Share
Microturbine Market Size, Share, and Analysis, By Power Rating (12 kW - 50kW, 50 kW - 250 kW, and 250 kW - 500 kW), By Application (Combined Heat & Power and Standby Power), By End-User (Residential, Commercial, and Industrial), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034
Microturbine Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 9.2% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 220.3 billion and is projected to reach USD 578.6 billion by the completion of 2034.
Microturbines are miniature combustion turbines similar to larger gas turbines but designed for distributed power generation. They operate on various fuels including natural gas, diesel, or renewable sources like biogas. These turbines are commonly used in combined heat and power (CHP) systems and generate electricity, along with useable heat, which helps in increasing energy efficiency. Microturbines are versatile and find application across residential, commercial, and industrial sectors, which is renowned for their low emissions and minimal maintenance needs. Therefore, technological innovations assist in improving the efficiency and cost-effectiveness of microturbines, which promote localized energy generation and strengthen energy security by providing dependable power in different scenarios.
Microturbine market is projected to reach USD 578.6 billion over the forecast period, owing to the growing demand for decentralized energy solutions. Various factors such as increasing energy requirements, along with emphasis on energy efficiency and the shift towards renewable energy sources are major drivers for the growth of microturbine market. Moreover, industries such as oil & gas, manufacturing, and healthcare, are increasingly adopting microturbines for combined heat and power applications to reduce operational costs and environmental impact. In addition, government initiatives that support clean energy and cogeneration technologies also contribute to the high adoption of microturbines across different industries. Consequently, technological innovations such as better reliability of microturbines and efficiency, increase their appeal to various end-user industries, which helps in maintaining an upward growth trajectory for the microturbines market.
Source: Fatpos Global
By End-User, the Microturbine Market is divided into Residential, Commercial, and Industrial. The industrial segment is anticipated to dominate the market due to the vast application of microturbines across various industries, like oil & gas, mining, construction, and wastewater treatment. The strong growth of oil & gas industry and the expansion of construction sector, are responsible to drive the demand for microturbines. Besides, microturbine serve as a crucial asset within the oil & gas industry for generating power in remote locations and lowering costs. In construction, these turbines offer on-site power generation solutions, which facilitate different construction activities. Industries such as mining and wastewater treatment use microturbines for decentralized energy solutions. Therefore, the significant demand of industrial segment which is driven by various applications and growth, solidifies its position as the major factor for the growth of microturbines market during the forecast period.
Based on Application, the Microturbine Market is segmented into Combined Heat & Power and Standby Power. The combined heat and power (CHP) segment will dominate the microturbines market owing to various factors. Microturbines provide exceptional efficiency in CHP applications and simultaneously produce electricity while using waste heat for heating or cooling purposes. This dual functionality improves energy usage and help in improving system efficiency. They offer economic benefits to end-users by reducing fuel consumption and reduce utility costs as well. Furthermore, by harnessing waste heat that would otherwise be wasted, microturbines contribute to energy savings for businesses and industries. This highlights the growing recognition of microturbines as essential elements in promoting energy efficiency across many industries, which establishes the dominance of combined heat & power segment in the microturbine market.
Source: Fatpos Global
Growing Emphasis on Energy Efficiency will Create Growth Opportunities
Industries across the world are stepping up efforts to improve energy efficiency as concerns about sustainability and climate change increases. Microturbines play an important role in this effort in combined heat and power (CHP) systems. It maximize energy use by effectively generating power while harnessing waste heat, which reduces energy consumption and greenhouse gas emissions in accordance with sustainability goals. Additionally, microturbines provide decentralized energy solutions, which enhances resilience against grid disruptions and strengthen energy security. Therefore, with governments and industries prioritizing energy efficiency initiatives, the demand for microturbines is anticipated to rise, which drives market growth and promote innovation during the forecast period.
Expansion of Renewable Energy Sources will Cause Market Expansion
Global shift towards renewable energy sources is a major catalyst for the microturbines market. Microturbines provide a versatile solution for generating electricity from various renewable fuels such as biogas, landfill gas, and other biofuels. Moreover, nations are aiming to lower their dependence on fossil fuels and reducing carbon emissions, due to which there's a greater focus on including renewable energy into the energy mix. Furthermore, microturbines play an essential role in this change by allowing efficient and dependable power generation from renewable sources, thereby expanding energy portfolios. Their ability to operate in remote or off-grid locations provides access to clean energy where traditional power infrastructure is lacking. Therefore, as the renewable energy sector continues its growth, the demand for microturbines is expected to rise.
Initial Investment Costs may Prevent the Industry's Growth
High initial investment costs involved with microturbine installations are a significant barrier to their vast adoption. Microturbines offer long-term benefits such as energy efficiency and lower operational expenses but the initial capital investment can deter potential buyers, such as smaller firms or organizations with limited financial means. Moreover, the challenges of installation and integration can increase the initial investment burden even further. However, technological improvements and supportive government policies are gradually escalating the costs linked to microturbine systems. Furthermore, financing alternatives including leasing and incentives for adopting renewable energy can help reduce the financial obstacles, which will make microturbines accessible to a broader customer base.
Microturbine Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The North America region will likely lead the microturbines market due to the concerted efforts of both governmental and private sectors that aim to transition away from nuclear and coal power plants towards cleaner energy sources. Therefore, there has been a prominent increase in the installation of microturbines, especially in combined heat and power (CHP) applications. The implementation of severe emission policies by the government further boosts the adoption of microturbines due to their low-emission characteristics, particularly in CHP setups.
In the Asia Pacific region, a similar trend is observed. High population density and electricity demand has increased the emphasis on the installation of CHP systems and microturbines. Moreover, countries like India, China, and Australia are witnessing a surge in demand for microturbines as they seek to meet their energy needs sustainably. This trend is expected to continue due to the industrialization and urbanization across Asia Pacific which drives the growth in the microturbines market.
Source: Fatpos Global
COVID-19 pandemic deeply affected the microturbines market, as it did with many industries across the world. Firstly, disruptions in global supply chains led to delays in the production and delivery of microturbine components and systems, which caused project delays and extended times for installations. Moreover, economic uncertainty and lockdown measures resulted in low energy demand across sectors like manufacturing and commercial real estate, which consequently affected the market for microturbines as projects were postponed or canceled. Businesses shifted their focus to essential operations and cost-cutting measures, that diverted attention from investing in new energy infrastructure like microturbines. Additionally, the transition to remote work presented challenges for microturbine manufacturers and service providers, thereby impacting their ability to conduct on-site inspections, installations, and maintenance activities.
|
ATTRIBUTE |
DETAILS |
|
Study Period |
2018-2034 |
|
Base Year |
2023 |
|
Forecast Period |
2024-2034 |
|
Historical Period |
2019-2022 |
|
Growth Rate |
CAGR of 9.2% from 2024-2034 |
|
Unit |
Value (USD Billion) |
|
Segmentation |
Main Segments List |
|
By Power Rating |
|
|
By Application |
|
|
By End-User |
|
|
By Region |
|
Microturbine Market size was values at USD 220.3 billion in 2023 and is projected to reach the value of USD 578.6 billion in 2034, exhibiting a CAGR of 9.2% during the forecast period.
The microturbine market is the industry that manufactures, distributes, and services small-scale combustion turbines, which are primarily used for distributed power generation. These little machines function similarly to bigger gas turbines, but are intended for decentralized energy generation.
The Industrial Service and the Combined Heat & Power segment accounted for the largest Microturbine Market share.
Key players in the Microturbine Market include Capstone Turbine Corporation, Ansaldo Energia, Bowman Power Group Ltd., Bladon Jets, FlexEnergy, IHI Corporation, Calnetix Technologies, Aurelia Turbines, Toyota Turbine and Systems Inc., 247Solar Inc., Micro Turbine Technology BV, Ansaldo Energia, Elliott Group, Atlas Copco, Opcon AB, and Other Prominent Players.
Growing emphasis on energy efficiency and expansion of renewable energy sources are the factors driving the microturbine market.
Select License Type
Select License Type
FATPOS CLIENT Appriciation DURING THE PROJECT
Working with Fatpos Global, allowed us to take advantage of their knowledge and easy approach, allowing us to collect important data utilizing a variety of techniques. The results were clearly presented and explained, and FG responded to our questions with speed and expertise.
|
Swiss-based global building materials manufacturer |
The analyses and presentations Fatpos Global have produced for us have been of a very high caliber and have allowed us to proactively improve our customer relationship management. They have also done so while maintaining complete anonymity. Without any doubt, we suggest Fatpos Global to you.
|
|
Tech-powered construction company |
We appreciate the team’s punctuality, flexibility in terms of report modification, post report purchase support and pleasant reaction all around. Overall, my experience with this company was nothing but positive, and I couldn't be more grateful for their excellent service. Thank you for all that you do!
|
|
American global management consulting firm |
We are able to concentrate on the topics and implications that are most important to our clients thanks to the adaptability and responsiveness of the team at Fatpos Global. We would highly recommend this company to anyone in need of their services, and I will certainly be using them again in the future.
|
|
Headquartered in Zug, Switzerland, leading supplier of medical and surgical instrument |
To better study our client demographics, develop the ideal product-price architecture, and enhance our target marketing initiatives, we hired Fatpos Global. Every component of the project was completed, and we are very happy with the useful insights and actionable results.
|
|
Kosovan company, A leading organic fertilizers producer |
Thank you for your team's generous assistance, The final report was delivered to me, and I find it to be really helpful. Also, you may be sure that I will get in touch with you if I ever require fresh materials for market research. Gratitude once more.
|
|
German specialty chemicals company based in Cologne, Germany |
