Microturbine Market Size, Share & COVID-19 Impact Analysis, By Power Rating (Up to 50 kW, 51 kW-250 kW, 251-500 kW, and 501-1000 kW), By Application (Combined Heat & Power (CHP) and Standby Power), By End-user (Residential, Commercial, and Industrial) and Regional Forecasts 2022-2029

The global microturbine market size was USD 60.3 million in 2021. The market is expected to grow from USD 66.1 million in 2022 to USD 129.4 million by 2029 at a growth rate of 10.1% in the 2022-2029 period. The global impact of COVID-19 has been unprecedented and staggering, with experiencing a lower-than-anticipated demand across all region compared to pre-pandemic levels. Based on our analysis, the global market exhibited a decline of -23.1% in 2020.

A microturbine is a tiny low combustion rotary engine that will be run on liquid and gaseous fuels. It’s a new distributed generation technology that's being employed for stationary energy generation applications. These turbines turn out each electricity and heat on a tiny low scale. It offers numerous benefits over alternative technologies like low emission, a tiny low variety of moving components, larger potency, compact size, and low electricity prices. These turbines have relatively low operations and maintenance prices.

COVID-19 IMPACT

COVID-19 Virus Affects Projects Related to Power Distribution Causing Disruption in Market Growth

The coronavirus has become a global health threat and has affected nearly 200 countries around the globe. There are various business sectors affected by the pandemic like the power generation sector, manufacturing sector, hospitality, and others.  The governments across several countries had to impose a lockdown. The majority of countries have imposed restrictions on travel across the countries or outside the countries which has severely interrupted the supply chain and trade activities were also stopped.

The new power projects were put on halt due to rising concern over the deadly virus and the majority of industries were not operational. This results in declining demand for microturbines and their parts & accessories. Many projects have the requirement of importing parts and equipment or turbines from other nations and as the government across several nations closed international borders, the supply of such products has been impacted. Thus, resulted in the delay of the projects. The investment has declined within the power sector thanks to the occurrence of the pandemic.

LATEST TRENDS

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Increasing Initiatives to Phase out Coal and Nuclear Power Plants to Boost Growth

The power plants driven by coal are considered very destructive to the environment as they release large amounts of dangerous gases. The emission of such gases contributes largely to global warming which lays severe impacts on human life. The turbines that run on nuclear are also produce toxic gases, having long-standing damaging effects on the surrounding. The government is highly focused on reducing greenhouse gases and replacing the turbines running on nuclear and coal with gas turbines. These turbines regularly release lesser lethal gases as compared to the coal-based power plants.

Approximately 2,045 GW capacity of coal based power plants are functioning worldwide by the end of 2019. The majority of countries are phasing out coal, for instance, around 1,042.9 GW of coal-based power plants are operational in China as of January 2021 which increases air pollution levels. China has set targets to phase out many coals and nuclear plants by 2025.

DRIVING FACTORS

Growing Electricity Demand to Augment Growth in Market

The demand for power is growth worldwide due to the population is increasing vastly. The infrastructural development heavily contributes to the upsurge of electricity demand. Industrialization is additionally increasing across several developing countries and in several countries, numerous smart cities and smart building projects are initiated that will increase the energy demand. In order to meet the energy demand, the general public and private segments are rising powerhouse capability either by putting in new powerhouses or by increasing their power plant capacities. These projects are mainly putting in gas-based turbines as they're economical and release fewer harmful substances. The government has additionally enforced demanding emission norms that make firms adopt these turbines on an outsized scale. These factors drive growth throughout the market during the forecast amount.

Increasing Installation of Combined Heat and Power (CHP) to Bolster Market Growth

The rapidly increasing installation of renewable energy around the world owing to increasing awareness about environmental safety. The government across several countries has started focusing on enforcing renewable sources of energy to reduce rising air pollution levels. The government has also imposed stringent emission norms to reduce pollution. The investment in the combined heat and power segment is also widely increasing across the globe. The CHP accounts for a majority of the market share in the installation of such turbines. Thus, drives growth in the market during the forecast period.

RESTRAINING FACTORS

Fluctuations in Oil & Gas Prices to Hamper Microturbine Market Share

Oil & gas costs are full of disruptions within the provider of hydrocarbons. Geopolitical tensions also are a significant turbulent issue that causes uncertainty regarding the supply or demand for oil & gas. This will cause higher disruption among the costs of natural gas, petrol, or fuel. A majority of nations within the geographical region occupy a notable share of gas reserves. The region is very opposing thanks to increasing ministerial and ethnic problems. These sort of turbines runs on liquid and gaseous fuels and any disruptions in costs of oil & gas hamper the microturbine market growth. The coronavirus pandemic has conjointly caused the demand for gas to decrease considerably. This results in attenuated costs for oil & gas, which additionally creates a dark impact on market growth.

SEGMENTATION

By Power Rating Analysis

51 kW-250 kW Segment to Hold Largest Market Share Owing to Increasing Demand from Commercial and Industrial Sectors

Based on power rating, the market is segregated into up to 50 kW, 51 kW-250 kW, 251-500 kW, and 501-1000 kW. The 51-250 kW segment is likely to hold a majority of the market share during the forecast period. Microturbines with the power rating 51kW-250kW are highly preferred in commercial and industrial sectors across the globe. The adoption of combined heat and power plants is widely increasing globally. The CHP plants are also replacing nuclear and coal plants which results in increasing demand for turbines with these power ratings.

The 251-500 kW and 501-1000 kW segments are anticipated to register significant growth during the forecast period. The implementation of these turbines is largely increasing in various spaces including schools, offices, hospitals, restaurants, hotels, public buildings, etc. Turbines with these ratings are also used in the various industrial sector during the forecast period.   

By Application Analysis

Combined Heat and Power to Hold Major Market Share in this Market Due to High Demand Efficient Power

By application, the market is bifurcated into combined heat & power (CHP) and standby power.

The combined heat and power (CHP) sector holds the majority of the market share in this market. CHP is a highly adopted technology across the world and the investment in this sector is also increasing. Efficient energy with lower emissions is also widely in demand across the globe. The concerns for rising emission and environmental safety are also increasing and these turbines have emerged as an efficient solution to achieve target and control environmental pollution. CHP systems are also increasingly adopted by many industries around the world. The CHP is used in numerous industries including rubber mills, wastewater treatment plants, and across the residential sector. This drives growth in CHP application in this market during the forecast period.

The standby power segment is projected to grow at a significant pace during the forecast period. The demand for uninterrupted energy supply is high around the world. Such turbines are cost-effective and cause lower emissions in the surroundings. Thus, drives growth in the standby power segment during the forecast period.      

By End-user Analysis

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Industrial Segment to Hold Significant Market Share during Forecast Period Owing to Large Application of Microturbines

Based on end-user, the market can be broadly trifurcated into residential, commercial, and industrial divisions. The industrial segment is likely to hold a dominant market share during the forecast period. These turbines have a large application in various industries such as oil & gas, mining, construction, wastewater treatment, and other industries. The oil & gas industry along with the construction industry is growing significantly and increasing the demand for such turbines. Thus, drives growth in this segment during the forecast period.

The commercial segment is anticipated to grow at a significant CAGR over the forecast period. The commercial segment has a high demand for such turbines as it is an efficient solution for small power demands in commercial spaces. It is highly used in spaces including schools, offices, hotels, hospitals and others.  

REGIONAL INSIGHTS

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North America to Hold Largest Market Share due to Extensive Elimination of Traditional Power Generation Stations

Geographically, the global market has been analyzed across five key regions, including North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

North America region has dominated the market in the year 2021. The government and the private sectors are focusing on phasing out nuclear and coal power plants. The U.S. holds the majority of the market share in the North America region. The government in the country has also implemented stringent emission policy 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 population of the region is incredibly high which ends up in high electricity demand and consumption within the region. The installation of CHP systems is widely increasing leading to the high installation of such turbines in this region. Countries such as India, China, Australia, and others are experiencing high demand for such turbines and are likely to extend their installation throughout the forecast period.

Europe region is also likely to witness growth during the forecast period. This region has several upcoming projects lined up in this market during the forecast period. This region is also increasing focus on the installation of CHP plants. The focus towards reducing air pollution is also increasing. Thus, drives growth in the Europe region in this market.

Additionally, the Europe region is likely to significant witness growth throughout the forecast period. This region has had many upcoming projects throughout the forecast period. This region is additionally increasing the focus towards the installation of new CHP plants. The government has adopted several policies to reduce carbon emission which leads to growth in these turbines market.

Besides, the Middle East and Africa, and Latin America is also anticipated to grow significantly throughout 2022-2029. The demand for power supply is increasing in both regions along with the increasing installation of renewable energy. The investment in renewable is increasing widely in the Middle East and Africa region.

KEY INDUSTRY PLAYERS

Key Market Players Are Focused On Acquiring New Contracts to Gain Market Share

The market is highly fragmented with the presence of numerous large players shaping the competitive landscape across the world. Capstone Turbine is analyzed to be the market leader in the microturbine industry. This company has a strong foothold across the globe and the company has a strong presence in North America, Latin America, and European countries. Several companies are increasingly participating in various developments activities to strengthen their market spot globally. Several key players are looking for new contracts to upsurge their market share. For instance, Capstone Turbine announced to continue to expand its long-term microturbine rental business as the company is expanding its Energy as a Service (EaaS) business model. The company also added 1.6 MW of new long-term rental contracts. The company has also announced to expand its rental fleet to 10.6 MW by March 2021.

Furthermore, in December 2020, Capstone Turbine announced that it will provide two C600S and one C800S microturbine system for several oil & gas projects in Australia. These systems were expected to be delivered between June to December 2021. This order is secured by Optimal Group, Australian Distributor.   

LIST OF KEY COMPANIES PROFILED:

• Capstone Turbine Corporation (U.S.)


• Bladon Micro Turbine (U.K.)


• UAV Turbine (U.S.)


• Ansaldo Energia (Italy)


• Aurelia Turbine (Finland)


• MTT Microturbine (Netherlands)


• FlexEnergy Inc. (U.S.)


• ICR Turbine Engine Corporation (U.S.)


• Dresser-Rand (U.S.)


• Turbo Tech Precision Engineering Pvt., Ltd. (India)


• Brayton Energy, LLC. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2021- Capstone Green Energy Corporation has announced that its U.S. distributor, Lone Star Power Solution has secured a contract to provide CHP clean energy system to a major hospital in Alabama. The microturbine will be 600 kW and will be fueled by LPNG. The system is expected to be commissioned by 2022.


• July 2021– Capstone Green Energy Corporation announced to provide two C65 microturbines to Innovametall Stahl-und Metallbau for use in an ultra-low level of emissions CHP system. The contract was secured by Wels Strom GmbH, distributor of capstone in Austria and Germany. The system will be the first gas turbine system in Europe that will run on hydrogen.

REPORT COVERAGE

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The global microturbine industry report on the market size provides a detailed analysis of the market and focuses on key aspects such as leading companies and leading waste type, and services of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation