Micro Turbine Market Share, Size & Trend Report

Micro Turbine Market Share, Size & Trend Analysis Report By Application (Combined Heat & Power Standby Power), By Power Rating, By End Use, And Segment Forecasts, to 2024

  • Published Date: May, 2016
  • Base Year for Estimate: 2015
  • Report ID: 978-1-68038-863-3
  • Format: Electronic (PDF)
  • Historical Data: 2013-2015
  • Number of Pages: 140

Industry Insights

The global Micro Turbine Market size was USD 134.1 million in 2015. Increasing preference for lower emission power generation sources is expected to remain a key driving factor for global Micro Turbine Market over the forecast period.

Micro turbines offer the wide range of benefits which includes compact size, ability to run on multiple fuels, less moving parts and higher efficiency resulting in lower electricity costs which are anticipated to increase its demand among the end use industries.

U.S. Micro Turbine Market

In terms of revenue, USD microturbine market was valued at USD 40.5 million in 2015 and is expected to reach USD 101.3 million by 2024, growing at a CAGR of 10.8% over the next seven years. Favoring government regulations with the rise of shale gas exploitations are the essential factors to foster the growth of micro turbine market in this region

With oil and gas prices stabling since the beginning of 2016, this region will start plummeting oil projects in full force. Adaptation of micro turbine systems in oil and gas projects will allow the oil and gas producers to cut down on their energy cost drastically and rise their efficiency in drilling and operational purposes.

Implemented from 1st of January 2016, the CHP law states owners of CHP systems receive temporary funding (the CHP bonus) for the electricity produced by the cogeneration plants, provided the conditions of the funding re met in proper articulation. With governmental regulations supporting the micro turbine market, this market is expected to have a significant high growth during the forecasted period.

Increasing need for energy sources coupled with growing environmental concerns including pollution levels and global warming is expected to further facility the product development in emerging economies including China, Malaysia, and South Korea. Decommissioning of nuclear plants in developed regions mainly Europe is anticipated to drive overall market demand in near future.

Fluctuating oil prices are expected to restrain the overall industry growth in near future. In the recent years, crude oil prices have drastically decreased which have negatively impact market revenues. 

Industrialization in Asia Pacific and the Middle East is expected to establish as the major opportunity for development over the forecast period. High level of competition from currently present distributed generation equipment is anticipated to challenge the market growth in near future

Application Insights

Combined heat & power dominated the application segment and covered more than the majority of share in the global market. The segment is expected to witness the highest growth from 2016 to 2024.

Standby power application is expected to dominate the commercial use in order to avoid losses occurring due to conventional power failure. Hybrid vehicle market is anticipated to provide bright prospects in the near future. Passenger vehicle usage in the U.S. and New Zealand has significantly propelled the microturbine market.

Increasing environmental concerns including global warming and pollution levels is anticipated to increase product demand for CHP over the forecast period. The industry also comprises of standby power application division which is expected to boost at a CAGR of 10.7% from 2016 to 2024

Power Rating Insights

50 kW-250 kW micro turbines were the leading power rating sector and is expected to witness significant growth over the forecast period. The segment accounted for a revenue share of around 38.0% in 2015. 

12 kW -50 kW and 50 kW-250 kW micro turbines demand are anticipated to drive on account of growing hybrid electric vehicles uses in developed regions including North America. 12 kW -50 kW is expected to grow at a CAGR of 11.0% from 2016 to 2024

This range of product is used mainly for domestic utilities but also finds its usage in small commercial establishment for boiling and heating purposes. The prime reasons, this product will witness growth is due to its properties of utilizing less energy, which decreases the energy expense of household consumers

End Use Insights

Industrial was the leading end-user division as micro turbines are widely used in various industries including oil & gas, construction & manufacturing, pharmaceutical, waste water treatment, and mining.

The segment is expected to enhance at the highest rate of 11.1% from 2016 to 2024 in near future on account of developments in these industries mainly construction and oil & gas

Global microturbine market

The global commercial microturbine installation is expected to witness a CAGR of 10.7% from 2016 to 2024. Residential application accounted for 20.48% market share in 2015. Residential usage largely depends on the easy availability of natural gas.

Regional Insights

North America Micro Turbine Market led the global industry and accounted for over 35% of total market revenue in 2015. The regional demand was mainly driven by higher consumption rates in U.S. construction, mining, waste water treatment and pharmaceutical industries.

Canada and Mexico are expected to augment at significant CAGRs over the forecast period. Shale gas developments in the region are also anticipated to significantly contribute towards industry development in near future.

The regional demand was followed by Europe, which accounted for a revenue share of approximately 25.4% in 2015. Germany, UK, and Russia contributed significantly towards regional product demand. Stringent environmental regulations are expected to positively impact industry development in near future.

Statistics validate that countries like Netherland, Finland, Norway and others are already embracing micro turbines system and will continue to do so in the foreseeable future in light of the countries governmental policies favoring clean fuel technology. Another significant factor that will credit the growth of this market is UK’s exit from the European Union in 2016.

Asia Pacific is expected to develop at highest CAGR from 2016 to 2024 on account of increasing electricity tariff rates coupled with depleting energy resources. Government initiatives to improve energy infrastructure is anticipated to further enhance market revenue in near future.

Micro Turbine Market Share Insights

Key manufacturers operating in the global Micro Turbine Market include Bladon Jets, Brayton Energy LLC, Capstone Turbine Corporation, Toyota Motor Corporation, Microturbine Technology BV, Flexenergy, Inc., Calnetix Technologies LLC., Ansaldo Energia S.P.A., ICR Turbine Engine Corporation, NewEnCo., Eneftech Innovation SA and Wilson Solarpower Corporation. 

In near future, the manufacturers will shift their focus towards expanding their business and enter into the distribution of the products. Therefore, the level of forward integration is anticipated to be high in near future. 

Companies mostly procure these components from various vendors and believe in assembling them as per the customer requirements. Other form of raw material sourcing is through backward integration, in which companies design and develop the spare parts by themselves. This involves huge capital investment and bigger players such as Toyota Corporation have been able to implement it successfully. The raw materials for such backward integrated process flow are alloys and metals used for component manufacturing

Expansion and acquisitions are expected to establish as major strategies adopted by companies. Supplier power is anticipated to remain high on account of availability of wide range of end users including oil & gas, construction, manufacturing, waste water treatment, mining, and pharmaceutical

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2014 - 2024

Forecast period

2016 - 2024

Market representation                                    

Revenue in USD Million & CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany UK, Russia, Australia, China, Malaysia, Brazil, Colombia

Report coverage        

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analysts working days)

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the Micro Turbine market on the basis of technology, application, end-use and region:

  • Application Outlook (Revenue, USD Million, 2014 - 2024)

    • Combined Heat and Power (CHP)

    • Standby Power

  • Power Rating Outlook (Revenue, USD Million, 2014 - 2024)

    • 12 kW – 50kW

    • 50 kW – 250 kW

    • 250 kW – 500 kW

  • End Use Outlook (Revenue, USD Million, 2014 – 2024)

    • Residential

    • Commercial

    • Industrial

  • Regional Outlook (Revenue, USD Million, 2014 - 2024)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • UK

      • Russia

    • Asia Pacific

      • Australia

      • China

      • Malaysia

    • Central & South America

      • Brazil

      • Colombia

    • Middle East & Africa

Key questions answered by the report
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