Gas Turbine Market

The gas turbine market was valued at $10.86 billion in 2024 and is projected to reach $15.72 billion by 2033, reflecting a compound annual growth rate (CAGR) of 4.2% from 2025 to 2033. This growth trajectory is propelled by the ongoing shift towards cleaner energy sources, alongside significant investments in infrastructure development globally.

The gas turbine market encompasses the production, distribution, and utilization of gas turbines, which are devices that convert natural gas or other gaseous fuels into mechanical energy through combustion. These turbines are widely used in power generation, aviation, and industrial applications, providing a reliable and efficient energy source.

The global gas turbine market is experiencing robust growth, driven by rising energy demands, the transition to cleaner energy sources, and advancements in turbine technology. With the increasing reliance on natural gas for power generation and industrial applications, gas turbines are becoming crucial in enhancing efficiency and reducing greenhouse gas emissions.

Gas Turbine Market Latest Trends

The gas turbine market is witnessing several trends that are shaping its future. One notable trend is the increasing adoption of combined cycle gas turbines (CCGT) due to their superior efficiency compared to traditional open cycle systems. CCGTs can achieve efficiencies of up to 60-80%, making them highly desirable in a landscape focused on reducing emissions and improving fuel utilization. Additionally, the integration of digital technologies, such as advanced monitoring and predictive maintenance, is enhancing the operational efficiency and reliability of gas turbines, further driving their adoption across various sectors.

Another emerging trend is the growing emphasis on hybrid systems that combine gas turbines with renewable energy sources, such as solar and wind power. These hybrid systems enable better integration of variable renewable energy, providing reliable power generation that can quickly respond to fluctuations in energy supply and demand. As governments worldwide push for more sustainable energy solutions, the demand for innovative gas turbine technologies that support this transition is expected to rise.

Driving Factors

Several driving factors are contributing to the growth of the gas turbine market. Firstly, the increasing global demand for electricity, fueled by population growth and urbanization, necessitates the expansion of power generation capabilities. Gas turbines offer a flexible and efficient solution to meet this demand, particularly in regions transitioning from coal to gas-based power generation. The low operational costs associated with gas turbines, combined with relatively low natural gas prices, are also encouraging utilities to invest in this technology.

Moreover, stringent environmental regulations aimed at reducing carbon emissions are prompting industries and governments to seek cleaner energy alternatives. Gas turbines, especially when used in combined cycle configurations, significantly reduce greenhouse gas emissions compared to coal-fired plants, making them a preferred choice for new power generation projects. This regulatory push, alongside the economic advantages of natural gas, is expected to drive further investments in gas turbine technology.

Gas Turbine Market Regional Insights

The Asia Pacific region holds the largest share of the gas turbine market, accounting for approximately 36.2% of the revenue in 2024. Rapid industrialization and urbanization in countries such as China, India, and Indonesia are driving the demand for reliable and efficient power generation solutions. As these economies continue to grow, the need for additional power infrastructure will bolster the gas turbine market. Furthermore, government initiatives aimed at promoting cleaner energy sources and reducing emissions will support the expansion of gas turbine installations in the region.

North America also plays a significant role in the gas turbine market, with the United States leading in technological advancements and innovations in gas turbine technology. The region benefits from abundant natural gas reserves and a well-established energy infrastructure, facilitating the adoption of gas turbines for both power generation and industrial applications. As the U.S. transitions towards cleaner energy sources, the demand for gas turbines is expected to rise, particularly in combined cycle configurations that enhance efficiency and reduce emissions.

Gas Turbine Market Segmentation

Technology Outlook (Volume, MW; Revenue, USD Million, 2018 – 2033)

• Open Cycle
• Combined Cycle

Capacity Outlook (Volume, MW; Revenue, USD Million, 2018 – 2033)

• ≤200 MW
• >200 MW

End-use Outlook (Volume, MW; Revenue, USD Million, 2018 – 2033)

• Power & Utility
• Industrial

Regional Outlook (Volume, MW; Revenue, USD Million, 2018 – 2033)

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Central & South America
  • Brazil
  • Argentina
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa

Prominent players in the gas turbine market include:

1. Ansaldo Energia
2. Bharat Heavy Electricals Ltd.
3. Centrax Gas Turbines
4. General Electric
5. Kawasaki Heavy Industries, Ltd.
6. MAN Energy Solutions
7. Mitsubishi Power, Ltd.
8. OPRA Turbines
9. Siemens Energy
10. Solar Turbines Inc.

Market Report Scope

End-use Insights

The power and utility segment accounted for the largest revenue share of approximately 88.0% in 2024. Increased demand for power generation is driven by the expansion in population and urbanization around the world, which is boosting the use of gas turbines in the power and utility sectors. Another important driver includes the focus on establishing an environmentally friendly form of power generation. The product demand in the power and utility end-use segment is anticipated to progress at a significant growth rate over the forecast period; however, key competitors remain skeptical regarding the growing product demand in the power generation segment.

Technology Insights

The combined cycle turbines segment accounted for the largest revenue share of more than 85.0% in 2024 and is anticipated to continue its dominance during the forecast period. This category is also expected to grow at a faster rate in the coming years. These turbines use less fuel to produce the same amount of energy and eliminate transmission and distribution losses. Combined cycle turbines are known for their extreme efficiency, allowing systems to achieve efficiencies of 60 to 80 percent. Strict regulations for coal plants, low gas prices, and the integration of increasing amounts of renewable energy are driving the shift to combined cycle gas turbine technology.

Capacity Insights

The >200 MW segment emerged as a significant capacity segment in this market with a revenue share of more than 71.0% in 2024. It is further projected to be the fastest-growing segment during the assessment period. The increasing pace of power generation operations globally, driven by high energy demands due to population growth and rapid urbanization, along with a move from coal to gas-based power plants in major economies, are propelling segment demand. The expansion of the power generation sector, coupled with a higher focus on renewable energy sources for electricity generation, is a primary driver for gas turbines, particularly those with capacities higher than 200 MW.

The reduced turbine size allows for easier operation and maintenance, which is crucial for the expansion of the 200 MW-capacity turbine segment. A smaller size leads to a lighter product, making it well-suited for offshore locations where the power-to-weight ratio is vital in deciding whether to build a turbine unit. The oil and gas industry is also expected to regain momentum in the coming years, with small turbines frequently used due to their compliance with operational and environmental conditions.