Micro Turbine Market

The micro turbine market size was recorded to be at around US$60 Mn in 2021 and will possibly showcase robust expansion during the forecast period. Growing desire for low-emission power production sources will drive the market ahead, says research.

Market Analysis in Brief

Micro turbines have a host of advantages, including compact size, ability to run on numerous fuels, fewer moving parts, and higher efficiency, collectively accounting for the resultant cheaper electricity costs. This keeps their demand afloat across the various end-use sectors. This is expected to drive the growth of the micro turbine market. Coal-fired power stations are regarded as extremely damaging to the environment as they emit enormous volumes of hazardous gases. The release of such gases significantly adds to global warming, severely affecting human life. Nuclear turbines also emit poisonous gases that negatively affect the environment. The government is committed to decreasing greenhouse gas emissions and replacing nuclear and coal-fired turbines with gas turbines. When compared to coal-fired power plants, micro turbines typically emit fewer deadly gases.

Key Report Findings

• In 2019, approximately 2,045 GW of coal-fired power plants were operational worldwide
• China has set an objective of retiring many coal and nuclear power units by 2025-end
• Increase in the number of combined heat and power system installations elevates the prospects of the micro turbine market
• Demand remains higher across industrial sector
• Uncertainties that continue to hover over the oil and gas prices continue to be the long standing challenge facing micro turbine industry’s growth
• North America maintains a dominating position while Europe, and Asia Pacific develop high potential

Growth Drivers

Growing Electricity Demand

Power demand is expanding globally as the world's population grows rapidly. The world's population is growing, and with it, the demand for electricity. In addition, urbanisation is increasing, which is driving the demand for reliable and efficient energy sources. The expansion of infrastructure adds significantly to the increase in electricity demand. Industrialisation is also expanding in several developing nations, and various smart cities and smart building projects are being launched in several countries, which will boost energy demand.

To fulfil energy demand, both the public and commercial sectors are growing powerhouse capabilities, either by constructing new powerhouses or increasing power plant capacity. These projects are mostly putting in gas-powered turbines since they are more cost-effective and emit fewer hazardous pollutants. Furthermore, the government has imposed stringent pollution standards, forcing businesses to adopt these turbines on a massive scale. During the forecast year, these factors fuel the micro turbine market growth.

Escalating Number of CHP Installations

The rapid expansion of renewable energy installations around the world as people become more concerned about environmental safety. Several governments have begun to focus on enforcing renewable energy sources to curb rising levels of air pollution. To reduce pollution, the government has also implemented severe emission standards.

Global investment in the combined heat and power (CHP) industry is also skyrocketing. CHP accounts for the most of such turbine installation market share. As a result, during the predicted period, such factors promote the expansion of the micro turbine market to a large extent.

Growth Challenges

Fluctuations in Oil and Gas Prices

Oil and gas prices are volatile due to disturbances in the hydrocarbon supply chain. Geopolitical tensions are another key unstable topic that affects the supply and demand for oil and gas. This will produce more disruption in the prices of natural gas, gasoline, and fuel.

Most nations in the geographical region have a significant proportion of gas reserves. The region is becoming increasingly polarised because of rising governmental and ethnic tensions. These turbines work on liquid and gaseous fuels, and any disruptions in oil and gas prices impede the expansion of the micro turbine business. The coronavirus epidemic has also resulted in a significant fall in gas demand. This leads in lower oil and gas prices, which has a negative influence on the growth of the micro turbine market.

Key Overview of Segments

Combined Heat and Power Segment to Dominate

The combined heat and power sector accounts for the largest portion of this market's revenue. CHP is a widely used technology around the world, and investment in this industry is expanding. Efficient energy with lower emissions is likewise in high demand around the world. Concerns about rising emissions and environmental safety are also growing, and these turbines have emerged as an efficient alternative for meeting targets and controlling pollutants.

Many companies throughout the world are also progressively using CHP systems. CHP is employed in a variety of industries, including rubber mills, wastewater treatment plants, and residential buildings. During the projection period, this drives growth in the CHP application segment of the micro turbine market.

Industrial Segment Dominates

During the projection period, the industrial segment is expected to have a leading market share. These turbines are widely used in a variety of industries, including oil and gas, construction, mining, and wastewater treatment. The oil and gas industry, as well as the construction industry, are both expanding rapidly, creating a steady stream of opportunities for these turbines. The growth of micro turbine market in this area is thus expected be sustained during the projection period.

Growth Opportunities Across Regions

North America Retains Dominance

In 2021, North America dominated the micro turbine market. The United States dominated the North American market. The growing demand for micro turbines in the pharmaceutical, construction, and mining sectors is propelling the expansion of the North American market. Furthermore, increased government initiatives for infrastructure development are encouraging the rise of the market in the region during the forecast period.

Europe Remains Significant

The market in Europe is expected to grow at the fastest rate and the United Kingdom controls the European micro turbine landscape. The increased stringency of government restrictions for industrial expansion is driving the growth of the micro turbine market in Europe. Furthermore, the growing need for clean and green energy is propelling the market forward. The European Union is likewise investing extensively in clean fuel technology, which is paving the way for the region’s market expansion.

Asia Pacific Grows Lucrative as CHP System Installations Soar

The Asia Pacific region is expected to increase at a considerable CAGR throughout the forecast period. The region's population is extremely dense, resulting in significant electrical demand and consumption within the region. CHP system installation is widely rising, resulting in a high installation of such turbines in this region. Countries such as India, China, and Australia are creating notable demand for such turbines, and their installation is projected to continue during the projection period.

A majority of countries are phasing out coal; for example, about 1,042.9 GW of coal-fired power plants were expected to be active in China by January 2021, increasing air pollution levels. China has set an objective of retiring many coal and nuclear power units by 2025.

Global Micro turbine market: Competitive Landscape

A few of the players in the worldwide micro turbine market include Capstone Turbine Corporation, Flex Energy Inc., Brayton Energy LLC, Microturbine Technology BV, Toyota Motor Corporation, Ansaldo Energia S.p.A., Eneftech Innovation SA, ICR Turbine Engine Corporation, Wilson Solarpower Corporation, and Calentix Technologies LLC.

Notable Developments

• In January 2019, Bladon Microturbine signed a production supply agreement with Gridserve. Under the multi-million dollar agreement, the revolutionary Bladon MTG12 will be integrated into Gridserve's 12kW solar hybrid power package
• In August 2020, Capstone Turbine Corporation announced a collaboration with the United States Department of Energy's Argonne National Laboratory to make substantial progress in developing hydrogen-operable micro turbines
• In December 2021, Capstone Green Energy Corporation has announced that its U.S. contractor, Lone Star Power Solution, has secured a deal to supply a CHP clean energy system to a premier hospital in Alabama. The microturbine will have a power output of 600 kW and will be powered by LPNG. The system is expected to be in place by 2022
• In June 2022, Capstone Green Energy supplied a Canadian firm that provides mobile power to oil and gas sites with two 200 kW micro turbines
• In December 2022, Ansaldo Energia introduced micro turbines that are intended to provide high-efficiency solutions for cogeneration, i.e., combined heat & power, and trigeneration, i.e., combined cooling, heat and power, in the small-to-medium power range

Regional Classification of the Global Micro Turbine Market is Described Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East and Africa