Microturbines Market- Snapshot

Microturbines can be defined as a small scale power generators that produce electrical power by burning gaseous and liquid fuels. The combustion of these fuels in the turbine results in high speed rotation of the turbine shaft, which then turns an electrical generator for producing electrical power. Microturbines operate at high speeds and can be used only for power generation or for CHP (combined heat and power) applications similar to gas turbines. Microturbines are capable of operating on an array of fuels including natural gas, biogas, sour gases, gasoline, diesel, kerosene, heating oil, etc.. Microturbines are designed in such a way that they combine the reliability of an aircraft’s auxiliary power system along with the manufacturing economics of a turbocharger. Microturbine systems are usually air cooled with some designs utilizing air bearings.Therefore, these turbines eliminate both oil and water systems that are commonly used in reciprocating engines. Microturbines have low emission combustion system, whose emission performance is comparable to that of larger gas turbines. Microturbines also have potential for reduced maintenance with their uptime being around 99% and are highly reliable and durable for generating continuous and high quality power.

microturbine market

Shift toward On-Site Power Generation and Low Cost Power Generation from Microturbines Likley to Drive the Market

Aging power infrastructure and poor grid connectivity across various regions is expected to fuel demand for on-site power generation technologies such as microturbines. The maintenance of aging power infrastructure, especially in developed regions such as North America and Europe, is expected to lead to down time of the grid in the region. This is likely to affect overall productivity of key industries and hamper the daily life of local residents. On-site power generation is estimated to become more feasible for reliable for power supply in these regions. Moreover, poor grid connectivity in developing and underdeveloped nations is projected to lead to rise in demand for on-site power generation as power demand in these nations increases. Furthermore, factors such as reliability, customized power demand, and reduced power generation costs are expected to increase demand for microturbines. Microturbine systems can be installed easily in comparison to complex conventional power plants and can produce low-cost energy from much cleaner energy sources. The energy generation cost from microturbines is reduced mainly by utilizing them for CHP applications. CHP systems not only increase the overall efficiency of a microturbine but also provide economic benefits to end-users. Governments and regulatory authorities offer incentives for the installation of microturbines. In Europe and North America, governments have already laid plans for providing incentives and subsidies to end-users who are installing microturbines for either CHP applications or for power generation.

High Initial Investment and Low Fuel-to-electric Efficiency can Restrain the Expansion of the Market

The installation costs of microturbines lie in the range of US$ 700–1100 per KW, which is high in comparison to substitutes such as reciprocating engines. High upfront costs of microturbines makes it difficult for them to compete with reciprocating engines. In order to be competitive, the installation costs of microturbines for large scale applications should ideally fall in the range of US$ 400–US$ 600 per kW, which is similar to those of reciprocating engines. Microturbines also suffer from low fuel-to-electric efficiency, which is a major restraint. Unrecuperated microturbines have fuel-to-electric efficiency of about 15%, while recuperated microturbines have slightly greater efficiency in the range of 25% to 30%. These efficiency levels are quit incompetent with respect to reciprocating engines. Moreover, the efficiency of microturbines further decreases with increase in part load, which is not the case with reciprocating engines.

Technological Advancements and Innovations to Pave the Way for Microturbines in the Future

New technologies and innovations in microturbines are expected to improve their overall performance along with their cost effectiveness. Installation and development of microturbines in off-grid areas can reduce the high costs involved in grid connection and power transmission, thereby optimizing the costs of off-rid power generation. Microturbines, when used in combination with energy storage devices, can help meet peak demand from end-users without compromising on efficiency. Since microturbines can also use hydrogen as fuel, using them in combination with fuel cells and in CHP applications can result in high energy efficiency with almost zero emissions.

North America Held a Major Share in 2016

Based on region, the microturbine market can be divided into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. North America dominated the global microturbines market in 2016. This is primarily due to government support and incentives along with stringent environmental regulations for power generation emissions in the region. The market in Asia Pacific is anticipated to expand at a significant rate during the forecast period, mainly due to the rising power demand in the region along with poor grid connectivity, which is expected to boost demand for microturbines.

Global Microturbine Market is Monopolistic in Nature with One Player Constituting a Controlling Share of the Market

The global microturbines market is monopolistic in nature. Key players in the global microturbines market are Capstone Turbine Corporation, Bowman, Ansaldo Energia, Flexenergy, Bladon Jets, Brayton Energy, Icrtec, 247solar, TurboTech Precision Engineering Pvt. Ltd., and Aurelia Turbines Oy. The global microturbines market is dominated mainly by Capstone Turbine Corporation, which holds major share of the global market.

Microturbines Market – Overview

Microturbines can be described as a small scale power generating equipment that produce electrical power by burning either gaseous or liquid fuels. The combustion of these fuels in the turbine produces high speed rotation of the turbine shaft, which then turns an electrical generator for producing electrical power. Microturbines can work using an array of liquid and gaseous fuels including natural gas, biogas, sour gases, gasoline, diesel, kerosene, and heating oil. Microturbines operate at high speeds and are mainly used for power generation or for CHP (combined heat and power) applications similar to gas turbines. They have low emission combustion systems, whose emission performance is comparable to that of larger gas turbines. Microturbines also have an uptime of around 99% with potential for reduced maintenance and are highly reliable and durable for generating continuous and high quality power.

Aging power infrastructure and poor grid connectivity in several parts of the world are expected to increase demand for on-site power generation around the globe. This, in turn, is anticipated to increase demand for microturbinesglobally. Moreover, microturbine systems can be installed in a much easier way in comparison to complex conventional power plants and can produce low-cost energy from much cleaner sources. Microturbine installations also enjoy incentives from governments and regulatory authorities. However, microturbines suffer from low fuel-to-electric efficiency, which is a major restraint for the market.

This report analyzes and forecasts the market for microturbines at the global and regional level. The market has been forecast based on revenue (US$ Mn) from 2017 to 2025, considering 2016 as the base year. The study includes drivers and restraints of the global microturbines market. It also covers impact of these drivers and restraints on demand for microturbines during the forecast period. The report also highlights opportunities in the microturbines market at the global and regional level.

The report includes detailed value chain analysis, which provides a comprehensive view of the global microturbines market. Porter’s Five Forces model for the microturbines market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein power rating, application, and end-user are benchmarked based on their market size, growth rate, and general attractiveness.

Microturbines Market- Segmentation

The study provides a decisive view of the global microturbines market by segmenting it in terms of power rating, application, and end-user. In terms of power rating, the microturbines market can be classified into 12-50 KW, 51-250 KW, and above 250 KW. Based on application, the microturbines market can be divided into CHP and standby power applications. In terms of end-user, the market can be segmented into residential, commercial and industrial. These segments have been analyzed based on present and future trends. Regional segmentation includes current and forecast demand for microturbines in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The report provides the actual market size of microturbines for 2016 and estimated market size for 2017, with forecast for the next eight years. The global market for microturbines has been provided in terms of revenue. Market revenue has been defined in US$ Thousand. Market numbers have been estimated based on power rating, application, and end-user of microturbines. Market size has been provided in terms of global, regional, and country level market.

The report comprises profiles of major companies operating in the global microturbines market. Key players in the microturbines market are Capstone Turbine Corporation, Bowman, Ansaldo Energia, Flexenergy, Bladon Jets, Brayton Energy, ICR Turbine Engine Corporation (ICRTec), 247solar, TurboTech Precision Engineering Pvt. Ltd., Micro Turbines Technology BV, and Aurelia Turbines Oy. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments.

The global microturbines market has been segmented as follows:

Microturbines Market, by Power Rating

  • 12–50 KW
  • 51–250 KW
  • Above 250 KW

Microturbines Market, by Application

  • CHP (Combined Heat & Power)
  • Standby Power

Microturbines Market, by End-user

  • Residential
  • Commercial
  • Industrial

Microturbines Market: Regional Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Australia
    • Japan
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of Middle East & Africa

 

Key Takeaways

  • The bove 250 KW power rating segment holds a dominant share due to its high demand from industrial and heavy commercial end-users
  • The increasing end-consumer awareness about CHP opportunities is also likely to boost to the microturbines market
  • Recovering oil & gas industry and rising demand for on-site power generation along with increasing CHP opportunities are expected to drive the microturbines market in the near future
  • The industrial end-user segment is anticipated to expand at a significant rate during the forecast period
  • CHP is the major application segment for microturbines
  • North America is anticipated to dominate the market during the forecast period
  • The market in Asia Pacific is expected to expand at the significant rate during the forecast period