Gas Turbine Services Market Size was valued at USD 19.2 Billion in 2022. The gas turbine services market industry is projected to grow from USD 20.6 Billion in 2023 to USD 37.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.63% during the forecast period (2023 - 2032). Increase in multi-year service contracts and growth in combined cycle power plant construction are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The increase in natural gas use in electricity generation is driving the market CAGR for gas turbine services. Electricity generation is the process of producing energy via the use of various technologies. Natural gas is utilised in natural gas power plants to generate electricity. In all-natural gas plants, a gas turbine is used. The turbine is injected with natural gas and air, which burns and expands to generate electricity by turning a generator and a magnet.
For instance, According to a report released by the Energy Information Administration, a US-based Federal Statistical System responsible for collecting, analysing, and disseminating energy information, in 2021, the electric power sector accounted for approximately 37% of total US natural gas consumption, while natural gas provided approximately 32% of the main energy consumption of the US electric power sector. As a result, a growth in natural gas use in electricity generation is predicted to drive the gas turbines industry.
Furthermore, electricity demand is skyrocketing due to expanding urbanisation and industrialisation, as well as increased infrastructure development and smart home construction activities around the world. To meet these demands, both the public and private sectors are building new power plants or extending the capacity of existing ones, which is leading to an increase in the use of gas turbines in these power plants because they are less hazardous. These trends indicate that the Gas Turbine Services Market will be profitable between 2022 and 2032.
The gas turbine services market segmentation, based on type includes heavy duty, industrial, aeroderivative. Heavy-duty category emerged as the largest and most important product segment, accounting for more than 51.0% of the market in 2022, and are expected to grow at the fastest rate over the forecast period. The segment's expansion is mostly owing to the turbine's wide range of applications in chemical plants, refineries, and power utilities. Heavy-duty turbines also enable enhanced thermodynamic cycles and optimized manufacturing processes.
The gas turbine services market segmentation, based on service type, includes maintenance & repair, overhaul, spare parts supply. Spare parts supply category emerged as the largest service type segment, accounting for more than 64.0% of worldwide revenue in 2022 and predicted to account for a leading proportion over the forecast period. The expansion of the segment is due to the fact that the components used in a gas turbine have a certain lifespan after which they must be replaced. Maintenance and repair emerged as the second-largest segment.
The gas turbine services market segmentation, based on end-user includes power generation, oil & gas and others. In 2022, power generation category will be the largest end-user segment, accounting for more than 67.0% of sales. population growth and rapid urbanisation are increasing demand for power generation, which is pushing the use of gas turbines in the power generation sector. Over the projection period, product demand in the power generating application is expected to grow at a substantial CAGR.
Figure 1: Gas Turbine Services Market, by Distribution Channel, 2022 & 2032(USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America is expected to be the dominant market in the Gas Turbine Services Market due to the largest number of surviving and elderly gas turbine fleets in the United States and Canada. This region also has a high number of ongoing service rules for gas turbine services.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: Gas Turbine Services Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s gas turbine services market accounts for the second-largest market share due in major part to a switch from coal-fired power generation to natural gas-fired power generation. Further, the German gas turbine services market held the largest market share, and the UK gas turbine services market was the fastest growing market in the European region
The Asia-Pacific Gas Turbine Services Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to increase in establishment of petrochemical industries in this region and usage of acetone in chemical and plastic industries. Moreover, China’s gas turbine services market held the largest market share, and the Indian gas turbine services market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in R&D to expand their product lines, which will help the gas turbine services market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, gas turbine services industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the gas turbine services industry to benefit clients and increase the market sector. In recent years, the gas turbine services industry has offered some of the most significant advantages to medicine. Major players in the gas turbine services market, including Shanghai Electric Group Co Ltd (China), MAN SE (Germany), MJB International Limited LLC (Dubai), MTU Aero Engines AG (German), Proenergy Services (US) and others, are attempting to increase market demand by investing in R&D operations.
Caterpillar Inc. is an American producer of construction equipment. The firm is the world's largest maker of construction equipment. Caterpillar was placed number 65 on the Fortune 500 list in 2018 and number 238 on the Fortune 500 list. Caterpillar stock is a component of the Dow Jones Industrial Average. Caterpillar Inc. traces its roots back to the 1925 merger of the Holt Manufacturing Company and the C. L. Best Tractor Company, which resulted in the formation of the California-based Caterpillar Tractor Company. Caterpillar Inc. was formed as a Delaware corporation in 1986. In June 2022, Caterpillar Inc. announced intentions to relocate its worldwide headquarters from Deerfield, Illinois, to Irving, Texas, commencing later this year, citing "the company's best strategic interest."
Siemens is a German multinational conglomerate and Europe's largest industrial manufacturing firm. Its headquarters are in Munich, and it has a number of foreign branch offices. The company's primary divisions are Digital Industries, Smart Infrastructure, Mobility, Healthcare (named Siemens Healthineers), and Financial Services. The firm is a notable manufacturer of medical diagnostics equipment; its medical health-care segment, which accounts for around 12% of total revenues, is the corporation's second-most lucrative unit after the industrial automation division. It is considered as a pioneer in this field and the corporation with the largest revenue in the world. In April 2020, Siemens Energy was formed as a separate company from Siemens' energy division. The new Siemens Energy AG's shares are planned to be available for trading on the stock exchange on September 28th.
In December 2019:Â After signing a memorandum of understanding with Serbia's Economy Ministry, MTU declared that Serbia would be a centre for aircraft engine maintenance; a new facility will be created in the northern town of Stara Pazova, near Belgrade. Other locations owned by the corporation include Rocky Hill, Connecticut; Vancouver, British Columbia; RzeszĂłw, Poland; Zhu Hai, China; and Dallas, Texas.
In February 2022:Â The Mexican ComisiĂłn Federal de Electricidad (CFE) awarded a contract to a consortium formed by the Spanish businesses TĂ©cnicas Reunidas and TSK for the design and construction of combined cycle facilities in Valladolid and MĂ©rida. These facilities are expected to have a combined capacity of 1,000 MW and 500 MW.
In April 2022:Â Edra Energy's 2.2 GW combined cycle power station in Alor Gajah, Malacca, Malaysia, is Malaysia's largest gas-based power plant. The new plant is made up of three generating blocks, each of which has a GE 9HA.02 gas turbine, an STF-D650 steam turbine, a W88 generator, and a Heat Recovery Steam Generator (HRSG).
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 19.2 Billion |
| Market Size 2023 | USD 20.6 Billion |
| Market Size 2032 | USD 37.2 Billion |
| Compound Annual Growth Rate (CAGR) | 7.63% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Service Type, End-User, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Â General Electric (US), Siemens AG (Germany), Mitsubishi Heavy Industries Ltd (Japan), Caterpillar inc. (US), Sulzer Ltd. (Switzerland). Ansaldo Energia (Italy), EthosEnergy (US). Kawasaki Heavv Industries Ltd (Japan), Shanghai Electric Group Co Ltd (China), MAN SE (Germany), MJB International Limited LLC (Dubai), MTU Aero Engines AG (German), Proenergy Services (US). |
| Key Market Opportunities | · Potential for improved sustainability in the transportation fuel sector. |
| Key Market Dynamics | · Increasing demand for environmentally friendly fuel The availability of fossil fuels is rapidly diminishing. |
Gas Turbine Services Market Highlights:
Frequently Asked Questions (FAQ) :
The gas turbine services market size was valued at USD 19.2 Billion in 2022.
The market is projected to grow at a CAGR of 7.63% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are Shanghai Electric Group Co Ltd (China), MAN SE (Germany), MJB International Limited LLC (Dubai), MTU Aero Engines AG (German), Proenergy Services (US).
The power generation category dominated the market in 2022.
The Spare parts supply had the largest share of the market.
Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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