Gas Turbine Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Capacity (200 MW, >200 MW), By Technology (Heavy Duty, Light Industrial, Aeroderivative), By Cycle (Simple Cycle, Combined Cycle), By Sector (Power Utilities, Oil & Gas, Manufacturing, Aviation, Others), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 30.64 Billion
CAGR (2026-2031)	5.78%
Fastest Growing Segment	Oil & Gas
Largest Market	Asia Pacific
Market Size (2031)	USD 42.92 Billion

Market Overview

The Global Gas Turbine Market will grow from USD 30.64 Billion in 2025 to USD 42.92 Billion by 2031 at a 5.78% CAGR. A gas turbine is an internal combustion engine that converts the chemical energy of liquid or gaseous fuels, typically natural gas, into mechanical energy to drive electrical generators or industrial machinery. The global market for this technology is primarily propelled by the escalating demand for electricity in emerging economies and the widespread transition from coal-fired power plants to cleaner natural gas alternatives. Furthermore, the increasing integration of intermittent renewable energy sources into national grids has created a critical necessity for flexible and dispatchable power generation that gas turbines provide to ensure system stability.

One significant challenge impeding the market's traditional expansion is the rapid deployment of renewable energy technologies and the enforcement of stringent decarbonization mandates which threaten the utilization rates of fossil fuel assets. This shift forces gas turbines into a supporting rather than dominant role in many mature regions and creates uncertainty for new large-scale infrastructure projects. According to Eurelectric, in 2024, clean power sources generated 72 percent of the European Union's electricity, a record high that underscores the accelerating displacement of fossil fuel generation and the evolving requirement for turbines to operate primarily as flexible backup assets.

Key Market Drivers

Escalating Global Electricity Demand serves as the primary foundational driver for the gas turbine market, necessitating higher baseload and peak power output to support economic expansion and electrification. Rapid industrial growth in emerging markets, coupled with the energy-intensive rise of data centers and electric vehicles, has placed unprecedented strain on existing power infrastructure, forcing utilities to expand thermal generation capacity. According to the International Energy Agency, July 2024, in the 'Electricity Mid-Year Update', global electricity demand is forecast to grow by around 4 percent in 2024, the fastest rate since 2007 excluding the post-pandemic rebound. This surge in consumption directly translates into higher utilization of existing assets to maintain supply adequacy; according to the Energy Institute, in 2024, global natural gas-fired electricity generation increased by 2.5 percent.

The Integration of Intermittent Renewable Energy further catalyzes market activity by fundamentally altering the operational role of gas turbines toward essential grid balancing and stability services. As nations aggressively deploy variable wind and solar capacity, grid operators increasingly rely on gas turbines to provide flexible, dispatchable backup power that can ramp up rapidly during renewable shortfalls. This shift from baseload to peaking application has revitalized equipment procurement, as utilities upgrade fleets to handle high-cyclic operations. Consequently, major equipment manufacturers are witnessing a surge in project bookings; according to Siemens Energy, August 2024, in the 'Earnings Release Q3 FY 2024', Gas Services orders more than doubled year-over-year, reflecting the critical necessity for thermal backup in modernizing grids.

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Key Market Challenges

The rapid deployment of renewable energy technologies and the enforcement of stringent decarbonization mandates are directly hampering the growth of the global gas turbine market. As governments and utilities prioritize the installation of wind and solar capabilities to adhere to net-zero targets, gas turbines are systematically displaced from their traditional baseload generation roles. This transition compels gas assets to operate primarily as intermittent backup units to stabilize grid frequency, a shift that drastically lowers their utilization rates and revenue generation. Consequently, the financial viability of commissioning new, large-scale combined cycle gas turbine plants is diminishing, leading investors to reconsider long-term capital commitments to fossil fuel infrastructure that risks becoming stranded.

This structural constraint is reflected in recent generation metrics which highlight how clean energy is absorbing market share. According to the International Energy Agency, in 2025, global gas-fired electricity generation is projected to grow by only 1.3 percent. This limited expansion, occurring during a period of robust global electricity demand, underscores that renewable energy sources are capturing the vast majority of new consumption, thereby restricting the gas turbine market largely to maintenance and replacement activities rather than new capacity growth.

Key Market Trends

The commercialization of hydrogen-capable and hydrogen-blended turbine architectures is reshaping the market as manufacturers strive to future-proof assets against tightening environmental regulations. Original Equipment Manufacturers (OEMs) are aggressively developing combustion systems capable of operating on high percentages of hydrogen, offering utilities a decarbonization pathway that preserves essential dispatchable generation capacity. This technological shift addresses the financial risk of stranded assets by ensuring that new and existing turbines can eventually transition from fossil natural gas to zero-carbon fuels without requiring complete infrastructure replacement. According to Kawasaki Heavy Industries, April 2024, in the press release 'GPB17MMX 1.8 MW Class Hydrogen Gas Turbine Wins Hydrogen Technology of the Year 2024', the company achieved a significant commercial milestone by receiving industry recognition for its 1.8 MW class gas turbine capable of 100 percent hydrogen fueling using novel dry-combustion technology.

The integration of Carbon Capture, Utilization, and Storage (CCUS) systems with gas turbines is simultaneously emerging as a critical trend to enable low-carbon baseload power. This development focuses on optimizing turbine exhaust streams, often through technologies like Exhaust Gas Recirculation (EGR), to increase carbon dioxide concentration and thereby lower the energy and capital intensity of the capture process. By coupling turbines with capture units, operators can continue to support energy-intensive applications while adhering to strict net-zero mandates that would otherwise preclude fossil-fuel operation. According to GE Vernova, October 2024, in the study 'Retrofittable Advanced Combined-Cycle Integration for Flexible Decarbonized Generation', the integration of an EGR system with a natural gas combined-cycle plant was found to reduce the total cost of the carbon capture facility by more than 6 percent.

Segmental Insights

Industry analysis identifies the Oil & Gas segment as the fastest-growing category within the Global Gas Turbine Market. This expansion is primarily driven by the resurgence in upstream exploration activities and the global imperative to secure energy supplies. A significant factor accelerating this growth is the massive build-out of Liquefied Natural Gas (LNG) infrastructure, where gas turbines are critical for mechanical drive applications in liquefaction and compression. Furthermore, the sector is prioritizing these turbines for decentralized power generation in remote fields to enhance operational efficiency and lower emissions relative to conventional diesel engines.

Regional Insights

Asia Pacific leads the global gas turbine market due to rapid industrialization and rising electricity consumption in major economies such as China and India. The region is experiencing a strategic transition from coal-fired power plants to cleaner natural gas alternatives to meet environmental regulations. This shift is supported by significant investments in liquefied natural gas infrastructure and favorable government policies. Data from the International Energy Agency highlights that the region's focus on diversifying its energy mix and reducing carbon emissions sustains the high demand for gas turbine technology in the power generation sector.

Recent Developments

• In October 2025, Doosan Enerbility signed a breakthrough contract to supply two 380-megawatt gas turbines to a major technology corporation in the United States. This agreement represented the South Korean company’s first successful export of its domestically developed large-scale gas turbines to the U.S. market, signifying its entry into one of the world's most advanced power sectors. The turbines were procured to meet the surging electricity demands of data centers, offering a reliable and efficient energy solution. The deal highlighted the growing global competitiveness of the manufacturer's technology, which had been previously verified through extensive operational testing at a domestic combined heat and power plant.
• In June 2025, Mitsubishi Power successfully completed a landmark demonstration by blending 50% hydrogen with natural gas in an advanced-class gas turbine at a power station in Georgia, United States. Conducted in partnership with a local electric utility, this project validated the operational viability of high-volume hydrogen co-firing in a large-scale M501GAC turbine. The test achieved an approximate 22% reduction in carbon emissions compared to standard natural gas operations while maintaining stable power output. This achievement marked a significant step forward in utilizing existing energy infrastructure to accelerate the commercial deployment of clean hydrogen fuel for power generation.
• In December 2024, Siemens Energy entered into a strategic collaboration with a major British utility company to advance hydrogen-capable gas turbine technology. The partnership focused on developing a specialized combustion system for the SGT5-9000HL gas turbine, designed to operate on 100% hydrogen while retaining the flexibility to run on natural gas or fuel blends. To facilitate this technological breakthrough, the company announced plans to construct new testing facilities at its clean energy hub in Berlin. This initiative was aimed at decarbonizing thermal power assets and supporting the transition to a net-zero energy system by enabling dispatchable, low-carbon electricity.
• In March 2024, GE Vernova secured a significant order to supply gas turbines for the Taiba 1 and Qassim 1 independent power producer projects in Saudi Arabia. The contract included the delivery of six 7HA.03 and two 7E.03 gas turbines, which were selected to support the kingdom's energy diversification and decarbonization targets. These advanced heavy-duty turbines are capable of burning up to 50% hydrogen when blended with natural gas, providing a pathway for future emissions reductions. Additionally, the manufacturer signed a 21-year service agreement to maintain the equipment, further strengthening its position in the Middle East's evolving power generation sector.

Key Market Players

• Kawasaki Heavy Industries, Ltd.
• Siemens Energy AG
• Capstone Green Energy Corporation
• General Electric Group
• Ansaldo Energia S.p.A.
• Mitsubishi Heavy Industries, Ltd.
• United Engine Corporation
• Rolls-Royce plc
• Harbin Electric Machinery Company Limited
• Destinus OPRA B.V.

By Capacity	By Technology	By Cycle	By Sector	By Region
200 MW >200 MW	Heavy Duty Light Industrial Aeroderivative	Simple Cycle Combined Cycle	Power Utilities Oil & Gas Manufacturing Aviation Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Gas Turbine Market, By Capacity:

• 200 MW
• >200 MW

• Gas Turbine Market, By Technology:

• Heavy Duty
• Light Industrial
• Aeroderivative

• Gas Turbine Market, By Cycle:

• Simple Cycle
• Combined Cycle

• Gas Turbine Market, By Sector:

• Power Utilities
• Oil & Gas
• Manufacturing
• Aviation
• Others

• Gas Turbine 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