Report Overview

Saudi Arabia Microturbine Market - Industry Trends & Forecast Report, 2029

Saudi Arabia microturbine market size is projected to grow at a CAGR of 10.7% during the forecast period between 2023 and 2029. Major growth drivers for Saudi Arabia microturbine market include the rising demand for electricity owing to increasing population along with expanding investment towards power generation capacity of the country. It is estimated that the Kingdom of Saudi Arabia may need to add 8% each year into their power generation capacity to meet the growing electricity demands. Furthermore, rising focus towards reduction in greenhouse emissions and achieving Net Zero goals is projected to emerge as a major factor propelling the growth of the Saudi Arabia microturbine market in the forecast period.

Saudi Arabia Microturbine Market – Overview

A microturbine is a little combustion turbine that powers an electric generator by burning liquid or gaseous fuels. It burns natural gas, thermal plant waste heat, and fossil fuels such as kerosene, diesel, and heating oil. It has a compressor, combustor, alternator, turbine, generator, and recuperator and is primarily used to generate small amounts of electricity. To increase the generator's electrical efficiency, it works by recovering exhaust energy and warming compressed inlet air. Microturbines are smaller, lighter, more affordable, and have fewer moving parts, emissions, and fuel waste than conventional substitutes. Due to these advantages, microturbines are widely used in the provision of standby power; combined cooling, heating, and power (CCHP); combined heat and power (CHP); resource recovery; and microgrids.

Saudi Arabia Microturbine Market

Growth Drivers

Rising Demand for Electricity

According to a report published on Frontiers, “Based on the current energy policy and rapid growth in population and economy, the peak demand in Saudi Arabia is expected to keep increasing and reach approximately 84 GW by 2030 and 103 GW by 2040 (Al Harbi and Csala, 2019).” With rising investments in economic diversification and shift from oil business, the demand for microturbines is projected to surge in the Kingdom. Furthermore, various government projects in developing commercial and industrial spaces to boost industrialization in the country are also anticipated to contribute to the growth of the Saudi Arabia microturbine market in the forecast period.

Restraints

Electrical Grid Modernization

The Kingdom of Saudi Arabia is significantly investing in modernizing its existing electrical grids. The creation of innovative architectural ideas, instruments, and technologies that assess, evaluate, forecast, safeguard, and manage the grid of the future, as well as on creating institutional environments that promote the more rapid creation and widespread use of these instruments and technologies is gaining huge popularity and traction in the country. However, these innovations will ultimately contribute improvements in distributed power generation and lowering of electricity losses, resulting in significant decline in the demand for microturbines.

Impact of COVID-19 on Saudi Arabia Microturbine Market

The unprecedented COVID-19 pandemic outbreak affected the growth of the Saudi Arabia microturbine market. The operations of various leading industries including automobile, power and energy, hydrocarbons as well as commercial facilities were halted during the lockdown period. The manufacturing and supply chains of microturbines were also impeded during this period. All these factors contributed to huge losses in the Saudi Arabia microturbine market during the COVID-19 pandemic period. However, the market is expected to flourish in the post–pandemic period owing to increasing demand for cleaner energy sources.

Saudi Arabia Microturbine Market

Segmental Coverage

Saudi Arabia Microturbine Market – By Type

Based on type, the Saudi Arabia microturbine market is segregated into combined heat and power (CHP) and standby power segments. The CHP segment held the highest market share in 2022 and is projected to register high growth rate in the forecast period as well. In order to produce usable thermal energy for space heating and cooling, the CHP system absorbs waste heat in addition to producing electricity. CHP can exist as a standalone building or plant or as a part of a utility system. The CHP system is utilized in facilities that need both electrical and thermal energy. As a result, the demand for CHP systems is increasing as environmental concerns grow.

Saudi Arabia Microturbine Market – By Power Rating

Based on power rating, the Saudi Arabia microturbine market is segmented into 12 kW–50 kW, 50 kW–250 kW, and 250 kW–500 kW. The 50–250 kW power rating segment holds the highest market share. The growth of this segment is associated with rising adoption of hybrid electric vehicles in the region due to rising environmental consciousness. The market segment between 12 kW and 50 kW is expected to record growth at the fastest CAGR during the period in analysis. Although it is also employed in small business facilities for heating and boiling, this power rating is mostly utilized for home utilities. The capacity of this market sector to use less energy, which decreases energy costs for home users, is the main driver promoting its growth.

Saudi Arabia Microturbine Market – By End User

Based on end user, the Saudi Arabia microturbine market is segmented into industrial, commercial, and residential. The industrial segment accounts for the highest share in the market. As Saudi Arabia is increasingly investing in economic diversification, the government is establishing large–scale industries, expanding their hydrocarbons sector, etc., which is anticipated to boost the demand for microturbine market in the country. However, the commercial segment is expected to register growth at the highest rate during the forecast period, as microturbines are utilized for resource restoration and landfill gas applications because they can run on a range of fuels.

Competitive Landscape

Major players operating in the Saudi Arabia microturbine market include Al Toukhi, Saudi Aramco Power Company, GE Gas Power, Siemens Energy, Mitsubishi Hitachi Power Systems, and Capstone Turbine Corporation. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In March 2021 - Capstone Turbine, a US-based turbine manufacturing company, obtained a contract for the installation of a low-emission Capstone C400 Signature Series microturbine system at a Saudi Arabian aluminum smelting facility in Ma'aden.

Scope of the Report

By Type

• Combined Heat and Power (CHP)

• Standby Power

By Power Rating

• 12 kW–50 kW

• 50 kW–250 kW

• 250 kW–500 kW

By End User

• Industrial

• Commercial

• Residential

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Microturbine Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Demand for Clean Power
         2. Rising Electricity Demand
      2. Restraints
         1. Falling Oil and Gas Prices
      3. Opportunities
         1. Phased out Nuclear and Coal Plants Replacement
      4. Challenges
         1. Electrical Grid Modernization
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Microturbine Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Combined Heat and Power (CHP)
         2. Standby Power
      2. By Power Rating
         1. 12 kW–50 kW
         2. 50 kW–250 kW
         3. 250 kW–500 kW
      3. By End User
         1. Industrial
         2. Commercial
         3. Residential
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Microturbine Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia Microturbine Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Al Toukhi
   2. Saudi Aramco Power Company
   3. GE Gas Power
   4. Siemens Energy
   5. Mitsubishi Hitachi Power Systems
   6. Capestone Turbine Corporation
   7. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.   

List Of Figures

Figure 1       Saudi Arabia Microturbine Segmentation

Figure 2       Saudi Arabia Microturbine Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Saudi Arabia Microturbine Market Size, By Value (USD Million), 2019–2029

Figure 5       Saudi Arabia Microturbine Market Share, By Type, By Value, 2019–2029

Figure 6       Saudi Arabia Microturbine Market Share, By Power Rating, By Value, 2019–2029

Figure 7       Saudi Arabia Microturbine Market Share, By End User, By Value, 2019–2029

List Of Tables

Table 1        Saudi Arabia Microturbine Market Size, By Value (USD Million), 2019–2029

Table 2        Saudi Arabia Microturbine Market Share, By Type, By Value, 2019–2029

Table 3        Saudi Arabia Microturbine Market Share, By Power Rating, By Value, 2019–2029

Table 4        Saudi Arabia Microturbine Market Share, By End User, By Value, 2019–2029

Table 5        Al Toukhi Company Overview

Table 6        Al Toukhi Financial Overview

Table 7        Saudi Aramco Power Company Company Overview

Table 8        Saudi Aramco Power Company Financial Overview

Table 9        GE Gas Power. Company Overview

Table 10      GE Gas Power. Financial Overview

Table 11      Siemens Energy Company Overview

Table 12      Siemens Energy Financial Overview

Table 13      Mitsubishi Hitachi Power Systems Company Overview

Table 14      Mitsubishi Hitachi Power Systems Financial Overview

Table 15      Capestone Turbine Corporation Limited Company Overview

Table 16      Capestone Turbine Corporation Limited Financial Overview