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

Market Overview

India Steam Turbines Market was valued at USD 828 Million in 2025 and is expected to reach USD 1297 Million by 2031 with a CAGR of 7.61% during the forecast period.

A steam turbine is a mechanical device that converts thermal energy from pressurized steam into mechanical energy through rotary motion. It operates on the principle of thermodynamics, where high-pressure steam is directed onto a series of blades mounted on a rotor, causing the rotor to spin. As the steam passes through successive stages of the turbine, it expands and loses pressure, transferring its energy to the rotating blades. Steam turbines are widely used in power generation, where they drive electrical generators in thermal power plants. They are also employed in marine propulsion and various industrial applications. Steam turbines are known for their efficiency, reliability, and ability to operate continuously over long periods. They are typically classified into two main types: impulse turbines and reaction turbines, depending on the method of energy transfer. The development of steam turbines played a crucial role in the advancement of modern electricity production and mechanical power systems.

Key Market Drivers

Expanding Thermal Power Generation Capacity

One of the primary drivers of the steam turbines market in India is the continued expansion of thermal power generation capacity. Despite a global shift toward renewable energy, coal-based thermal power still accounts for a significant portion of India's electricity generation. With a growing population, rapid urbanization, and industrialization, the country's electricity demand is continuously rising. To bridge the gap between demand and supply, the Indian government and private sector continue to invest in thermal power infrastructure, particularly coal and lignite-fired power plants, which predominantly utilize steam turbines.

Additionally, the Indian government has been focusing on upgrading and modernizing older power plants to improve their efficiency and reduce emissions. These upgrades often involve the replacement or retrofitting of existing steam turbines, thereby fueling demand in the domestic market. Supercritical and ultra-supercritical thermal technologies are being increasingly adopted, which require high-efficiency steam turbines capable of operating at elevated pressures and temperatures. This trend further drives the need for advanced turbine solutions.

While renewable energy is growing, its intermittent nature means that thermal plants remain critical for base load power. As long as coal remains a key component of India's energy mix, the steam turbine market will maintain strong momentum. Furthermore, the implementation of environmental norms such as those by the Ministry of Environment, Forest and Climate Change (MoEFCC) has prompted plant operators to invest in newer, more efficient turbines that reduce emissions while maintaining generation capacity.  India’s installed thermal power capacity exceeds 210 GW, accounting for nearly 55-60% of the total installed power capacity, with ongoing projects aimed at adding approximately 20-30 GW of new coal-based thermal capacity over the next 5 years to meet rising electricity demand.

Industrial Growth and Process Heat Demand

India's robust industrial growth is another significant driver of the steam turbine market. Industries such as steel, cement, sugar, paper, chemicals, and textiles often require both electricity and process steam. This demand is typically met through captive cogeneration plants, which use steam turbines to simultaneously produce electricity and thermal energy. These plants not only improve energy efficiency but also reduce energy costs for industries, making them an attractive solution for long-term operational sustainability.

The "Make in India" initiative has further accelerated the establishment and expansion of manufacturing facilities across the country. As industries scale up operations, their energy needs grow, prompting investment in efficient and reliable power solutions. Steam turbines, especially in combined heat and power (CHP) applications, offer a viable method to fulfill these requirements. They allow industries to reduce dependence on the grid, achieve cost savings, and ensure uninterrupted power supply, which is critical for continuous operations.

Rising fuel costs and environmental regulations have pushed industries toward more energy-efficient systems. Steam turbines enable the use of various fuels, including biomass and industrial waste, to generate power. This flexibility supports sustainability goals while complying with emissions regulations. For example, many sugar mills in India utilize bagasse-based cogeneration systems with steam turbines, converting waste into energy and revenue. Additionally, India’s chemical and petrochemical industries, which have seen significant foreign direct investment (FDI) in recent years, require complex process heating systems. Steam turbines play a vital role in these sectors by providing reliable energy for high-temperature operations. As these industries grow, so does the market for customized and compact steam turbine solutions designed for industrial environments. Industry accounts for nearly 40-45% of India’s total energy consumption, with process heat and power being the largest components.

Focus on Renewable and Hybrid Power Solutions

While steam turbines are traditionally associated with fossil-fuel-based power generation, their application is evolving with the rise of renewable and hybrid energy systems. In India, the integration of biomass and waste-to-energy plants is emerging as a key driver of the steam turbine market. These renewable systems use organic materials—such as agricultural waste, municipal solid waste, and industrial by-products—to generate steam, which is then used to drive turbines for electricity production.

India's agrarian economy produces vast quantities of biomass, much of which can be harnessed for power generation. Biomass-based power plants typically use steam turbines as their core technology. With the government promoting decentralized and clean energy solutions, biomass plants are being installed in rural and semi-urban areas, creating a strong market for small to medium-capacity steam turbines. Moreover, hybrid power systems that combine renewable sources like solar thermal with conventional steam turbines are gaining attention. Solar thermal plants use mirrors or lenses to concentrate sunlight and produce steam. When integrated with steam turbines, these systems can generate electricity during the day and transition to other fuels at night or during cloudy conditions, enhancing reliability and capacity utilization.

Waste-to-energy plants also rely heavily on steam turbines. These plants convert non-recyclable waste into thermal energy through incineration, producing steam to power turbines. With growing urban populations and mounting waste management challenges, Indian cities are increasingly investing in such facilities. As these projects grow, so does the demand for customized, corrosion-resistant, and efficient steam turbines capable of handling varying steam quality. Additionally, policy incentives, subsidies, and favorable tariffs for renewable energy are encouraging investment in these areas. The Ministry of New and Renewable Energy (MNRE) and state-level energy agencies offer support for biomass and waste-to-energy projects, indirectly fueling the demand for steam turbines.

In essence, the adaptability of steam turbines to newer, cleaner energy sources is redefining their role in India’s evolving power landscape. As sustainability becomes a national priority, the integration of steam turbines in renewable and hybrid systems is poised to be a major growth area. India’s renewable energy capacity surpassed 175 GW as of early 2025, with solar and wind constituting over 90% of this capacity, reflecting a strong national push towards clean energy.

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Key Market Challenges

Transition to Renewable Energy and Declining New Thermal Projects

One of the most significant challenges facing the Indian steam turbine market is the accelerating transition toward renewable energy sources, which is gradually reducing the number of new thermal power projects. India has made strong commitments to reduce its carbon footprint and meet global climate targets. As a result, solar and wind energy have become the focal points of the country’s energy strategy, drawing massive investments and policy support. These sources, unlike conventional thermal plants, do not require steam turbines for power generation.

As renewable technologies become more cost-competitive, many power producers are shifting their focus away from coal and gas-based generation. Government tenders for new power capacity now overwhelmingly favor solar, wind, and hybrid systems. While some steam turbine applications exist in biomass and waste-to-energy plants, the overall share of renewables that utilize steam turbines remains small compared to the scale of solar and wind deployments. Furthermore, financing institutions are increasingly reluctant to fund coal-based projects due to environmental concerns and long-term financial risks. Public pressure, global divestment campaigns, and policy uncertainty around carbon pricing or stricter emissions norms also add to the hesitation around investing in fossil fuel infrastructure. This, in turn, reduces the pipeline of new thermal power plants, which directly impacts the demand for large-scale steam turbines.

In addition, many state-owned distribution companies (DISCOMs) are struggling financially, making them cautious in signing long-term power purchase agreements (PPAs) for new thermal plants. Without guaranteed off-take, developers are hesitant to initiate new projects, further slowing the turbine market.

While retrofitting and upgrading older turbines remain an opportunity, they are not enough to compensate for the lack of new installations. The decline in fresh orders is particularly challenging for turbine manufacturers and suppliers, who must now find ways to diversify their portfolios, innovate, or shift to smaller, niche markets such as industrial or biomass-based turbines.

Dependence on Imports and Limited Domestic Technological Innovation

Another key challenge for the Indian steam turbine market is its continued dependence on imported components and limited progress in indigenous technological innovation. While India has a growing manufacturing base, many high-performance components used in steam turbines—such as advanced blades, precision control systems, and high-efficiency rotors—are still sourced from international suppliers. This reliance not only increases production costs but also exposes manufacturers to global supply chain disruptions, foreign exchange volatility, and geopolitical risks.

Although Indian companies like BHEL, Triveni Turbine, and others have developed substantial capabilities in standard turbine manufacturing, the technological frontier in high-capacity, ultra-supercritical turbines is still dominated by foreign players. Joint ventures and licensing agreements exist, but these arrangements often restrict full technology transfer, limiting India’s ability to design and manufacture the most advanced turbine systems independently.

This lack of domestic R&D also hampers innovation. The steam turbine industry is capital-intensive and requires continuous investment in materials science, aerodynamics, thermal efficiency, and digital controls. In the absence of strong collaboration between academia, research institutions, and industry, India has struggled to create a robust innovation ecosystem around turbine technology. As a result, local manufacturers face difficulty competing with global firms on performance, reliability, and lifecycle efficiency—especially in export markets. Furthermore, the limited focus on product customization and after-sales service also affects competitiveness. Indian manufacturers often find it difficult to cater to highly specialized industrial requirements or to provide long-term maintenance contracts at international quality levels. This can hinder their ability to secure large contracts both domestically and abroad.

The government’s “Make in India” and “Atmanirbhar Bharat” initiatives aim to reduce import dependence and build indigenous capabilities, but progress in the capital equipment sector, including steam turbines, has been slower than expected. High initial investment costs, long development cycles, and uncertain demand outlooks make private sector investment in this area risky and less attractive.

To overcome this challenge, India will need to increase investment in R&D, foster industry-academic partnerships, and incentivize technology development through grants and public-private collaborations. Until then, the steam turbine sector will continue to face constraints due to limited self-reliance and global competitive pressures.

Key Market Trends

Growth in Small- and Medium-Capacity Turbines for Industrial Use

One of the most prominent trends in the Indian steam turbines market is the rising demand for small- and medium-capacity turbines, particularly in the industrial sector. Unlike large utility-scale power plants, many industries require captive power generation systems to meet both electricity and process heat needs. These systems often use turbines in the range of 5 MW to 100 MW, which are more compact, cost-effective, and easier to install and maintain.

Industries such as sugar, textiles, cement, chemicals, food processing, and pulp & paper are increasingly turning to cogeneration (combined heat and power) systems to improve energy efficiency and reduce dependency on the national grid. These plants generate electricity from steam and simultaneously use the exhaust heat for process applications, significantly lowering energy costs. Moreover, biomass-based and waste heat recovery systems are gaining popularity as sustainable alternatives to fossil fuels in industrial steam generation. In these configurations, steam turbines serve as the core technology for electricity production, enabling industries to align with environmental standards while improving self-sufficiency.

The government’s support for energy efficiency programs, coupled with rising electricity tariffs and fuel costs, has also driven this trend. Additionally, with stricter emissions regulations, industries are upgrading older systems with modern, efficient turbines that comply with current norms.

As a result, turbine manufacturers are now focusing on modular designs, faster delivery times, and customized configurations to suit the specific needs of industrial clients. Companies that offer robust after-sales services, remote monitoring, and maintenance contracts are especially favored, as operational continuity is critical in industrial settings.

Increasing Focus on Energy Efficiency and Turbine Modernization

Another significant trend in the Indian steam turbines market is the growing emphasis on energy efficiency and modernization of existing turbine infrastructure. With aging power plants and industrial units still in operation, many of the steam turbines in use today are operating well below their optimal efficiency levels. This has prompted a wave of retrofitting, repowering, and turbine upgrade projects across the country.

Efficiency improvement is not just a cost-saving measure—it has become a compliance requirement, particularly with stricter regulations from bodies like the Bureau of Energy Efficiency (BEE) and the Central Electricity Authority (CEA). Power producers are under pressure to reduce emissions and improve performance metrics. One of the most effective ways to achieve this is by upgrading older turbines with modern blades, advanced sealing systems, and digital controls that optimize steam flow and reduce losses.

Retrofitting a turbine can improve heat rate, reduce auxiliary consumption, and enhance output without the need for complete system replacement. These upgrades are especially attractive for state-owned utilities and independent power producers (IPPs), who seek to increase plant life and efficiency with limited capital investment.

Another aspect of this trend is the integration of digital technologies. Predictive maintenance using IoT sensors and AI-based performance analytics is becoming more common in steam turbine operations. These tools help monitor turbine performance in real time, allowing operators to detect faults early, schedule maintenance efficiently, and minimize unplanned outages.

In the industrial sector, modernization is also driven by rising production costs and a focus on sustainability. Industries are upgrading their legacy turbines to more compact and efficient models that consume less steam and deliver higher output, making them better suited for modern manufacturing environments.

As a result, OEMs and service providers are increasingly offering lifecycle management solutions, including assessment, refurbishment, performance optimization, and automation upgrades. This holistic approach creates new business opportunities beyond just selling new turbines.

Segmental Insights

Type Insights

The Steam Cycle dominated the Indian steam turbines market primarily due to the country’s long-standing dependence on coal-based thermal power generation. Steam cycle turbines are integral to coal-fired plants, where water is heated to produce steam that drives the turbines for electricity generation. India has vast domestic coal reserves, and coal remains a relatively affordable and accessible energy source, making steam cycle plants a practical and cost-effective choice for large-scale power generation.

Over the past few decades, India has significantly expanded its thermal power infrastructure to meet the rising electricity demands of its growing population and industrial base. A large proportion of this capacity operates on the steam cycle principle, particularly in states with concentrated industrial activity and proximity to coal mines. These projects are capital-intensive and built for long-term operation, which has entrenched the steam cycle’s dominance.

In addition to utility-scale power plants, the steam cycle is also extensively used in industrial cogeneration setups, where steam is utilized not just for electricity generation but also for heating and various industrial processes. Industries such as sugar, pulp and paper, and chemicals rely on these systems for enhanced energy efficiency and cost savings.

Another key factor is infrastructure familiarity and workforce expertise. India has decades of experience in designing, operating, and maintaining steam cycle plants, supported by domestic manufacturing capabilities from companies like BHEL and Triveni Turbine. This ecosystem lowers operational risks and encourages continued investment in steam cycle technologies. Conversely, the growth of combined cycle plants has been limited due to erratic natural gas supply, high fuel costs, and limited infrastructure for gas transport and storage. These constraints have prevented gas-based combined cycle turbines from gaining substantial market share.

Rated Capacity Insights

The 351-750 MW capacity segment dominated the Indian steam turbines market due to its optimal balance between efficiency, cost-effectiveness, and alignment with the country’s power generation infrastructure needs. This capacity range is ideally suited for large coal-fired thermal power plants, which constitute a significant portion of India’s installed electricity generation capacity. Many of the newer and upcoming thermal projects in India fall within this range, as it allows power producers to maximize output while managing capital expenditure effectively.

One of the primary reasons for this dominance is the scale of India’s thermal power sector, where supercritical and subcritical units in the 350 to 700 MW range are commonly deployed. These units strike a practical middle ground between smaller, less efficient plants and very large ultra-supercritical units, which require higher investment and advanced technology. The 351-750 MW units offer a favorable combination of operational flexibility, grid stability, and fuel efficiency, making them highly attractive for both public and private sector utilities. Additionally, many state electricity boards and independent power producers (IPPs) prefer this size because it fits well with regional grid requirements and demand patterns. This capacity range allows for better load management and easier integration into the existing power distribution networks without overloading infrastructure.

Moreover, the availability of mature technology and the ability to procure equipment domestically or through technology partnerships further contribute to the popularity of this capacity segment. Steam turbines designed for the 351-750 MW range benefit from proven designs, easier maintenance, and well-established supply chains, which help reduce operational risks and downtime.

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Regional Insights

South India dominated the steam turbines market in India due to a combination of favorable industrial, energy, and policy factors that collectively drive strong demand for steam turbine technology. One of the key reasons is the region’s robust industrial base, which includes sectors such as textiles, sugar, paper, chemicals, and cement—all of which extensively use steam turbines for captive power generation and process steam in cogeneration plants. The presence of numerous sugar mills in states like Tamil Nadu and Karnataka, which use bagasse-based cogeneration systems, significantly contributes to the demand for small- and medium-capacity steam turbines.

South India has made substantial investments in renewable energy and biomass-based power plants, where steam turbines play a crucial role. The availability of abundant agricultural residues, such as bagasse, rice husks, and other biomass, provides a steady fuel source for biomass power generation, supporting sustainable and decentralized power solutions. This not only supports local energy needs but also aligns with environmental policies promoting cleaner energy.

The region also benefits from well-developed infrastructure and a more stable power grid, making it attractive for industrial power projects that utilize steam turbines. States in South India often offer more streamlined regulatory processes, favorable policies, and incentives for cogeneration and biomass power projects compared to some other regions, encouraging investments. Furthermore, South India has a stronger presence of domestic manufacturers and service providers specializing in steam turbine technology. This localized supply chain helps reduce lead times, lower costs, and provide better after-sales support, which are critical factors for industrial and power plant operators.

Recent Developments

• In March 2025, Freen OÜ launched a new 15 kW horizontal-axis small wind turbine engineered for efficient renewable energy generation. This model targets small-scale applications, delivering a dependable and sustainable power solution ideal for residential, commercial, and remote settings. Equipped with advanced technology, the turbine optimizes energy capture while ensuring low noise emissions and robust durability. Its compact design combined with high performance positions Freen OÜ’s 15 kW turbine to meet the increasing demand for clean energy across diverse environments.
• In October 2024, China-based Envision introduced a 5 MW wind turbine tailored specifically for the Indian market. Designed to address India’s expanding need for efficient and reliable renewable energy, this high-capacity turbine incorporates cutting-edge technology optimized for varied wind conditions across the country. Envision’s 5 MW model enhances energy output and operational performance, reinforcing India’s renewable energy targets and strengthening Envision’s foothold in the nation’s growing wind power sector.
• In September 2024, Senvion secured a substantial order for 210 MW of its 4 MW wind turbines, underscoring the company’s strong market position. Known for their reliability and efficiency, Senvion’s 4 MW turbines are well-suited for large-scale wind power projects. This significant contract highlights Senvion’s capability to deliver high-capacity renewable energy solutions and its ongoing commitment to advancing sustainable power generation globally.

Key Market Players

• Bharat Heavy Electricals Limited
• Triveni Turbines Limited
• Kirloskar Brothers Limited
• L&T Power Equipment Limited
• Siemens India Limited
• Toshiba India Private Limited
• GE Power India Limited
• Thermax Limited

Report Scope:

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

• India Steam Turbines Market, By Type:

o   Steam Cycle

o   Combined Cycle

• India Steam Turbines Market, By Rated Capacity:

o   1-120 Mw

o   121-350 Mw

o   351-750 Mw

o   Above 750 Mw

• India Steam Turbines Market, By Exhaust Type:

o   Condensing

o   Non-Condensing

• India Steam Turbines Market, By Fuel Type:

o   Coal

o   Biomass

o   Nuclear

o   Others

• India Steam Turbines Market, By Region:

o   South India

o   North India

o   West India

o   East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Steam Turbines Market.

Available Customizations:

India Steam Turbines Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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