Microturbine Systems Market is Anticipated to Witness High Growth
Author : Sneha Biswal | Published On : 25 Apr 2024
Microturbine systems are small combustion turbines ranging from 25 kilowatts to 500 kilowatts of power. They provide combined heat and power and are used as an alternative to traditional combustion engines in several stationary applications such as natural gas pipelines, oil and gas production facilities, and large residential and commercial complexes. Microturbines offer advantages such as high fuel flexibility, low emissions, quiet operations, and scalability. The demand for cleaner and more sustainable sources of energy has been on the rise globally in order to reduce dependency on fossil fuels and curb environmental pollution. Microturbines run on various fuels including natural gas, propane, sour gas and renewable biomass, and emit negligible carbon and other greenhouse gases. They are highly efficient with electrical efficiencies ranging between 20-30% and combined heat and power efficiencies reaching 80-90% by capturing waste heat. Microturbines play a vital role in distributed energy generation for applications where both heat and power are required simultaneously.
Key Takeaways
Key players operating in the Microturbine Systems market are Bavarian Nordic, Argos Therapeutics, Antigenics, Affiris, Celldex Therapeutics, Biovest International, Cel-Sci, Celtic Pharma, Cytos Biotechnology, and Curevac. These players are focusing on developing advanced technologies and offering innovative product solutions to customers across various end-use industries.
There is a rising opportunity for Microturbine Systems Market Growth in off-grid and remote power applications across oil and gas, mining, and telecommunication sectors. They can provide sustainable and uninterrupted power in areas not connected to main grids. Their ability to use multiple fuels also enhances reliability.
Major companies are focusing on geographical expansion plans and establishing production facilities in high growth markets such as Asia Pacific, Middle East, and Latin America. This will help them cater to increasing local demand and leverage available opportunities.
Market Drivers:
Increasing investments in renewable energy technologies from both public and private players is a major market driver. Government incentives and favorable policies are further promoting adoption of microturbines which provide clean energy access.
Growing demand from the oil and gas industry for decentralized power for refineries, LNG facilities, and pipelines is expected to significantly contribute to the microturbine systems market growth over the forecast period.
Market Restraints:
High initial investments remain a significant restraint for wider adoption of microturbine systems compared to traditional power generation methods. Microturbines also require skilled labor for operations and maintenance which increase overall costs.
Despite various advantages, there still exists low awareness about microturbines and their applications, especially in developing countries. This negatively impacts their sales potential in high growth emerging markets.
Segment Analysis
The microturbine systems market is dominated by the upto 50 KW sub-segment due to growing demand for small capacity power backup solution and combined heat and power systems for commercial buildings and remote power generation applications. This sub-segment holds more than 60% of market share owing to properties like easy installation and affordable operation cost in applications where power requirement is less than 50 KW.
The 30-250 KW sub-segment is also growing at a fast pace due to escalating adoption of these systems in small industrial facilities, commercial complexes and large homes where power demand ranges from 30-250 KW. This segment is anticipated to showcase over 25% CAGR during the forecast period.
Global Analysis
North America leads the global microturbine systems market with around 40% share majorly owing to a rise in natural gas exploration activities and increased focus towards combined heat and power generation systems as an alternate to conventional power sources. The region will continue to dominate with rapid infrastructural development and government initiatives for cleaner energy adoption.
Asia Pacific exhibits highest growth prospects on account of surging industrialization and urbanization coupled with government push for decentralized power generation primarily across countries like China and India.
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