Power plant services represent a growing market that offers steady revenue and solid growth in contrast with the more cyclical market for new-build power stations. The global power plant market is expected to reach $ billion in 2021 at a compound annual growth rate (CAGR) of % from 2014 to 2021.
While the market declined in Western Europe in 2014 and growth continued to be sluggish in Central & Eastern Europe, much of the rest of the world—in particular, the emerging markets—recorded solid growth. Most emerging markets were buoyed by a resumption of good economic growth and continued large-scale investments in coal and gas assets to cater to burgeoning populations and a rapidly expanding middle class.
The fastest-growing regions will be the Association of Southeast Asian Nations (ASEAN), India, and China. Europe and North America are expected to have the slowest rate of expansion. Services for gas turbines will grow faster than those for other equipment. This will gradually enable non-OEM (original equipment manufacturers) service providers to expand their offerings through reverse-engineered parts.
The balance of power will continue its shift towards the emerging economies, as they increasingly liberalise not only their power but also their gas markets, which will allow for a much greater penetration of modern gas-fired plants that attract higher outsourced maintenance spend. The combined share of China, India, and ASEAN is forecast to rise from % in 2014 to % in 2021.
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