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2022

Microturbine Market

Microturbine Market Size, Share, Competitive Landscape and Trend Analysis Report, by Power Rating, by Application, by End Use : Global Opportunity Analysis and Industry Forecast, 2021-2031

EP : Equipment and Devices

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Author's: Marpu Vinod| Prakhar Jain | Eswara Prasad
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Microturbine Market Research, 2031

The global microturbine market size was valued at $234.7 million in 2021, and microturbine industry is projected to reach $547.9 million by 2031, growing at a CAGR of 8.9% from 2022 to 2031.

Microturbine Market

Microturbine are small, fuel-burning turbines used in localized or mobile power generation and mechanical drive applications. A microturbine is a power generation system based on the combination of a small gas turbine and a directly driven high-speed generator. Microturbine are small in size and are used to generate electricity.

The rising requirement and demand for low-emission energy generation is driving the expansion of the worldwide microturbine market. Furthermore, the growth in demand for clean and green energy is propelling the worldwide microturbine market throughout the forecast period. Growing environmental concerns and pollution levels are driving the demand for microturbine in the global market. Furthermore, economic advancements are adding to the worldwide microturbine market growth and development.

The rising demand and need for power all over the world is one of the primary reasons driving the growth of the global microturbine market. Because of the world's fast population expansion, the need for power is increasing. As a result, this aspect is increasing market demand for microturbine. On the other side, a scarcity of trained personnel and rising the price of the fossil fuels is impeding the growth of the worldwide microturbine industry. The demand for the microturbine market is increasing rapidly in the global market owing to the increasing demand for clean energy.

Various agreements related to climate change like United Nations Framework Convention on Climate Change (1992) and Kyoto Protocol (1997) have been made to reduce global warming which restricts the use of fuels that emit harmful gasses hence there is an urgent need for a clean energy source to cater to the increasing need for environmental-friendly energy which leads to increase in demand for the market. Earlier nuclear power plants were considered affordable, clean, and reliable sources of energy but after the Fukushima nuclear accident, this perception is changing. Also, the overhead cost of nuclear power is high owing to which construction of nuclear plans have been stopped. The above-mentioned factors have a significant impact on the development of the market.

Rising Use Of Microturbine In Combined Heat And Power And Standby Power Applications

The use of microturbine is rising rapidly in various applications such as in combined heat and power and standby power. Combined heat and power are the concurrent productions of electricity or mechanical power and useful thermal energy (heating and/or cooling) from a single source of energy. It has a wide range of applications in the industrial sector as it provides on-site power, and the microturbine power generation system must be available on the end-user site. Industrial was the leading end-user division as microturbine are widely used in various industries including oil & gas, construction & manufacturing, pharmaceutical, wastewater treatment, and mining.

Standby power generators have a wide range of applications in residential, commercial, and industrial applications. It is mostly installed in the residential end user due to the demand for an emergency backup generator that is permanently installed, adjoining a residential facility to supply reliable backup power in case of power disruption or grid failure. The introduction of stringent regulatory norms focused on the adoption of energy-efficient appliances accompanied by increased consumer spending toward high-end electronics will stimulate product deployment.

In addition, significant economic transformation on account of rapid urbanization is set to positively influence the standby generator sets. For instance, as per the UN, 68% of the world’s population is projected to be urban by the end of 2050.

The Transition to On-Site Energy Generation

The aging of developed countries' power infrastructure is predicted to drive demand for on-site microturbine-generating technology. Because of the remote placement of electricity-producing plants, developing nations are facing inadequate grid connection. Microturbine are an excellent choice for on-site grid power generation in business and residential settings.

Microturbine are low-emission electric generators that offer on-site power-generating features such as dependability and cost-effectiveness. Reliability, personalized power demand, and lower power generating costs are important characteristics projected to drive microturbine usage in commercial and residential sectors. Because of the demand for low-cost on-site power generation, major corporations and business units are investing in the technology. This is expected to fuel market demand for microturbine.

The global microturbine market forecast is segmented on the basis of power rating, application, end use, and region. By power rating, the market is divided into 12 KW to 50KW, 50 KW to 250 KW, and 250 KW to 500 KW. By application, it is divided into combined heat and power (CHP), and standby power. By end use, it is divided into residential, commercial, and industrial. By region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA. North America region dominated the market in the year 2021. The government and private sectors are phasing out nuclear and coal power plants.

Microturbine Market by Power Rating

On the basis of power rating, the 50 KW to 250 KW segment accounted for largest microturbine market share in 2021 and is expected to maintain its dominance during the forecast period. This is owing to its extraordinarily intense light absorption and a layer of only 1-2 micrometers is enough to absorb most of the sunlight, while a much greater thickness of about 160-190 micrometers is required for crystalline silicon.

Microturbine Market by Application

On the basis of application, the combined heat and power segment accounted for 72.1% of the microturbine market share in 2021 and is expected to maintain its dominance during the forecast period. The Combined Heat and Power segment is estimated to witness the highest CAGR for the forecast period. This application is extremely useful for industries such as wastewater treatment plants, breweries, rubber mills, and paper mills which need heat to drive multiple internal processes.

Microturbine Market by End Use

By end use, it is divided into residential, commercial, and industrial. The industrial segment accounted for the largest revenue share in the global microturbine market in 2021. This growth in demand can be attributed to the progression of the digital economy and the growth of the IT and telecommunication sector has increased the construction of office complexes and other industries which requires continuous power.

Microturbine Market by Region

Region-wise, North America accounted for the largest market share in the market and is projected to grow at a CAGR of 8.5% during the forecast period. The growing power plants and frequent natural calamities have generated enormous growth opportunities for the development of microturbine market in this region.

The U.S. holds the majority of the market share in the North America region. The U.S. government has also implemented stringent emission policies which leads to the high installation of such turbines specifically in CHP applications. Asia-Pacific region is projected to grow at a significant CAGR throughout the forecast period. The presence of a huge population in this region led to high electricity demand and consumption. The installation of CHP systems in most of the industries in this region has led to increase in the demand for microturbine. Countries such as India, China, Japan, and others are experiencing high demand for microturbine which provide ample opportunities for the development of the market.

Europe region has several upcoming projects lined up in this market during the forecast period. This region is additionally increasing the focus on the installation of new CHP plants. The government has adopted several policies to reduce carbon emissions which leads to growth in the market. The demand for power supply is increasing significantly in the Middle East and Africa, and Latin America countries, which led to investment in renewable energy and standby power generation systems.

IMPACT OF COVID-19 ON THE GLOBAL MICROTURBINE MARKET

The COVID-19 pandemic led to a decline in the demand for the microturbine market due to a decline in the demand for power generation across the globe. In addition, the portable power generation facilities have been in high demand during the pandemic outbreak which led to the demand for gas-based power generators. Furthermore, the outbreak of the pandemic has created awareness among the people regarding the advantages of the utilization of microturbine in renewable energy such as mini-hydro power plants, or rooftop wind power plant which has driven the growth of the global microturbine market.

Competitive Landscape

Key players in the microturbine industry include Capstone Green Energy Corporation, FlexEnergy Solutions, Brayton Energy, LLC, ICR Turbine Engine Corporation, Calnetix Technologies, LLC, Ansaldo Energia SPA, Bladon Microturbine, Microturbine Technology B.V., Toyota Turbine Systems, and TurboTech Precision Engineering Pvt. Ltd.

Key players are focusing on acquisitions and mergers to expand their product portfolio and strengthen their production capacity. For instance, in August 2020, Capstone Turbine Corporation entered into a collaboration with the U.S. Department of Energy's Argonne National Laboratory, to achieve significant progress in the development of hydrogen-operable microturbine.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the microturbine market analysis from 2021 to 2031 to identify the prevailing microturbine market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the microturbine market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global microturbine market trends, key players, market segments, application areas, and market growth strategies.

Microturbine Market Report Highlights

Aspects Details
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Market Size By 2031

USD 547.9 million

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Growth Rate

CAGR of 8.9%

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Forecast period

2021 - 2031

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Report Pages

225

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By Power Rating
  • 12 kW – 50kW
  • 50 kW – 250 kW
  • 250 kW – 500 kW
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By Application
  • Combined Heat and Power
  • Standby Power
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By End Use
  • Residential
  • Commercial
  • Industrial
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, Italy, Spain, UK, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
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Key Market Players

Capstone Green Energy Corporation, Brayton Energy, LLC, Micro Turbine Technology B.V., Calnetix Technologies, LLC, Bladon Micro Turbine, ICR Turbine Engine Corporation, Ansaldo Energia SPA, Turbotech Precision Engineering Pvt. Ltd., FlexEnergy Solutions, Toyota Turbine Systems

Analyst Review

As per CXO perspective, the global microturbine market is expected to witness increased demand during the forecast period. The surge in the utilization of standby power and combined heat and power systems in various manufacturing sectors has a positive impact on market growth. A microturbine is a rotary engine that operates on liquid and gaseous fuels. It is a new distributed generating technology that is being used for stationary energy generation applications.

The rising need for grid infrastructure, clean and green energy, and cheap fuel availability, microturbines are being employed as a distributed form of energy generation. Furthermore, with rising environmental concerns about global warming, numerous agreements have been formed, that support the expansion of the microturbine market in the worldwide market since all other sources of energy generate extremely harmful gases that contribute to global warming. The facts indicate that the microturbine market will expand considerably throughout the projected period.

The global microturbine market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Among the analyzed regions, Asia-Pacific is expected to account for the highest CAGR throughout the forecast period, followed by LAMEA, Europe, and North America. Asia-Pacific region hosts some of the fastest developing countries such as China and India where there is a huge demand for eco-friendly power generation, especially to power manufacturing industries. The presence of a huge population and rapid urbanization in these countries has increased the demand for electricity which led to investment in the development of combined heat and power-based power plants.

Author Name(s) : Marpu Vinod| Prakhar Jain | Eswara Prasad
Frequently Asked Questions?

Replacement of fossil fuel power plants and increase in demand for renewable and sustainable energy sources are the key factors boosting the Microturbine market growth.

Combined heat and power is projected to increase the demand for Microturbine Market

Capstone Green Energy Corporation, FlexEnergy Solutions, Brayton Energy, LLC, ICR Turbine Engine Corporation, Calnetix Technologies, LLC, Ansaldo Energia SPA, Bladon Microturbine, Microturbine Technology B.V., Toyota Turbine Systems, and TurboTech Precision Engineering Pvt. Ltd.

The market value of Microturbine in 2031 is expected to be $547.9 million

The global microturbine market analysis is segmented on the basis of power rating, application, end use, and region. By power rating, the market is divided into 12 KW to 50KW,50 KW to 250 KW, and 250 KW to 500 KW. By application, it is divided into combined heat and power (CHP), and standby power. By end use, it is divided into residential, commercial, and industrial. By region, the market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

Government initiative to explore alternative sources of energy is the Main Driver of Microturbine Market.

The outbreak of the pandemic has created awareness among the people regarding the advantages of the utilization of microturbine in renewable energy such as mini-hydro power plants, or rooftop wind power plant which has driven the growth of the global microturbine market.

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Microturbine Market

Global Opportunity Analysis and Industry Forecast, 2021-2031