The global gas turbine service market size was valued at USD 23.9 billion in 2017 and is likely to expand at a CAGR of 8.5% during the forecast period. This growth can be attributed to increasing number of product installations and demand for electricity. This is also triggering the power generation market and improving focus on developing clean sources of energy.
Service providers in the market are focusing on regulation-driven, innovative, and latest technologies, which is reshaping the gas turbine service market. Service in the form of maintenance, repair, overhaul, and spare parts replacement requires technological capability as well as the skilled and well-informed workforce. Use of data management techniques such as asset management and predictive analytics, along with development in sensing and simulation-based techniques, is enabling service providers to observe real-time unit health remotely.
Emerging countries in the Asia Pacific are projected to be the biggest demand driver for the power generation market. Power consumption in emerging markets is estimated to witness an annual growth rate of 3.7% during the forecast period. Over the next few years, renewable-based energy generation is expected to reach around 50% in Europe, 25% in North America, 25% in India, and 30% in China. Growing emphasis for power generation through environment-friendly sources are developing the gas turbine demand which is further projected to drive the gas turbine service market.
In gas turbine service market, key service providers are looking to increase their market share and customer base by entering into these emerging markets. They are also focusing on improving product performance and maintenance to differentiate their products and services from others. These are several important factors projected to increase market competition, especially in emerging economies of Asia Pacific, the Middle East and Africa, and Central and South America.
Heavy-duty turbines emerged as the largest segment by type in 2017 in the global market. Technological developments in various fields such as aerodynamics, metallurgy, combustion, and cooling are expected to widen the application scope of the product and increase its growth prospects over the coming years.
Improved thermodynamic cycles, optimized production process, and standardization are enabling manufacturers to increase power output, efficiency, and environmental compatibility of these turbines and reduce the installation and maintenance costs. This is projected to drive the segment at the fastest growth rate over the forecast period.
Aeroderivative gas turbines occupy lesser area compared to other variants. Thus, they are considered as an ideal product in applications where space availability is a major concern. These use advanced materials and are specifically designed for lightweight and small-scale applications. They are also designed for quick replacement and removal and thus enable reduced downtimes and easy maintenance.
The 100 to 200 MW segment emerged as the second-largest in the gas turbine service with a share of more than 35.0% in 2017. The segment is projected to gain greater market share at the highest CAGR over the forecast period. This growth is attributed to rapidly expanding end-use industries such as sugar mills, pharmaceuticals, oil and gas, plastic and resins manufacturing, glass manufacturing, and intermediate chemicals production.
Growing population and rapid urbanization, primarily in the emerging countries of Asia Pacific, are key demand drivers for large and heavy duty turbines. Apart from power generation, they are also widely utilized in heavy industries and cement manufacturing.
The <100 MW turbine segment accounted for more than 23.0% of the global market in 2017. The smaller size of these variants provides ease of maintenance and operation, which is a major driving factor. It is considered as an ideal product for offshore locations where the power to weight ratio is an important parameter while establishing a turbine unit. They are widely used in the oil and gas industry owing to their compatibility with varied operating settings and environmental conditions.
A positive outlook toward key end-use industries for small gas turbines is likely to provide a substantial growth opportunity for this segment over the coming years. The segment is projected to witness higher demand in Organization of the Petroleum Exporting Countries (OPEC) owing to their oil-based economies.
Power generation emerged as the largest end-use segment in 2017. The segment is projected to experience growth in demand owing to rising need for electricity across the globe. Gas turbines are widely utilized to meet various power needs consisting propulsion (trains, aircraft, ships), direct drive (compressor and pumps), along with stationary electricity generation. The development of distributed power generation is a significant factor that is contributing toward the growth of this market.
Gas turbines are witnessing increased demand in the industrial sector owing to the presence of stringent emission norms. No recession is predicted in the next decade, thereby indicating rapid industrialization across the globe. Low prices of natural gas also have a positive impact on product demand in industrial applications. Rising industrial activities around the world are projected to boost market development over the coming years. The gas turbine maintenance market is anticipated to register the fastest growth rate over the coming years owing to the increasing number of gas turbine installation across the globe.
Major maintenance and repair activities such as standby inspection (such as servicing of relays and battery systems), running inspection, and combustion inspection (inspection of fuel nozzles and combustion liners) are performed at different intervals, based on factors like operating hours and fuel. Maintenance and repair are anticipated to be the fastest-growing segment during the forecast period due to growing awareness about improving lifespan and efficiency of the product units.
Rising focus on the reliable and efficient operation of the gas turbine is developing the demand for periodic maintenance which is anticipated to develop the gas turbine maintenance market over the coming years. Spare parts supply emerged as the largest segment in 2017. The segment is projected to witness higher demand over the coming years owing to increased capacity and better operating hours.
Gas turbine components have a limited lifespan after which they need to be replaced, which generates the need for periodic replacement. To ensure reliable operation along with reduced break-down time, unit operators prefer replacement of parts at proper intervals. This is likely to provide significant growth potential for suppliers of spare parts over the coming years.
Original equipment manufacturers (OEM) emerged as the dominant segment in the market in 2017. Demand is attributed to factors such as higher technological and financial capabilities, broad geographical presence, skilled workforce, and brand value of OEMs. OEMs such as General Electric, Ansaldo Energia, Kawasaki Heavy Industries, Ltd., Siemens AG, and Mitsubishi Hitachi Power Systems, Ltd. (MHPS) held a share of more than 70.0% in the overall market as of 2017.
A gas turbine is a technologically intensive product that requires sound understanding and robust technical capabilities for proper maintenance and smooth operation. However, in several price-sensitive markets, a less expensive service package has the ability to shift buyers’ focus from OEMs to non-OEMs for aftersales services.
For non-OEMs, price-sensitive countries such as India, China, Thailand, Oman, and Ghana have emerged as the most lucrative markets owing to certain trends that signify consumer shift from OEM to independent service providers. However, the growth rate of non-OEMs is projected to be less than that of OEMs as most global OEMs are aggressively acquiring non-OEMs in an attempt to expand their operations and reduce competition in the market.
The Asia Pacific was the largest regional market in 2017. The region is projected to witness higher demand over the coming years owing to rapid urbanization, rising focus on developing clean energy sources, industrial growth, and increase in population. These factors are projected to trigger the requirements for power generation, which, in turn, is estimated to drive regional growth over the coming years.
North America, led by U.S., Mexico, and Canada, emerged as the fastest-growing region in 2017. Presence of prominent OEMs and non-OEMs, proper infrastructure for electricity transmission, and sufficient shale gas reserves have emerged as primary driving factors for the North America market.
Key companies in this market include global OEMs such as GE Power, Siemens, and Kawasaki. They are aggressively acquiring regional manufacturers and service providers, which is making the industry more concentrated in nature.
These companies are using strong metals in the manufacturing to ensure smooth and reliable operations, thereby driving the growth of the industry. Service providers are extensively focusing on using data management through sensing technologies, which enables them to understand unit conditions more accurately.
Industry players are heavily focusing on emerging countries of Asia Pacific, where electricity demand is projected to grow at the fastest rate. China and India are estimated to emerge as the biggest demand drivers for the power generation market, which is attracting gas turbine service providers.
Sensing technology emerged as the most significant driver for the service sector as it enables providers to collect data and monitor the system remotely. Use of simulation-based study techniques intended to detect defects at an early stage is resulting in a rise in output and reduction in maintenance cost.
Base Year for Estimation
Actual Estimates/Historical Data
2014 - 2016
2018 - 2025
Revenue in USD Million and CAGR from 2018 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa, Commonwealth of Independent States
U.S., Mexico, Canada, Germany, U.K., France, China, India, Japan, Indonesia, Malaysia, Vietnam, Bangladesh, Pakistan,Singapore, Thailand, Iraq, Lebanon,Oman, Qatar, UAE, Kuwait,Algeria,Tunisia,Ghana,South Africa,Russia,Ukraine,Turkey,Turkmenistan,Kazakhstan,Azerbaijan, Brazil, Uzbekistan
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global gas turbine service market report on the basis of turbine type, turbine capacity, service type, service provider, end use, and region.
Turbine Type Outlook (Revenue, USD Million, 2014 - 2025)
Turbine Capacity Outlook (Revenue, USD Million, 2014 - 2025)
100 to 200 MW
Service Type Outlook (Revenue, USD Million, 2014 - 2025)
Maintenance & Repair
Spare parts supply
Service Provider Outlook (Revenue, USD Million, 2014 - 2025)
End-Use Outlook (Revenue, USD Million, 2014 - 2025)
Oil & Gas
Regional Outlook (Volume, Million Tons; Revenue, USD Million, 2014 - 2025)
The Commonwealth of Independent States
Central & South America
Middle East & Africa
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