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 {Schools & Colleges, Hospitals, Hotels, and Others}, and Industrial {Food & Beverage, Agriculture, Chemical & Petroleum, Manufacturing, Wastewater Treatment, and Others}) and Regional Forecasts 2021-2028.

The global microturbine market size was USD 54.7 million in 2020. The global market is expected to grow from USD 58.5 million in 2021 to USD 120.4 million in 2028 at a growth rate of 10.9% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with this industry witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of -23.1% in 2020. The sudden rise in CAGR is attributable to the demand for such turbines and growth returning to pre-pandemic levels once the pandemic is over.

A microturbine can be defined as a small combustion turbine that can be run on gaseous and liquid fuels. It is new distributed generation technology that is being used for stationary energy generation applications. These turbines produce both electricity and heat on a small scale. It offers various advantages over other technologies such as a small number of moving parts, greater efficiency, compact size, low electricity costs, and lower emissions. These turbines have comparatively low operations and maintenance costs.  

COVID-19 Pandemic Affects Heavily on Power Distribution Projects

The coronavirus (Covid-19) was identified in the Hubei province of China in December 2019 and has since become a global health threat, affecting nearly all the countries. The power generation sector is widely affected by the pandemic as the governments have imposed lockdown in major nations around the world. The majority of countries have faced restrictions on movement across the countries. These resulted in disruptions in the supply chain and the import and export activities were also halted. The demand for such turbines declined as the industries were closed across the world.

The power sector has suffered a large decline as various power plant projects were halted due to the imposed lockdown across the world. This leads to a decline in demand for various parts and equipment including microturbines. Many projects were importing parts and equipment or turbines from other nations and as the international border are closed the supply of such products has been stopped and this resulted in the delay of the projects. The investment has declined in the power sector due to the outbreak of a pandemic.

LATEST TRENDS

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Rising Initiatives to Phase out Coal and Nuclear Plants to Bolster Growth

Coal-based power plants are considered very harmful to the environment as they emit large amounts of harmful gases. The emission of such gases contributes largely to global warming which lays severe impacts on human life. The nuclear-driven turbines also generate toxic gases, having long-term harmful effects on the surrounding. The government is highly focused on reducing greenhouse gases and replacing nuclear and coal-driven turbines with gas-driven turbines. These turbines usually emit lower toxic gases than coal power plants.

Approximately 2,044 GW capacity of coal-fired power plants are operating in the world in 2019. The majority of countries are phasing out coal, for instance, China is operating around 1,082 coal-fired power plants by 2021 which increases air pollution levels. China has set targets to phase out many coals and nuclear power plants by 2025.

DRIVING FACTORS

Rising Electricity Demand Drives Growth in Market

The electricity demand is widely increasing around the world as the population is also increasing immensely. The infrastructural development contributes heavily to the upsurge of electricity demand. Industrialization is also increasing across developing countries. In many countries, various smart building, smart cities projects have been initiated which further increases the electricity demand. To fulfill the electricity demand, the public and private sectors are increasing power plant capacity either by installing new power plants or by expanding their power plant capacity. Such projects are majorly installing gas-driven turbines as they are efficient and less harmful. The government has also implemented stringent emission norms which makes companies adopted these turbines on a large scale. These are factors driving growth in this market during the forecast period.  

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

The installation of renewable energy is widely increasing around the world as the awareness about environmental safety is widely increasing. The government across many countries is also focusing on implementing renewable sources of energy to reduce emission 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 this market during the forecast period.

RESTRAINING FACTORS

Fluctuations in Oil & Gas Prices to Hamper Market Growth

Oil & gas prices are affected by disruptions in the supply of hydrocarbons. Geopolitical tensions are also a major disruptive factor that causes uncertainty about the availability or demand for oil & gas. This can cause higher disruption within the prices of natural gasoline or fuel. A majority of countries in the Middle East region occupy for notable share of natural gas reserves. The region is highly contested due to increasing ministerial and ethnic issues. These type of turbines runs on liquid and gaseous fuels and any disruptions in prices of oil & gas hamper the market growth. The Covid-19 pandemic has also caused the demand for natural gas to decrease significantly. This lead to decreased prices for oil & gas, which further creates a gloomy impact on market growth.

SEGMENTATION

By Power Rating Analysis

51 kW-250 kW Segment to Hold Largest Market Share

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 50-250 kW segment is likely to hold a majority of the market share during the forecast period. Microturbines with these power ratings are highly preferred in commercial and industrial applications across the world. The adoption of CHP is widely increasing and such plants are also replacing nuclear and coal plants and these increase the demand for such turbines with a 50kW-250kW power rating. These turbines are also used in industrial and commercial sectors.

The 251-500 kW and 501-1000 kW segments are likely to grow at a significant pace during the forecast period. The adoption of such turbines is largely increasing in commercial sectors such as schools, hospitals, offices, hotels, public buildings, etc. These turbines are also used in the various industrial sector during the forecast period. 

By Application Analysis

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Combined Heat and Power (CHP) to Hold a Major Microturbine Market Share

By application, the market is segregated 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 due to increasing investment in this sector. The demand for efficient energy with lower emissions is also widely increasing across the world. With the rising emission and environmental safety concerns these turbines have emerged as an efficient solution to achieve target and control environmental pollution. The CHP systems are widely adopted by several industries across the world. The CHP is used in 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 likely to contribute significantly to the growth of this market during the forecast period. The demand for uninterrupted power supply is widely increasing around the world. Such turbines are cost effective and cause lower emissions in the surroundings. Thus, drives growth in the standby power market during the forecast period.    

By End-user Analysis

Industrial Segment to Hold Significant Market Share During Forecast Period

On the basis of end-user, the market can be broadly trifurcated into residential, commercial, and industrial divisions.

The commercial segment can be further subcategorized into schools & colleges, hospitals, hotels, and others, whereas the industrial section can be divided into food & beverage, agriculture, chemical & petroleum, manufacturing, wastewater treatment, and others.

Subsequently, the industrial segment is likely to hold a dominant market share during the forecast period. Microturbine has large application in various industries such as mining, wastewater treatment, construction, oil & gas, and other segments. The oil & gas industry, the construction industry is expanding significantly and increases the demand for such turbines. Thus, drives growth in this segment during the forecast period.

The commercial segment is likely to register growth at significant CAGR during the forecast period. The use of such turbines is largely increasing in the commercial sector as it offers an efficient solution for small power demands in the market. It is highly used in schools, offices, hotels, and hospitals.

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 2020. The U.S. accounted for the majority of the market share in the North America region. The region is extensively working to phase out nuclear and coal power plants and the government has also implemented stringent emission policy which leads to the high installation of such turbines specifically in CHP applications.

Asia Pacific region is likely to grow at a higher CAGR during the forecast period. The population of the Asia Pacific region is very high which leads to high electricity consumption and demand with the region. The focus on the installation of CHP systems is widely increasing in this region. Countries such as India, China, Australia, and others are experiencing high demand for such turbines and are likely to increase their installation during 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.

KEY INDUSTRY PLAYERS

Key Participants Are Concentrating On New Contracts to Gain Market Share

The market is highly fragmented with the presence of several large-scale players shaping the competitive landscape across the world. Capstone Turbine is assessed to be the market leader in the microturbine industry. The company has a significant presence across the globe with the majority of the revenue comes from North America, Latin America, and European countries. Several companies are increasingly participating in organic & inorganic developments to solidify their market position globally. The companies are looking for new contracts to increase their market share. For instance, Capstone Turbine announced that 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 systems for several oil & gas projects in Australia. These systems are 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:

• July 2021– Capstone Green Energy Corporation announced that it will provide 2 C65 microturbines to Innovametall Stahl-und Metallbau for use in an ultra-low emissions CHP system. The contract was secured by Wels Strom GmbH which is a Capstone distributor in Germany and Austria. This system will be the first hydrogen-fueled gas turbine system in Europe.


• November 2019 – UAV Turbine announced that it is developing a microturbine engine specifically for Group 3 unmanned aerial vehicles as the company believes these engines are more reliable than reciprocating engines.    

REPORT COVERAGE

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The global microturbines market research report provides a detailed industry analysis 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 opportunity of the advanced market over recent years.

Report Scope & Segmentation