LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global microturbine market to grow at a CAGR of more than 21% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global microturbine market for 2016-2020. The report also presents the vendor landscape and a corresponding detailed analysis of the major vendors operating in the market. In addition, the report examines the challenges faced by vendors and the market as a whole along with the key emerging trends.
A microturbine is a small combustion turbine whose output ranges between 25 kW and 500 kW. It can produce both heat and electricity but on a small scale compared to a normal turbine. The technology is relatively new in the distributed generation industry.
The need to curb greenhouse gas (GHG) emissions has been a driving force for the adoption of microturbines. During COP21 summit in France in 2015, countries committed themselves to bringing down emissions over a period of time. Therefore, countries are looking for cost-effective and easily available fuel in the market. The ability of microturbines to work with natural gas and biogas fits all the criteria. As a result, the market is expected to grow rapidly during the forecast period.
Request a sample report: http://www.technavio.com/request-a-sample?report=52922
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
Technavio analysts for energy research, highlight the following three factors that are contributing to the growth of the global microturbine market:
- Strict environmental regulations to curb carbon emissions
- Decommissioning of nuclear power plants
- Rise in distributed generation capacity
Strict regulations to curb carbon emissions
Greenhouse gas emissions have been a cause of concern for all countries lately. Global warming and the associated perils have forced countries worldwide to take concrete steps to control the situation. Transportation and power generation industries are responsible for majority of GHG emissions. These industries have traditionally used high carbon emitting fuels such as diesel and coal. However, these industries are shifting to less polluting fuels due to the strict regulations from governments.
The US is one of the frontrunners to roll out plans to curb emissions from the power generation industry. In 2015, the US Environmental Protection Agency's Clean Power Plan was released with an aim to cut down emissions from electricity generation by 32% below the 2005 levels by 2030. Many states in the US are expected to opt for natural gas-powered plants as these are more cost-effective than setting up renewable energy plants and associated infrastructure.
Similarly, the EU has put in place an emissions cap and trading system known as European Union Emissions Trading System. Under the scheme, the 31 participant countries need to limit emissions from more than 11,000 power stations and industrial plants. Many countries have already adopted gas-based power generation as the fuel of choice. "As countries worldwide are expected to take steps to reduce emissions from the power industry, microturbines are expected to gain market share globally. The US, Europe, and China will account for the maximum growth centers for microturbines," says Thanikachalam Chandrasekaran, a lead analyst at Technavio for power research.
Decommissioning of nuclear power plants
Since the 1970s, nuclear energy has been considered an expensive but clean source of energy. However, nuclear accidents such as the Fukushima disaster of 2011 have made governments across countries revisit their energy generation portfolio. Many countries updated their safety regulations in view of the accident. Many countries such as Germany and France, which considered nuclear as the most important electricity generation source, decided to do away with nuclear generation altogether. These countries are phasing out nuclear energy and plan to completely replace it with other options, such as gas-based or renewable energy-based power generation.
In view of such events, gas-based power generation is expected to gain more market share. Its main competitor would be renewable sources of energy, however, given the investment required to upgrade the grid infrastructure in order to incorporate renewable power, these are not expected to capture the market share rapidly during the forecast period. For stand-alone structures and for remote areas with restricted access to electricity, microturbines are a good option. "During the forecast period, microturbines are expected to grow rapidly in countries that are planning to decommission their nuclear capacities," says Thanikachalam.
Rise in distributed generation capacity
Power generation, across countries in the world, is moving from centralized to integrated networks with increased reliance on distributed power generation systems. Distributed power technologies are less than 100 MW in size, with the standard being less than 50 MW, which is the limit that distribution systems can accommodate at distribution voltages. Distributed power technologies are characterized by high flexibility and are suited for a wide range of applications such as electric power, propulsion, and mechanical power. Distributed power technologies can operate in the stand-alone mode as well as work in an integrated system, catering to the need of both large and small energy users.
Gas turbines are an essential part of the distributed power technologies portfolio along with solar panels, fuel-cells, diesel and gas reciprocating engines, and small wind turbines. Thus, growth of distributed power systems will correspond to an increased demand for gas turbines. The ability of distributed power systems to overcome the constraints that typically inhibit the development of large capital projects, and T&D lines owing to their lower capital requirements and smaller size are the main driving force for their growth. In addition, distributed power systems can be incrementally added to meet growing energy needs.
Microturbines are well-suited to take advantage of the increase in distributed generation growth. These smaller distributed turbines can be used in stand-alone applications or in CHP applications that provide electricity and high pressure steam to commercial and industrial facilities, thus further adding to the growth of the microturbine market during the forecast period.
Browse Related Reports:
- Global Gas Turbine Market 2016-2020
- Global Submarine Power Cable Market 2016-2020
- Global Wind Turbine Components Market 2016-2020
Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.comwith your requirements and our analysts will be happy to create a customized report just for you.
About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at media@technavio.com.
