Steam Turbine Market Size & Growth Forecast 2027–2036, By Segments (End-use, Capacity), Regional Demand Trends (North America, Asia Pacific, Europe), Key Country Insights (U.S., Japan, South Korea, Germany, France, Italy), and Competitive Landscape
Market Size and Growth Outlook
Steam Turbine Market size was worth USD 20.7 billion in 2026 and is expected to grow at a 4.85% CAGR between 2027 and 2036, reaching USD 33.24 billion by 2036. The industry revenue for 2027 is assessed at USD 21.54 billion.
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Regional Market Dynamics
- Asia Pacific leads due to extensive thermal and industrial power base, sustained electricity demand, and ongoing refurbishment across coal, biomass, and CHP facilities supporting continuous turbine procurement.
- Growth in North America, projected at 2.96% CAGR, is driven by modernization of existing infrastructure, turbine replacements, and efficiency upgrades across utilities and industrial facilities.
Segment Momentum
- Power & Utility held an 81.27% market share in 2026 due to the widespread use of steam turbines in large-scale electricity generation, where reliable, continuous-output systems are essential for baseload and grid-support operations.
- Up to 150 MW is the fastest-growing capacity segment, supported by increasing demand for captive power, cogeneration, and localized energy systems that require flexible deployment and efficient facility-level integration.
Market Expansion Drivers
- Rising combined-cycle natural gas plant deployments increasing steam turbine installation demand.
- Expanding CHP and energy-efficient power generation projects strengthening industrial steam turbine adoption.
- Modernization of aging thermal power infrastructure driving replacement steam turbine procurement activities.
Leading Market Participants
- Major companies in the steam turbine market include General Electric Company (United States), Siemens Energy AG (Germany), Mitsubishi Power Ltd. (Japan), Ansaldo Energia S.p.A. (Italy), Toshiba Energy Systems & Solutions Corporation (Japan), Bharat Heavy Electricals Limited (India), Shanghai Electric Group Company Limited (China), Harbin Electric Corporation (China), Doosan Enerbility Co., Ltd. (South Korea), MAN Energy Solutions SE (Germany).
Global Market Forecast Snapshot
Market Outlook
- 2026 Market Size: USD 20.7 billion
- 2027 Estimated Market Size: USD 21.54 billion.
- Projected Market Size: USD 33.24 billion by 2036
- Growth Forecast: 4.85% CAGR (2027-2036)
Regional and Segment Outlook
- Leading Regional Market: Asia Pacific
- High-Growth Regional Hub: North America
- Core Revenue Segment: Power & Utility (End-use) | More Than 300 MW (Capacity)
- Emerging Opportunity Segment: Industrial (End-use) | Up to 150 MW (Capacity)
Market Growth Drivers and Industry Trends
Rising combined-cycle natural gas plant deployments increasing steam turbine installation demand
The continued development of combined-cycle natural gas power plants is creating demand for steam turbines as an essential component of systems that recover heat from gas turbine exhaust. The steam turbine market is expanding alongside these projects because recovered thermal energy can be converted into additional electricity, improving overall plant efficiency compared with simple-cycle generation. Combined-cycle configurations are particularly relevant where power systems require flexible and efficient thermal generation to complement variable renewable resources. As utilities and power producers develop natural gas-based generation capacity, demand for integrated steam turbine systems is increasing within these high-efficiency plant configurations.
Expanding CHP and energy-efficient power generation projects strengthening industrial steam turbine adoption
Combined heat and power projects allow industrial facilities to generate electricity while utilizing thermal energy that would otherwise be lost, improving the overall efficiency of energy-intensive operations. In the steam turbine market, CHP installations create opportunities for turbines that can convert available steam into useful power while supporting industrial heating requirements. Manufacturing facilities, processing plants, and other energy-intensive operations can integrate steam turbines into systems designed around their specific heat and electricity demand profiles. Growing emphasis on energy efficiency is encouraging industrial operators to adopt generation configurations that maximize the productive use of available thermal energy.
Modernization of aging thermal power infrastructure driving replacement steam turbine procurement activities
Aging thermal power facilities increasingly require equipment upgrades to maintain reliable operation, improve efficiency, and address performance limitations associated with older generating assets. Modernization programs will propel the steam turbine market as operators replace outdated turbine systems or retrofit existing equipment with more advanced configurations. Newer turbine technologies can improve steam utilization, operational reliability, and compatibility with modern plant-control systems, while replacement projects can address deterioration in critical mechanical components. Utilities undertaking refurbishment of established thermal generation assets are therefore creating procurement opportunities for updated steam turbine equipment and related systems.
| Growth Driver | Impact on CAGR | Regulatory Influence | Geographic Relevance | Adoption Rate | Impact Timeline |
|---|---|---|---|---|---|
| Rising combined-cycle natural gas plant deployments increasing steam turbine installation demand | 2.00% | Moderate | North America, Asia Pacific | High | Near Term |
| Expanding CHP and energy-efficient power generation projects strengthening industrial steam turbine adoption | 1.80% | High | North America, Europe | High | Mid Term |
| Modernization of aging thermal power infrastructure driving replacement steam turbine procurement activities | 1.30% | Moderate | Asia Pacific, Europe | Medium | Long Term |
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Regional Demand Dynamics
Asia Pacific (Largest Region)
The steam turbine market was led by
North America (Fastest-Growing Region)
Asia Pacific in 2026, underpinned by its extensive power generation infrastructure, expanding electricity demand, and continued investment in thermal and industrial energy systems. Steam turbines remain important across utility-scale generation and industrial applications where reliable and efficient power production is required. Ongoing infrastructure development, industrialization, and efforts to strengthen electricity supply are supporting demand for turbine equipment and associated modernization projects. North America is the fastest-growing region, supported by investments in power infrastructure modernization, replacement of aging generation assets, and growing requirements for reliable electricity supply. The integration of more flexible and efficient generation technologies, together with demand from industrial facilities and grid operators, is creating opportunities for steam turbine upgrades and new installations.
| Parameter | North America | Asia Pacific | Europe | Latin America | MEA |
|---|---|---|---|---|---|
| Innovation Hub i Scale Nascent Developing Advanced | |||||
| Cost-Sensitive Region i Scale Low Medium High | |||||
| Regulatory Environment i Scale Restrictive Neutral Supportive | |||||
| Demand Drivers i Scale Weak Moderate Strong | |||||
| Development Stage i Scale Emerging Developing Developed | |||||
| Adoption Rate i Scale Low Medium High | |||||
| New Entrants / Startups i Scale Sparse Moderate Dense | |||||
| Macro Indicators i Scale Weak Stable Strong |
Key Country Insights
Germany 🇩🇪
Industrial Efficiency SolutionsGermany emphasizes steam turbines that support efficient industrial energy generation and combined heat and power applications. German manufacturers increasingly focus on high-performance turbine technologies that improve operational flexibility while meeting demanding industrial performance standards.
France 🇫🇷
Low-Emission Plant UpgradesFrance focuses on steam turbine modernization projects that improve plant efficiency while supporting cleaner energy generation strategies. French industrial operators increasingly adopt advanced turbine technologies that optimize energy utilization and strengthen long-term operational performance.
Italy 🇮🇹
Combined Heat ApplicationsItaly emphasizes steam turbines for industrial facilities requiring efficient combined heat and power generation. Italian businesses increasingly invest in turbine upgrades that improve fuel utilization, operational reliability, and energy management across manufacturing operations.
Japan 🇯🇵
High-Reliability OperationsJapan values steam turbines designed for dependable long-term performance across power generation and industrial facilities. Japanese utilities and manufacturers continue emphasizing efficiency improvements, predictive maintenance, and equipment durability to optimize plant operations.
South Korea 🇰🇷
Industrial Power IntegrationSouth Korea adopts steam turbine technologies that support energy-intensive manufacturing and integrated industrial power systems. South Korean industries increasingly prioritize efficient turbine operation, digital diagnostics, and dependable equipment performance for continuous production environments.
United States 🇺🇸
Power Asset OptimizationThe U.S. steam turbine market prioritizes modernization of existing power generation and industrial facilities to improve operational efficiency. U.S. operators increasingly invest in turbine upgrades, digital monitoring, and maintenance solutions that extend equipment reliability across diverse applications.
Segment Leadership and Growth Trends
Steam Turbine Market Share (%), by End-use, 2026
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Request Free Sample ReportEnd-use Segment Analysis: Power & Utility (Largest Segment) vs Industrial (Fastest-Growing Segment)
The power & utility segment dominated the steam turbine market, accounting for an 81.27% share in 2026, supported by the extensive use of steam turbines in large-scale electricity generation and utility infrastructure. Steam turbines remain well suited to power generation because they can efficiently convert high-pressure steam into mechanical energy for electricity production while supporting continuous and reliable operation. Their established role across thermal power facilities and utility-scale generation systems, combined with the need for dependable electricity supply and efficient operation of existing generation assets, reinforces the segment's leading position.
The industrial segment is advancing rapidly as steam turbines continue to find applications in energy-intensive manufacturing environments. Industries such as chemicals, refining, pulp and paper, and other process-intensive operations require reliable sources of power and steam, creating opportunities for turbine-based cogeneration and captive power systems. Increasing emphasis on energy efficiency, onsite power generation, and better utilization of process steam is encouraging industrial facilities to adopt turbine systems that can support both electricity production and thermal requirements.
Capacity Segment Analysis: More Than 300 MW (Largest Segment) vs Up to 150 MW (Fastest-Growing Segment)
Holding the largest share of the steam turbine market, the more than 300 MW segment represented 59.76% of the market in 2026. Large-capacity steam turbines are particularly important for utility-scale power generation, where substantial electricity output and continuous operating capability are essential. Their ability to support high-volume power production makes them well suited to major generation facilities, while established infrastructure and demand for reliable baseload electricity continue to sustain the segment.
The up to 150 MW segment is gaining momentum as industries and smaller power-generation facilities increasingly seek appropriately sized turbine systems. Smaller-capacity configurations can provide greater flexibility for captive power generation, cogeneration, and decentralized energy applications where large utility-scale equipment may not be economically or operationally suitable. Growing interest in onsite energy generation, industrial energy efficiency, and distributed power solutions is supporting broader adoption of these systems.
| Segment | Sub-Segment | Largest Segment | Fastest Growing |
|---|---|---|---|
| End-use | Power & Utility, Industrial | Power & Utility | Industrial |
| Capacity | Up to 150 MW, 151 to 300 MW, More Than 300 MW | More Than 300 MW | Up to 150 MW |
Competitive Landscape and Market Positioning
Top players in the steam turbine market:
1. General Electric Company (United States)
2. Siemens Energy AG (Germany)
3. Mitsubishi Power Ltd. (Japan)
4. Ansaldo Energia S.p.A. (Italy)
5. Toshiba Energy Systems & Solutions Corporation (Japan)
6. Bharat Heavy Electricals Limited (India)
7. Shanghai Electric Group Company Limited (China)
8. Harbin Electric Corporation (China)
9. Doosan Enerbility Co. Ltd. (South Korea)
10. MAN Energy Solutions SE (Germany)
The steam turbine market is benefiting from modernization efforts across thermal power generation and industrial energy systems. Manufacturers are focusing on high-efficiency turbine technologies, emission reduction strategies, and digital performance monitoring solutions to improve operational reliability. Rising investments in energy infrastructure upgrades are also encouraging innovation within the steam turbine market.
| Company | Market Share | Company Revenue | Revenue CAGR (%) | Product Portfolio | Geographic Presence | Innovation / R&D Focus | Strategic Developments |
|---|---|---|---|---|---|---|---|
| General Electric Company (United States) | |||||||
| Siemens Energy AG (Germany) | |||||||
| Mitsubishi Power Ltd. (Japan) | |||||||
| Ansaldo Energia S.p.A. (Italy) | |||||||
| Toshiba Energy Systems & Solutions Corporation (Japan) | |||||||
| Bharat Heavy Electricals Limited (India) | |||||||
| Shanghai Electric Group Company Limited (China) | |||||||
| Harbin Electric Corporation (China) | |||||||
| Doosan Enerbility Co. Ltd. (South Korea) | |||||||
| MAN Energy Solutions SE (Germany). |
Industry Development/News
| Company Name | Date | Key Development |
|---|---|---|
| Doosan Enerbility | May-26 | Doosan Enerbility secured a contract to supply four steam turbines in the U.S. with a delivery timeline through 2029. This development bolsters the company’s competitive positioning within the North American power generation market and expands its international manufacturing and supply portfolio. |
| Babcock & Wilcox | Mar-26 | Babcock & Wilcox secured a $2.4 billion contract to deliver 1.2 GW of power generation capacity for AI-focused data centers in the U.S. This project addresses the surging electricity demand from data center infrastructure and represents a significant scale-up in the company’s large-scale power generation footprint. |
| Aalo Atomics | Mar-26 | Aalo Atomics has integrated Baker Hughes’ modular steam turbine technology into its sodium-cooled nuclear reactor design. This partnership facilitates the deployment of compact, high-density energy generation systems, demonstrating a strategic integration of turbine technology into next-generation nuclear applications. |
| Leonardo DRS | Feb-26 | Leonardo DRS inaugurated an advanced naval electric propulsion and power systems facility in South Carolina. The new plant enhances the company’s manufacturing and integration capabilities for specialized marine power systems, strengthening its operational infrastructure and production capacity for the naval sector. |
| JLL Partners | Jan-26 | JLL Partners acquired PowerParts Group, a specialized provider of replacement parts and field services for gas and steam turbines. This acquisition expands the firm’s turbine aftermarket and maintenance platform, enhancing its service capabilities and operational reach across the broader power generation industry. |
| Rotating Machinery Services | Dec-25 | Rotating Machinery Services acquired the steam turbine and compressor business unit from EthosEnergy, successfully reviving the TurboCare brand. The move expands the company’s aftermarket service offerings and increases its operational presence in North American and European power generation markets. |
| Doosan Enerbility | Jul-25 | Doosan Enerbility secured an agreement to supply steam turbines and generators for two gas-fired combined cycle power plants in Saudi Arabia. This contract reinforces the company’s strategic position in the Middle East’s large-scale thermal power generation sector and highlights its international project execution capabilities. |
| GE Vernova | Jul-25 | GE Vernova completed the commissioning of the first generating block at Taiwan’s Hsinta power plant. By deploying advanced gas and steam turbine technologies, the project directly supports regional energy transition goals and underscores the company’s role in large-scale utility infrastructure modernization. |
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Steam Turbine Market — Custom Segments
| Segment | Sub-Segment |
|---|---|
| Turbine Type | Impulse Turbines, Reaction Turbines |
| Exhaust Configuration | Condensing Turbines, Back-Pressure Turbines, Extraction Turbines |
| Market Type | New Equipment, Aftermarket Services |
Steam Turbine Market — Custom
| Custom Chapter | Custom Details |
|---|---|
| Steam Turbine Modernization Roadmap |
|
| Industrial Decarbonization Opportunity Analysis |
|
| Aftermarket Services Growth Strategy |
|
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