The report revealed that apart from the growing demand for fuel and the subsequent capacity expansions, the maintenance repair overhaul (MRO) services market will get a leg up from stringent environmental and quality regulations.
Frost & Sullivan said refining is one of the most regulated industries and the rules translate to more MRO dollars and additionally as most of the current refineries are aging, they require higher maintenance, which creates greater opportunities for maintenance service providers.
Frost & Sullivan energy and environmental research analyst Ashay Abbhi said China, India, and Japan are expected to be the fastest growing markets in Asia.
"Their geographical proximity to oil-producing nations and inexpensive resources make them ideal for refining, consequently boosting the oil and gas refinery MRO services market," Abbhi said.
According to the report, refineries’ dwindling profits are causing the providers to defer facility maintenance, especially during periods of peak demand or high oil prices.
Abbhi noted that the increasing demand for maintenance of refineries will open up the market to more companies with core engineering competency.
"This environment will foster forward integration by engineering, procurement and construction (EPC) companies into the maintenance services sector."
