North America Gas Turbine Mro Market In The Power Sector - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

North America Gas Turbine Mro Market In The Power Sector - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The North American gas turbine MRO market in the power sector is expected to register a CAGR of more than 3% during the forecast period, 2022–2027. The COVID-19 pandemic did not have much impact on the market, owing to the fact that electricity production and associated maintenance count as essential services. However, repair and maintenance works, which were not essential, were postponed due to restrictions on the traveling of personnel, thus affecting the market slightly. Factors such as an aging fleet of gas turbines, the need to maintain operational efficiency, and stringent emissions norms from power plants are expected to be the major drivers of the market. However, an increasing shift towards renewable energy sources such as solar and wind for power generation, lack of retention of skilled labor, and increased durability of modern gas turbines may restrain the growth of the market during the forecast period.

Key Highlights

• The maintenance sector is expected to dominate the market during the forecast period, owing to an increase in the number of gas-powered power plants, aging existing power plants, and rising concerns over greenhouse gas emissions.
• The increasing demand for electrical energy to sustain regional development requires heavy investments consistently in power supply generation. These investments result in capacity enhancement, reduction of emission, and better efficiency. As the region is going towards net-zero emissions, several opportunities are likely to come to the players involved in the market soon.
• United States is expected to dominate the North American gas turbine MRO market in the power sector during the forecast period.

Key Market TrendsMaintenance Service Type Segment to Dominate the Market

• The increase in the production of natural gas has shifted the focus on the development of gas-fired power plants. The greenhouse gases emitted from gas-fired power plants are comparatively lower than those emitted from coal-fired power plants. Moreover, the demand for peak power is increasing, which can be most effectively met by gas-based power generation.
• Moreover, the natural gas-based power generation increased to a greater extent, reaching almost 44.32% of energy generation capacity in 2020 in North America. Due to clean fuel properties, its demand is growing in almost every major country. But only deploying gas turbines does not guarantee any flexibility in operations for the long term, and here, MRO services come into the picture. Thus, many countries have started using maintenance services, either at the beginning of the plant commencement or after crossing a certain period.
• In February 2021, PIC Group Inc. signed an operation and maintenance agreement for the Hummel Power Station, a subsidiary of LS Power Group, in Shamokin Dam, Pennsylvania. The Hummel Station is a 3x1 combined-cycle facility rate at 1124 MW, equipped with three SGT6-5000F gas turbines.
• In April 2020, the US power sector operations and maintenance firm EthosEnergy was awarded a contract to handle long-term service and repair needs for the gas turbine at a Japanese Maruzen PetroChemicals facility.​ Therefore, the existing fleet as well the recently commissioned fleet of gas turbines across the world are expected to act as major drivers for the maintenance segment during the forecast period.​
• Thus, based on the above-mentioned factors, the maintenance service type segment is likely to dominate the market during the forecast period.

United States to Dominate in the Market

• The US market is driven by the aging fleet of coal-based power plants and their subsequent replacement with gas-based power plants to reduce greenhouse gas emissions. Also, the development of new natural gas power plants and combined heat and power (CHP) plants are expected to drive the gas turbine MRO services market in the country.​​
• The majority of the coal-based power plants in United States became operational between 1960 and 1990. As of September 2021, 212 GW of utility-scale coal-fired electric-generating capacity was operating in United States, most of which were built in the 1970s and 1980s, with the average operating coal-fired generating unit in United States being 45 years old.​
• According to Energy Information Agency (EIA), around 59 GW of the coal-fired capacity is currently operating in United States and is expected to be retired by 2035. The increasing retirement of coal-based power plants has paved the way for increasing investments in gas-based power plants, which also require significant MRO services. ​
• United States power generating capacity addition of natural gas-fired combined-cycle (NGCC) power plants in 2020 was over 9.3 GW, in which combined-cycle plants account for 6.7 GW and combustion-turbine plants account for 2.3 GW. Total capacity for generating power in United States across all-natural gas-fired generating technologies surpassed coal as the primary capacity resource more than 15 years ago.​
• Therefore, based on the above-mentioned factors, United States is likely to dominate the North American gas turbine MRO market in the power sector during the forecast period.

Competitive Landscape

The North American gas turbine MRO market in the power sector is partially consolidated, with major players holding a big share of the market. Some of the major companies include General Electric Company, Siemens Energy AG, Mitsubishi Heavy Industries Ltd, Fluor Corporation, and Power Services Group.

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• The market estimate (ME) sheet in Excel format
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