Steam Turbine Market Size By Type (Steam Cycle, Combined Cycle), By Application (Coal, Nuclear, Biomass), By Exhaust Type (Condensing, Non-Condensing), By Geographic Scope And Forecast

Steam Turbine Market Size And Forecast

Steam Turbine Market size was valued at USD 19.55 Billion in 2024 and is projected to reach USD 28.8 Billion by 2031, growing at a CAGR of 5.47% from 2024 to 2031.

• A steam turbine is a mechanical device that transfers thermal energy from pressured steam into rotary motion. It works based on thermodynamics, with steam’s high pressure and temperature being turned into kinetic energy as it expands and travels through a succession of turbine blades. The kinetic energy propels a rotor, which powers a generator or mechanical equipment. This technique is very efficient and capable of producing significant amounts of power, making steam turbines an essential component of industrial and electrical power generation.
• Steam turbines are widely utilized in power plants to generate electricity. They are used in both fossil fuel and nuclear power plants, where steam is generated by burning fossil fuels or nuclear processes. Aside from power generation, steam turbines are used in a variety of industrial operations that need mechanical effort, including refineries, petrochemical facilities, and district heating systems. Their capacity to manage large-scale energy conversion makes them indispensable in applications requiring significant power outputs while also prioritizing reliability and efficiency.
• These turbines can be constructed to work with a variety of steam sources, including superheated steam, and can be tailored to the unique needs of various power generation systems. They are well-known for their great efficiency, especially when integrated into combined cycle systems, which reuse waste heat to generate more electricity. Furthermore, steam turbines exist in a variety of sizes and capacities, ranging from small units used in localized heating applications to enormous turbines that generate electricity for entire towns. Their resilience, combined with advances in materials and engineering, has resulted in consistently better performance and longevity, cementing their place in modern energy infrastructure.

Global Steam Turbine Market Dynamics

The key market dynamics that are shaping the global steam turbine market include

Key Market Drivers

• Increasing Energy Demand The global increase in energy consumption is the key driver of the steam turbine industry. As industrialization and urbanization accelerate, particularly in emerging economies, the demand for dependable and efficient electricity sources grows. Steam turbines are critical to supplying this need because of their efficiency in converting thermal energy into mechanical work, and then into electrical power. This need stems not just from the residential and commercial sectors, but also from heavy industries like steel, cement, and chemical industry, which require a large and constant power supply.
• Shift to Cleaner Energy Sources The global push to reduce greenhouse gas emissions and address climate change has resulted in enormous investment in greener energy solutions. While renewable energy sources such as wind and solar are gaining popularity, steam turbines remain useful, particularly when combined with cleaner fuels like natural gas or biomass. Furthermore, steam turbines play an important part in nuclear power generation since they convert nuclear-generated steam into electricity.
• Technological Advancements Continuous improvements in steam turbine technology are driving the market forward. Steam turbine performance and dependability are being enhanced by innovations such as high-efficiency turbines, supercritical and ultra-supercritical steam cycles, and improved materials. These innovations not only improve power generation efficiency but also lower operational and maintenance costs.
• Economic Growth in Developing Regions Rapid economic expansion in developing nations, particularly Asia-Pacific, Africa, and Latin America, is a key driver of the steam turbine industry. As these places industrialize, the demand for energy increases tremendously. Steam turbines are perfect for large-scale power generation needed to support growing industries and cities.

Key Challenges

• High Initial Capital CostsOne of the key problems in the steam turbine market is the high initial capital cost of installing and commissioning steam turbine systems. The purchase of high-quality materials, innovative technology, and trained workers greatly increases the cost of operating a steam turbine factory. Many power production firms, particularly those in developing countries, face significant challenges in obtaining funding for such large-scale projects.
• Operational and Maintenance Challenges Steam turbines are famed for their durability and dependability, but they still require routine maintenance to ensure peak performance and longevity. The intricacy of steam turbine systems needs highly qualified personnel to undertake maintenance and repairs, which can be costly and difficult to find. Any gap in maintenance might result in decreased efficiency, unplanned downtime, or catastrophic failures.
• Competition from Renewable Energy The rapid innovation and reduced costs of renewable energy sources, such as wind, solar, and hydroelectric power, provide a substantial challenge to the steam turbine industry. Renewables are becoming more cost-competitive and appealing due to their decreased environmental impact and regulatory benefits. The intermittent nature of renewables, which was formerly a disadvantage, is being addressed by advances in energy storage solutions and grid control technologies.
• Fuel Supply and Price Volatility The steam turbine market is subject to fluctuations in fuel supply and costs, especially for plants that run on fossil fuels like coal, natural gas, and oil. Fuel price volatility can have a substantial impact on steam turbine power plant’s operating costs and profitability. Fuel supply disruptions, whether caused by geopolitical conflicts, natural disasters, or infrastructure concerns, can all pose major hazards. Power plants must have contingency plans in place to deal with fuel supply risks, which can increase operational complexity and cost. Diversifying fuel sources and incorporating renewable energy can reduce some of these hazards, but these techniques require additional investments and may not be practical for all facilities.

Key Trends

• Transition to Renewable Energy Integration A prominent trend in the steam turbine market is the growing incorporation of renewable energy sources into steam turbine power production systems. Renewable energy sources such as wind, solar, and biomass are being combined with traditional steam turbines to build hybrid power plants. These hybrid systems combine the benefits of renewable and conventional energy technologies, generating consistent and reliable power while lowering carbon emissions.
• Digitalization and Smart TechnologiesThe steam turbine market is experiencing an increase in digitization and the use of smart technologies to improve efficiency, dependability, and predictive maintenance. Advanced sensors, data analytics, and machine learning algorithms are being integrated into steam turbine systems to monitor performance in real time, spot possible problems before they worsen, and optimize operations for optimal efficiency.
• Decentralization and Distributed GenerationAnother important trend in the steam turbine market is the decentralization of power generation and the proliferation of distributed energy resources (DERs). Rather than depending primarily on huge centralized power plants, there is an increasing emphasis on smaller-scale steam turbine installations that are closer to end consumers. These distributed generating systems may comprise combined heat and power (CHP) plants, industrial cogeneration facilities, or microgrids.
• Advancement in Turbine Design and Materials Continuous developments in turbine design and materials propel the steam turbine market forward. Manufacturers are creating high-efficiency steam turbines that can operate at higher temperatures and pressures, resulting in increased performance and lower emissions. Advanced materials, such as superalloys and ceramic composites, are being used to survive the extreme conditions inside steam turbines and increase their operational life.

Global Steam Turbine Market Regional Analysis

Here is a more detailed regional analysis of the global steam turbine market

Europe

• Europe continues to lead the global steam turbine market in terms of revenue. This supremacy is due to the region’s well-established infrastructure and a large number of existing steam turbine power facilities. Historically, Europe has relied heavily on steam turbines for electricity generation, with these turbines functioning as critical components of the region’s power infrastructure.
• However, the growth trajectory of the steam turbine market in Europe is expected to stay flat in the next years. This estimate is mostly driven by a purposeful shift to cleaner energy sources like wind and solar electricity. European governments are progressively promoting renewable energy efforts and establishing measures to reduce carbon emissions. As a result, there is less emphasis on the expansion and development of traditional steam turbine-based power plants.
• Despite Europe’s continuous reliance on steam turbines for power generation, the market’s growth potential is limited by the region’s focus on sustainable and environmentally friendly energy solutions. The transition to cleaner energy sources demonstrates Europe’s commitment to mitigating climate change and lowering its carbon footprint.
• As a result, while steam turbines are likely to remain an important part of Europe’s energy mix for the foreseeable future, the market for new installations may develop slowly as the region shifts to more sustainable options.

Asia Pacific

• The steam turbine market is rapidly expanding in Asia Pacific, making it the world’s fastest-growing market. Several reasons contribute to the region’s exceptional growth, including fast industrialization and rising electrical demand. Leading the push are powerhouse economies such as China and India, which are making significant investments in thermal power facilities that rely primarily on steam turbines to generate electricity.
• China and India, in particular, are driving the increase in steam turbine installations, thanks to their thriving economies and growing populations. Both countries are making considerable investments in electricity infrastructure to fulfill the increasing energy demands of their industry and cities. Thermal power plants, which are powered by steam turbines, play an important part in this quest, providing a dependable and scalable option to fulfill these countries’ growing electrical needs.
• This economic trajectory in the Asia Pacific area is likely to continue for the foreseeable future, owing to increasing industrialization, urbanization, and infrastructure development. As countries in the region seek economic growth and higher living standards, electricity demand is expected to increase, further fueling the rise of the steam turbine market. With strong investments and excellent market circumstances, Asia Pacific is expected to remain a significant growth engine for the global steam turbine industry.

Global Steam Turbine MarketSegmentation Analysis

The Global Steam Turbine Market is Segmented on the basis of  Type, Application, Exhaust Type, And Geography.

Steam Turbine Market, By Type

• Steam Cycle
• Combined Cycle

Based on Type, the Steam Turbine Market is bifurcated into Steam Cycle and Combined Cycle. The combined cycle technology is the projected to hold largest share in the steam turbine market. This is because combined cycle plants use both a gas turbine and a steam turbine, resulting in great efficiency. The gas turbine provides electricity first, and the waste heat from its exhaust is used to generate steam, which powers the steam turbine and generates more energy. This combination strategy maximizes fuel economy, making it an attractive option for large-scale power generation. The steam cycle segment is expected to enjoy the most rapid expansion in the future years. This is motivated by the need to renovate and replace existing steam turbine power units.

Steam Turbine Market, By Application

• Coal
• Nuclear
• Biomass

Based on Application, the Steam Turbine Market is fragmented into Coal, Nuclear, and Biomass. Fossil fuels, primarily coal, now dominate the steam turbine business. This is owing to coal-fired power facilities’ established infrastructure and comparatively low initial costs as compared to other options. However, concerns about the climate and stiffer restrictions are driving the market toward cleaner options. Biomass is emerging as the fastest expanding segment of the steam turbine industry. Biomass provides a renewable and carbon-neutral alternative to traditional fossil fuels. Government incentives to promote renewable energy sources, as well as growing concerns about sustainability, are driving expansion in this area.

Steam Turbine Market, By Exhaust Type

• Condensing
• Non-condensing

Based on Exhaust Type, the Steam Turbine Market is segmented into Condensing, and Non-condensing. Condensing steam turbines currently account for the majority of the steam turbine market. This dominance is due to their superior efficiency in converting thermal energy into electricity. Condensing turbines use a closed loop system in which steam entering the turbine is turned back into water, resulting in a reduced pressure environment within the turbine and maximum power output. Their high efficiency makes them excellent for large-scale power generation applications. While condensing turbines dominate the market today, steam turbines coupled with combined cycle technology are expected to expand the fastest. Combined cycle plants use both gas and steam turbines.

Steam Turbine Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

On the basis of Geography, the Global Steam Turbine Market is classified into North America, Europe, Asia Pacific, and the Rest of the world. Europe dominates the worldwide steam turbine market in terms of revenue. This is owing to well-established infrastructure and a significant number of steam turbine power units. The Asia-Pacific region is experiencing the fastest growth in the steam turbine industry. Rapid industrialization and an ever-increasing need for electricity are driving this trend. Countries such as China and India are driving this expansion, with major expenditures in thermal power facilities that use steam turbines.

Key Players

The “Global Steam Turbine Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are General Electric (GE) Co., Turbine Generator Maintenance Inc., Toshiba Corporation, Siemens AG, Arani power systems, Elliott Group, TURBOCAM, Doosan Škoda Power, Chola Turbo Machinery International Pvt. Ltd., Triveni Turbines, and Mitsubishi Power.  The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Steam Turbine Market Recent Developments

• In February 2023, Ansaldo Energia secured a contract for four gas turbines in Azerbaijan. The “Azerbaijan” power plant, located in Mingachevir, will add four Ansaldo Energia AE94.3A gas turbines to its generation capacity (combined cycle). This historical product has more than 4 million operating hours. With this additional supply, the plant’s design will incorporate two gas turbines instead of one steam turbine, significantly increasing efficiency while reducing gas usage.
• In October 2022 Carbon neutrality, or the reduction of greenhouse gas emissions to zero, has become a popular notion in Europe and other areas of the world as a result of efforts to prevent climate change.
• In June 2022, GE Steam Power will supply three nuclear steam turbines to state-run engineering business BHEL under a USD 165 million agreement. GE Steam Power and BHEL have secured a USD 165 million contract to deliver three of the six nuclear steam turbines for NPCIL’s domestic nuclear program 1, which is being developed in Gorakhpur, Haryana, and Kaiga, Karnataka.

Report Scope

Research Methodology of Market Research

</