Microturbine Market Expected to Reach $547.9 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Microturbine Market," The microturbine market size was valued at $234.7 million in 2021, and microturbine industry is estimated to reach $547.9 million by 2031, growing at a CAGR of 8.9% from 2022 to 2031.

Microturbine are small turbines that are used to generate electricity. The rising requirement and demand for low-emission energy generation are 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 up demand for microturbine in the global market. Furthermore, economic advancements are influencing the growth and development of the worldwide microturbine market.

Microturbine have various potential advantages over other small-scale power-generating technologies, including a minimum number of moving parts, compact size, lightweight, higher efficiency, reduced pollutants, cheaper energy prices, and the ability to use waste fuels.

Microturbine are predicted to grab a substantial portion of the distributed generation industry because of their small size, cheap capital costs, likely low operations and maintenance expenses, and autonomous electronic control. Furthermore, microturbine provide an efficient and environmentally friendly answer to direct mechanical force markets such as compression and air conditioning. Microturbine are ideal for small commercial building enterprises such as restaurants, hotels/motels, small offices, retail stores, and many more. The global microturbine Market trends is primarily driven by an increase in distributed power production capacity and a growing emphasis on clean energy generation.

A growing emphasis on green and sustainable power production is also boosting market expansion since microturbine provide permanent and reliable electricity while emitting few greenhouse gases (GHGs) such as carbon dioxide, carbon monoxide, Sulphur oxide, and nitrogen oxide. Increasing investment activities to create additional generating capacity and a stringent environmental regulatory framework are expected to boost the total microturbine market growth in the forecast period. Furthermore, the replacement of phased-out coal and nuclear facilities with new and innovative power stations, as well as the installation of microturbine in off-grid systems in distant locations, are contributing to the market's favorable outlook.

However, changing oil prices are expected to limit business expansion in the future years. Crude oil prices have plummeted in recent years, significantly impacting market returns. Furthermore, the existing dispersed generating equipment is expected to pose a significant barrier to market growth throughout the projection period. Nonetheless, the market is likely to benefit from the development and successful commercialization of hybrid electric cars throughout the forecast period.

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.

On the basis of power rating, the 50 KW to 250 KW segment accounted for highest microturbine market share in 2021 and is expected to maintain its dominance during the forecast period. 50 KW to 250 KW of gas turbines are utilized in the combined heat and power plant industry. Combined heat and power are a productive and clean way to deal with creating electric power and thermal power from a solitary fuel source. CHP produces power creation at or close to the end user site so that the heat released out of power generation can be utilized to meet the user’s heat necessities while the power produced meets all or part of the site’s energy needs.

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. Combined heat and power (CHP), also known as cogeneration. The concurrent production of electricity or mechanical power and useful thermal energy (heating and/or cooling) from a single source of energy. It produces power at or close to the end-user site so that the heat released out of power generation can be utilized to meet the user’s heat necessities while power produced meets all or a part of the site’s energy needs.

By end use, it is divided into residential, commercial, and industrial. Industrial segment accounted for the largest market share in the market. The industrial end-user market consists of various heavy industries, textile industries, chemical & refinery, and pharmaceutical industries. Some of the major manufacturers of industrial wind turbine plants include Toshiba Hydroelectric Power, GE Renewable Energy, and Andritz Group. Kaplan turbine, a type of reaction turbine, is largely used for individual industrial power production. Such type of reaction turbine is capable to operate at 90% or over 90% efficiency.

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. Growing power plants and frequent natural disasters have created tremendous potential prospects for the Microturbine Market in this area. However, the Asia Pacific region is predicted to grow at the fastest CAGR from 2022 to 2031 due to rising power tariff prices and dwindling energy supplies.

Key players in the microturbine industry are 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. These players have adopted various strategies to gain a higher share or retain leading positions in the market.

Key Findings of the Study

• As per microturbine market analysis, on the basis of power rating, the 50 KW to 250 KW segment emerged as the global leader by acquiring more than 46.0% of the microturbine market share in 2021 and is anticipated to continue this trend during the forecast period.
• On the basis of application, the combined heat and power segment accounted for 72.1% of the global market share in FY2021.
• On the basis of end-use, the industrial segment accounted for 45.1% of the global market share in FY2021.
• On the basis of region, North America is the major consumer of microturbine among other regions. It accounted for around 42.3 % of the global market share in 2021.

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, 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 opportunities.