MICROTURBINE SYSTEMS MARKET ANALYSIS

The microturbine systems market size was valued at US$ 71.8 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 10.40% from 2023 to 2030. Microturbines are new distributed generation technology that is used for stationary energy generation applications. These turbines can produce both heat and electricity on a relatively small scale. A microturbine runs on various types of fuels including biogas, diesel, natural gas, alcohol, hydrogen, and LPG.  It can generate power from 25 kW to 1000 kW and can be used in commercial, residential, and industrial sectors. The majority of the applications of microturbines are in the industrial (mining, oil & gas, wastewater plants, and land rigs) and commercial sector (hotels, office buildings, schools, sports centers, supermarkets, swimming pools, and hospitals) due to the benefits they offer.

Global Microturbine Systems Market: Regional Insights

North America held dominant position in the global microturbine systems market in 2022, accounting for 45.9% share in terms of value, followed by Europe, Asia Pacific and RoW respectively.

Figure 1. Global Microturbine Systems Market Share (%), By Region, 2022

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Global Microturbine Systems Market Drivers:

Favorable government regulations are expected to drive growth of the global microturbine systems market during the forecast period

Renewable energy resources have very little impact on the environment and are present in abundance. However, current technologies cannot adequately tap and utilize renewable sources to generate power. On the contrary, non-renewable sources of energy such as oil & gas, and coal-fired power plants although contribute to most of the power generation, produce the environment significantly. According to the U.S. Energy Information Administration, global carbon dioxide emissions were over 30 billion metric tons in 2010 and were expected to reach over 35 billion metric tons by 2020.  This, in turn, has increased the development of alternate energy generation techniques including microturbines. Thus, these factors are expected to drive growth of the global microturbine systems market during the forecast period.

Few movable parts restricting overhaul cost supplemented with numerous applications is expected to propel the global microturbine systems market growth over the forecast period

Microturbine systems have very few movable parts, which leads to low operation and maintenance costs comparative to reciprocating and other substitute energy generating systems. Engine-based generators comprised of hundreds of moving parts that require scheduled overhaul, which in turn, impact energy production and increasing maintenance costs. Once installed, microturbine systems can run up to 5,000 hours to 8,000 hours. As a result, microturbines are preferred in several energy-intensive industries as a secondary and primary source as well. Thus, these factors are expected to propel the global microturbine systems market growth over the forecast period.

Global Microturbine Systems Market Opportunities:

Technological advancements can present lucrative growth opportunities in the global microturbine systems market

Some of the microturbine manufacturers such as Capstone Turbine Corporation have expanded their product offerings in the marine market by offering LNG/diesel-fueled marine microturbines and methane-fueled C200 microturbines. These two developments are a result of extensive research and development by the company and are expected to lower operational costs of microturbines as they run on alternative fuels. The innovation of leapfrog supercritical CO2 technology that utilizes the same fuel and generates energy with increased (16% - 19%) efficiency is expected to create new opportunities, thereby keeping the market prospects upbeat over the coming years. The impact of this technology is a game-changer since it reduces heat input for more power output and also reduces the need for cooling technology on the condenser end. In addition, this technology produces output at a double efficiency compared to current technology with less amount of carbon emissions.

Mergers and acquisitions among market players can provide major business opportunities in the global microturbine systems market

Key players operating in the market are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in October 2010, FlexEnergy Inc. acquired Ingersoll-Rand’s Energy Systems division.

Global Microturbine Systems Market Trends:

Combined heat & power application

Microturbines are typically used in combined heat & power applications. Standby power application is expected to hold a dominant position in commercial use in the near future. This is to avoid losses occurring due to conventional power failure. Microturbines are mainly used in hybrid passenger vehicles. Growing environmental concerns combined with rising global warming and pollution levels are expected to boost the demand for combined heat & power.

Massive demand from oil & natural gas sector

There is a massive demand for microturbine systems from oil & natural gas followed by construction, pharmaceutical, wastewater treatment, and mining. The demand for microturbine systems in construction and oil & gas is expected to increase in the near future, owing to rising construction and offshore exploration activities.

Global Microturbine Systems Market Restraints:

Volatile fuel prices are expected to hamper the global microturbine systems market growth over the forecast period

Currently, natural gas is widely used in microturbines as fuel. Since the natural gas price is fluctuating constantly, it poses threat to microturbine manufacturers. Furthermore, the energy generated by microturbines and reciprocating engines incurs comparatively the same cost. However, advanced supercritical CO2 systems that generate energy at a lower cost are expected to offset the challenge with minimal utilization of natural gas and adequate energy generation. Hence, these factors are expected to hamper the global microturbine systems market growth over the forecast period.

High level of competition from emerging entrant and established players is expected to hinder the global microturbine systems market growth over the forecast period

Emerging market players are posing major competition to existing market players. New entrants are offering microturbine systems at a competitive cost as compared to major manufacturers, which in turn, is hindering the market share of key players. Furthermore, market players are struggling to expand their presence due to the presence of various regional players. Hence, these factors are expected to hinder the global microturbine systems market growth over the forecast period.

Figure 2. Global Microturbine Systems Market, By Application

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Global Microturbine Systems Market Segmentation:

The Microturbine Systems Market report is segmented into By Product, by region.

• By Application- CHP Generation, Standby Power.
• By End use Industrial, Commercial, Residential
• By Region: North America, Europe, Asia Pacific, Middle East and Africa

By application, the consolidated intensity and power (CHP) area holds most of the piece of the pie in this market. CHP is a technology that is being used a lot all over the world, and there is also more money being invested in this area. Additionally, there is a significant global demand for energy that is both efficient and free of emissions. These turbines have emerged as an effective solution for achieving target and controlling environmental pollution, as environmental safety and emission concerns continue to rise. Additionally, a growing number of industries around the world are implementing CHP systems. Numerous industries, including rubber mills, wastewater treatment facilities, and the residential sector, utilize the CHP. During the forecast period, this drives growth in CHP application in this market.

During the forecast period, it is anticipated that the standby power segment will expand at a significant rate. Around the world, there is a lot of demand for an uninterrupted supply of energy. These turbines are economical and less harmful to the environment. As a result, drives expansion in the standby power market over the forecast period.

Global Microturbine Systems Market: Key Companies Insights

The Global microturbine systems market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the microturbine systems market are Capstone Turbine Corporation, NewEnCo Ltd., Elliot Company Inc., Micro Turbine Technology BV, FlexEnergy Inc., Ingersoll-Rand Company, and Global Microturbine LLC.

Key Developments

1. For instance, in May 2020, Capstone Turbine Corporation received an order to help modernize a water pollution facility in upstate New York.
2. In July 2021, Innovametall Stahl-und Metallbau will get two C65 microturbines from Capstone Green Energy Corporation to use in a CHP system with very low emissions. Wels Strom GmbH, a distributor of capstone in Austria and Germany, secured the contract. The hydrogen-powered gas turbine system will be the first of its kind in Europe.

*Definition: For stationary energy generation applications, microturbines are a relatively recent distributed generation technology. These are a particular kind of combustion turbine that generates heat and power on a modest scale.