Turbine Repair and Maintenance Industry Procurement Intelligence, Supplier Intelligence, Supplier Ranking, Pricing & Cost Structure Intelligence, Best Practices, Engagement Model, Low & Best Cost Country, Day One Analysis Report, 2020-2027

Procurement Outlook

Demand for power generation from renewable means of energy is ever increasing. One of the primary means of renewable energy generation is from wind and water turbines, apart from solar energy. Hence, the need for turbines to be operational during peak load periods is necessary. One of the methods to ensure efficient performance is through regular maintenance. Components that require maintenance periodically are turbines, compressors, exhaust chimney, gearbox, generator, and combustor.

Turbine repair services are a sub-category under MRO (maintenance, repair, and operations) market but it occupies a meager 12%-14% share in the overall MRO category.

Demand Outlook

The global turbine repair and maintenance market was estimated at USD 81.8 billion in 2020 and the market is projected to grow at a CAGR of 15.9%. While most of the markets suffered impacts (positive or negative) due to the outbreak of the COVID pandemic, the turbine repair services market was relatively unaffected due to the outbreak of the pandemic owing to the continuous operations of the existing turbines and the need for periodic maintenance. However, the first quarter of 2020 did see services stagnate in case of major breakdowns owing to transportation and supply chain breakdowns but by the second quarter of 2020, the market resumed normalcy with most of the countries classifying energy generation and associated work as essential tasks thereby removing restrictions related to the workforce.

Cost Drivers

Adoption of clean energy methods and a consistent shift to renewable power generation methods globally will aid the consumer market of turbines to thrive in the future. This will help the market for repairs grow proportionally. The market is not only dependent on new installations, but also uses the existing installed base of turbines. With such a focus on turbines and MRO services, the turbine repair and maintenance market is expected to witness significant technological upgrades during the period of forecast. This will help drive the market. While it directly does not help improve margins, it would aid in the overall revenue generation.

Constraints

The evolving nature of the end-user market makes it difficult to predict the changes that parts or components will go through in the future. As such, understanding future maintenance requirements or needs for replacement is difficult to predict.

MRO is seldom a core competency for a supplier. For example, ABB Ltd. is one of the leaders in the turbine repair services market, but ABB’s core competency lies in robotics, power and heavy electrical equipment, and power automation. The same is the case for most of the other key suppliers in this market. Hence, MRO functions are often segregated as a tertiary function by these suppliers. This results in limited focus and often low capability upgradation for the MRO functions. Hence, the suppliers may face a setback in case of the end-users step up their technology.

Supply Chain

The key service providers for turbine repair services industry are Vestas Wind Systems A/S, Siemens Gamesa Renewable Energy, GE, Stork, Moventas Gears Oy, ZF Friedrichshafen AG, ABB, Dana SAC, Nordex SE, Integrated Power Services LLC, Mistras Group, Suzlon Energy Ltd, etc. The market for turbine repair services are is comparatively consolidated. The market is dominated by suppliers which have a global spread. While there is the presence of localized players, their concentration is very low. This, being a capital-intensive market makes it difficult for new players to enter the market as well. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.