Turbo Generator Market By Type (Gas Turbine Generator, Steam Turbine Generator, and Water Turbine Generator), By End User (Coal-fired Power Plant, Gas-fired Power Plant, Nuclear Power Plant, and Others), By Cooling Type (Air Cooled, Hydrogen Cooled, and Water-hydrogen Cooled), By Region, Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 13.01 Billion
CAGR (2026-2031)	5.67%
Fastest Growing Segment	Gas Turbine Generator
Largest Market	North America
Market Size (2031)	USD 18.11 Billion

Market Overview

The Global Turbo Generator Market will grow from USD 13.01 Billion in 2025 to USD 18.11 Billion by 2031 at a 5.67% CAGR. The Global Turbo Generator Market encompasses the manufacturing and supply of electric generators driven by steam or gas turbines to convert mechanical energy into electricity. These systems serve as critical components within thermal, nuclear, and hydrological power facilities. Market growth is primarily supported by the rising global demand for reliable electricity to sustain industrial activities and urban development. Additionally, the necessity for stable baseload power to balance the variability of renewable energy sources ensures a continued reliance on these generators for maintaining grid security.

This sector also benefits from the resurgence of nuclear power capacities and investments in cleaner thermal energy infrastructure. According to the World Nuclear Association, in 2024, nuclear reactors generated a total of 2667 TWh of electricity worldwide, marking an increase of 66 TWh compared to the prior year. Despite these positive indicators, the market faces a significant challenge regarding rigorous environmental compliance standards. These regulatory pressures can increase operational costs and delay the approval of conventional power generation projects, potentially impeding broader market expansion.

Key Market Drivers

The escalating global demand for electrical energy stands as a primary catalyst for the turbo generator market. As nations expand their industrial capabilities and urban centers grow, the requirement for consistent baseload power increases, directly influencing the procurement of high-capacity generation equipment. This trend is particularly evident in the continued reliance on thermal and gas-based power stations which utilize turbo generators to convert mechanical energy into electricity. According to the International Energy Agency (IEA), July 2024, in the 'Electricity Mid-Year Update', global electricity demand is forecast to grow by around 4% in 2024, representing the highest annual growth rate since 2007. This surge compels utilities to maximize the output of existing fleets and commission new facilities, thereby sustaining the order flow for steam and gas turbine generators.

Concurrently, the modernization and upgrade of aging power infrastructure drives significant market activity. Many developed regions operate power plants near the end of their lifecycle, necessitating refurbishment or complete replacement to ensure grid stability and operational efficiency. This replacement cycle is crucial for integrating newer turbo generators that comply with stricter performance mandates. According to the US Energy Information Administration (EIA), February 2024, in the 'Preliminary Monthly Electric Generator Inventory', developers plan to add 62.8 GW of new utility-scale electric-generating capacity in the United States in 2024, reflecting a robust push for infrastructure renewal. Furthermore, broadly supporting the market's trajectory, according to the Energy Institute, in 2024, global electricity generation rose by 2.5% to a record high in the preceding year. These investments ensure turbo generators remain central to the evolving energy landscape.

Download Free Sample Report

Key Market Challenges

Rigorous environmental compliance standards represent a formidable barrier to the Global Turbo Generator Market, directly curbing growth by necessitating the early retirement of conventional thermal power plants. As governments enforce stricter emission limits on carbon dioxide and nitrogen oxides, power utility operators face prohibitive costs for retrofitting aging coal and gas-fired facilities with necessary abatement technologies. This regulatory landscape diminishes the economic viability of traditional steam and gas turbines, prompting a cancellation or deferral of new thermal capacity additions. Consequently, the addressable market for turbo generators shrinks as investment capital increasingly shifts toward renewable energy technologies that do not require these conventional mechanical drivetrains.

The impact of these regulations is evident in the sharp contraction of fossil fuel-based generation in major industrial regions. According to Eurelectric, in its Power Barometer 2024, renewable energy generation in the European Union surged to a historic 50% share in the first half of 2024, significantly displacing fossil fuel output. This structural shift, driven by compliance mandates, reduces the operational hours and replacement demand for turbo generators in the thermal sector, thereby stalling market expansion in developed economies.

Key Market Trends

Utilities and developers are increasingly prioritizing the Deployment of Skid-Mounted and Modular Distributed Energy Units to address the urgent need for flexible, fast-track power generation assets. Unlike traditional stick-built facilities, these pre-engineered systems allow for rapid installation and commissioning, making them ideal for firming variable renewable energy grids and ensuring reliability in remote locations. This shift toward modularity significantly reduces civil work and on-site construction risks. For instance, according to Gas Turbine World, March 2024, in a report on industry orders, CS Energy’s 400 MW Brigalow Peaking Power Plant in Australia will incorporate aeroderivative gas turbines that are 95% factory assembled into modules to accelerate the project timeline and support the local energy transition.

Concurrently, the sector is witnessing a robust Adoption of Hydrogen-Cooled Generators for High-Capacity Power Plants, propelled principally by the surging energy intensity of the digital economy. Hyperscale data centers require substantial, reliable baseload power that renewable sources alone cannot yet guarantee, necessitating the procurement of large-frame turbo generators known for their high thermal efficiency and superior cooling capabilities. This specific demand segment is reshaping order books for major original equipment manufacturers. According to Energy Connects, August 2024, in a report on Siemens Energy's financial performance, demand from data center operators accounted for approximately 60% of the company’s gas turbine orders, which totaled 14 GW year-to-date, underscoring the critical role of high-capacity thermal infrastructure in the modern grid.

Segmental Insights

The Gas Turbine Generator segment is positioning itself as the fastest-growing category within the global turbo generator market, driven by the accelerating transition toward cleaner energy infrastructure. Regulatory frameworks established by organizations such as the U.S. Environmental Protection Agency enforce stringent emission limits, compelling utility providers to replace aging coal-fired assets with natural gas facilities. These generators provide essential grid stability by complementing renewable energy sources through rapid startup capabilities. Consequently, the rising availability of natural gas and the need for operational efficiency are fueling the widespread adoption of this technology across the power generation sector.

Regional Insights

North America maintains a dominant position in the global turbo generator market, driven by substantial investments in modernizing aging electrical infrastructure and a strategic shift toward cleaner energy production. The region prioritizes grid stability and energy security, leading to consistent demand for efficient power generation equipment. Stringent emission standards enforced by the U.S. Environmental Protection Agency necessitate the replacement of older coal-fired plants with gas-powered alternatives, further stimulating market activity. Additionally, the robust industrial sector in the United States and Canada sustains the requirement for reliable onsite power generation solutions.

Recent Developments

• In November 2025, Toshiba Energy Systems & Solutions Corporation signed a memorandum of understanding with GE Vernova to collaborate on advancing carbon reduction technologies. The partnership focused on developing and deploying efficiency improvements and decarbonization solutions for gas turbine-fired power plants in Japan and broader Asian markets. By combining their expertise in turbo generator machinery and digital services, the companies aimed to support the energy transition for existing and new thermal power assets. This strategic alliance highlighted the industry's commitment to modernizing infrastructure for a sustainable energy future.
• In June 2025, Bharat Heavy Electricals Limited (BHEL) obtained a significant order valued at over Rs 6,500 crore from Adani Power for the supply of critical power generation equipment. The contract entailed the manufacturing and delivery of steam turbine generators and associated auxiliaries for six thermal power units, each with a capacity of 800 megawatts. The scope of the agreement also included the supervision of erection and commissioning activities for these units at the project sites. This deal reinforced the company's dominant position in the domestic thermal power equipment market.
• In August 2024, Mitsubishi Power received an order to supply a gas turbine and a steam turbine for a 500-megawatt combined cycle power plant in Sarawak, Malaysia. The equipment supply contract involved an M701F gas turbine capable of co-firing fuel containing up to 30% hydrogen, positioning the facility as a state-of-the-art energy project. The generators for the plant were set to be manufactured by Mitsubishi Generator, a subsidiary formed through the integration of the company’s power-generator systems business. This project was intended to enhance energy security in the region while supporting decarbonization targets.
• In June 2024, Siemens Energy secured a major contract worth approximately $1.5 billion to supply key power plant technologies for two new projects in Saudi Arabia. The order included the delivery of HL-class gas turbines, steam turbines, and generators for the Taiba 2 and Qassim 2 combined-cycle power plants. These facilities, located in the western and central regions of the kingdom, were designed to generate approximately 4 gigawatts of electricity combined. The company also entered into a 25-year long-term maintenance agreement for the plants, which aimed to replace aging oil-fired infrastructure and reduce carbon emissions.

Key Market Players

• Alstom S.A.
• Andritz AG
• Ansaldo Energia S.p.A.
• Ebara Corporation
• General Electric Company
• Mitsubishi Heavy Industries, Ltd.
• Siemens AG
• Suzlon Energy Ltd.
• Toshiba Corporation
• Dongfang Electric Corporation

By Type	By End User	By Cooling Type	By Region
Gas Turbine Generator Steam Turbine Generator and Water Turbine Generator	Coal-fired Power Plant Gas-fired Power Plant Nuclear Power Plant and Others	Air Cooled Hydrogen Cooled and Water-hydrogen Cooled	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Turbo Generator Market, By Type:

• Gas Turbine Generator
• Steam Turbine Generator
• and Water Turbine Generator

• Turbo Generator Market, By End User:

• Coal-fired Power Plant
• Gas-fired Power Plant
• Nuclear Power Plant
• and Others

• Turbo Generator Market, By Cooling Type:

• Air Cooled
• Hydrogen Cooled
• and Water-hydrogen Cooled

• Turbo 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