Impact of COVID-19 on the Global Micro Turbine Market
The coronavirus has infected millions of people across more than 200 countries, impacting economies, lifestyles, and businesses. Energy and utility being some of the severely impacted sectors, the enterprises in these sectors are focused on safeguarding their assets and providing safe, reliable supply of natural gas and electricity to their consumers. Power is an essential element for driving economic growth, especially in emerging markets. COVID-19 has had a significant impact on the power sector, owing to a reduction in demand, financial pressure, and disruptions in the power supply chain.
Microturbines are a distributed energy-generation technology which is used for stationary energy generation applications. The increasing demand for clean energy, aging grid infrastructure, and easy fuel availability are the factors driving the demand for microturbines. However, the spread of coronavirus is expected to have a moderate impact on the microturbines market. The power distribution industry is going through a turbulent phase owing to the large accumulated dues that need to be paid to generators, liquidity issues due to restricted cash flow, uncertain revenue due to the halting of industrial and commercial operations, and the overall low power demand in the sector.
Lockdowns implemented by the governments of various countries have led to restrictions being placed on travel and businesses being shut down, causing obstacles in revenue generation. Also, the disruptions in the supply chain and trade restrictions have impacted the production of microturbines. Moreover, the economic downturn has led to a decrease in the demand for high-cost equipment among consumers, which has led to cancellations or delays in orders. The gradual resumption of manufacturing facilities in China is helping the market regain traction at a steady pace. According to the MRFR analysis, the market is expected to stabilize in early 2021 and witness significant growth during the review period owing to the increasing demand for cogeneration applications and growing environmental concerns regarding global warming.
Source: Primary Experts, Secondary Sources, and MRFR Analysis
Industrial Production in the European Union during the COVD-19 Pandemic