Wärtsilä Services supports customers in the marine, energy, oil & gas industries. In 2015, the offering was extended to a new market segment, the hydro & industrial businesses.
Marine customers are generally ship owners or operators operating in the merchant shipping, cruise and ferry, navy, or other special vessels segments. Oil & gas customers are typically those either operating ships in the offshore segment or having land based oil and gas installations. Hydro and industrial customers are companies operating in the hydropower, ocean energy, and offshore wind sectors, and customers with specific installations in industrial applications.
The main driver in the Services business is the size and development of Wärtsilä’s installed equipment base. However, the offering and competences are constantly being developed in order to extend the servicing capabilities to multiple brand equipment.
The market conditions faced by Wärtsilä’s end customers have a direct impact on the utilisation rate of installations in operation, and dictate the need for services relating to maintenance, lay-down, or re-deployments. The lifecycle phase of an installation also affects the maintenance requirements, and possible needs for upgrades or life-extension services. Wärtsilä's customers may also face the need for retrofits and upgrades of their equipment based on structural changes to their operating environments, such as changes in the availability or pricing of fuels, the implementation of regulations, or increased safety requirements. Interest in a full lifecycle approach from customers in the marine, energy, and oil & gas markets is increasing. This is because it is possible to optimise maintenance and performance so as to improve operational efficiency, reduce costs, and create business growth. The outsourcing of power plant operations and management to a reliable partner is normal practice in the energy industry and interest for long-term service agreements is increasing also in the marine and oil & gas service markets.
Competition and market position
Wärtsilä has a strong position in servicing equipment sold and designed by Wärtsilä. The key differentiators are a truly global presence and the capability to provide support throughout the lifecycle. Only a few other players are able to provide such a broad services offering globally; these being other Original Equipment Manufacturers (OEM) focusing on their own equipment brands, and service companies with a global or more typically local presence.
Competition is, therefore, mainly local, consisting of parts traders, repair yards, local workshops, component suppliers for spare parts (non-OEM), and field service businesses. The number of local players is quite large; consequently competition is rather fragmented and focused on a limited offering scope and speed of delivery. Wärtsilä is constantly developing its global footprint and local operations in order to serve its customers with superior quality, while meeting the speed of response of smaller local players.
The competition for long-term service agreements for operating power plants comes from a few regional players capable of offering plant operational services. In the marine market, the competition for long-term service agreements is even more fragmented with some ship management companies serving this area. Wärtsilä Services offers a variety of options to ensure the best solution for the end user.