Steam Turbine Industry Trends and Forecast 2031: Global Market Expanding at 2.75% CAGR to US$ 21.64 Billion
A steam turbine is a mechanical heat engine that converts thermal energy from high-pressure, superheated steam into rotational mechanical power. Steam generated in a boiler expands through fixed nozzles and flows across rotating blades mounted on a central rotor. As the steam transfers its kinetic energy to the blades, the rotor spins, enabling the turbine to drive electric generators or industrial machinery. This energy conversion occurs in multiple expansion stages, allowing steam pressure and temperature to gradually decrease while maximizing overall efficiency.
Steam Turbine Market Share & Future Opportunities
The global steam turbine market remains a foundational component of the energy and power sector, supported by rising electricity consumption, expanding infrastructure, and continuous upgrades of thermal power facilities. In 2024, the market was valued at US$ 17.79 billion and is projected to grow to US$ 21.64 billion by 2031, registering a compound annual growth rate (CAGR) of 2.75% from 2025 to 2031. Although renewable energy capacity is expanding worldwide, steam turbines continue to be indispensable for base-load electricity generation, combined heat and power (CHP) systems, and nuclear power applications.
Market Analysis
The growth of the steam turbine market is closely linked to accelerating industrialization and urbanization, particularly across developing regions. Increasing energy demand from manufacturing, commercial infrastructure, and residential sectors is driving the need for reliable and continuous power generation. At the same time, governments are implementing stringent environmental regulations and promoting decarbonization and carbon-neutrality initiatives, encouraging utilities and industries to invest in advanced, high-efficiency turbine systems.
Modernization and life-extension projects for aging coal-, gas-, biomass-, and nuclear-fired power plants are further supporting market expansion. These upgrades improve efficiency, reduce emissions, and extend operational lifespans, making steam turbines a cost-effective solution in the evolving energy landscape.
Technological advancements remain a key driver of competitiveness. Manufacturers are increasingly introducing supercritical and ultra-supercritical steam turbines that offer superior thermal efficiency and lower fuel consumption. Innovations in blade aerodynamics, high-temperature materials, and digital monitoring systems enhance reliability, operational flexibility, and predictive maintenance capabilities, allowing steam turbines to effectively complement variable renewable energy sources.
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Market Overview
Steam turbines convert thermal energy from steam into mechanical energy, which is then transformed into electrical power. They are widely used in thermal power plants, nuclear facilities, and CHP installations, offering high efficiency, durability, and operational versatility. Their ability to function with a wide range of fuel sources—including coal, natural gas, biomass, industrial waste heat, and nuclear energy—ensures their continued relevance within the global energy mix.
Beyond power generation, steam turbines play a critical role in industrial processes, such as oil and gas operations, petrochemical manufacturing, refineries, and pulp and paper production. These sectors rely on steam turbines for simultaneous electricity generation and process heat, enhancing overall energy efficiency.
Market Drivers and Opportunities
Key Drivers
- Increasing demand for stable and reliable electricity across industrial, commercial, and residential sectors
- Government policies promoting emission reductions, energy efficiency, and modernization of thermal and nuclear power infrastructure
- Ongoing advancements in turbine efficiency, digital control systems, and predictive maintenance technologies
Key Opportunities
- Growing adoption of combined heat and power (CHP) systems in industrial facilities and district heating networks
- Rapid infrastructure development in emerging economies, particularly in Asia Pacific, Africa, and Latin America
- Integration of steam turbines with hybrid and renewable energy systems, including biomass co-firing, waste-to-energy, and solar thermal projects
Segmentation Analysis
The steam turbine market is segmented by type, source, capacity, and geography.
- By Type: Impulse turbines are widely used in industrial and small-scale applications due to their fast response and ability to handle high-pressure steam, while reaction turbines dominate large utility-scale power plants.
- By Source: Fossil fuel–based systems continue to account for the largest share, although thermal renewables and alternative energy sources are steadily gaining momentum.
- By Capacity: Turbines rated above 300 MW are primarily deployed in large power stations, while smaller units support industrial and CHP applications.
- By Geography: Asia Pacific leads market growth, followed by Europe and North America, driven by new capacity additions and power plant modernization initiatives.
Key Players in the Steam Turbine Market
- Baker Hughes Co – Strong presence in industrial applications and energy transition solutions
- Chart Industries Inc. – Provider of integrated energy and industrial process technologies
- GE Vernova Inc. – Leader in advanced steam turbine solutions for power generation
- Siemens Energy AG – Global supplier of high-capacity and high-efficiency turbine systems
- Triveni Turbine Ltd. – Specialist in industrial and mid-range steam turbines
- Dongturbo Electric Company Ltd. (DTEC) – Key supplier to Asian power markets
- Arabelle Solutions (EDF Group) – Market leader in nuclear steam turbine technology
- Trillium Flow Technologies – Supplier of critical turbine components and flow control systems
- Turtle Turbines (P) Ltd. – Manufacturer of compact and specialized turbine systems
- M+M Turbinen-Technik GmbH – Focused on turbine refurbishment and modernization services
Future Outlook
The steam turbine market outlook remains stable and strategically significant, supported by ongoing power plant upgrades, investments in nuclear energy, and expanding CHP adoption. As renewable energy penetration rises, steam turbines will continue to serve as essential backbone technologies that ensure grid stability and dependable industrial power supply. Continued advancements in efficiency, digitalization, and hybrid system integration are expected to create new growth avenues, particularly in emerging economies and low-carbon energy projects. By 2031, the market is expected to reflect a balanced convergence of sustainability objectives and the need for reliable, large-scale power generation.
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