Services operating environment

Our Services business serves both the marine and power plant customers

Of the existing engine fleet, approximately one quarter is power plant related and three quarters relate to marine industry. In terms of Services’ revenues, approximately 40% comes from power plant customers and 60% from the marine customers.

General market drivers for Services

The ultimate market driver in the marine service business is the activity levels of the vessel fleet. The number of idled and anchored vessels has a direct impact on the Services business. The speed at which vessels are operated also has a certain impact on the business. The marine service business is strongly driven by the existing, as well as new environmental regulations. Lifecycle efficiency, for which the availability, reliability and economic viability of the equipment are all very important, drives the Services business in both end markets. Other drivers that are highly emphasised are the need to lower operating costs and the need for enhanced safety. Outsourcing of operations and management is today an important trend in the power plants service market. In the future, we believe this will become a more important driver also for the marine markets. Wärtsilä offers efficiency and monitoring solutions for these needs.

Competition and market position

There is no single competitor with the ability to supply such a broad offering, on a 24/7 basis, globally. There are only a few global players, and thus competition is mainly local. Few players have a broad services offering; therefore, each service product has its own set of competitors. Wärtsilä has a strong market position in its service markets.

There are 2 related stories
+