the need for more cost-effective solutions for the offshore oil and gas industry by aggregating the power density of the topsides power generating equipment, thus reducing the required space claim.

The competition within the market, considering the design and installation of gas turbines implemented in oil and gas and other application, have also supported the growth of the industrial gas turbine MRO market during the forecast period.

Market Dynamics

Upgradation of aging gas turbines drives the industrial gas turbine MRO market.

Upgradation of aging gas turbines drives the industrial gas turbine MRO market

The gas turbine is a combustion turbine that burns natural gas to produce electrical energy. A gas turbine burns a 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 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, paving the way to improved performance and well-organized work.

The gas turbine market has been observing considerable growth in the number of plant establishments over the last few years. The 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, GE Power Introduced New DLN2.6+ Flex Upgrade Solution for 7F Gas Turbines in 2018.

Government authorities focusing on clean energy generation hamper the growth of the industrial gas turbine MRO market

Gas turbine power production is more environmentally friendly and efficient than coal and nuclear power production; it produces NOx and CO emissions as an outcome of power production. The power producers embrace renewable energy generation technologies to address the global climate change concern, which will adhere to the carbon neutrality goal of significant economies globally.

According to Dominion Energy, one of the renewable energy producers mentioned that solar panels are increasingly the cheapest source of electricity. For instance, solar panels can deliver power to 650 homes for one hour, one megawatt-hour in industry jargon at US$ 31 to US$ 111 a megawatt-hour, according to Lazard, the investment firm.

Relatively, natural gas peaking plants, which utilities can turn on and off quickly to meet surging demand, deliver power at US$ 122 to US$ 162 a megawatt-hour, which can turn on and off quickly to meet surging demand.

Thus, this makes solar power plants economically more viable than gas power plants. The factors mentioned above can limit the growth of the industrial gas turbine MRO market during the forecast period.

COVID-19 Impact Analysis

COVID-19 has also impacted the energy infrastructure investment segment along with other industries. Resulting of a small decline in 2019, global power spending fell to its lowest level in over a decade in 2020, according to a report released by International Energy Agency (IEA). According to IEA, 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 globally is set to decline in 2020 by 10% due to the COVID-19 pandemic. Power investment reflects ongoing capital expenditures on projects under construction. The decline as of now is predisposed not just by the new capacity additions and refurbishments expected this year but also spending on industrial and power production setups that would be delivered in the years ahead.

Segment Analysis

The global industrial gas turbine MRO market is segmented by service, engine type, end-user and region.

Increasing trends in gas turbine plants' digitalization allow significant opportunities for predictive maintenance methods to optimize engine performance

Based on service, the global industrial gas turbine MRO market is segmented into maintenance, repair and overhaul. The maintenance segment holds a bigger market share in the industrial gas turbine MRO market. Maintenance of gas turbine air inlet systems is performed to enhance environmental profitability.

Increasing trends in gas turbine plants' digitalization allow a significant opportunity for predictive maintenance methods to optimize engine performance. Digital techniques are being used extensively to detect anomalies, prevent failures and encourage preventive maintenance activities in gas turbines.

Critical planning of historical engine performance against air quality metrics and ambient weather conditions allows significant progress toward proper predictive maintenance by better understanding the turbine air inlet and compressor section. It allows for increasingly accurate predictions of future engine degradation due to air inlet pressure drop and compressor degradation to reliability useful for scheduling future maintenance needs.

An economic optimization can then be performed by balancing the costs of the two engine degradation modes and the corrective actions that can be taken; namely air inlet pressure drop against filter replacement interval and compressor degradation against compressor soak wash interval.

Geographical Analysis

The industrial gas turbine MRO services advancements in the power sector in Asia-Pacific are regarded as one of the fastest-growing sectors globally during the forecast period

As per the International Energy Agency (IEA), emerging economies in Asia accounted for two-thirds of the global energy growth in 2017. Its growth is attributed to the sturdy surge in requirement for energy and the speedy capability developments in the power sector; the power plant service activities in the region continue to augment during the forecast period.

Asia-Pacific is observing a significant evolution from nuclear and coal-based power generation to gas-fired power generation to align with Paris Climate Change Agreement criteria, which is anticipated to bring about a remarkable market opportunity for the growth of the gas turbine maintenance, repair and overhaul services market in Asia-Pacific.

Moreover, factors like aging power setup are likely to augment the power demand further. The industrial gas turbine MRO services advancements in the power sector in Asia-Pacific are regarded as one of the fastest-growing sectors globally during the forecast period.

Competitive Landscape

The global industrial gas turbine MRO market is highly competitive with local and global key players. The key players contributing to the market's growth are General Electric Co, Fluor Corporation, TGM Turbinas (now WEG SA), Wartsila, Siemens AG, Mechanical Dynamics & Analysis LLC, Mitsubishi Heavy Industries, Ltd, Bechtel Corporation, Wood Group PLC, Sulzer Corporation, STORK, Shanghai Electric among others.

The major companies are adopting several growth strategies, such as product launches, acquisitions and collaborations, contributing to the global growth of the industrial gas turbine MRO market.

• 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. Its 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.
• On November 12, 2020, GE offered additional repair services to PT GE Nusantara plant by building turbine blade competence within the plant and increasing the overall center capacity of the plant's electricity generation.

Wartsila

Overview: Wartsila provides smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasizing ecological innovation, total efficiency and data analytics, Wartsila makes the most of the environmental and economic performance of the containers and power plants of its customers. The company spreads over 200 locations in more than 80 countries globally.

Product Portfolio: Wartsila Power plant lifecycle upgrade: Wartsila provides lifetime services for the upkeep, repair and overhaul. It provides solutions bearing on business power production obligations because of a deterioration in plant output or if the facility plant isn't cheap enough because of high production prices.

It detects the matter within the power output of the plant by pairing the plant's as-

• The cooling system
• The equipment, fuel sort or quality
• The lubrication oil system, oil sort or quality
• The charge air system
• The electrical and automation systems.

Key Development

• On March 12, 2019, Wartsila will provide service facilities to the 145 MW Kyaukse gas engine power plant in the Mandalay region, Myanmar, catering to its availability guarantees and other obligations through a 5-year Operation maintenance agreement. The contract was signed with the plant owners, namely PowerGen Kyaukse Co. Ltd., in February 2019 and the order was booked in Q1 2019.

Why Purchase the Report?

• Visualize the global industrial gas turbine MRO market segmentation by service, engine type, end-user and region, highlighting key commercial assets and players.
• Identify commercial opportunities in the industrial gas turbine MRO market by analyzing trends and co-development deals.
• Excel data sheet with thousands of global industrial gas turbine MRO market-level 4/5 segmentation points.
• PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players

The global industrial gas turbine MRO market report would provide approximately 61 market data tables,63 figures and 211 pages.

Target Audience 2022

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