Rotating Equipment Repair Market Gains Ground as End User Companies Invest Efforts in Reduced Machine Breakdowns
Companies in the oil and gas, chemical, mining, and manufacturing industries are realising the significance of machine safety, and maintenance so as to ensure endurance, productivity, and efficiency to their best. A continued urge to reduce breakdowns is also among the key factors driving the growth in demand for rotating equipment repair worldwide. Over the recent past, there has been an increasing inclination towards adoption of the Internet of Things (IoT), and wireless sensor technology for monitoring the ins-and-outs of rotating equipment. With a greater number of plants making it a point to enhance productivity, and improve efficiency, there are strong indications of remote rotating equipment repair services gaining prominence in the near future. Those service providers with dedicated onsite repair service offerings will most likely win the competitive game in the global rotating equipment repair market.
Increasing Penetration of IoT-enabled Smart Rotating Equipment to Bolster Demand
Growing industrialisation, and advancement of utilisation-driven economies have brought about steady development in key end-use industries for turning hardware fix, and general assembly in oil and gas, power, mining, heating, ventilation, and air conditioning (HVAC), and water and wastewater treatment. Services such as regular maintenance, repair, refurbishment, and component upgrades play a pivotal role keeping industrial process chains moving, and thereby minimising downtime. Producers, and specialist co-ops are zeroing in on creating, and furnishing keen arrangements with the incorporation of IoT-empowered gear, consequently paving the way for market development. Growing investments in IoT-enabled systems are likely to drive the repair, and modification activities of rotating equipment.
COVID-19 Impact on Global Rotating Equipment Repair Market
The global COVID-19 pandemic is expected to impact through delays in industrial planned repair activities of rotating equipment. Due to the pandemic situation, the construction, and industrial sectors have suffered huge blows through a substantial dip in market growth. Nationwide lockdowns further imposed labour unavailability, and shutdowns of manufacturing plants. However, construction, and industrial activities are gradually picking up pace since Q1 2021, which is likely to help the rotational equipment repair market regain its momentum in the near future.
Oil and Gas Industry Continues to be a Leading Consumer Segment in Rotating Equipment Repair Market
The oil and gas industry remains the key end user of rotating equipment repair services and solutions. The industry comprises upstream, midstream, and downstream processes, and a majority of pumps, compressors, and turbines remains in operation in these processes. Thus, predictive maintenance, repair, and overhaul is a normal practice to avoid any breakdown or delays in operation. The other key consumer industries include power, mining, HVAC, food and beverages, and renewables. Tenders are released by end users for a specific scope of work related to repair of equipment. Bidding is done through which contract is offered to a specific service provider. Service costs, overall industry experience, and quality play the key role in bagging a contract.
In terms of equipment types, turbine repair constituted a major market share in 2020. High service costs associated with the repair and maintenance activity of turbines are expected to drive the demand in the next few years. There is a wide variety of turbines utilised in industries such as impulse, reaction, radial, axial flow, and mixed flow turbines. Gas, steam, wind, and water turbines are in operation, and demand proper maintenance, and repair. Some other equipment include pump, centrifugal compressor, agitators/mixer, and gearbox.
U.S. Leads Global Rotating Equipment Repair Market; China, and India to Remain Manufacturing Hubs
North America, led by the U.S., is expected to dominate the rotating equipment repair market. A majority of the leading manufacturers of rotating equipment are based out of the US, and growing investments in shale gas extraction, and processing are expected to trigger the investment surge in repair, and maintenance activities of the old rotating equipment in the oil and gas industry. In Asia Pacific, on the other side, China, and India are likely to witness an upsurge in the demand for rotating equipment repair services, attributing to the incessantly increasing industrialisation, followed by rapid power plant upgrades in these countries. This has made the key manufacturers of rotating equipment to shift manufacturing hubs to India, and China, which is likely to uplift the growth prospects of the rotating equipment repair market in Asia Pacific in the near future.
In the Middle East, Saudi Arabia, UAE, and Kuwait remain the key regions for market growth in oil and gas rotational repair activities. In April 2020, EthosEnergy won a multi-million-dollar contract from Maruzen PetroChemicals. The former has been a leading independent provider of rotating equipment services, and solutions to the power, oil and gas, and industrial markets. Thus, high oil and gas discoveries, and growing investments in oil and gas operations are expected to boost the demand for rotating equipment repair activities in the Middle Eastern region. The four-year contract between the two companies covers new gas turbine parts, component repair, maintenance, and field services for a Frame 6B Gas Turbine.
Global Rotating Equipment Repair Market: Competitive Landscape
Some of the key players in the global rotating equipment repair market include Siemens AG, GE, MAN Energy Solutions, Sulzer Ltd, CR Asia, The Weir Group PLC, KSB, Saudi Arabian Engineering Company Ltd., Sendan International Company Limited, and EthosEnergy. Large-scale manufacturers form strategic contracts with key end-user firms such as Saudi Aramco. These firms even offer periodic maintenance, and repair services as part of their regular service packages.
Global Rotating Equipment Repair Market is Segmented as Follows:
Key Elements Included In The Study: Global Rotating Equipment Repair Market
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