Steam Turbine Market is estimated to be valued at USD 17.37 Bn in 2025 and is expected to reach USD 20.23 Bn in 2032, exhibiting a compound annual growth rate (CAGR) of 2.2% from 2025 to 2032.
Rising global energy demand, infrastructure upgrades, and the pursuit of efficient power generation are driving the steam turbine market growth. Power producers actively use steam turbines in thermal, nuclear, and industrial plants to generate electricity and mechanical power. Manufacturers continue to improve turbine performance and reliability through technological advancements, combined heat and power integration, and digital monitoring. The market is also evolving as utilities retrofit aging plants and shift toward cleaner energy sources to meet environmental and efficiency goals.
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151 MV to 300 MV acquired the prominent share of 60.6% in 2025. Growing electricity demand, particularly in emerging markets, and the need for reliable medium-scale power generation are driving the 151 MW to 300 MW steam turbine segment. Power producers actively deploy these turbines in combined cycle plants, industrial operations, and grid-support systems because they offer an optimal mix of capacity and efficiency. Advancing technology, stricter environmental regulations, and the global shift toward cleaner energy continue to boost installations and upgrades. Industries also prefer this range for cogeneration, efficiently supplying both electricity and process steam. For instance, Doosan Škoda Power successfully commissioned two 200 MW DST-S10 condensation turbines at the Fadhili power plant on the Persian Gulf in Saudi Arabia. These two-cylinder turbines, designed without reheating and featuring axial output, have been operating at the steam-gas power facility to support efficient energy generation, further accelerating the steam turbine market share.
Power & Utility dominates the overall market with an estimated share of 86% in 2025. Power and utility companies actively shape the steam turbine market by prioritizing reliable electricity generation, grid stability, and the upgrade of aging infrastructure. They use steam turbines extensively in thermal and nuclear power stations, along with combined cycle systems to boost efficiency. As environmental regulations tighten, utilities invest in cleaner technologies and turbine enhancements to lower emissions. They also implement digital tools and predictive maintenance strategies to optimize operations, minimize downtime, and accelerate the shift toward more green energy solutions. For instance, in January 2025, GE Vernova, a U.S.-based company, and China’s Harbin Electric launched commercial operations at a 2 GW gas-fired power plant in Guangdong Province, southern China. Shenzhen Energy Group Corporation, a state-owned Chinese utility, operates the Guangming power plant, which uses three GE Vernova 9HA.01 gas turbines. Harbin Electric supplied the project’s steam turbines and generators.
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Asia Pacific acquires the dominant share of 70%. Rapid industrial growth and expanding power infrastructure actively drive the Asia Pacific steam turbine market. Governments and companies in the region invest heavily in new thermal and combined cycle power plants to meet rising electricity demand. They prioritize upgrading outdated equipment and adopting high-efficiency turbine technologies. Additionally, government initiatives promote cleaner energy and emissions reduction, encouraging the adoption of advanced steam turbines. Increasing use of steam turbines in industrial applications further boosts market expansion across Asia Pacific countries. For instance, in July 2024, Japan's largest power producer, JERA, to begin operating a unit of its new 2.34 GW gas-fired power plant at Goi in Chiba, near Tokyo. The plant, equipped with General Electric's gas turbines and Toshiba's steam turbines, boosts generation efficiency to 64%—one of the highest globally for gas power—and cuts annual CO2 emissions by 16% compared to the previous facilities.
Modernizing aging power plants and rising demand for efficient energy solutions drive the North America steam turbine market. Utilities actively upgrade existing turbines and implement advanced digital technologies such as predictive maintenance and digital twins to boost performance and minimize downtime. Stricter environmental regulations and a stronger focus on cleaner energy prompt investments in retrofits and new installations. Industrial sectors also depend on steam turbines for cogeneration, helping to achieve energy efficiency and sustainability targets throughout the region. For instance, Czech-based steam turbine manufacturer Doosan Škoda Power has implemented its first steam turbine in the United States at a new gas-fired power plant in Lansing, Michigan.
The United States steam turbine market evolves as utilities actively upgrade and maintain existing power generation assets. They focus on enhancing turbine efficiency and reliability to prolong the lifespan of aging infrastructure. Companies invest heavily in digital technologies for predictive maintenance and real-time monitoring. Regulatory pressures and the shift toward cleaner energy motivate the adoption of advanced steam turbines. Industrial sectors also drive growth by using steam turbines for efficient cogeneration and various process applications across multiple industries. For instance, Customers in Great Britain and the United States have placed orders with Siemens for a total of nine compact steam turbines. Dutch energy provider Kara Energy Systems B.V. ordered three SST-040 turbines for biomass power plants in Great Britain, while U.S.-based Airclean Energy, located in Seattle, Washington, ordered six SST-110 compact steam turbines.
Growing energy demand and ongoing power sector reforms actively expand India’s steam turbine market. The government encourages investments in new thermal and combined cycle power plants to boost capacity and efficiency. Utilities and manufacturers accelerate efforts to modernize aging plants and implement advanced turbine technologies. Additionally, policies focused on emission reduction and renewable integration drive the adoption of cleaner steam turbine solutions. Rapid industrial growth further supports the market as companies increasingly use steam turbines for efficient power and process heat generation. For instance, in August 2025, Tripura is setting up India’s first 120 MW combined cycle gas turbine power plant at Rokhia with support from the Asian Development Bank. The project will use advanced SGT-800 turbines to enhance power generation and address the region’s growing energy needs. This is further propelling the steam turbine market share.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 17.37 Bn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 2.2% | 2032 Value Projection: | USD 20.23 Bn |
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| Companies covered: |
General Electric (GE), Siemens Energy, Mitsubishi Power, Ltd., Toshiba Corporation, Doosan Škoda Power, Ansaldo Energia S.p.A., Bharat Heavy Electricals Limited (BHEL), and Fuji Electric Co., Ltd. |
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Many regions face aging steam turbine infrastructure-built decades ago, prompting widespread modernization efforts. Operators invest in retrofits, upgrades, and overhauls to extend asset lifespans, improve efficiency, and comply with current environmental standards. These modernization projects help avoid costly replacements while optimizing turbine performance and reducing emissions, making them a vital trend shaping market demand and technology development.
Digital transformation is reshaping steam turbine operations by incorporating sensors, IoT, and AI-powered analytics. Real-time monitoring and predictive maintenance reduce unplanned outages and extend turbine life. Digital twins simulate performance, enabling proactive decision-making and operational optimization. This trend enhances efficiency, reliability, and cost-effectiveness, driving widespread adoption among utilities and industrial users seeking smarter asset management.
As renewable energy sources expand, steam turbines can be adapted for hybrid systems such as biomass, geothermal, and solar thermal plants. These integrations offer opportunities to provide stable, efficient backup power and enhance overall system reliability. Manufacturers can develop turbines optimized for variable and low-temperature steam conditions, opening new markets in clean energy sectors and supporting global decarbonization efforts.
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About Author
Sakshi Suryawanshi is a Research Consultant with 6 years of extensive experience in market research and consulting. She is proficient in market estimation, competitive analysis, and patent analysis. Sakshi excels in identifying market trends and evaluating competitive landscapes to provide actionable insights that drive strategic decision-making. Her expertise helps businesses navigate complex market dynamics and achieve their objectives effectively.
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