The Global Microturbine Systems Market, By Application (CHP Generation and Standby Power), By End-use (Industrial, Commercial and Residential) and by Region (North America, Europe, Asia Pacific, ROW) - Global Forecast to 2027, is expected to be valued at US$ 1,239.7 million by 2027, exhibiting a CAGR of 13.8% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
A microturbine is a combustion type generator, which is used for stationary energy generation applications. Microturbines are capable of generating energy from 25 KW to 1000 KW. They are mainly used in industrial, commercial, as well as residential 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.
The microturbine systems market is estimated to account for US$ 1,239.7 Mn in terms of value by the end of 2027.
Cost-effective generation of power is expected to boost the global microturbine systems market growth over the forecast period
The demand for energy in various applications is increasing rapidly. At the same time, the number of energy sources supporting low emission power generation is increasing. This, in turn, is boosting the demand for microturbine systems globally. The majority of consumers are focused on the cost-effective generation of power, in order to achieve profitable power generation and supply. Moreover, microturbines can operate on multiple fuels. The use of coatings such as thermal barrier coating and ceramics is enhancing the efficiency of turbines. Hence, these factors are expected to drive growth of the global microturbine systems market during the forecast period.
Rising awareness related to clean energy can provide major business opportunities in the global microturbine systems market
The rising trend of clean energy has compelled the reduction of greenhouse gases and other emissions. Natural gas-fired power plants offer high-efficiency low-carbon characteristics, which can increase the demand for microturbine systems globally. Cogeneration of power and heat allow obtaining high-efficiency energy generation with significant primary energy savings. Key companies in the market can capitalize on such lucrative opportunities and gain a competitive advantage in the market.
Volatile fuel prices is expected to restrain growth of the global microturbine systems market during the forecast period
Currently, the most common fuel utilized in microturbines is natural gas. Unstable natural gas prices are expected to pose a threat to market growth. Volatile natural gas prices have made the utilization of microturbine substitutes attractive from both environmental and economic standpoints. 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. Weather changes equally affect the efficiency of microturbines, which further increases fuel consumption and thereby overall operating cost. Hence, these factors are expected to restrain growth of the global microturbine systems market during the forecast period.
Among regions, North America is expected to witness significant growth in the global microturbine systems market during the forecast period. This is owing to higher consumption of energy in developed economies such as the U.S. for mining, construction, and wastewater treatment. Furthermore, increasing shale gas developments in the region is expected to boost the North America microturbine systems market growth over the forecast period.
Europe is expected to register a robust growth rate in the global microturbine systems market over the forecast period. This is owing to stringent environmental regulations across Germany, Russia, and the U.K. Furthermore, growing government initiatives to improve energy infrastructure is expected to propel the global microturbine systems market growth over the forecast period.
offshore exploration activities.
Global Microturbine Systems Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. Natural gas and crude oil gas are primary raw materials for the production of energy. Due to lockdown imposed by countries, the demand and price of the crude oil has fallen. For instance, in March 2020, in US the price of the crude oil has decreased from US $61.06 to US$23.36. Additionally, every country has banned international and domestic travel, due to this there is huge drop in the consumption of Aviation Turbine Fuel (ATF) across the globe. All these activities had huge impact on global microturbine market.
Major companies operating in the global 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.
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