Synchronous Generator Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Prime Mover (Steam Turbine and Gas Turbine), By Speed (1,500 RPM and 3,000 RPM), By Power Rating (2-5 MVA, 10-20 MVA, 20-30 MVA, & 30-50 MVA), By End User (Hospitals, Data Centers, Telecommunications Networks, Residential and Others), By Region, By Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 9.65 Billion
CAGR (2026-2031)	5.47%
Fastest Growing Segment	Gas Turbine
Largest Market	Asia Pacific
Market Size (2031)	USD 13.28 Billion

Market Overview

The Global Synchronous Generator Market will grow from USD 9.65 Billion in 2025 to USD 13.28 Billion by 2031 at a 5.47% CAGR. A synchronous generator is an electromechanical machine that converts mechanical energy into alternating current electrical energy at a constant speed synchronized with the system frequency. The market expansion is principally driven by the escalating global requirement for reliable baseload power and the extensive refurbishment of aging electrical grid infrastructure in developing nations. These drivers are distinct from technological trends as they represent fundamental infrastructural necessities for grid stability rather than shifting preferences.

One substantial impediment to market progression involves the volatility of raw material costs such as copper and steel which complicates pricing strategies for manufacturers. According to the International Hydropower Association, in 2024, approximately 24.6 gigawatts of new hydropower capacity were commissioned globally. This figure highlights the sustained industrial reliance on synchronous technology for large-scale energy generation despite the economic headwinds affecting the supply chain.

Key Market Drivers

The proliferation of hyperscale data centers constitutes a paramount driver for the global synchronous generator market, necessitating high-output backup power systems to support artificial intelligence and cloud infrastructure. Facility operators are aggressively procuring large-capacity synchronous gensets to ensure operational continuity during grid failures. This surge in digital infrastructure is quantitatively evidenced by the sector's skyrocketing energy footprint, which necessitates robust onsite power generation. According to the International Energy Agency (IEA), January 2024, in the 'Electricity 2024' report, global electricity consumption from data centers is projected to double by 2026, potentially reaching 1,000 terawatt-hours. This expansion translates directly into order intake for equipment manufacturers. According to Cummins Inc., November 2024, power generation segment revenues increased by 24% in the third quarter of 2024 compared to the previous year, a growth rate explicitly attributed to the demand for data center applications.

The integration of renewable energy and grid stabilization represents the second critical factor, fueling the deployment of synchronous condensers and gas-fired balancing plants. As power grids transition toward variable sources like wind and solar, the resulting loss of system inertia threatens network stability. Synchronous machines are increasingly deployed to provide the necessary reactive power, short-circuit strength, and frequency control that inverter-based renewables lack. According to the IEA, October 2024, in the 'Renewables 2024' report, global annual renewable capacity additions were forecast to rise to 666 gigawatts in 2024, placing substantial strain on transmission networks. This rapid renewable penetration compels grid operators to invest in synchronous technology not merely for energy production, but as an essential asset to prevent blackouts and maintain frequency equilibrium in low-inertia systems.

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Key Market Challenges

The volatility of raw material costs, particularly for copper and steel, constitutes a significant barrier to the progression of the Global Synchronous Generator Market. These metals are essential inputs for manufacturing the core components of synchronous machines, such as rotor windings and heavy structural frames. When commodity prices fluctuate unpredictably, manufacturers encounter severe difficulties in maintaining stable pricing for long-lead production contracts. This financial uncertainty forces suppliers to either absorb the increased costs, which erodes profit margins, or pass them on to utility clients, often resulting in the delay or cancellation of capital-intensive grid infrastructure projects due to budget overruns.

This cost instability is particularly detrimental given the immense scale of the energy sector that relies on this technology. According to the World Nuclear Association, in 2024, nuclear reactors worldwide generated a record 2,667 TWh of electricity. Since nuclear facilities rely exclusively on large synchronous generators to convert thermal energy into baseload power, this figure highlights the vast operational volume that is directly exposed to supply chain price shocks. Consequently, the inability to predict material costs directly hampers the market by introducing financial risks that complicate the deployment of necessary power generation capacity.

Key Market Trends

The development of hydrogen and multi-fuel compatible generators is advancing rapidly as power producers aim to decarbonize thermal assets while maintaining dispatchable capacity. Manufacturers are engineering synchronous machines capable of operating on variable blends of natural gas and hydrogen, ensuring infrastructure remains viable during the energy transition. This capability prevents stranded assets by allowing immediate deployment with fossil fuels and a seamless conversion to zero-carbon alternatives later. According to Wärtsilä, June 2024, in the press release 'Wärtsilä launches world's first large-scale 100% hydrogen-ready engine power plant', the company introduced a new engine platform designed to run on 100% hydrogen, marking a major technological leap from existing units limited to 25% blends.

The adoption of Permanent Magnet Synchronous Generators (PMSG) is becoming the dominant standard in the wind energy sector, particularly for high-capacity offshore installations. These generators are favored over traditional induction models due to their high efficiency at partial loads, superior reliability in direct-drive configurations, and enhanced ability to comply with strict grid codes. This technological shift is driving significant manufacturing volumes for specialized synchronous machines designed for variable-speed renewable applications. According to the Global Wind Energy Council (GWEC), April 2024, in the 'Global Wind Report 2024', the global wind industry installed a record 117 gigawatts of new capacity in 2023, creating a substantial channel for PMSG deployment distinct from conventional baseload demand.

Segmental Insights

The Gas Turbine segment is currently the fastest-growing category in the Global Synchronous Generator Market, driven by the extensive transition from coal-fired power to cleaner natural gas solutions. This shift is accelerated by environmental mandates aimed at decarbonization. Additionally, the International Energy Agency emphasizes the necessity of flexible gas power to complement intermittent renewable energy sources like wind and solar. Consequently, the ability of gas turbines to offer rapid startup times and grid stability creates substantial demand for compatible synchronous generators in modern utility networks.

Regional Insights

Asia Pacific dominates the Global Synchronous Generator Market, primarily driven by rapid industrialization and urbanization in key economies such as China and India. The region’s escalating power consumption has triggered extensive investments in energy infrastructure, ranging from traditional thermal plants to large-scale renewable energy projects. As nations integrate variable renewable sources, synchronous generators remain essential for ensuring grid stability and frequency regulation. Analysis from the Asian Development Bank supports this outlook, emphasizing the region’s continued focus on expanding and modernizing its power networks to support robust economic growth and manufacturing activities.

Recent Developments

• In July 2025, Andritz received a contract from Hidroeléctrica de Cahora Bassa to rehabilitate the Cahora Bassa hydropower plant in Mozambique, a project valued in the mid-three-digit million-euro range. The scope of the agreement included the design, manufacturing, and supply of five new 480 MVA generators and Francis turbine runners to replace aging equipment commissioned in the 1970s. This modernization effort aimed to increase the plant's capacity and reliability, ensuring a stable power supply for Mozambique and neighboring countries. The rehabilitation works were scheduled to be executed by replacing the generating units sequentially to maintain operational continuity.
• In June 2025, GE Vernova commissioned the first of four 250 MW variable speed units at the Tehri Pumped Storage Hydropower Plant in India. This milestone marked the deployment of advanced variable speed technology, which allows for rapid transitions between turbine and pump modes, thereby providing significant grid flexibility and control. The project, executed for THDC India Limited, involved the installation of sophisticated electrical and hydraulic machines designed to stabilize the grid as it integrates more renewable energy. Upon completion of all units, the complex was set to become one of the country's largest and most modern hydropower stations.
• In July 2024, ABB introduced a new modular 20 MW class synchronous generator developed to assist power grids in managing the integration of renewable energy sources. This product platform was designed with flexibility in mind, allowing configurations for various operational profiles ranging from continuous baseload generation to short-term peak shaving. A key feature of the new generator is the option to incorporate flywheels, which increases available inertia to help maintain frequency stability and ensure grid code compliance. The unit also includes an upgraded cooling system intended to enhance energy efficiency during intermittent operations.
• In June 2024, Marelli Motori announced the launch of its new MJH900LA8 synchronous generator, designed to meet increasingly stringent requirements in the power generation sector. The newly developed product features an enhanced cooling system that improves overall efficiency and enables a higher power density within a standard frame size. This generator was engineered specifically for applications such as Combined Heat and Power (CHP) and hydropower, aiming to provide reliability and flexibility in demanding operating conditions. The company stated that the modular design and standardized components of the MJH900LA8 would streamline maintenance processes for operators.

Key Market Players

• ABB Ltd
• Siemens Gamesa Renewable Energy S.A.
• GE Renewable Energy
• Mitsubishi Heavy Industries, Ltd.
• Andritz AG
• Bharat Heavy Electricals Limited
• Hitachi Energy Ltd.
• Suzlon Energy Limited
• Wood Group PLC
• GE Power Conversion

By Prime Mover	By Speed	By Power Rating	By End User	By Region
Steam Turbine and Gas Turbine	1 500 RPM and 3 000 RPM	2-5 MVA 10-20 MVA 20-30 MVA & 30-50 MVA	Hospitals Data Centers Telecommunications Networks Residential and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Synchronous Generator Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Synchronous Generator Market, By Prime Mover:

• Steam Turbine and Gas Turbine

• Synchronous Generator Market, By Speed:

• 1
• 500 RPM and 3
• 000 RPM

• Synchronous Generator Market, By Power Rating:

• 2-5 MVA
• 10-20 MVA
• 20-30 MVA
• & 30-50 MVA

• Synchronous Generator Market, By End User:

• Hospitals
• Data Centers
• Telecommunications Networks
• Residential and Others

• Synchronous Generator Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE