Favorable government regulations are expected to drive growth of the global microturbine systems market during the forecast period
Renewable energy resources have very little impact on the environment and are present in abundance. However, current technologies cannot adequately tap and utilize renewable sources to generate power. On the contrary, non-renewable sources of energy such as oil & gas, and coal-fired power plants although contribute to most of the power generation, produce the environment significantly. According to the U.S. Energy Information Administration, global carbon dioxide emissions were over 30 billion metric tons in 2010 and were expected to reach over 35 billion metric tons by 2020.  This, in turn, has increased the development of alternate energy generation techniques including microturbines. Thus, these factors are expected to drive growth of the global microturbine systems market during the forecast period.
2. Few movable parts restricting overhaul cost supplemented with numerous applications is expected to propel the global microturbine systems market growth over the forecast period
Microturbine systems have very few movable parts, which leads to low operation and maintenance costs comparative to reciprocating and other substitute energy generating systems. Engine-based generators comprised of hundreds of moving parts that require scheduled overhaul, which in turn, impact energy production and increasing maintenance costs. Once installed, microturbine systems can run up to 5,000 hours to 8,000 hours. As a result, microturbines are preferred in several energy-intensive industries as a secondary and primary source as well. Thus, these factors are expected to propel the global microturbine systems market growth over the forecast period.
Volatile fuel prices are expected to hamper the global microturbine systems market growth over the forecast period
Currently, natural gas is widely used in microturbines as fuel. Since the natural gas price is fluctuating constantly, it poses threat to microturbine manufacturers. Furthermore, the energy generated by microturbines and reciprocating engines incurs comparatively the same cost. However, advanced supercritical CO2 systems that generate energy at a lower cost are expected to offset the challenge with minimal utilization of natural gas and adequate energy generation. Hence, these factors are expected to hamper the global microturbine systems market growth over the forecast period.
2. High level of competition from emerging entrant and established players is expected to hinder the global microturbine systems market growth over the forecast period
Emerging market players are posing major competition to existing market players. New entrants are offering microturbine systems at a competitive cost as compared to major manufacturers, which in turn, is hindering the market share of key players. Furthermore, market players are struggling to expand their presence due to the presence of various regional players. Hence, these factors are expected to hinder the global microturbine systems market growth over the forecast period.

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Technological advancements can present lucrative growth opportunities in the global microturbine systems market
Some of the microturbine manufacturers such as Capstone Turbine Corporation have expanded their product offerings in the marine market by offering LNG/diesel-fueled marine microturbines and methane-fueled C200 microturbines. These two developments are a result of extensive research and development by the company and are expected to lower operational costs of microturbines as they run on alternative fuels. The innovation of leapfrog supercritical CO2 technology that utilizes the same fuel and generates energy with increased (16% - 19%) efficiency is expected to create new opportunities, thereby keeping the market prospects upbeat over the coming years. The impact of this technology is a game-changer since it reduces heat input for more power output and also reduces the need for cooling technology on the condenser end. In addition, this technology produces output at a double efficiency compared to current technology with less amount of carbon emissions.
2. Mergers and acquisitions among market players can provide major business opportunities in the global microturbine systems market
Key players operating in the market are focused on mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in October 2010, FlexEnergy Inc. acquired Ingersoll-Rand’s Energy Systems division.
Microturbines are typically used in combined heat & power applications. Standby power application is expected to hold a dominant position in commercial use in the near future. This is to avoid losses occurring due to conventional power failure. Microturbines are mainly used in hybrid passenger vehicles. Growing environmental concerns combined with rising global warming and pollution levels are expected to boost the demand for combined heat & power.