The global maintenance, modification and operations (MMO) market for the renewable and low-carbon energy industries is set to almost quadruple from $63 billion to $244 billion by 2030, according to Rystad Energy.

Annual MMO spending, including in oil and gas, will surpass $600 billion in 2030, up from pre-covid value of $367 billion in 2019, Rystad Energy said in a research note.

Total expenditure originating from fossil fuel industries like oil and gas is set to drop from 82 percent in 2019 to 60 percent in 2030 as renewables and low-carbon energy sources take a bigger share.

However, combined spending in upstream, midstream and downstream oil and gas industry is also expected to rise from $303 billion in 2019 to $364 billion in 2030, the research note said.

The MMO sector comprises many activities and operations, including inspection of facilities and equipment, surface treatment, pipe maintenance, and transport and logistics.

“In their attempts to adapt to the energy transition, there are synergies from which MMO suppliers can benefit greatly, such as similarities in required activities across energy sectors and a low degree of specificity for the activities within the MMO sector. For instance, drones are already used for offshore oil and gas inspections, which can easily be adapted and used for offshore wind facilities.

Similarly, suppliers that offer various access solutions within offshore oil and gas can also use similar solutions for offshore wind. Companies conducting pipe maintenance can also utilize these capabilities for process equipment within the renewables and low-carbon sectors.

MMO players are among the best positioned to thrive in the energy transition due to a high level of adaptability and a low degree of specificity,” the note said.

The maintenance market in the solar industry is expected to be worth $64 billion in 2030, up from only $12 billion in 2021. The onshore and offshore wind markets are also projected to spend $143 billion by 2030, a considerable jump from $39 billion in 2021. The CCS industry is expected to spend close to $7 billion on MMO in 2030, up from $1 billion in 2021, while the comparatively small geothermal sector will reach $1.6 billion in maintenance expenditure by the turn of the decade.

Regionally, the main driver of global growth will be Asia, including China. MMO spending in the region is expected to grow rapidly from $35 billion in 2021 to $125 billion in 2030, more than half the global market value. Expenditure in North America in 2030 is projected to be $37 billion, while the European market will top $53 billion.

(Writing by Sowmya Sundar; Editing by Anoop Menon)

(anoop.menon@lseg.com)