Microturbines Market Trends
Growth Drivers
- Growing Demand from Several End-Use Industries – Microturbines are in high demand for biogas applications, particularly cogeneration in wastewater treatment plants, farms, and landfills. Furthermore, their increasing application in mining, oil and gas, construction, automotive, and pharmaceutical industries, as well as the growing demand for hydropower plants and micro wind turbines to generate electricity for small-scale use, is driving market growth.
- Increasing Demand for On-site Power Generation – With the rising energy transition to renewable energy and the growing popularity of distributed energy, there is a surge in the transition to in-site energy production. On-site power generation upgrades energy density, lowers transmission line losses, and eliminates conversion losses. As microturbines provide low-emission and low-cost on-site power generation with reliable features, the investment in such technology is elevating.
Challenges
- Decreasing Fossil Fuel Prices across the World - The fall in the price of fossil fuels such as crude oil and gas across the world is estimated to hamper the market growth owing to the cheaper availability of energy from these materials. As the calorific value of crude oil is greater than microturbines the cost of energy production is less for crude oil and thus this hampers the microturbines market growth.
- High Level of Competition from Present Distributed Power Generation Equipment
- Scarcity of Trained Professionals in the Sector
Microturbines Market: Key Insights
In 2018, the world’s total energy supply was 14282 Mtoe, wherein the highest share in terms of source was captured by oil, accounting for 31.6%, followed by coal (26.9%), natural gas (22.8%), biofuels and waste (9.3%), nuclear (4.9%), hydro (2.5%), and other (2.0%). Where there was an increase in energy demand in 2018, the year 2019 witnessed slow growth as the energy efficiency improved owing to decline in the demand for cooling and heating. However, in 2020, the electricity demand decreased by 2.5% in the first quarter of 2020 due to the outbreak of Coronavirus resulting in government-7imposed shutdowns in order to limit the spread of the virus, which was further followed by shutdown of numerous business operations impacting their growth. This also resulted in decline of 5.8% in the worldwide CO2 emissions which was recorded to be five times larger than the one recorded during the global financial crisis in 2009. However, in 2021, the demand for oil, gas and coal is estimated to witness growth, which is further projected to create opportunities for market growth. Moreover, rising environment degradation and awareness related to climate change is motivating many key players to employ sustainable energy strategies and invest significantly in environment-friendly power generation technologies with an aim to promote sustainable development among various nations around the world. Such factors are anticipated to promote the growth of the market in upcoming years.
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
9.6% |
|
Base Year Market Size (2024) |
USD 80.03 billion |
|
Forecast Year Market Size (2037) |
USD 263.51 billion |
|
Regional Scope |
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