Global Steam Turbine MRO Market 2024–2033

Reports Description

As per the current market research conducted by CMI Team, the global Steam Turbine MRO Market is expected to record a CAGR of 5.6% from 2023 to 2032. In 2022, the market size is projected to reach a valuation of USD 24.1 billion. By 2032, the valuation is anticipated to reach USD 38.2 billion.

Steam Turbine Types and Specifications

Source: According to CMI Market Research Team Analysis

The market for Steam Turbine MRO (Maintenance, Repair, and Overhaul) refers to the industry that provides services and solutions for maintaining and repairing steam turbines used in power generation plants. It encompasses activities such as inspections, component replacement, retrofitting, and performance optimization to ensure the reliable and efficient operation of steam turbines.

The Steam Turbine MRO market is characterized by the need for specialized technical expertise, in-depth knowledge of steam turbine systems, and access to a wide range of spare parts. It requires skilled technicians, engineering capabilities, and advanced diagnostic tools to carry out effective maintenance and repair activities. The adoption of advanced inspection techniques for early detection of potential issues, and the growing emphasis on sustainability and energy efficiency in steam turbine operations.

Additionally, the market is influenced by the demand for retrofitting and modernization to enhance the performance and longevity of steam turbines.

Steam Turbine MRO Market – Significant Growth Factors

The Steam Turbine MRO Market presents significant growth opportunities due to several factors:

• Retrofitting and Upgrades: The demand for retrofitting and upgrading existing steam turbines presents opportunities in the market. Power plants are increasingly investing in upgrading components, enhancing control systems, and implementing advanced monitoring technologies to improve the efficiency and performance of steam turbines. Retrofitting and upgrade projects contribute to the growth of the Steam Turbine MRO market.

• Aging Infrastructure: Many existing steam turbines in power plants are aging and require regular maintenance to ensure optimal performance. Aging infrastructure presents a consistent driver for the Steam Turbine MRO market, as power plants need to conduct repairs, replace components, and upgrade systems to extend the lifespan and reliability of steam turbines.

• Technological Advancements: Advancements in technology and the adoption of digital solutions are driving the Steam Turbine MRO market. Remote monitoring, predictive maintenance, and advanced inspection techniques improve the efficiency and reliability of steam turbines. These technological advancements help optimize maintenance schedules, reduce downtime, and enhance the overall performance of steam turbines.

• Increasing Power Generation Capacity: The growing demand for electricity and the need to expand power generation capacity drives the demand for steam turbine MRO services. As more power plants are built and existing ones are upgraded, the requirement for maintenance, repair, and overhaul of steam turbines increases.

Steam Turbine MRO Market – Mergers and Acquisitions

The Steam Turbine MRO Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Steam Turbine MRO Market include:

• Siemens and SKF: In 2018, Siemens and SKF, a leading bearing and seal manufacturing company, entered into a partnership to enhance the condition monitoring capabilities of steam turbines. The collaboration aimed to develop advanced monitoring systems and solutions for improved maintenance and performance optimization of steam turbines.

• General Electric (GE) and Sulzer: In 2019, GE and Sulzer, a global provider of maintenance and repair services, formed a partnership to offer comprehensive MRO solutions for steam turbines. The collaboration aimed to combine GE’s expertise in turbine technology with Sulzer’s capabilities in field services, providing customers with reliable and efficient maintenance services for steam turbines.

• Siemens acquiring Dresser-Rand: In 2018, Siemens completed the acquisition of Dresser-Rand, a leading supplier of steam turbines and rotating equipment services. The acquisition allowed Siemens to expand its portfolio of steam turbine offerings and strengthen its position in the steam turbine MRO market.

• Mitsubishi Hitachi Power Systems (MHPS) acquiring PW Power Systems: In 2019, MHPS acquired PW Power Systems, a provider of gas turbine technology and services. The acquisition aimed to enhance MHPS’s capabilities in the power generation sector, including steam turbine MRO services, by integrating PW Power Systems’ expertise and customer base.

• Ansaldo Energia acquiring GE’s Power Conversion Business: In 2021, Ansaldo Energia acquired GE’s Power Conversion business, which included steam turbine services. The acquisition allowed Ansaldo Energia to expand its global presence and strengthen its capabilities in providing MRO services for steam turbines, along with power generation equipment and services.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Steam Turbine MRO Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Steam Turbine MRO Market – Significant Threats

The Steam Turbine MRO Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Shift Towards Renewable Energy: The increasing focus on renewable energy sources poses a threat to the Steam Turbine MRO market. As the adoption of wind, solar, and other renewable energy technologies grow, the demand for steam turbines may decline, reducing the need for associated maintenance, repair, and overhaul services.

• Cost Pressures and Budget Constraints: Economic downturns or budget constraints faced by power plant operators can limit their investment in steam turbine MRO services. During times of financial strain, power plants may postpone or reduce spending on maintenance and repair activities, impacting the demand for MRO services in the market.

• Regulatory and Environmental Factors: Stringent regulations related to emissions and environmental impact could affect the demand for steam turbines and their maintenance. Power plants may need to invest in emissions control technologies or shift towards cleaner energy sources, which could impact the future demand for steam turbine MRO services.

• Technological Disruption: Rapid advancements in technology, such as the development of advanced energy storage systems and distributed energy generation, could disrupt the traditional steam turbine market. These emerging technologies may offer alternative solutions to power generation, potentially reducing the reliance on steam turbines and impacting the demand for MRO services.

Report Scope

Category-Wise Insights

By Service Type:

• Maintenance: In the steam turbine MRO market, maintenance refers to regular activities aimed at preserving the optimal performance and reliability of steam turbines. It includes inspections, lubrication, cleaning, and minor repairs. The market trend focuses on predictive and preventive maintenance techniques, leveraging advanced technologies and data analytics to identify potential issues and optimize maintenance schedules.

• Repair: Steam turbine repair involves fixing specific components or systems that have experienced damage or malfunction. It includes repairing or replacing damaged parts, addressing mechanical issues, and restoring the functionality of the turbine. The market trend emphasizes quick and efficient repair services, reducing downtime and maximizing the operational efficiency of steam turbines.

• Overhaul: Steam turbine overhaul involves a comprehensive examination, disassembly, and refurbishment of major components and systems. It aims to restore the steam turbine to its original or improved condition, enhancing performance and extending its lifespan. The market trend in overhauls focuses on adopting advanced diagnostic techniques, implementing upgrades and modifications, and utilizing specialized expertise for comprehensive turbine refurbishment.

By Service Type

• Original Equipment Manufacturers (OEMs): OEMs in the steam turbine MRO market are the manufacturers of steam turbines who provide maintenance, repair, and overhaul services for their own equipment. They offer specialized expertise and use OEM-specific tools and techniques. The trend shows OEMs focusing on advanced digital solutions, remote monitoring, and predictive maintenance to enhance turbine performance and reliability.

• Independent Service Providers (ISPs): ISPs are third-party companies specializing in steam turbine MRO services. They offer a range of maintenance, repair, and overhaul solutions for various steam turbine brands. The market trend indicates ISPs adopting advanced inspection techniques, condition monitoring systems, and data analytics to optimize maintenance practices and provide cost-effective solutions to power plant operators.

• In-House: In-house steam turbine MRO refers to power plant operators conducting maintenance and repair activities using their internal resources and expertise. This approach offers greater control and customization but requires dedicated maintenance teams and equipment. The trend shows power plant operators investing in training, specialized tools, and software to improve in-house MRO capabilities and optimize steam turbine performance.

By Capacity

• Less than 300 MW: In the steam turbine market for capacities less than 300 MW, power generation units primarily include small-scale industrial plants and regional power grids. The market trends focus on efficient maintenance and cost-effective solutions to cater to the specific needs of these smaller-capacity steam turbines.

• 300 MW to 599 MW: This segment of the steam turbine market covers medium-scale power plants and industrial facilities. The trends in this range revolve around optimizing performance, reducing emissions, and implementing advanced monitoring and control systems to enhance the efficiency and reliability of steam turbines in this capacity range.

• 600 MW and Above: The steam turbine market for capacities of 600 MW and above is dominated by large-scale power plants and utility companies. Trends in this segment include the adoption of advanced materials and coatings for higher efficiency, digitalization and automation for improved operations, and investments in advanced MRO practices to ensure reliable and efficient performance of steam turbines.

By End Use Industry

• Power Generation: The market in the power generation industry includes the maintenance, repair, and overhaul (MRO) services for equipment such as steam turbines, gas turbines, and generators. The trend in this market is the increasing focus on preventive maintenance, digitalization, and remote monitoring to optimize operational efficiency and ensure reliable power generation.

• Oil and Gas: MRO services for multiple equipments used in exploration, drilling, production, and refining processes are part of the oil and gas sector market. The implementation of predictive maintenance techniques, data analytics, and condition monitoring to increase equipment reliability, minimize downtime, and improve operational safety in the oil and gas sector is a market trend.

• Others: The market in other industries encompasses the MRO services for equipment used in sectors like manufacturing, chemical, pharmaceutical, and transportation. The trend in this market is the growing demand for specialized MRO services, tailored solutions, and advanced technologies to optimize equipment performance, extend lifespan, and ensure uninterrupted operations in various non-specific industries.

Steam Turbine MRO Market – Regional Analysis

The Steam Turbine MRO Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: In North America, the MRO market exhibits diverse trends across industries. The power generation sector focuses on modernizing aging infrastructure and embracing advanced digital technologies to enhance operational efficiency. In the oil and gas industry, there is a shift towards predictive maintenance, utilizing data analytics and remote monitoring for optimized asset performance. Key dominating market players include General Electric Company, Siemens AG, Honeywell International Inc., and Baker Hughes Company, offering comprehensive MRO solutions.

• Europe: The MRO market in Europe emphasizes sustainability and energy efficiency. The power generation sector witnesses a trend towards renewable energy sources and clean technology integration. The oil and gas industry prioritizes operational efficiency optimization, emissions reduction, and advanced MRO techniques. Dominant market players in Europe include Siemens AG, Rolls-Royce Holdings plc, Schneider Electric SE, and ABB Ltd., renowned for their MRO expertise and extensive service networks.

• Asia-Pacific: The Asia-Pacific MRO market thrives on rapid industrialization, urbanization, and infrastructure development. The power generation sector experiences expansion in renewable energy sources, necessitating efficient MRO services. In the oil and gas industry, focus lies on maximizing production and improving operational efficiency through advanced MRO practices. Key market players in the region are Mitsubishi Hitachi Power Systems, Ltd., China National Petroleum Corporation (CNPC), Bharat Heavy Electricals Limited (BHEL), and JGC Holdings Corporation, offering a diverse range of MRO solutions.

• LAMEA (Latin America, Middle East, and Africa): The LAMEA MRO market is shaped by oil and gas resource development, infrastructure projects, and industrial growth. In the oil and gas sector, advanced MRO technologies optimize asset performance, enhance safety, and reduce operational costs. Other industries demand specialized MRO services to support infrastructure development. Prominent market players in the region include Petrofac Limited, Saudi Arabian Oil Company (Saudi Aramco), Emirates Global Aluminum (EGA), and Baker Hughes Company, providing comprehensive MRO solutions catering to oil and gas and industrial sectors.

Competitive Landscape – Steam Turbine MRO Market

The Steam Turbine MRO Market is highly competitive, with a large number of manufacturers and retailers operating globally. Some of the key players in the market include:

• General Electric Company
• Siemens AG
• Mitsubishi Hitachi Power Systems Ltd.
• Bharat Heavy Electricals Limited
• Ansaldo Energia S.p.A.
• Toshiba Energy Systems & Solutions Corporation
• Doosan Heavy Industries & Construction Co. Ltd.
• Alstom Power
• Hitachi Ltd.
• Sulzer Ltd.
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships. For example, in 2021, notable partnerships in the steam turbine MRO market included Siemens partnering with Sulzer to provide comprehensive MRO solutions, General Electric (GE) collaborating with BHEL for steam turbine services in India, and MHPS joining forces with Iberdrola to develop advanced MRO solutions for steam turbines.

Several new players have entered the MRO market with innovative approaches and developments. These newcomers are leveraging advancements in technology, digitalization, and data analytics to provide cutting-edge solutions and services. They are focused on offering specialized MRO offerings tailored to specific industry needs.

While these new players are making their presence felt, key market players continue to dominate the industry. Companies like General Electric Company, Siemens AG, Honeywell International Inc., and Baker Hughes Company have established strong market positions, leveraging their extensive expertise, established customer base, and comprehensive MRO solutions to maintain their dominance in the market.

These key players often engage in strategic partnerships, invest in research and development, and collaborate with industry stakeholders to further strengthen their market presence.

The Steam Turbine MRO Market is segmented as follows:

By Service Type

• Maintenance
• Repair
• Overhaul

By Capacity

• Less than 300 MW
• 300 MW to 599 MW
• 600 MW and Above

By End-Use Industry

• Power Generation
• Oil and Gas
• Others

By Service Provider

• Independent Service Providers
• In-House
• Original Equipment Manufacturers

By Fuel Type

• Coal
• Natural Gas
• Nuclear

By Region

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America