Pre-COVID Gas Turbine MRO Market
The Gas Turbine MRO Market growth is based on the energy infrastructure investment, specifically about gas power production plant establishment. At the start of 2020, as per IEA (International Energy Agency), power producers expected capital expenditure planning and ongoing capacity expansion activities suggested a rise of around 2%.
The gas turbine market, therefore, in the Pre-COVID era was anticipated to increase owing to various factors such as increase in power generation from gas-based plants due to rising concerns over greenhouse gas emissions, maintaining efficiency of turbine and stringent emissions norms on power plants.Moreover, the increasing demand for electrical energy to sustain global development requires constant heavy spendings on power supply generation. It has aided the market for gas turbines MRO market in the power sector grew considerably in recent period and is expected to do so in forecast period. Thus the gas turbine MRO market was anticipated to exhibit sustainable growth in the pre-COVID era.
Present COVID Impact on Gas Turbine MRO Market
Along with other industries, the COVID-19 has impacted the energy infrastructure investment segment as well. Resulting a small decline in 2019, global power spending fell to its lowest level in over a decade in 2020, According to a report released by International Energy Agency (IEA), by reversing the expectations of an uptick in spending in 2020, almost all the parts of power sector will be affected by mobility restrictions, delays in project development and lower demand
Largely power investment around the world is set to decline in 2020 by 10% due to the Covid-19 pandemic. Power investment reflects ongoing capital expenditures on projects under construction. The decline as of now is predisposed not just by the new capacity additions and refurbishments expected this year, but also spending on industrial and power production setups that would be delivered in the years ahead.
Measures taken to recover economy from COVID impact
Government policies will play a notable role in leveling the COVID-19 impact and – as stated in the past WEI (World Energy Investments) editions, over 95% of energy expenditures are incentivized by guidelines and contracts. Some types of power investments are positively impacted, especially fossil-fuel based generators, since low demand and high electricity production cost created less demand for fresh capacity, which can further put pressure on margins. Also, investment in new coal-fired plants also fell sharply in recent years and is expected to decline by over 11%, with cuts concentrated in Asia.
The impact on investment in gas-fired generation arises mainly from postponements in gas-rich evolving economies, like the MENA region where spending drops by about one-third, given high public-sector participation in the sector, lower expected revenues from commodities and limited fiscal space. IEA observed a reduction in total fossil-based power investment of 15% in 2020 globally compared to 2019.
Governments from various nations emphasize the power producers to adopt clean and efficient power generation technologies as these authorities are concerned over the depletion of fossil fuels such as coal. Moreover, the coal power plant is environmentally not fit owing to the pollution created in the surroundings. Gas power plants are comparatively more efficient and create less environmental pollution as compared to coal power plants.
The Department of Energy (US) has taken the initiative by announcing an advanced turbine program that has enabled us to break down the preceding limitations on turbine temperatures, using an amalgamation of innovative cooling technologies and progressive resources. The advanced turbines that arose from the Department of Energy research program were able to increase the turbine inlet temperatures to as high as 2600 degrees F - roughly 300 degrees hotter than in earlier turbines and attain proficiencies as 60%. This and many more significant initiatives taken by the government and concerned authorities to generate clean and efficient energy with the help of modernizing and enhancing the gas turbine power plant has paved the way for the gas turbine MRO market towards growth during the analysis period.
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