Steam Turbine Market (2026 - 2033)

Steam Turbine Market Market Summary

The global steam turbine market was valued at USD 19.6 billion in 2025 and is projected to grow from USD 20.7 billion in 2026 to USD 29.4 billion in 2033, at a CAGR of 5.1% from 2026 to 2033. In terms of region, Asia Pacific dominated the market, accounting for a revenue share in 2025.  An increase in the number of power plants is likely to be commissioned to compensate for the energy deficit and this is expected to propel the demand for steam turbines during the forecast period. 

The U.S. emerged as the largest market in North America in 2025. An increase in the number of combined-cycle natural gas plants in the country, as they are reliable sources of energy, is one of the prominent reasons for the rising demand for steam turbines in the U.S. Policymakers in the country are focusing on developing sustainable energy generation plants. This is anticipated to surge the number of steam turbine installations in the U.S. in the coming years. The increasing focus of the Government in the U.S. on establishing energy-efficient and clean power generation plants is also contributing to the surge in the number of CHP installations in the country. Rising demand for combined heat and power across North America is expected to drive the growth of the market in the region over the forecast period.

Policymakers in the UK are focusing on reducing carbon emissions and carrying out energy-efficient power generation. This has led to the formulation and stringent implementation of various environmental and emission norms across the country. Steam turbines are employed in industrial applications for use in CHP units.

The growing deployment of combined heat and power (CHP) systems and rising global electricity demand are major drivers of the steam turbine market. There is increased use of steam turbines due to their ability to deliver high-performance energy outputs during the conversion of thermal energy into mechanical and electrical energy. Factors such as industrial development, the need for energy production facilities, and the need for a reliable energy supply have contributed to the increased use of steam turbines. Moreover, there has been a growing trend among industries to install cogeneration plants that use steam turbines to generate heat and electrical energy simultaneously. Investments in power generation infrastructure in countries such as China and India in the Asia Pacific region have further increased demand for steam turbines.

Market Dynamic

Analysts Perspective

The steam turbine market is supported by strong long-term growth drivers, including the sustained demand for thermal and nuclear power generation, increasing adoption of combined heat and power (CHP) systems, and growing investments in energy infrastructure modernization across both developed and emerging economies. The market is highly influenced by the continuous expansion of power generation capacity from coal, natural gas, biomass, and nuclear energy sources, which is increasing the need for advanced steam turbine systems that deliver higher efficiency, operational reliability, and reduced emissions across utility and industrial applications.

Capacity Insights

Based on capacity, more than 300 MW accounted for the largest share of around 60.0% in the global market in 2025. The growth of the segment can be attributed to the rising demand for large-scale, high-efficiency power generation facilities. These facilities aim to meet increasing electricity use in rapidly industrializing economies and densely populated areas. Utilities are investing in high-capacity steam turbines for ultra-supercritical and combined-cycle power plants. This investment helps achieve higher output, better fuel efficiency, and lower emissions for each unit of electricity generated. Large-capacity turbines are especially favored for base-load power generation in coal, nuclear, and large combined-cycle gas power plants. Here, operational efficiency and economies of scale are essential.

The 151-300 MW capacity segment is anticipated to witness the fastest growth during the forecast period from 2026 to 2033. The growth of the segment is driven by the growing need for decentralized and small to medium-scale power generation. This trend is particularly evident in industrial captive power plants, district heating systems, and small utility applications. Industries are increasingly using lower-capacity steam turbines to ensure a reliable on-site power supply, reduce dependence on grid electricity, and improve energy efficiency. Furthermore, the expansion of industrial facilities in emerging economies and the demand for flexible, cost-effective power solutions in distributed energy systems are also boosting the growth of this segment.

End-use Insights

Based on end use, the power & utility segment led the market in 2025, accounting for over 83.0%. This segment is expected to maintain its dominance in the market over the forecast period as well. Steam turbines continue to be important for base-load generation owing to their ability to produce consistent electricity. Although the global energy transition and stricter environmental regulations are reducing reliance on coal-fired power plants in several developed economies, investments in nuclear and natural gas-based generation, as well as in grid reliability, continue to support demand for steam turbine systems. In line with the growing focus on reliable and low-carbon power generation, utilities and technology providers are increasingly investing in advanced turbine systems for next-generation power infrastructure. For instance, in November 2025, Siemens Energy signed a binding contract with Oklo to design and deliver the power conversion system, including an SST-600 steam turbine and generator, for Oklo’s Aurora commercial power plant, reflecting increasing investments in reliable, dispatchable, and low-carbon electricity generation.

The industrial segment is expected to witness significant growth during the forecast period, driven by the increased industrial activities across the world. Steam turbines are employed in industrial applications in the form of CHP units. These units offer better efficiency than single units and produce output in multiple ways. In addition, frequent load limits and power outages have contributed to the increasing demand for steam turbines in in-house power plants in the industrial sector. Furthermore, rising investments in industrial infrastructure and growing emphasis on energy efficiency are encouraging industries to adopt advanced steam turbine systems for reliable power generation.

Regional Insights

Asia Pacific held a significant market share in the steam turbine market in 2025. The Asia Pacific region is experiencing significant industrial growth and urbanization, particularly in countries such as China, India, Indonesia, and Vietnam. This growth is greatly increasing electricity use. As a result, investment in large thermal and combined-cycle power plants is rising. This trend is leading to an increase in the use of steam turbines for efficient base-load power generation. More manufacturing, infrastructure projects, and growing residential energy needs are also boosting the demand for dependable and high-capacity power generation systems throughout the region.

North America Steam Turbine Market Trends

North America is expected to witness significant growth during the forecast period. Steam turbines are widely used for CHP applications in the U.S. Unlike gas turbines and reciprocating engine CHP systems wherein heat is a byproduct of the power generation process, steam turbine-based generators normally generate electricity as a byproduct of heat (steam) generation. Steam turbines use separate heat sources and as such, fuel is not converted to electric energy by them. The energy is transferred from boilers to turbines through high-pressure steam that powers turbines and generators.

Key Steam Turbine Company Insights

Most of the players have established joint ventures with several customers and suppliers in various countries globally that help increase their market shares, decrease their costs, and enable them to gain access to new markets. Well-known industry players across the steam turbine market are mainly focusing on various key premeditated assets that include product customization, development of innovative product range, and inorganic growth ventures as part of their plan. Additionally, for upgradation and maintenance, market players are also providing services to gain competitive benefits over other market players.

• In July 2024, Kawasaki Heavy Industries received an order from Nippon Paper Industries to supply a steam turbine system for its Soka Mill in Japan to improve energy efficiency and optimize heat and electricity balance in industrial operations, highlighting increasing demand for efficient steam turbine systems across industrial applications.

Key Steam Turbine Companies

The following key companies have been profiled for this study on the steam turbine market.

• Ansaldo Energia S.p.A

• Bharat Heavy Electricals Limited

• Doosan Škoda Power

• Elliott Group

• Fuji Electric Co., Ltd.

• General Electric

• Kawasaki Heavy Industries, Ltd.

• MAN Energy Solutions

• Mitsubishi Power Ltd.

• Siemens Energy

• Toshiba Corporation

• Trillium Flow Technologies

Steam Turbine Market Report Scope

Global Steam Turbine Market Report Segmentation

This report forecasts revenue growth at the regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2021 to 2033. For the purpose of this study, Grand View Research has segmented the global steam turbine market report on the basis capacity, end use, and region:

• Capacity Outlook (Volume, MW; Revenue, USD Billion, 2021 - 2033)

  • Up to 150 MW

  • 151 to 300 MW

  • More than 300 MW

• End-use Outlook (Volume, MW; Revenue, USD Billion, 2021 - 2033)

  • Power & Utility

  • Industrial

• Regional Outlook (Volume, MW; Revenue, USD Billion, 2021 - 2033)

  • North America

    • U.S.

  • Europe

    • UK

    • Russia

  • Asia Pacific

    • China

    • India

  • Central & South America

  • Middle East & Africa