PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1933222
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1933222
The global gas turbine market is experiencing steady growth, driven by the global shift toward cleaner energy, rising electricity demand, technological innovations, and replacement of coal and nuclear power plants. The market was valued at USD 25.26 billion in 2025, projected to reach USD 26.61 billion in 2026, and expected to grow to USD 37.29 billion by 2034, reflecting a CAGR of 4.31% during the forecast period. North America dominated the global market in 2025 with a 35.03% share, supported by extensive natural-gas-based power generation deployment. The U.S. market is forecasted to reach USD 4.05 billion by 2032, driven by increased adoption of gas turbines and technological advancement to improve efficiency.
Gas turbines, also known as combustion turbines, are continuous internal combustion engines consisting of a combustor, an upstream rotating compressor, and a downstream turbine, sometimes coupled with turbofans for enhanced efficiency and conversion of power into electric or mechanical form. These turbines are increasingly replacing traditional gas-fired or oil-fired power plants, particularly in combined cycle power plants, where efficiency is maximized.
Market Trends
Technological advancements are a primary driver of the gas turbine market. Innovations include advanced cooling technologies, improved combustion systems, lean pre-mixing and dry low-NOx (DLN) combustors, and ultra-high efficiency combined cycle power plants. Developments in hydrogen-fueled turbines and carbon capture and storage (CCS) solutions are aligning the sector with stricter environmental regulations, enabling near-zero emissions power generation.
The aviation industry is also contributing to market growth. For instance, in November 2022, a Rolls-Royce AE-2100A gas turbine jet engine underwent hydrogen-fuel flight tests in England, demonstrating the potential for clean aviation applications.
Market Growth Factors
The replacement of coal- and nuclear-driven turbines with gas turbines is a significant growth factor. Coal-fired plants emit large quantities of greenhouse gases, while nuclear plants generate toxic waste. Gas turbines emit comparatively lower harmful gases, making them environmentally preferable. In February 2021, China added a 650 MW gas turbine at Junliangcheng Power Plant, marking a step in the transition from coal to gas.
Rising global electricity demand, fueled by urbanization, industrialization, and smart infrastructure projects, is also driving the market. Governments are increasingly enforcing stringent emission norms, prompting utilities and industries to adopt gas-driven turbines to meet power needs efficiently while reducing environmental impact.
Restraining Factors
The primary constraint for the market is volatility in natural gas prices, which is affected by geopolitical tensions and supply disruptions. While shale gas has reduced U.S. gas prices, other regions face higher costs, impacting the economic feasibility of gas turbines. Additionally, the COVID-19 pandemic caused significant project delays due to workforce shortages, supply chain disruptions, and halted international operations.
By Capacity: The 150-300 MW segment held the largest market share in 2026 with 19.84%, driven by demand from power plants seeking efficient and environmentally safer solutions.
By Technology: The heavy-duty segment leads the market due to industrial and utility power generation applications, while aeroderivative turbines are expanding rapidly because of their flexibility and mobile applications in utility generation, marine propulsion, and district heating.
By Cycle: The combined cycle segment accounted for 70.01% market share in 2026, owing to higher operational efficiency and effective waste heat utilization. Simple cycle turbines are cost-effective alternatives with potential growth in smaller-scale projects.
By End-User: Power utilities dominate with a 46.94% market share in 2026, driven by replacement of coal and steam turbines. The aviation sector and oil & gas industries are expected to grow significantly due to increasing electricity and fuel requirements.
North America: Valued at USD 9.07 billion in 2025, the region leads due to extensive natural-gas-based turbine adoption. The U.S. market is projected to reach USD 3.09 billion by 2026.
Asia Pacific: Expected to witness the highest CAGR, driven by industrialization, urbanization, and replacement of coal plants. Japan, China, and India are projected at USD 1.19 billion, USD 1.56 billion, and USD 0.72 billion by 2026, respectively.
Europe: Focused on reducing carbon emissions and replacing coal and nuclear plants. The UK and Germany are projected at USD 0.86 billion and USD 0.57 billion by 2026, respectively.
Latin America and Middle East & Africa: Both regions are expanding their gas turbine capacities to meet industrial and municipal power requirements.
Key Industry Players
Leading companies include GE (U.S.), Siemens (Germany), Mitsubishi Power (Japan), Ansaldo Energia (Italy), Solar Turbines (U.S.), Kawasaki Heavy Industries (Japan), Doosan Heavy Industries (South Korea), Bharat Heavy Electricals (India), OPRA Turbines (Netherlands), and Rolls Royce (U.K.). Major developments include GE supplying HA gas turbines to the UAE in 2021 and Mitsubishi Power providing gas turbines for Uzbekistan's Talimarjan-2 TPP project in 2023.
Conclusion
The gas turbine market is projected to grow from USD 25.26 billion in 2025 to USD 37.29 billion by 2034, driven by environmental regulations, technological advancements, rising electricity demand, and the global transition from coal and nuclear power to natural gas turbines. Despite challenges such as natural gas price volatility and project delays, innovation in combined cycle plants, hydrogen fueling, and predictive diagnostics will sustain market growth, particularly in North America, Asia Pacific, and Europe. Gas turbines are poised to play a key role in achieving efficient, reliable, and environmentally sustainable power generation globally.
Segmentation By Capacity
By Technology
By Cycle
By Sector
By Region