Analysis of the Asia Pacific Power Plant Services Market and Long-term Market Attractiveness

3,735 views

Published on

Frost & Sullivan analyst briefing on the Asia Pacific Power Plant Services Market and its Long-term Market Attractiveness

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
3,735
On SlideShare
0
From Embeds
0
Number of Embeds
11
Actions
Shares
0
Downloads
117
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Analysis of the Asia Pacific Power Plant Services Market and Long-term Market Attractiveness

  1. 1. Analysis of the Power Plant Services Market and Long-term Market Attractiveness<br />Suchitra Sriram<br />Program Manager - Energy and Power Systems, Asia Pacific<br />September 2011<br />
  2. 2. Introduction<br />Installed capacity additions as a result of growing electricity demand, technology advancements in main power plant equipment, existence of ageing fleet, and rising emission concerns from power plants are the key factors driving the power plant services market.<br />Revenues from the steam turbine services market is expected to dominate due to a very large installed base of coal-fired power plants. Boiler servicing market is likely to grow at a rate similar to that of the steam turbine servicing market. Revenues from gas turbine servicing market is presently low but is expected to rise with increasing investments in gas turbine power plants.<br />For power plants, operation and maintenance (O&M) spend can vary from 15.0 to 20.0 percent of the total life cycle costs, whereas equipment maintenance costs can vary between 10.0 and 15.0 percent of the total life cycle costs.<br />Turnkey O&M service market in Southeast Asia and ANZ is at a nascent stage of growth and is likely to gain wider acceptance during the long term of the forecast period.<br />Multinational original equipment manufacturers (OEMs) have forged alliances with utilities’ service subsidiaries and local service companies in several key markets that have huge potential.<br />
  3. 3. Southeast Asia Power Plant Services Market<br />
  4. 4. Drivers and Restraints<br />Power Plant Services Market: Key Market Drivers and Restraints (Southeast Asia), 2011-2017<br />1-2 years<br />3-4 years<br />5-7 years<br />Growing electricity production driving demand for power plant services<br />Ageing power generation fleet provides high servicing opportunities<br /> Market Drivers<br />Adoption of advanced power generating technologies necessitates the need for long term service agreements <br />Increasing presence of IPPs and SPPs favor services outsourcing<br />Slow progress of power sector reforms hinders services market growth<br />Preference for in-house maintenance of power plants curbs outsourcing opportunities <br />Market Restraints<br />Long term service agreements with OEMs perceived to be expensive<br />Impact: High Medium Low<br />Source: Frost & Sullivan analysis.<br />
  5. 5. Power Plant Services Market Revenue Forecast<br />Key Takeaway: Revenue growth is fueled by new capacity additions and repowering, renovation, and modernization of old power plants<br />Power Plant Services Market: Revenue Forecast (Southeast Asia), 2007–2017<br />CAGR = 8.8%<br />Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.<br />
  6. 6. Power Plant Services Market Revenue Forecast (continued)<br />Key Takeaway: MRO services dominate the power plant servicing market driven by critical repairs and spare parts supply<br />Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.<br />
  7. 7. End-user Analysis By Country <br />Power Plant Services Market: Percent of End-user Revenues by Thermal Installed Capacity (Southeast Asia), 2010<br />Key: IPPs - Independent Power Producers<br />Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.<br />
  8. 8. Competitive Analysis—Market Share<br />Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.<br />
  9. 9. Australia and New Zealand (ANZ) Power Plant Services Market<br />
  10. 10. Drivers and Restraints<br />Power Plant Services Market: Key Market Drivers and Restraints (ANZ), 2011-2017<br />1-2 years<br />3-4 years<br />5-7 years<br />Evolution of the national electricity market necessitates efficient O&M of power plants in Australia<br />Installed capacity additions and old power plants’ life extensions drive the demand<br /> Market Drivers<br />Adoption of advanced power generating technologies necessitates the need for long-term service agreements <br />Growing penetration of renewable energy plants limits servicing opportunities for conventional power plants<br />Low electricity prices deter new investments in the power sector<br />Market Restraints<br />In-house maintenance of power plants checks outsourcing opportunities <br />Lack of clarity on carbon policy restricts the market growth<br />Impact: High Medium Low<br />Source: Frost & Sullivan analysis.<br />
  11. 11. Power Plant Services Market Revenue Forecast<br />Key Takeaway: Spare parts supply constitute almost 70.0% of the market revenues<br />Power Plant Services Market: Revenue Forecast (ANZ), 2007–2017<br />CAGR = 4.9%<br />Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.<br />
  12. 12. Power Plant Services Market Revenue Forecast (continued)<br />Key Takeaway: Revenues increase in proportion to commissioning and capacity utilization of power plants<br />Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.<br />
  13. 13. End-user Analysis by Country<br />Power Plant Services Market: Percent of End-user Revenues by Thermal Installed Capacity (ANZ), 2010<br />Key: IPPs - Independent Power Producers<br />Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.<br />
  14. 14. Competitive Analysis—Market Share<br />Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.<br />
  15. 15. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter<br />http://www.facebook.com/pages/Frost-Sullivan/249995031751?ref=ts<br />http://www.linkedin.com/companies/4506<br />http://www.slideshare.net/FrostandSullivan<br />http://twitter.com/frost_sullivan<br />
  16. 16. For Additional Information<br />Donna Jeremiah<br />Corporate Communications<br />Asia Pacific<br />+603 6204 5832<br />djeremiah@frost.com<br />Carrie Low<br />Corporate Communications<br />Asia Pacific<br />+603 6204 5910<br />carrie.low@frost.com<br />SuchitraSriram<br />Program Manager<br />Energy & Power Systems<br />apacfrost@frost.com<br />

×