Navigant Research’s latest data indicates revenue from annual microturbine installations is set to surpass $1 billion by 2020, if present progress is maintained.

The report did however also find that reduced oil & gas development activity in the past year has led to reduced sales for leading microturbine manufacturers.

Much of the technology’s recent success is through its link to the global expansion of shale O&G production.
Navigant Research
Because they are compatible with a wide range of fuels, microturbines are also an attractive solution in CHP configurations where grid electricity costs remain high.

“The adoption of microturbines among commercial and industrial applications represents strong growth opportunities, especially in large addressable markets like North America, where shale gas is relatively inexpensive, stable, and abundant,” says Dexter Gauntlett, senior research analyst with Navigant Research. “However, given the growing competition from other onsite DG technologies, microturbine companies will need to expand their respective visibility in the marketplace, particularly among key customer types that might be less familiar with the technology, despite its advantages in key markets and applications.”

Although the global microturbine market has experienced steady revenue growth over the past five years, according to the report, reduced O&G development activity in the past year has led to reduced sales for leading manufacturers. However, despite the recent decline, the market is expected to recover as shale O&G development continues, creating renewed interest in the technology.

An Executive Summary of the report is available for free download on the Navigant Research website.