Steam Turbine MRO Market Expected to Reach $37.4 Billion by 2033

According to a new report published by Allied Market Research, titled, “Steam Turbine MRO Market," The steam turbine mro market was valued at $22.6 billion in 2023, and is estimated to reach $37.4 billion by 2033, growing at a CAGR of 5.2% from 2024 to 2033.

The steam turbine MRO (Maintenance, Repair, and Overhaul) market refers to the industry segment focused on providing services and solutions for the maintenance, repair, and optimization of steam turbines. Steam turbines are widely used in power generation plants to convert thermal energy from steam into mechanical energy, which drives electrical generators to produce electricity.

The MRO market for steam turbines encompasses a range of activities and services aimed at ensuring the reliable and efficient operation of these turbines throughout their lifespan. This includes routine inspections, preventive maintenance, repairs, component replacements, performance upgrades, and overall optimization of steam turbine systems.

MRO services in the steam turbine market are performed by specialized companies or divisions within larger organizations that possess the expertise, resources, and technical know-how to assess, maintain, and enhance the performance of steam turbine equipment. These services can be carried out on-site at power plants or in dedicated repair facilities.

The steam turbine MRO market caters to various sectors, including thermal power plants, nuclear power plants, cogeneration facilities, industrial processes, and renewable energy installations. It plays a crucial role in ensuring the reliable and efficient operation of steam turbines, minimizing downtime, extending the lifespan of equipment, and optimizing power generation efficiency.

As technology advances, the steam turbine MRO market is expected to evolve, incorporating digitalization, data analytics, and predictive maintenance techniques to enhance performance, reduce costs, and improve overall operational efficiency. The market's growth is driven by the increasing demand for electricity, the need for sustainable energy solutions, and the ongoing maintenance requirements of existing steam turbine infrastructure worldwide. However, high cost and market saturation in the steam turbine MRO market make it difficult for companies to attract new customers and retain existing ones.

In addition, in emerging markets, particularly in regions such as Asia-Pacific, Latin America, and Africa, have experienced rapid industrialization and infrastructure development. As a result, there is an increased demand for energy generation, which includes steam turbines. This creates steam turbine MRO market opportunities for MRO service providers to cater to the surge in the need for maintenance, repair, and overhaul of steam turbines in these markets.

The steam turbine MRO market analysis is segmented into service type, service provider, fuel type, capacity, end-use industry, and region. By service type, the market is segregated into maintenance, repair, and overhaul. By service provider, the market is classified into original equipment manufacturers, independent service providers, and in-house. By fuel type, the market is divided into coal, natural gas, and nuclear. By capacity, the market is categorized into less than 300 MW, 300 MW to 599 MW, and 600 MW and above. In terms of end-use industry, it is fragmented into power, oil & gas, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Based on service type, the maintenance segment held the highest market share in 2023, accounting for nearly half of the global steam turbine MRO market size, and is estimated to maintain its leadership status throughout the forecast period. However, the repair segment is projected to manifest a CAGR of 5.6% from 2024 to 2033, owing to the increase in the adoption of advanced repair techniques and technologies. This includes the use of laser cladding, 3D printing, and advanced welding techniques to repair damaged components and extend the lifespan of steam turbines. These technologies offer improved efficiency, reduced downtime, and enhanced performance, driving the steam turbine MRO market growth of the repair segment.

Based on service provider, the original equipment manufacturer segment held the highest market share in 2023, accounting for nearly three-fifths of the global steam turbine MRO market share, and is estimated to maintain its leadership status throughout the forecast period. However, the in-house segment is projected to manifest a CAGR of 5.7% from 2024 to 2033, owing to the increase in management and maintenance of steam turbines are handled internally, using teams, workshops, and other resources.

Based on fuel type, the coal segment held the highest market share in 2023, accounting for more than three-fifths of the global steam turbine MRO market revenue, and is estimated to maintain its leadership status throughout the forecast period. However, the nuclear segment is projected to manifest a CAGR of 5.5% from 2024 to 2033, owing to the increase in demand for nuclear power generation, which is driven by its low-carbon footprint and baseload stability.

Based on capacity, the 300 MW to 599 MW segment held the highest market share in 2023, accounting for more than half of the global steam turbine MRO market, and is estimated to maintain its leadership status throughout the forecast period. Retrofitting and upgrades are prominent trends as aging turbines in this range require improvements in efficiency and emissions compliance. Digitalization and data analytics are gaining traction, enabling proactive maintenance and optimized performance. However, the 600 MW and above segment is projected to manifest the highest CAGR of 5.6% from 2024 to 2033. The 600 MW and above capacity segment of the Steam Turbine MRO market trend focused on improving the efficiency of steam turbines in this segment, driven by the need for optimized power plant operations and reduced emissions.

Based on the end-use industry, the power generation segment accounted for the largest share in 2023, contributing to nearly half of the global steam turbine MRO market revenue, and is projected to maintain its lead position during the forecast period. The growth factors for the steam turbine MRO market in the power end-use industry include the aging infrastructure of power plants, stringent regulations on emissions & energy efficiency, and the adoption of advanced MRO technologies for condition monitoring and predictive maintenance. However, the oil & gas segment is expected to portray the largest CAGR of 5.8% from 2024 to 2033. The growth opportunities in the oil and gas segment of the steam turbine MRO market arise from the expansion and modernization of oil and gas infrastructure, particularly in emerging markets. This includes the development of new refineries, LNG (liquefied natural gas) plants, and offshore exploration and production facilities that require reliable steam turbine systems. Retrofit and upgrade projects aimed at improving the efficiency and output of existing facilities also contribute to the demand for steam turbine MRO services in this industry.

Based on region, Asia-Pacific held the highest market share in terms of revenue in 2023, accounting for nearly half of the global steam turbine MRO market revenue, and is likely to dominate the market during the forecast period. The government initiatives in Asia-Pacific towards the construction of coal-based and nuclear power plants to generate power have created a demand for steam turbines which has a positive impact on the steam turbine MRO market. Furthermore, the Asia-Pacific region is expected to witness the fastest CAGR of 5.6% from 2024 to 2033. The region is characterized by a high demand for energy, rapid urbanization, and the presence of most of the developing countries. These factors, among others, are driving the construction of steam power generation which led to the demand for the steam turbine MRO industry in the Asia-Pacific.

The key players operating in the global steam turbine MRO market forecast include Ansaldo Energia, Elliott Group, General Electric, Hyundai Heavy Industries Co Ltd., Kessels, Mitsubishi Power Ltd., Shanghai Electric, Siemens AG, Stork, and Sulzer hold significant share of the market. Among these, General Electric (GE) Co., Siemens AG, Mitsubishi Power Ltd., and Ansaldo Energia. These players have adopted investment strategies in research and development to adopt new technologies in the market. These players have adopted various strategies to gain a higher share or retain leading positions in the market.