Steam Turbine MRO Market Analysis by Plant Fuel (Coal, Natural Gas, and Nuclear); by Capacity (Less than 300 MW, 300 MW to 599 MW, and 600 MW and Above); by Service Provider (Original Equipment Manufacturers, Independent Service Providers, and In-House) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 3326 | Published Date: Apr 28, 2023
Steam Turbine MRO Market size is estimated to reach ~USD 31 billion by the end of 2035 by growing at a CAGR of ~3% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of steam turbine MRO was ~USD 22 billion. The growth of the market can be attributed to the increasing thermal plant constructions across the world. Also, the replacement or repair of old and aging thermal plants is estimated to propel market growth. The rising need for thermal energy in many nations around the world is expected to hike the market growth during the forecast period. The generated electricity from geothermal plants is estimated to raise from 15 billion kWh in 2021 to 45 billion kWh by 2050.
Additionally, rising internal issues, repairs, and maintenance need for steam turbine plants all around the world is estimated to propel the market growth. The increasing regulations on greenhouse gas emissions are estimated to rise the steam turbine plants which are expected to rise the opportunities for market growth. The rising dependency on coal-fired plants for energy to promote renewable resources is estimated to hike market growth. As per estimations in 2020, more than 30% of electricity across the world was generated from coal sources with 8700 TWh.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~3% |
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Base Year Market Size (2022) |
~ USD 22 Billion |
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Forecast Year Market Size (2035) |
~ USD 31 Billion |
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Regional Scope |
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Growth Drivers
The rising population across the world is propelling the need for power generation which increases the demand for steam plants. The increasing use of power by many households and other electronic appliances in and out of the homes by many people is driving the power consumption rate around the world. The demand for electricity across the world increase by ~2% every year and is estimated to rise by 50% by the end of 2050.
Challenges
The global steam turbine MRO market is segmented and analyzed for demand and supply by plant fuel into coal, natural gas, and nuclear. Out of the three types, the natural gas segment is estimated to gain the largest market share of about ~38% in the year 2035. The growth of the segment can be attributed to the rising adoption of sustainable energy production. The increasing concern about greenhouse emissions across the world is expected to fuel market growth in the coming years. Also, the escalating use of natural gas for power generation is fueling the growth of the market. The applications of natural gas turbines for water heating in industries are propelling the market segment growth. The rising oil and gas industry is estimated to increase the use of small steam turbines fueling the market growth. The worldwide oil and gas industry was estimated to increase from USD 7000 billion in 2022 to USD 7300 billion in 2023 as per the reports.
The market is also segmented and analyzed for demand and supply by the service provider into original equipment manufacturers, independent service providers, and in-house. Amongst these three segments, the original equipment manufacturers segment is expected to garner a significant share of around ~46% in the year 2035. The growth of the market segment is attributed to the long-term agreements made with original equipment manufacturers (OEMs) and power producers. The high knowledge of the OEMs as they develop the equipment part by part is estimated to hike the market segment growth. The OEMs have more concentration on business-to-business sales rather than other general public is expected to propel the market segment growth. The quick response and less time to identify and repair any damage are also anticipated to hike the growth of the market segment. The availability and use of original parts for a good value are projected to have a positive impact on the market segment growth.
Our in-depth analysis of the global steam turbine MRO market includes the following segments:
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By Plant Fuel |
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By Capacity |
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By Service Provider |
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The market share of steam turbine MRO in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~33% by the end of 2035. The growth of the market can be attributed majorly to the growing number of steam turbines across the region. The growing applications in combined heat and power systems are also estimated to propel the market growth. The increasing use of steam turbines is attributed to the fact that the by-product of steam turbines generates electricity which increases the efficiency and benefits high electricity consumption of the region thereby it is estimated to propel the market growth during the forecast period. The worldwide steam turbine sector was worth more than USD 16 billion in 2021 and is expected to increase to USD 17 billion in 2022. The increasing preference for renewable energy sources across the region with rising government policies to reduce carbon footprint is estimated to hike the market growth in the coming years. The increasing structural deterioration of steam turbines with high-strain cycles owing to long working hours is estimated to drive the market growth of steam turbine MRO. The occurrence of corrosion caused by the mechanical load during the service period owing to environmental changes is also estimated to fuel the growth of the market.
The Asia Pacific steam turbine MRO market is estimated to be the second largest, registering a share of about ~26% by the end of 2035. The growth of the market can be attributed majorly to the increasing presence of thermal coal plants across the region. Also, the loosening of bearings and blockage of nozzles over some time is driving the market growth in the coming years as per the market analysis. The rising adoption of combined cycle natural gas plants for energy sources in the region is anticipated to promote market growth in the coming years. Further, the preference for renewable sources of energy production among people and the government to develop a clean future for the upcoming generations of the region is also expected to have a huge positive impact on the growth of the market. The shift from coal plants to steam plants to decrease the release of carbon gas emissions in the region is estimated to hike the market growth during the forecast period.
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the rising upgradation of systems to enhance power energy capacity and the performance of turbines in the region is estimated to have a positive impact on market growth. Other growth opportunities of the market in the region are estimated to be exposed to high-pressure environments and higher temperatures. The research and development to invent new technological projects to reduce investment costs are also driving the market growth. Wear and tear damages caused due to corrosion and aging of the steam turbines are estimated to propel the market growth during the forecast period. Breakage of shafts and blades owing to rapid rotations in conditions of high workload is estimated to cease the working of steam turbines which rises the demand for market growth. The increasing applications of steam turbines in wind power and hydropower stations to generate electricity in the region are anticipated to hike the market growth.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Payel Roy, Dhruv Bhatia
Ans: The major growth drivers for the market are the growing potential of thermal energy in emerging nations, and rapid industrialization and urbanization.
Ans: The market size of steam turbine MRO is anticipated to attain a CAGR of ~3% over the forecast period, i.e., 2023 – 2035.
Ans: High maintenance and repair costs of steam turbines are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are GENERAL ELECTRIC COMPANY, HYUNDAI HEAVY INDUSTRIES TURBOMACHINERY Co., Ltd., Mitsubishi Power, Ltd., Ansaldo Energia S.p.A., Elliott Group, others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by plant fuel, capacity, service provider, and by region.
Ans:
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