Gas Turbine Market - Forecasts from 2025 to 2030

The global gas turbine market is expected to grow from USD 24.189 billion in 2025 to USD 30.024 billion in 2030, at a CAGR of 4.42%.

Surging Global Electricity Demand

Global electricity demand is a primary catalyst, fueled by population growth and rapid urbanization. In 2024, global energy demand rose by 2.2%, with electricity demand increasing by 4.3%, driven by electrification in buildings, industry, and digitalization, including data centers and AI applications. The U.S. saw a 1.7% rise in energy demand, while China’s electricity consumption is projected to account for one-third of global demand by 2025. Gas turbines, known for their efficiency and flexibility, are critical for meeting this demand, particularly in combined cycle power plants (CCPPs), which offer lower emissions than coal-based alternatives.

Transition to Cleaner Energy

The shift from coal to natural gas-fired power generation is accelerating due to environmental regulations and sustainability goals. In 2023, natural gas accounted for 43% of U.S. electricity generation, compared to coal’s declining 16%. Gas turbines, with efficiencies of 40-60%, produce fewer greenhouse gas emissions, aligning with global decarbonization efforts. Innovations like hydrogen-ready turbines, capable of burning up to 50% hydrogen blends, further support this transition. For instance, in 2023, Kawasaki Heavy Industries unveiled a turbine supporting hydrogen blends, enhancing sustainability.

Increased Natural Gas Availability

Rising oil and gas production, particularly in the U.S., boosts natural gas supply, a key fuel for gas turbines. In June 2023, U.S. oil output from major shale basins reached a record 9.33 million bpd, with the Permian Basin contributing significantly. This increased natural gas availability supports the expansion of gas turbine-based power plants, particularly in North America. China’s domestic gas production also grew, reaching 229.7 billion cubic meters in 2023, reinforcing market growth.

Technological Advancements

Innovations in turbine design, materials, and digital solutions are enhancing efficiency and reliability. In 2023, n-dimensional and PSM launched a gas turbine digital twin product, improving predictive maintenance. General Electric’s H-Class turbines, surpassing two million operating hours in 2023, exemplify advancements in high-efficiency, low-emission technology. These developments reduce operational costs and downtime, driving market adoption.

Market Segmentation Analysis

By Capacity

The >300 MW segment dominates, holding a 36.6% share in 2023, driven by demand for large-scale power generation in urban and industrial applications. These high-capacity turbines are favored for their efficiency in combined cycle plants, as seen in projects like GE’s 435 MW Tallawarra power station in Australia in 2023.

By Technology

Combined cycle turbines led with an 88% revenue share in 2023, due to their high efficiency and lower emissions. Open cycle gas turbines (OCGTs), with up to 44% thermal efficiency, are preferred for rapid-response applications in oil and gas and industrial sectors.

By Application

The power generation segment holds the largest share (90% in 2023), driven by global electricity demand and the shift to gas-based plants. The oil and gas sector is also significant, using turbines for mechanical drives and power generation in remote operations. The aviation sector benefits from aeroderivative turbines’ high power-to-weight ratio.

Geographical Insights

Asia-Pacific leads with a 38.2% market share in 2023, driven by rapid industrialization in China, India, and Japan. China’s focus on gas-fired plants and India’s plan to expand natural gas to 15% of its energy mix by 2030 fuel growth. The U.S., with 9,132 MW of new gas-fired capacity added in 2023, dominates North America, supported by shale gas production and decarbonization policies. Europe is transitioning to gas and hydrogen-ready turbines to meet net-zero goals, while the Middle East benefits from local gas availability.

Competitive Landscape

Key players, including General Electric, Siemens Energy, Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Wärtsilä, drive innovation. In 2023, GE supplied high-efficiency turbines for projects in Australia and Kazakhstan, while Mitsubishi Power secured orders for Uzbekistan’s Talimarjan-2 project. These companies focus on advanced combustion technologies and digital solutions to enhance turbine performance.

Challenges

Volatility in natural gas prices and stricter environmental regulations pose challenges. In 2024, compliance costs increased due to emission reduction mandates, particularly in Europe and Canada. Competition from renewables and high capital costs for large-scale turbines also hinder growth in developing regions.

Segmentation:

Key Benefits of this Report:

• Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, and other sub-segments.
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Report Coverage:

• Historical data from 2022 to 2024 & forecast data from 2025 to 2030
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others).

By Type

• Open-Cycle Gas Turbine
• Closed-Cycle Gas Turbine

By Power Rating

• Up to 100 MW
• 100 to 300 MW
• Greater than 300 MW

By Fule Type

• Liquid Fuel
• Gaseous Fuel

By End-user

• Power & Energy
• Aerospace
• Marine
• Oil and Gas
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others