The turbomachinery control system, retrofitting and ancillary system market is expected to grow at a CAGR of 4.09% during the forecast period of 2020 – 2025. Factors such as increasing shift in focus towards natural gas and adoption of automation technologies in industrial sector are expected to create a huge demand for turbomachinery control systems. However, constantly increasing preference for renewable energy sources, have somewhat resulted to a reduction in investment and demand in turbomachinery control systems in recent years.
- The oil and gas industry have widespread applications for turbomachinery equipment including turbines and compressors and turbomachinery control systems. The abundance of natural gas, coupled with their increasing applications across various end-use industries, is expected to spur the growth of global natural gas consumption rate.
- The With an average life span of 12-15 years, the turbomachinery control system is bound to have a retrofit, which is expected to create a constant market for Retrofitting Services.
- Asia- Pacific dominates the market both in terms of market share and growth, attributing to the burgeoning economies of India and China, the presence of a large chemical industry, and low labor wages, resulting in a growing manufacturing sector.
Key Market Trends
Increasing Demand from Oil and Gas Sector
- The oil and gas sector is expected to maintain its dominance in the market studied over the forecast period. With increasing favor for gas globally, turbomachinery market is bound to increase with increase in gas production.
- However, with the renewable energy industry being in it’s infancy, development of this field is expected to have some impact on the turbomachinery control system market.
- In the US starting from 2014 there have been a constant decline in energy production from coal, which is being replaced by natural gas. In 2018 approx. 35.1% of the US electricity was produced from natural gas compared to 27.5% in 2014, coal being dropped from 38.6% in 2014 to 27.4% in 2018, this indicates towards a growth for turbomachinery control system market.
- A similar trend of shift from conventional fuel-based power generation to gas-based power generation can be seen globally, resulting in an increased demand of turbines and compressors, which is likely to drive the demand for turbomachinery control systems in forecasted period.
- The fall in crude oil prices have affected the global upstream industry many times, but these drops have opened a way for downstream industries to take advantage of cheaper feedstock.
- Therefore, with a number of factors included it can be said that the demand for turbomachinery control systems, retrofitting and ancillary services market is expected to grow significantly during the forecast period.
Asia Pacific to Dominate the Market
- Asia Pacific have the fastest growth rate owing to the developing economies or India and China and developed economies like Japan and Australia.
- With recent huge development in City Gas Distribution in India and an investment of USD 16.7 billion by 2030, the country is becoming a huge market for turbomachinery control systems.
- India is also investing in its refining and petrochemicals industry. India’s refining capacity was 22495.43 TMT in March 2019, up by 6.51% from March 2018. Recently Saudi Aramco announced that it is investing in reliance for a 20% stake in Reliance’s oil to chemical(O2C) division at an enterprise value of USD 75 billion for the O2C division.
- Over the past few years China’s coal plant fleet expansion have slowed down, paving way for gas-based energy production in the country, also China’s energy demand is continuously increasing. Both stated factors indicate towards demand growth of turbines and compressors, leading to increase in Turbomachinery Control System Market.
- The refining capacity of China have seen a continuous growth in the past and is forecasted to do so in coming years, in March 2019, the Wood company was awarded a new contract from Sinochem Quanzhou Petrochemical for its 1MTA ethylene and refinery expansion project in China. This growth in refining capacities and slowdown in energy production from coal is expected to increase the Turbomachinery Control System market as Refineries and gas-based power production plants are a significant consumer of this market.
- Therefore the growth in chemical industry, and increased usage of natural gas for industrial and power generation, are expected to be the major driving factors for the market in the region, which is on a growing trend and is expected to do so in the forecasted period.
The global turbomachinery control system, retrofit and ancillary services market is moderately consolidated with some of the major companies holding more than 40% of the market as of 2018. Some of the key companies are General Electric Co., Siemens AG, Emerson Electric Co., Mitsubishi Heavy Industries, Ltd., ABB Ltd., Honeywell International Inc., Rockwell Automation, Inc., Schneider Electric SE, Yokogawa Electric Corporation, among others.
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1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
4.2 Market Size and Demand Forecast for Turbomachinery Control Systems, Retrofitting, and Ancillary Services in USD billion, until 2025
4.3 Market Size and Demand Forecast for Turbines and Compressors in USD billion, until 2025
4.4 Recent Trends and Developments
4.5 Market Dynamics
4.6 Supply Chain Analysis
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.7.1 Threat of New Entrants
4.7.2 Bargaining Power of Consumers
4.7.3 Bargaining Power of Suppliers
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION
5.1.1 Turbine Controls
5.1.2 Steam Turbine Controls
5.1.3 Gas Turbine Controls
5.1.4 Compressor Controls
5.2 End-user Industry
5.2.2 Oil and Gas
5.2.4 Metals and Mining
5.2.5 Other End-user Industries
5.3 Service Type
5.3.1 New Turbomachinery Control System
5.3.2 Retrofit Turbomachinery Control System and Ancillary Services
5.4.1 North America
5.4.4 South America
5.4.5 Middle-East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Turbomachinery Automation Vendors
220.127.116.11 ABB Ltd
18.104.22.168 Emerson Electric Co.
22.214.171.124 General Electric Company
126.96.36.199 Honeywell International Inc.
188.8.131.52 Rockwell Automation Inc.
184.108.40.206 Schneider Electric SE
220.127.116.11 Siemens AG
18.104.22.168 Yokogawa Electric Corporation
22.214.171.124 STORK, A Fluor Company
126.96.36.199 Turbine Technology Services Corporation
188.8.131.52 Energy Controls Technology Inc.
184.108.40.206 PetroTech Oil & Gas Inc.
220.127.116.11 HollySys Automation Technologies Ltd
18.104.22.168 China Automation Group Limited
6.3.2 Automation System Original Equipment Manufacturers
22.214.171.124 Voith GmbH & Co. KGaA
126.96.36.199 Woodward, Inc.
188.8.131.52 MAN SE
184.108.40.206 Mitsubishi Electric Corporation Ltd.
220.127.116.11 Compressor Controls Corporation
18.104.22.168 Solar Turbines Incorporated
22.214.171.124 Ingersoll Rand Inc.
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.