Steam Turbine Market Size, Share, and Trends 2025 to 2034

Steam Turbine Market Size and Forecast 2025 to 2034

The global steam turbine market size was estimated at USD 17.03 billion in 2024 and is anticipated to reach around USD 21.67 billion by 2034, expanding at a CAGR of 2.44% from 2025 to 2034. 

Steam Turbine Market Key Takeaways

• Asia Pacific led the global steam turbine market with the highest market share of 71% in 2024.
• North America is projected to expand at the fastest CAGR during the forecast period.
• By end-use, the utility segment has held the major market share of 87% in 2024.
• By end-use, the industrial segment is projected to grow at a notable CAGR during the forecast period.
• By design, the impulse segment dominated the global market in 2024.
• By design, the reaction segment is projected to grow at a notable CAGR during the forecast period.
• By exhaust, the condensing segment has held a major market share in 2024.
• By exhaust, the non-condensing segment is projected to grow at a solid CAGR during the forecast period.

How is AI changing Steam Turbine?

Artificial intelligence (AI) based modeling and optimization analysis is conducted to improve the operation excellence of the industrial scale steam turbines that promote higher energy efficiency and contribute to the net-zero target from the energy sector. AI can help power plants to reduce their environmental impact by customizing fuel consumption processes and emission control systems. AI algorithms can analyze data from sensors and control systems to improve fuel-to-air ratios, enhance overall energy efficiency, and reduce emissions. These factors help the growth of the steam turbine market.

Asia Pacific Steam Turbine Market Size and Growth 2025 to 2034

The Asia Pacific steam turbine market size was evaluated at USD 12.09 billion in 2024 and is predicted to be worth around USD 15.49 billion by 2034, rising at a CAGR of 2.50% from 2025 to 2034. 

Asia Pacific led the global steam turbine market with the highest market share of 71% in 2024, in terms of revenue and is estimated to sustain its dominance during the forecast period. This is attributed to a shift in focus away from traditional energy sources and toward renewable energy sources.

North America is projected to expand at the fastest CAGR during the forecast period. Due to number of fossil fuel and biomass fired power plants, the Asia-Pacific is anticipated to maintain its market leadership in the market. The demand for steam turbines in China and India has been fueled by the rapid rate of industrial growth in both the nations.

Steam Turbine Market Growth Factors

• Due to rising energy demand and steady investments for capacity expansions, the global steam turbine market is expected to develop significantly over the forecast period. Steam turbines are machines that use a revolving output shaft to collect thermal energy from steam and convert it to mechanical effort.
• In addition, the rapid expansion and expansion of marine excavation will have a significant impact on the steam turbine market. The global steam turbine market is predicted to rise in the future due to increasing efforts to reduce energy demand and supply gaps, as well as the present development of thermal power projects. However, stringent government rules requiring for the replacement of traditional energy sources with renewables may stymie industry growth in the coming years.
• The global steam turbine market will be driven by robust economic growth and regulatory standards promoting low emission fuels such as natural gas and biomass. Growing interest in energy optimization, as well as focus on cogeneration, will have a favorable impact on the corporate landscape. The government measures to reduce reliance on coal fired power generation, and the competitive cost of renewable technologies, on the other hand, could impede the growth of the global steam turbine market. The steam turbine market will also be driven by regulatory measures to minimize carbon emissions, as well as increased investments in the development of large-scale thermal power projects.
• The product deployment will be aided by the increasing adoption of super critical and ultra-super critical technology, as well as the conversion of retiring power plants to combined cycle systems. The rapid industrialization, increased generating capacity, and increased demand for captive power systems will propel the steam turbine market growth during the forecast period.

Market Scope

Design Insights

Based on the design, the impulse segment dominated the global steam turbine market in 2024, in terms of revenue and is estimated to sustain its dominance during the forecast period. The compact size, cheap operating and maintenance costs are only a few of the key elements that will boost product adoption.

On the other hand, the reaction segment is estimated to be the most opportunistic segment during the forecast period. The reaction steam turbine market share will be driven by its ability to offer high efficiency when compared to impulse turbines, as well as increased utility sector investments aimed at limiting electricity demand supply imbalances. 

Exhaust Insights

Based on the exhaust, the condensing segment dominated the global steam turbine market in 2024, in terms of revenue and is estimated to sustain its dominance during the forecast period. The condensing steam turbine segment will be driven by ongoing investments in new generating capacity expansions to fulfill the ever-increasing power demand from industries. Other significant underlying drivers that will boost product demand include increasing penetration of cogeneration systems and rising industrialization throughout the developing regions.

On the other hand, the non-condensing segment is estimated to be the most opportunistic segment during the forecast period. The segment’s expansion will be fueled by factors such as ease of installation and its capacity to endure temperature variations. These systems provide steam at a predetermined pressure, making them ideal for the processing industry.

Fuel Insights

Based on the fuel, the biomass segment dominated the global steam turbine market in 2024, in terms of revenue and is estimated to sustain its dominance during the forecast period. The segment’s future will be boosted by increased efforts to reduce carbon footprints, as well as a supportive regulatory environment. The captive power generation and combined heat and power systems are becoming more widely deployed, which will help market to grow at a rapid pace.

On the other hand, the geothermal segment is estimated to be the most opportunistic segment during the forecast period. Various measures have been launched by regulators to encourage the adoption of non-conventional energy resources, which will accelerate product development. Its potential to deliver dependable electricity with a low carbon footprint has encouraged even more investment in new geothermal capacity expansions.

End Use Insights

The utility segment has held the major market share of 87% in 2024, in terms of revenue and is estimated to sustain its dominance during the forecast period. The segment will increase as combined cycle technology is deployed more widely and demand for onsite power generation equipment rises.

The industrial segment is projected to grow at a notable CAGR during the forecast period. The product adoption will be aided in the coming year by increased investment in the establishment of new industrial centers.

Technology Insights

By technology, the steam cycle segment accounted for a considerable market share in 2024. The Rankine or steam cycle system is a standard choice for power generation. The technology is well-established, highly efficient, and versatile, taking up a dominant market share. With continued advancements in design and operation, steam cycle-based turbines offer high thermal efficiency, especially when used in tandem with combined cycle systems. 

By technology, the combined cycle segment is predicted to witness significant growth in the market over the forecast period. Combined cycle gas turbines are becoming an eco-friendly alternative to standard steam turbines. As international mandates and growing pressure to tackle climate change grows, countries are switching over to cleaner energy sources with combined cycle steam turbines offering high efficiency, flexibility in load handling, and, crucially, significantly lower emissions of greenhouse gases such as carbon dioxide, sulfur dioxide, and various nitrogen oxides.

Steam Turbine Market Companies

• Toshiba Corporation
• Fuji Electric Co. Ltd
• Istom SA
• Mitsubishi Hitachi Power Systems
• Siemens AG
• Man Diesel & Turbo SE
• Bharat Heavy Electricals Ltd.
• Doosan Skoda Power
• Kawasaki Heavy Industries
• Ansaldo Energia

Latest announcement by industry leaders

In June 2024, the contractual hanSumitomo Corporation (Sumitomo) officially announcedTauhara Geothermal Power Station in New Zealand to Contact Energy was officially announced by Sumitin June 2024. The Tauhara Geothermal Power Station is geothermal steam turbine generator.

Recent Developments

• In August 2024, an order for an M701F gas turbine and a steam turbine for the 500MW gas turbines combined cycle (GTCC) power plant in Sarawak, Malaysia, was received by Mitsubishi Power, a power solutions brand of Mitsubishi Heavy Industries, Ltd. (MHI).
• In August 2024, an order to demonstrate its type methanol firing in a gas turbine of Kayamkulam CCPP was secured by Bharat Heavy Electricals Limited (BHEL). Kayamkulam CCPP has two gas turbines with a combined 230 MW capacity and one 120 MW capacity turbine, set up on a turnkey basis in 1998. After the successful demonstration of the first phase, a demonstration at 100% load is proposed to be carried out in the second phase. BHEL has presently secured the order for the first phase.

Segments Covered in the Report

By Design

• Reaction
• Impulse

By Exhaust

• Condensing
• Non-condensing

By Fuel

• Fossil Fuel
• Biomass
• Geothermal

By End Use

• Industrial
• Utility

By Technology

• Steam Cycle
• Combined Cycle
• Cogeneration

By Geography

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • Germany
  • France
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa (MEA)
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa