Micro Turbine Market Size, Share & Trends Analysis Report By Power Rating, By Application (Combined Heat & Power (CHP), Standby Power), By End Use (Industrial, Commercial), By Region, And Segment Forecasts, 2024 - 2030

Report Overview

The global micro turbine market size was valued at USD 219.1 in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 8.7% from 2024 to 2030. Micro turbines are extensively used in Combined Heat and Power (CHP) systems due to their high efficiency in converting fuel into both electricity and heat. This dual functionality makes them an ideal choice for various industrial applications, where energy efficiency and cost savings are critical. The rising adoption of CHP systems in industries is primarily driven by the need to optimize energy usage and reduce operational costs. As industries seek more sustainable and economical energy solutions, the market for micro turbines in CHP applications continues to expand, driving the growth of micro turbines.

Governments worldwide are implementing stringent emission standards and carbon reduction targets to combat climate change and reduce air pollution. These regulations are pushing industries to seek cleaner and more efficient energy solutions, making micro turbines an attractive option due to their lower emissions and ability to utilize renewable fuels such as biogas. Policies incentivizing the use of renewable energy through subsidies, tax credits, and grants further enhance the appeal of micro turbines, as they offer a flexible and cost-effective solution for meeting environmental compliance.

To boost the energy independence and security in the U.S., the Energy Independence and Security Act of seeks to safeguard consumer interests, expand the production of clean renewable fuels, and improve the efficiency of commodities, structures, and transportation. The act's goals include encouraging the advancement and implementation of greenhouse gas capture and storage technology as well as enhancing the energy efficiency of government activities.

Application Insights & Trends

Combined Heat & Power (CHP) segment held the highest revenue market share of 58.2% in 2023. CHP systems provide decentralized power generation, significantly enhancing energy security by reducing dependence on the central grid and minimizing the adverse effects of grid outages. This decentralized approach ensures that power is generated close to the point of use, which is particularly beneficial for industries and facilities requiring a continuous and reliable power supply. In addition to enhancing energy security, micro turbines in CHP systems also serve as robust backup power solutions. They offer reliable and uninterrupted energy supply for critical applications, such as hospitals, data centers, and industrial processes, where power continuity is essential.

Facilities such as hospitals, data centers, and emergency services rely heavily on reliable standby power to maintain uninterrupted operations during power outages, which is critical for ensuring the safety and functionality of these essential services. Additionally, the increased frequency of natural disasters and severe weather events has underscored the need for resilient power solutions. Micro turbines provide dependable and efficient power option for standby power in these scenarios eventually driving the growth of segment.

Power Rating Insights &Trends

50 kW-250 kW held the highest revenue market share in 2023. Businesses and institutions are increasingly prioritizing energy-efficient solutions to minimize operational costs, driving the demand for micro turbines in the 50 kW-250 kW range. These micro turbines provide a reliable and efficient power source, making them ideal for commercial buildings, schools, hospitals, and hotels. Their ability to deliver consistent and cost-effective energy helps these facilities manage their energy expenses while ensuring a dependable power supply. The scalability of micro turbines in this range allows them to be tailored to varying energy demands, making them versatile for diverse applications within the commercial sector. This adaptability ensures that they can meet the specific power requirements of different establishments, further enhancing their appeal as an energy solution.

The 50-250 kW micro turbines are used in Combined Heat and Power (CHP) systems, which efficiently generate both electricity and heat from a single fuel source. This functionality significantly enhances overall energy efficiency by utilizing the same energy input to produce two valuable outputs, thereby reducing waste and maximizing resource use. CHP systems powered by these micro turbines offer substantial cost savings on energy bills, driving the growth of segment. 

End Use Insights & Trends

Industrial segment held the highest revenue market share in 2023. Rapid industrialization and urbanization in countries such as China, India, and various Southeast Asian nations are significantly increasing the demand for reliable and efficient power solutions. This increase in development requires robust energy infrastructure to support growing industries and expanding urban centers. Micro turbines, with their decentralized power generation capabilities, provide an essential solution for these regions, particularly where grid infrastructure is inadequate or in remote areas. By offering a reliable and efficient source of energy, micro turbines enable consistent power supply, supporting both industrial growth and urban development while ensuring energy access in underserved locations, driving the growth of segment.

Micro turbines offer a cost-effective power generation solution by being capable of operating on a variety of fuels, including natural gas and biogas, which are often more affordable than traditional power sources. This flexibility in fuel options allows industries to leverage locally available and less expensive fuels, leading to substantial energy cost savings. Furthermore, when utilized in Combined Heat and Power (CHP) systems, micro turbines provide an added advantage by simultaneously generating electricity and useful thermal energy from the same fuel source. The implementation of micro turbines in CHP systems not only lowers energy expenses but also enhances the sustainability and operational efficiency of industrial operations.

Regional Insights & Trends

North America held the highest revenue market share of 37.2% 2023. The expansion of industrial sectors such as manufacturing, oil and gas, and mining is significantly increasing the demand for efficient and reliable power solutions such as micro turbines. These industries require consistent and dependable energy sources to maintain their operations and minimize downtime.

Micro turbines offer an attractive solution due to their high efficiency, lower emissions, and ability to provide on-site power generation, which is especially crucial in remote locations where grid access may be limited. By adopting micro turbines, industries can reduce their energy costs through improved fuel efficiency and lower maintenance requirements compared to traditional power generation systems. The enhanced operational efficiency provided by micro turbines supports industries in achieving greater productivity and sustainability, aligning with the growing emphasis on environmental responsibility and cost management, eventually adoption of micro turbines is increasing.

U.S. Micro turbines Market Trends

Increased investments in infrastructure development, especially within the energy sector, are significantly supporting the growth of the micro turbines market in the U.S. As the country prioritizes upgrading and expanding its energy infrastructure to meet modern demands, there is a heightened focus on integrating efficient and sustainable power generation solutions. This has led to substantial investments in micro turbines, which are known for their reliability, efficiency, and lower environmental impact.

Additionally, government incentives, including subsidies and tax credits for clean energy projects, are playing a crucial role in encouraging investments in micro turbine technology. These financial incentives reduce the initial costs and improve the return on investment for businesses and industries adopting micro turbines, making them a more economically viable option. Both public and private sector investments are accelerating the adoption of micro turbines, driving market growth and fostering innovation in the sector.

Europe Micro Turbines Market Trends

Europe's emission reduction goals necessitate a transition towards cleaner and more efficient energy solutions such as micro turbines. These objectives aim to substantially reduce greenhouse gas emissions, thereby requiring the adoption of technologies that provide lower emissions and greater efficiency. In alignment with these goals, policies such as the EU Renewable Energy Directive mandate an increased share of renewable energy within the overall energy mix.

This directive obliges member states to meet specific renewable energy targets, thus driving the demand for micro turbines, which are capable of efficiently integrating with renewable energy sources. The combined impact of stringent emission reduction targets and supportive renewable energy policies is fostering a robust market for micro turbines in Europe, as industries and energy providers strive to comply with regulations and enhance sustainability.

The European Parliament has enacted the European Climate Law, which significantly increases the EU's goal for reducing net greenhouse gas emissions to at least 55% by 2030, up from the current target of 40%, which is driving the growth of micro turbines in Europe region.

Asia Pacific Micro Turbines Market Trends

Rapid industrialization and urbanization in countries such as China, India, and various Southeast Asian nations are significantly increasing the demand for reliable and efficient power solutions. This surge in development necessitates robust energy infrastructure to support growing industries and expanding urban centers. Micro turbines, with their decentralized power generation capabilities, provide an essential solution for these regions, particularly where grid infrastructure is inadequate or in remote areas.

By offering a reliable and efficient source of energy, micro turbines enable consistent power supply, supporting both industrial growth and urban development while ensuring energy access in underserved locations. Advancements in micro turbine technology have significantly improved their efficiency, reliability, and performance, making them more attractive to industrial and commercial sectors. Enhanced integration capabilities with renewable energy sources such as solar and wind power are expanding their applications. These improvements enable businesses to meet energy needs cost-effectively while supporting environmental goals.

Micro Turbines Company Share & Insights

Some of the key companies in the micro turbines market include Ansaldo Energia Spa, Bladon Micro Turbine

• Ansaldo Energia Spa operates in the energy sector specializing in the production of power generation equipment and providing comprehensive services for the entire plant lifecycle. Their product portfolio includes advanced micro turbine models that can operate on multiple fuel types, including natural gas and biogas, and are suitable for integration into Combined Heat and Power (CHP) systems. These micro turbines are engineered to provide high efficiency, low maintenance, and adaptability to various energy needs, making them an ideal solution for industries seeking to enhance energy efficiency and sustainability.

• Bladon Micro Turbine offers a range of cutting-edge products, including the Bladon MTG12, a 12kW micro turbine generator that provides reliable, efficient, and low-emission power solutions for various applications. Bladon's micro turbines are renowned for their robust performance, fuel flexibility, and minimal maintenance requirements, making them ideal for use in telecommunications, remote power generation, and backup power scenarios.

Recent Developments

• In May 2024, Ansaldo Energia launched a project for new micro turbines with zero impact along with their partners. Considering the guidelines of European Union to reduce the emission, the project aims at utilizing zero emission fuels and developing new resources for electricity and thermal energy. 

• In November 2023, Toyota Motor Corporation researched on zero emission gas turbine, which can be utilized in automobiles, aircraft and emergency generators. It will provide more convenience and safety due to light weight and compact size.

Micro Turbines Market Report Scope

Global Micro Turbine Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2020 to 2030. For this study, Grand View Research has segmented the global artificial intelligence market report based on solution, technology, end use, and region.

• Application Outlook (Revenue, USD million, 2020 - 2030)

  • Combined Heat & Power (CHP)

  • Standby Power

• Power Rating Outlook (Revenue, USD million, 2020 - 2030)

  • 12 kW -50 kW

  • 50 kW-250 kW

  • 250 kW-500 kW

• End-Use Outlook (Revenue, USD million, 2020 - 2030)

  • Industrial

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD million, 2020 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • KSA

    • UAE

    • South Africa