Global Micro Turbine Market - Forecasts from 2024 to 2029

Global Micro Turbine Market is estimated to grow at a CAGR of 8.70% during the forecast period to reach US$277.037 million by 2029, from US$154.523 million in 2022.

A microturbine represents a compact combustion turbine that drives an electric generator by utilizing a range of fuel sources, including natural gas, waste heat from thermal plants, and petroleum-based fuels such as diesel, kerosene, and heating oil.

Comprising essential components like a compressor, alternator, combustor, turbine, recuperator, and generator, microturbines have garnered widespread acclaim globally owing to their diminutive size and exceptional efficiency. Their operation involves harnessing exhaust energy and preheating compressed incoming air, thereby enhancing the electrical efficiency of the generator.

Several factors contribute to the burgeoning growth of the microturbine market. Firstly, the continuous growth of the global population, particularly in urban areas, translates to a consistent upsurge in electricity demand. Microturbines offer a decentralized solution to address this escalating requirement effectively.

Additionally, developing nations' substantial investments in infrastructure projects necessitate reliable and efficient power sources, positioning microturbines as valuable contributors to these developmental initiatives.

Furthermore, governments worldwide are advocating for cleaner energy alternatives to combat climate change. Microturbines present an attractive option as they can be powered by various fuels, including biogas and natural gas, offering a lower-emission alternative compared to traditional sources.

With increasingly stringent regulations on greenhouse gas emissions, traditional power plants are facing greater scrutiny, making microturbines, with their reduced emissions profile, a more appealing choice.

Moreover, the versatility of microturbines extends beyond electricity generation, as they can also produce heat simultaneously. This dual capability enhances overall energy efficiency, particularly for industries and facilities with significant thermal energy requirements, making microturbines an attractive option for such applications.

Market Drivers:

• Rising electricity demand-

The primary factor driving the global microturbine market during the forecast period is the rising electricity demand, particularly, lower-emission power generation as the population grows rapidly. Various smart building and smart city projects have been launched in several nations as a result of rapid industrialization, resulting in increased electricity demand.

To meet the rising electricity demand, both the public and private sectors are boosting power plant capacity, either by building new facilities or expanding existing ones. Gas-driven turbines are commonly used in such projects since they are both efficient and environmentally friendly.

Many countries have enacted strict emission regulations, causing businesses to employ microturbines on a big scale. The non-renewable electricity generation was 552,113.8GWh in October 2022 which has increased to the 684,522.8GWh in August 2023 data by iea.org. These are the variables that will propel this market forward over the projected period.

• Infrastructure Development-

Developing nations are directing substantial investments toward infrastructure projects, necessitating reliable and efficient power solutions. In this context, microturbines emerge as promising contributors to these developmental endeavors.

India's budget allocated to infrastructure-related ministries has seen a notable increase, rising from approximately INR 3.7 trillion in FY23 to INR 5 trillion in FY24. This surge in investment offers lucrative opportunities for private sector involvement across various segments of the transportation sector.

As the transportation industry pivots towards addressing sustainability concerns, the private sector is well-positioned to leverage the favorable policy landscape to expedite infrastructure investments.

In addition to support from both central and state governments through various schemes, India requires substantial impetus from Public-Private Partnerships to realize its ambition of achieving a $5 trillion economy by 2025. Such developments not only foster economic growth domestically but also augur well for the expansion of the global microturbine market.

Market Restraint:

• The high installation cost may stifle market expansion.

Microturbine installation prices are higher when compared to alternatives such as reciprocating engines. Microturbines have a hard time competing with reciprocating engines because of their high upfront costs. Microturbines also have a low fuel-to-electric efficiency, which is a significant limitation. Fuel-to-electric efficiency for un-recuperated microturbines is around 15 percent, whereas recuperated microturbines have higher efficiency in the range of 25 percent to 30 percent. In comparison to reciprocating engines, these efficiency values are inadequate.

By power rating, the global microturbine market can be segmented into 12-50 kW, 50-250 kW, and 250-500 kW categories.

The preeminent power rating sector was 50 kW-250 kW microturbines, which are expected to increase at the fastest rate during the projection period due to the growing use of hybrid electric vehicles, particularly in developed nations. The main cause for this product's rise is due to its quality of consuming less energy, which decreases household consumers' energy costs.

North America is anticipated to hold a significant share of the microturbine market.

North America is poised to command a significant portion of the microturbine market, particularly with the United States leading the charge as an early adopter of this technology. As a result, the region boasts a well-established market infrastructure and a wealth of expertise in the installation and maintenance of microturbines.

Furthermore, the implementation of stringent environmental regulations in North America favors the adoption of cleaner energy sources. Given their capability to operate on cleaner fuels or in combined heat and power (CHP) applications, microturbines emerge as an attractive option in this context.

Moreover, the North American oil and gas industry, along with various industrial sectors, often requires reliable and efficient power generation solutions, especially in remote locations. Microturbines are ideally suited to meet the demands of these applications, offering a compact and efficient power generation solution that aligns with the region's energy needs.

Market Developments:

• July 2023- Ryse Energy, a prominent player in decentralized renewable energy systems worldwide, completed the acquisition of Primus Wind Power, a leading manufacturer of micro wind turbines in the United States. This strategic move enhances Ryse Energy's standing as the most versatile player in small wind turbine technology on a global scale.
• January 2023- Capstone Green Energy reported that Horizon Power Systems, its exclusive distributor for the Rocky Mountains in the U.S. and Western Canada, successfully finalized a long-term rental agreement under the Energy as a Service (EaaS) model. The agreement involves the deployment of 30 Capstone C65 microturbines at 15 newly established and distant well sites across the San Juan Basin in New Mexico.
• July 2022- Capstone Green Energy Corporation's exclusive distributor in Texas, Arizona, and the Gulf States, Lone Star Power Solutions, secured an order for a 600 kW microturbine system to be installed at a renewable natural gas station in Kansas. It is a reliable power for gas compression operations at a remote site where no utility electricity was available.

Market Segmentation:

By Application

• Combined Heat and Power (CHP)
• Standby Power

By Power Rating

• 12 kW - 50kW
• 50 kW - 250 kW
• 250 kW - 500 kW

By End-user Industry

• Residential
• Commercial
• Industrial

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Others
• Middle East and Africa
• Saudi Arabia
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Others