Rotating Equipment Market Trends

Growth Drivers

• Increasing Technological Advancements - The smoother and more efficient duties brought about by technological advancements in production drive the manufacturer's demand for high-performance machinery. For instance, the market is rapidly expanding as a result of the increasing integration of rotating equipment with the Internet of Things (IoT) and the use of intelligent monitoring and control. IoT apps are crucial for providing real-time updates, such as shipment and storage status, repair and preventive maintenance warnings, and supply chain information. For instance, in February 2020, DXP Enterprises Inc. finalized the acquisition of Turbo Machinery Repair, Inc., a pump and industrial equipment, repair, maintenance, and labor services company.
• Increasing Demand in Power Generation Sector - Opportunities for repair and maintenance services for rotating equipment like gas turbines, compressors, pumps, and generators have been growing as a result of increased investments in the power sector. About two-thirds of the electricity generated in a combined-cycle power plant comes from the gas turbine set, and one-third comes from the steam turbine set. The market has expanded as a result of the growing need for gas turbines in power generation facilities that offer dependability and maximum efficiency.
• Increasing Utilization of Rotating Equipment in the Oil and Gas Industry – Oil and gas businesses can conduct exploration and production activities at greater depths and in harsher climates because of technological advancements in the equipment used for exploration and refining. For instance, in 2022, the world's demand for crude oil (including biofuels) was USD 99.57 million barrels per day, and in 2023, it is anticipated to reach USD 101.89 million barrels per day. Additionally, unexplored regions with sizable deposits of natural gas or crude oil present a chance for the growth of the oil and gas exploration and production market, which would then result in a drop in oil prices and a chance for rotating equipment market expansion.

Challenges

• Rapid Shift Towards Renewable Energy – It is anticipated that the interest in and growth of the renewable energy sector would reduce the amount of money coming into the oil and gas industry. The market is anticipated to suffer as a result of this. The capital investment being made for oil and gas could be hampered by the rising percentage of electricity generation using renewable energy sources. With the aid of government grants and incentives, the adoption of renewables has been sped up globally due to the need to minimize carbon footprint. The demand for renewable energy is expected to rise as a result of the increasing efficacy of using them to generate electricity. As a result, this element will have a negative effect on market expansion.
• Exorbitant Installation and Maintenance Costs for Rotating Equipment
• Stringent Regulations to Reduce Emissions May Hamper the Market Growth