Steam Turbines Market By Type (Steam Cycle and Combined Cycle), By Rated Capacity (1-120 Mw, 121-350 Mw, 351-750 Mw and Above 750 Mw), By Exhaust Type (Condensing and Non-Condensing), By Fuel Type (Coal, Biomass, Nuclear and Others), By Region, Competition, Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 24.81 Billion
CAGR (2026-2031)	3.85%
Fastest Growing Segment	Steam Cycle
Largest Market	Asia Pacific
Market Size (2031)	USD 31.12 Billion

Market Overview

The Global Steam Turbines Market will grow from USD 24.81 Billion in 2025 to USD 31.12 Billion by 2031 at a 3.85% CAGR. A steam turbine is a mechanical device that extracts thermal energy from pressurized steam and converts it into rotary motion, serving as a critical component for driving electrical generators in power plants. The market is primarily propelled by the escalating global demand for reliable base-load electricity, which necessitates the continuous expansion of thermal power generation infrastructure. Additionally, the growing deployment of geothermal and biomass energy projects, which utilize steam for power conversion, provides foundational support for sustained demand. These drivers ensure the technology remains essential despite the diversification of global energy matrices.

However, the market encounters a significant challenge in the form of rapid decarbonization mandates that favor renewable energy sources like wind and solar, which operate without steam cycles. This transition diverts capital expenditure away from fossil-fuel-based power plants, potentially stalling new installations. Illustrating the ongoing utilization of the technology, according to the World Nuclear Association, in 2024, nuclear reactors worldwide generated 2,667 TWh of electricity. This record output highlights the substantial operational reliance on steam turbine systems within critical energy sectors.

Key Market Drivers

Escalating electricity demand in emerging economies compels the continuous development of robust thermal power infrastructure, acting as a primary catalyst for steam turbine procurement. As nations industrialize and urban populations swell, the requirement for reliable base-load power drives the construction of new coal and nuclear facilities, where steam turbines remain indispensable for energy conversion. This surge necessitates substantial capacity additions in thermal generation sectors to maintain grid stability and support economic expansion. Supporting this trend, according to the International Energy Agency, July 2024, in the 'Electricity Mid-Year Update', global electricity demand is forecast to grow by roughly 4% in 2024, representing the fastest growth rate since 2007.

Simultaneously, the expansion of combined cycle natural gas power plants reinforces market growth by utilizing steam turbines to capture waste heat from gas turbines, thereby maximizing thermal efficiency. This configuration attracts investment as utilities seek to balance decarbonization goals with the need for dispatchable power, ensuring the relevance of steam cycle technology in a transitioning energy landscape. Illustrating this reliance on gas-fired infrastructure, according to the U.S. Energy Information Administration, November 2024, in the 'Short-Term Energy Outlook', natural gas is projected to account for approximately 42% of total U.S. electricity generation in 2024. Furthermore, highlighting significant commercial activity in the sector, according to Bharat Heavy Electricals Limited, in 2024, the company secured orders valued at over INR 11,000 Crore to supply supercritical thermal power equipment for three domestic projects.

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Key Market Challenges

The global steam turbines market faces a substantial impediment due to the rapid enforcement of decarbonization mandates that favor non-thermal renewable energy sources. Policy frameworks worldwide are aggressively incentivizing the deployment of wind and solar photovoltaic systems, neither of which requires steam turbine technology for power conversion. This regulatory pressure diverts essential capital investment away from traditional fossil-fuel-based thermal power plants, leading to the cancellation or deferral of new coal and gas infrastructure projects that would otherwise utilize steam turbine units.

This disruption is quantified by recent industry shifts. According to the International Energy Agency, in 2025, the share of coal in global electricity generation is projected to fall below 33% for the first time in a century as renewable output surpasses it. This contraction in coal-fired generation directly correlates with a reduced demand for the steam turbines typically installed in these facilities. As utilities prioritize asset portfolios that exclude steam cycles to comply with net-zero targets, the market experiences a tangible slowdown in new orders for conventional thermal applications.

Key Market Trends

The rising utilization of steam turbines in waste-to-energy (WtE) and biomass facilities is expanding as nations prioritize circular economy models over traditional landfilling. Unlike conventional thermal plants that rely on finite fossil fuels, these facilities employ steam cycles to convert municipal solid waste into dispatchable renewable electricity, effectively decoupling base-load generation from carbon-intensive feedstocks. This shift compels manufacturers to develop specialized turbine geometries capable of handling the variable steam conditions characteristic of incineration processes while maintaining high availability. Illustrating this market traction, according to Doosan Škoda Power, February 2025, in the press release 'Doosan Škoda Power Delivers Third Turbine for Réunion', the company secured a contract to supply a DST-G10 steam turbine with a 19 MW capacity for the Pierrefonds waste-to-energy plant, which is designed to process 148,000 tonnes of waste annually.

Simultaneously, the strategic retrofitting and modernization of aging thermal power plants has emerged as a cost-effective alternative to commissioning new greenfield infrastructure. Utilities are increasingly investing in advanced turbine upgrades to extend the operational life of existing coal and gas assets, enhancing thermodynamic efficiency and flexibility to accommodate intermittent renewable injection. This approach allows operators to maximize the value of sunk capital while complying with stricter environmental regulations through improved heat rates and output. Highlighting the impact of such interventions, according to Siemens Energy, June 2025, in the article 'Power plant modernization: The fast track to more power', the implementation of an advanced turbine upgrade package at the Cane Run Generating Station improved the power output by an average of 30 MW per turbine, significantly boosting the plant's performance without requiring new construction.

Segmental Insights

The Steam Cycle segment is emerging as the fastest-growing category in the Global Steam Turbines Market, driven by the resurgence of thermal power infrastructure in high-growth developing economies. This expansion is primarily propelled by the critical need for reliable baseload electricity in the Asia-Pacific region, where nations are commissioning new ultra-supercritical coal and nuclear power plants. Insights regarding regional energy demands from the International Energy Agency (IEA) confirm the continued reliance on these traditional fuel sources for energy security. Consequently, the requirement for large-scale, efficient energy production is accelerating the deployment of steam cycle technology.

Regional Insights

Asia Pacific holds the leading position in the global steam turbines market, primarily driven by extensive investments in thermal power generation infrastructure. Rapid industrial growth in major economies like China and India necessitates reliable electricity supply, leading to the continuous commissioning of new power plants. Strategic initiatives by regulatory bodies, such as China’s National Energy Administration, focus on expanding energy capacity to support urbanization. Additionally, the region possesses a strong manufacturing base requiring captive power solutions, which further sustains the demand for steam turbines across the industrial sector.

Recent Developments

• In November 2025, Siemens Energy Canada signed an exclusive agreement with Bruce Power to supply new high-pressure steam turbines for the Bruce A nuclear units in Ontario. This collaboration was established to support the nuclear operator's asset management and life-extension projects, aiming to increase the power output by more than 30 MW per unit. The project involved replacing existing infrastructure with advanced steam turbine technology to deliver approximately 125 MW of additional clean electricity to the grid. The upgrades were scheduled for completion between 2028 and 2031, significantly enhancing the power plant's long-term efficiency and operational reliability.
• In October 2024, Toshiba Energy Systems & Solutions Corporation secured an order to supply a steam turbine and a generator for the expansion of the Wayang Windu Geothermal Power Plant Unit 3 in West Java, Indonesia. The contract was awarded by PT Inti Karya Persada Tehnik, a subsidiary of Toyo Engineering Corporation. This agreement represented the first time the company supplied equipment for a geothermal project operated by the Star Energy Group. The project aligned with Indonesia's national goals to increase renewable power generation capacity, utilizing the manufacturer's proven geothermal steam turbine technology to support the region's growing energy demands.
• In August 2024, Mitsubishi Power received an order to supply core power generation equipment, including a steam turbine, for a 500 MW combined cycle power plant in Sarawak, Malaysia. The contract, signed with the engineering contractor Sinohydro Corporation Limited, involved the delivery of an M701F gas turbine and a steam turbine to the facility owned by PETROS Power. This gas turbine combined cycle (GTCC) project was designed to co-fire fuel containing up to 30% hydrogen. Additionally, the company secured a Long-Term Service Agreement to ensure the stable operation and maintenance of the steam turbine and associated systems following commercial operation.
• In February 2024, Doosan Škoda Power signed a contract to supply a steam turbine for a waste-to-energy power plant expansion in Florida, United States. This strategically significant project marked the company's first collaboration outside of Europe with the waste facility operator, Covanta. Under the agreement, the manufacturer agreed to deliver a standardized single-case DST-G10 steam turbine with a gross power output of 15 MW, along with a generator and auxiliary equipment meeting local standards. This delivery was intended to support the capacity expansion of the facility in Pasco County, demonstrating the company's successful entry into the complex American steam turbine market.

Key Market Players

• Siemens Energy AG
• General Electric Company
• Mitsubishi Power, Ltd.
• Toshiba Energy Systems & Solutions Corporation
• Doosan Škoda Power s.r.o.
• Ansaldo Energia S.p.A.
• Fuji Electric Co., Ltd.
• MAN Energy Solutions SE
• Harbin Electric Corporation
• Elliott Group

By Type	By Rated Capacity	By Exhaust Type	By Fuel Type	By Region
Steam Cycle and Combined Cycle	1-120 Mw 121-350 Mw 351-750 Mw and Above 750 Mw	Condensing and Non-Condensing	Coal Biomass Nuclear and Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Steam Turbines Market, By Type:

• Steam Cycle and Combined Cycle

• Steam Turbines Market, By Rated Capacity:

• 1-120 Mw
• 121-350 Mw
• 351-750 Mw and Above 750 Mw

• Steam Turbines Market, By Exhaust Type:

• Condensing and Non-Condensing

• Steam Turbines Market, By Fuel Type:

• Coal
• Biomass
• Nuclear and Others

• Steam Turbines 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