3 October 2025, 02:40 PM
The industrial gas turbine market is set to grow steadily over the coming years. The market size was valued at approximately USD 15.7 billion in 2021 and is projected to reach about USD 24.2 billion by 2031, achieving a compound annual growth rate (CAGR) of around 4.5 percent during the forecast period.
Industrial gas turbines are engines that burn fuels such as natural gas or liquid fuels to produce mechanical energy. This energy is then used to drive generators or other machinery. Because these turbines can produce lower emissions compared to many other combustion-based systems, they are becoming more important in the transition to cleaner energy sources.
Key Market Highlights & Dynamics
Growth Drivers
By Product Type
Reference: https://www.fatposglobal.com/reports/ind...market-271
Competition & Strategies
Major players in the industrial gas turbine market include Ansaldo Energia, Siemens, General Electric (GE), Mitsubishi Hitachi Power Systems, Kawasaki Heavy Industries, Man Diesel & Turbo, and Harbin Electric.
These companies compete on turbine performance, efficiency, service contracts, and innovation. Continuous R&D, global presence, and strong after-sales service are critical for maintaining leadership in this market.
Industrial gas turbines are engines that burn fuels such as natural gas or liquid fuels to produce mechanical energy. This energy is then used to drive generators or other machinery. Because these turbines can produce lower emissions compared to many other combustion-based systems, they are becoming more important in the transition to cleaner energy sources.
Key Market Highlights & Dynamics
Growth Drivers
- Rising energy demand and efficiency needs: As global energy demand increases, efficient technologies are becoming essential. Industrial gas turbines offer strong efficiency, making them attractive replacements for older systems.
- Natural gas and lower emissions: Gas turbines commonly use natural gas and emit less carbon dioxide compared to many other fossil fuel systems. This makes them suitable for meeting environmental regulations and supporting sustainable energy goals.
- Technological advances: Improvements in materials, cooling methods, and combustion systems have boosted the reliability and performance of turbines.
- Replacement of conventional systems: Many old power plants are being replaced by newer, more efficient gas turbine units.
- Shale gas and fuel availability: The growth of shale gas, especially in some regions, has improved access to low-cost natural gas, further supporting turbine adoption.
- Regulatory and policy barriers: Strict environmental laws and uncertain government policies can slow down the adoption of gas turbines in some areas.
- Competition from renewable energy: Alternatives such as solar and wind energy, supported by storage technologies, are strong competitors in regions focusing on decarbonization.
- High costs and technical challenges: The installation and maintenance of advanced turbines require high investment and skilled expertise, which can limit adoption in smaller markets.
By Product Type
- Aeroderivative turbines: These are adapted from aircraft turbine designs. They are modular, easy to install, and suitable for applications needing quick start and stop functions. They accounted for a large share of the market in 2019.
- Heavy duty turbines: Larger and more robust, these are widely used in big industrial plants and power stations. Heavy duty turbines are expected to grow steadily due to rising demand for large-scale power generation.
- Power generation: This segment is expected to grow fastest, especially with the rise of combined cycle power plants that deliver higher efficiency with lower emissions.
- Oil & gas: Gas turbines are widely used in gas compression, mechanical drives, and other operations in the oil and gas industry.
- Other industries: They are also used in chemical plants, processing facilities, and other industries needing reliable on-site power.
- North America: Expected to dominate due to strong gas reserves, investment in combined cycle power capacity, and favorable energy policies.
- Asia-Pacific: Markets like China, India, and Japan are expanding rapidly, driven by rising power demand and industrial growth.
- Europe, Middle East & Africa, Latin America: These regions are contributing steadily as they invest in energy infrastructure and modernize their systems to meet environmental standards.
Reference: https://www.fatposglobal.com/reports/ind...market-271
Competition & Strategies
Major players in the industrial gas turbine market include Ansaldo Energia, Siemens, General Electric (GE), Mitsubishi Hitachi Power Systems, Kawasaki Heavy Industries, Man Diesel & Turbo, and Harbin Electric.
These companies compete on turbine performance, efficiency, service contracts, and innovation. Continuous R&D, global presence, and strong after-sales service are critical for maintaining leadership in this market.