North America Gas Turbine MRO Market in Power Sector - Growth, Trends, and Forecasts (2020-2025)

The North America gas turbine MRO market in power sector is expected to grow at a CAGR of over 3% during the forecast period of 2020-2025. Factors such as an aging fleet of gas turbines, need to maintain operational efficiency and stringent emissions norms from power plants are expected to be major drivers driving the market. The rising demand for cleaner energy from gas turbines over concerns of the environmental impact of energy generation from coal-fired plants is expected to help grow the North America gas turbine MRO market. However, increasing shift towards renewable energies such as solar and wind for power generation, lack of retention of skilled labor and increased durability of modern gas turbines have somewhat hampered the growth of the market.

• Maintenance sector is expected to dominate the market in the forecast period, owing to various factors such as the growth of aviation industry in the region, increase in power generation from gas-based plants due to rising concerns over greenhouse gases emissions, maintaining the efficiency of the turbine and stringent emissions norms on power plants.
• The increasing demand for electrical energy to sustain global development requires consistent heavy investments in power supply generation. This has helped the market for gas turbines MRO grow significantly in recent and is expected to do so in forecast period.
• United States is expected to dominate the market, owing to the factors like economic growth, growth of aviation industry, increase in number of gas based power generation plant, and aging gas based power plants.

Key Market Trends

Maintenance Sector to Dominate the Market

• The increase in the production of natural gas has shifted the global focus on the development of gas-fired power plants. The greenhouse gases emitted from gas-fired power plants are comparatively lower than that emitted from coal-fired power plants. Moreover, the demand for peak power is increasing globally, which can be most effectively met by gas-based power generation.
• The increase in a number of gas-based power generation plants leads to growth in the gas turbine MRO market, while a gas turbine might need an engine repair or replacement in 4-5 years, the maintenance starts soon after installation.
• North America holds over 35% of the global revenue passenger kilometers in airplanes, with significant growth in recent years, and the United States leading the region with a big share. This increase in the aviation industry goes hand in hand with the gas turbine MRO industry.
• Furthermore, the electricity demand is expected to increase in the future fueled by the electrification of the automobile. Several countries have adopted targets of phasing out the sale of passenger cars running on fossils. Electricity generation from gas in the region grew from 1122.5 TWh in 2008 to 1833.9 TWh in 2018, registering a growth of over 63%.
• Therefore, factors such as increased access to electricity, rise in number of electric vehicles, and increased concerns over greenhouse gas emissions from coal based power plants, are expected to help drive the gas turbine market in power sector, which in turn is expected to drive the North America gas turbine maintenance market.

United States to Dominate the Market

• The United States is expected to maintain its dominance in the region in the forecast period, due to an increase in energy demand, and natural gas usage in the region. There has been a major increase in the use of gas for power generation in the region, aiming at reducing greenhouse gas emissions.
• With the rising pollution concerns due to industrialization in the country, the shift towards clean energy generation from gas turbines has gained considerable momentum. Electricity generation from gas in the United States grew from 949.4 TWh in 2008 to 1578.5 TWh in 2018, registering a growth of over 66% in just a decade.
• The country’s aviation industry is also on the rise, with 1717.1 billion Revenue Passenger Kilometers flown in domestic and international sector in 2008, and with a growth of over 41% reaching 2428 billion Revenue Passenger Kilometers flown in the domestic and international sector in 2018. This has created a huge market for gas turbine MRO market in the country as almost all of the modern airplanes use gas turbines for motive power for jet propulsion.
• Therefore, the aforementioned factors are expected to drive the market in forecast period, similar to the trend witnessed in recent years.

Competitive Landscape

The North America gas turbine MRO market in power sector is partially consolidated with major players holding a big share of the market. Some of the major companies are General Electric, Siemens AG, Mitsubishi Heavy Industries Ltd, Rolls-Royce Holding PLC, and John Wood Group PLC among others.

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