Gas Turbine Market is expected to reach US$ 32,005.19 Million by 2031

Increasing Government Initiatives and Emphasis on Environmental Regulations to Decrease Air Pollution Boost Gas Turbine Market Growth

According to our latest market study on "Gas Turbine Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Offerings and Industry," the market was valued at US$ 23,190.29 million in 2024 and is anticipated to reach US$ 32,005.19 million by 2031; it is estimated to register a CAGR of 4.84% during 2025–2031. The report includes growth prospects in light of current gas turbine market trends and driving factors propelling the market.

The growing emphasis on combined cycle power plants (CCPPs) significantly enhances energy efficiency and reduces emissions. Combined cycle systems integrate gas turbines with steam turbines, utilizing the waste heat from the gas turbine to generate additional electricity via a steam cycle. This dual-stage process can achieve efficiency levels of over 60%, compared to ~35–40% for simple cycle plants. As global energy demand rises and environmental regulations tighten, utilities and governments increasingly favor CCPPs for their superior performance and lower carbon footprint.

Gas Turbine Market Analysis – by Geography, 2024

Source: The Insight Partners Analysis 

Gas turbines' flexibility in combined cycle configurations makes them ideal for balancing intermittent renewable energy sources such as solar and wind. They can ramp up quickly to meet peak demand, ensuring grid stability. Technological advancements in turbine materials, cooling techniques, and digital monitoring systems have further improved reliability and reduced operational costs. The global shift toward cleaner energy and the retirement of aging coal-fired plants also propel investments in combined cycle gas turbine infrastructure. As a result, the gas turbine market is experiencing robust growth, particularly in regions prioritizing energy efficiency and sustainability.

CCPPs have noteworthy operational flexibility and offer tailor-made solutions for the growing demand for energy. In 2024, Shell Energy North America (US), L.P. (SENA), signed an agreement to acquire a 100% equity stake in RISEC Holdings, LLC (RISEC), which owns a 609-megawatt (MW) two-unit combined-cycle gas turbine power plant in Rhode Island, the US. As per the US Energy Information Administration (EIA), eight new natural gas-fired combined cycle plants have come online in 2022, adding ~7,775 MW of generating capacity to the US grid. The developers target to add 1.6 GW of Combined Cycle Gas Turbines in 2025 and plan to add ~18.7 gigawatts (GW) of combined-cycle capacity to the grid by 2028, with 4.3 GW already under construction. Thus, the rising development of the combined-cycle power plants is fueling the global gas turbine market growth.

The scope of the gas turbine market report focuses on North America (the US, Canada, and Mexico), Europe (the UK, Germany, France, Italy, Russia, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), Middle East and Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East and Africa), and South America (Brazil, Argentina, and the Rest of South America). Asia Pacific (APAC) registered a significant gas turbine market share in 2024 and is expected to grow at a CAGR of 5.2% during the forecast period. The large population, high per capita income, and rapid industrialization drive the gas turbine market in APAC. This region is the largest consumer of crude oil and gas. Furthermore, highly industrialized countries such as China, India, Japan, and South Korea report increased energy consumption. These countries prioritize increased domestic production through enhanced gas recovery techniques to meet the growing oil demand. Gas turbines are central to meeting the region's energy demands of rapid industrialization. With more than 19% of the global market share in 2024, nations such as China and India are shifting from coal to gas, supported by government initiatives and environmental concerns. Combined-cycle turbines dominate due to their efficiency and scalability, making them ideal for large-scale power generation and urban energy needs.

The demand for natural gas-fired power plants and liquefied natural gas (LNG) is growing significantly in the region. Furthermore, the demand for electricity and carbon dioxide emission reduction targets is rising in major countries. Rapid technological advancements are crucial to reduce turbine costs and emissions, especially combined-cycle turbines, the dominant gas technology for mid- and baseload power generation. This creates significant opportunities for gas turbine manufacturers. However, the significant consumer transition to renewable energy sources, including wind and solar, is expected to restrain the growth of the gas turbine market during the forecast period.

China accounts for the majority of the gas turbine market in Asia Pacific, followed by India, Japan, and Australia. China's higher gas turbine market share in Asia Pacific is primarily attributed to economic growth and the increase in gas-fired power plants in the country. Gas turbines are utilized in power generation, oil & gas, process plants, and aviation, as well as in smaller-scale domestic and allied industries, to reduce carbon emissions. Electricity demand is growing significantly in Asian countries due to urbanization and industrialization. Gas turbines are used in power generation plants, both open-cycle and combined-cycle. Combined-cycle plants are more efficient than steam turbines, as they generate more power. Power generated in combined-cycle plants has lower carbon dioxide emissions, and governments are implementing stricter regulations on such emissions. Therefore, an increase in demand for natural gas-fired power plants fuels the growth of power generation in Asia Pacific.

The economic expansion and urbanization in China drive the demand for electricity, prompting large-scale investments in energy infrastructure. Rapid deployment, scalability, and high efficiency make gas turbines ideal for urban and rural grid expansion. By early 2024, China allocated more than US$ 90 billion to power supply and grid modernization projects. Gas turbines are important in meeting peak demand and maintaining grid reliability, especially in regions with fluctuating energy needs. Their adaptability makes them a strategic choice for modernizing China's energy landscape and ensuring long-term energy security. China's ambitious climate goals, peaking carbon emissions by 2030 and achieving energy neutrality by 2060, are transforming its energy mix. Gas turbines, with lower emissions than coal and greater operational efficiency, are emerging as a cleaner alternative for power generation. Their ability to integrate with renewable power solutions and support transition energy strategies makes them valuable assets for China's decarbonization efforts. Government policies increasingly favor gas-fired plants over coal, encouraging investment in turbine technology. This shift reduces key environmental impact and aligns with international climate commitments, positioning gas turbines as a key pillar of China's sustainable energy future.

GE Vernova Inc.; Siemens AG; Mitsubishi Heavy Industries Ltd; Caterpillar Inc; Kawasaki Heavy Industries Ltd; Baker Hughes Co; Capstone Green Energy Holdings, Inc.; Industrial Boilers America; Doncasters Group; and Vericor Power Systems are among the key players profiled in the gas turbine market report. Other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The gas turbine market forecast can help stakeholders plan their growth strategies. The market study provides detailed market insights, which help the key players strategize their growth.

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