Microturbines Market size is estimated to reach USD 207 Billion by the end of 2035, growing at a CAGR of 10% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of microturbines was over USD 66 Billion. The increasing demand for electricity across the world owing to the burgeoning population and the rising installation of power distribution grids are expected to propel market growth.
The growing demand for clean energy due to people's growing concern about environmental safety and the growing emphasis on reducing greenhouse gas emissions globally is expected to accelerate microturbines market growth shortly. Global carbon emissions are expected to exceed 38 billion tons in 2021, up from 30 billion tons in 2000.
In addition to these, the increasing powerhouses and the elevating investments in several distributed generation applications to provide electricity during power outages, specifically during the occurrence of natural calamities are anticipated to boost market growth during the forecast period.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~10% |
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Base Year Market Size (2022) |
~ USD 66 Billion |
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Forecast Year Market Size (2035) |
~ USD 207 Billion |
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Regional Scope |
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Application (Combined Heat and Power, Standby Power)
The combined heat and power segment is estimated to gain the largest market share of about 56% in the year 2035, owing to the increasing utilization of combined heat and power (CHP) in wastewater treatment. Additionally, the increasing demand for paper worldwide, the growing number of paper mills, and the rising installations of CHP plants in the paper & pulp industry are predicted to hike the market segment growth in the coming years.
Moreover, the augmenting application of combined heat in new small- and medium-sized nuclear reactors is also expected to have a positive impact on the market segment growth.
End User (Industrial, Commercial, and Residential)
The industrial segment is expected to garner a significant share of around 39% in the year 2035, backed by the need for advanced storage systems in the industries. With microturbines becoming apt for many applications where the requirement for continuous power production is high, the demand for microturbines is augmenting in several industries.
Microturbines can generate a large amount of energy compared to their size and can be placed on-site, facilitating security and maintenance. All these factors are also anticipated to drive market segment growth.
Our in-depth analysis of the global market includes the following segments:
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Application |
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Power Rating |
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End User |
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North American Market Forecast
The microturbines market in North America is poised to account for the largest share of 40% by the end of 2035. The presence of key players in the countries like U.S. and the ongoing advancements in power generation technology to increase the utilization of renewable energy sources for power consumption are driving market growth in the region. In the United States, the renewable energy consumption in the year 2020 was over 11 quadrillions Btu out of a total of 92.9 quadrillions Btu of energy consumption from various sources, as per the Energy Information Agency. Hence, the increasing power demand and growing preference towards eco-friendly products such as microturbines that can use various fuels, including natural gas, biogas, associated gas, biodiesel, and kerosene are predicted to influence the expansion of the regional market.
APAC Market Statistics
During the forecast timeframe, the Asia Pacific microturbines market is predicted to garner a share of 26% by the end of 2035, owing to rising development in the automotive sector, which is further propelling demand for microturbines due to their increasing usage in hybrid electric vehicles as low-emission battery chargers. In 2022, China dominates the industry for motor vehicle production, producing more than 29 million cars and commercial vehicles.
Furthermore, the region's thriving mining sector, as well as the increasing installation of new CHP plants, particularly in countries such as China, to reduce carbon emissions, are expected to boost market revenue in the region.
Author Credits: Payel Roy, Dhruv Bhatia
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