The global microturbine systems market is highly consolidated and monopolistic in nature with Capstone Turbine Corporation dominating the market, reports Transparency Market Research in a new study. Capstone Turbine Corporation accounted for approximately 78.3% in 2012. Another key company, FlexEnergy, held a minor share of 6.4% in 2012. The global microturbine systems market is best known for maintaining brand value.
To strengthen their position in the market, the key players are aiming at reducing product maintenance cost through product innovation and operating cost to increase their operating margins. Due to high growth potential, new players are being compelled towards venturing into the global microturbine systems market. The emerging players are striving to gain brand reputation and acquire a major market share. However, the existence of considerable entry barriers is likely to maintain a low competitive rivalry in the global microturbine systems market in the coming years.
The global microturbine systems market is projected to expand at a 16.7% CAGR between 2013 and 2019. The market was worth US$247.7 mn in 2015 and is likely to touch a valuation of US$440.8 mn by 2019, says TMR.
Favorable Government Regulations to Drive Demand for Microturbine Systems
Renewable energy sources do not excessively hamper the environment and are also abundant in nature. However, there is a lack of efficient technologies to harness power from renewable resources. The increasing pollution level due to emission from non-renewable resources has compelled governments across the world to apply strict environmental regulations. According to a recent report from the U.S. Energy Information Administration, the global carbon-dioxide emissions level is projected to cross 35 bn metric tons by the end of 2020. Excessive carbon dioxide emission results in deterioration of environment as well as human health. As a result, regulatory bodies around the world have issued stringent regulations regarding high emission of harmful gases.
As microturbine systems utilize harmful gases to serve better purposes, their demand is prominently increasing in various industries. Microturbine systems have comparatively low emissions and also require little maintenance. The machine’s exhaust is also useful for heating water, absorption cooling, and dehumidifying. As a result, their demand is further expected to intensify in the upcoming years.
VolatileFuel Prices to Inhibit Market Growth of Microturbine Systems
At present, the commonly used fuel in microturbines is natural gas. The unstable prices of natural gas are likely to act against the progress of the global microturbine systems market. Moreover, volatile natural gas prices have impelled consumers to shift towards substitutes for microturbine systems which are both economic and environmental friendly. Although the cost of energy generated from microturbines and reciprocating engines is almost same, the emergence of advanced carbon dioxide systems with low energy cost is expected to pose a threat to the growth of the global microturbine systems market. Weather changes equally cause inefficiency in the microturbines further increasing fuel consumption and affecting operating cost. These factors are likely to hinder the growth of the global microturbine systems market.
Forthcoming Technological Advancements to Provide Lucrative Growth Opportunities to Vendors
Microturbine systems manufacturers such as Capstone Turbine Corporation are aiming at business expansion by introducing various technologically advanced microturbines in the marine market. Similarly, numerous research and development activities are being conducted by manufacturers with an aim of providing technologically advanced and efficient products. With the development of technologically advanced products, companies are also focusing on lowering operational costs of microturbine systems by using alternative fuels to run microturbines. Manufacturers of microturbine systems can capitalize on these opportunities and also attract consumers globally.
North America is expected to emerge dominant in the global microturbine systems market by 2019 with an overall share of 43.54%. The industrial sector is likely to lead as the prime end-user until 2019.
The review is based on the findings of a TMR report titled, “Microturbine Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019.”
- Microturbine Systems Market: End Use Analysis
- Microturbine Systems Market: Application Analysis
- CHP Generation
- Standby Power
- Microturbine Systems Market: Regional Analysis
- North America
- Rest of the World
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