Gas Turbines Market Size, Share, Growth, and Industry Analysis, By Type (Combined Cycle, Open Cycle) By Application (Industrial, Aviation, Power Generation, Marine, Oil & Gas, Others) and Regional Forecast to 2033

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GAS TURBINES MARKET OVERVIEW

The Gas Turbines Market, valued at USD 20.963 billion in 2024, is forecasted to grow consistently, reaching USD 22.102 billion in 2025 and ultimately hitting USD 33.739 billion by 2033, at a steady CAGR of 5.43% from 2025 to 2033.

The global gas turbine market is vital in a range of industries, including power generation, aviation, marine, oil & gas, and industrial applications. Gas turbines are known to be efficient, reliable, and capable of using significant power loads which makes them important within a stationary application or mobile application. While there are several factors driving the global acceptance of gas turbines, including demand for energy, upgrading outdated and maybe unsafe, power delivery systems and a shift to cleaner energy systems, the gas turbine industry will continue to grow globally. Many significant ongoing product innovations in designs are pushing new generations of gas turbines into the marketplace and innovations in digital technology allow us to improve performance and reduce operating costs. Each turbine style, either open cycle or combined cycle have their own applications and users thus providing a wide variety of options for use. Strong growth in industry in emerging economies will fuel and expand the gas turbine market as we consider cleaner, transitional fuel energy systems.

GAS TURBINES MARKET KEY FINDINGS

• Market Size and Growth The global gas turbines market was valued at USD 20.963 billion in 2024 and is projected to reach USD 33.731 billion by 2033, registering a CAGR of 5.43% over the forecast period.
• Key Market Driver: More than 63% of new capacity additions were driven by combined-cycle gas turbine projects, focused on lowering emissions and enhancing energy efficiency.
• Major Market Restraint: Close to 38% of planned projects experienced delays due to fuel supply volatility and uncertainties surrounding environmental regulations in major regions.
• Emerging Trends: Hydrogen-capable turbines saw a 41% increase, highlighting the industry’s growing emphasis on decarbonization and the integration of low-emission fuels into power systems.
• Regional Leadership: The Asia-Pacific region held over 46% of the market share, followed by North America with 28%, driven by capacity expansions and modernization efforts.
• Competitive Landscape: The top five companies accounted for approximately 67% of the global market share, with more than 22% of innovations centered on enhancing thermal efficiency.
• Market Segmentation: Heavy-duty turbines accounted for 71% of total installations, while aeroderivative turbines experienced 33% growth, particularly in distributed energy and backup power applications.
• Recent Development: Over 36% of newly launched gas turbine models incorporated hybrid fuel flexibility and digital monitoring capabilities for predictive maintenance.

COVID-19 IMPACT

Gas Turbines market Had a Negative Effect Due to Interruptions to Trade Globally and Lockdowns During COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing

lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic had a major influence on the gas turbines market, specifically from global interruptions to trade globally and lockdowns that took place. There were canceled, delayed and rescheduled projects reducing demand, especially in the aviation and industrial biofuels applications. Many projects for electricity generation (power) were postponed or rescinded putting a halt (or decrease) in growth trajectory into the foreseeable future. All segments (including aviation) were being affected previously by supply chain complications normally experienced in the gas turbine industry. Also, primarily in power generation, the industry was suffering from labor services being limited or not available to work on projects in electrical generation with natural gas turbine. There were delays also with labor related to maintaining assets, and it was affecting labor for new builds too. Some of the segmentation, such as power generation to essential services, kept the industry having a slight degree of steadiness. The recovery will be gradual, but companies are exploring remote monitoring capabilities and leveraging digitalization to support service delivery, and service models to assist in regaining normal or pre-COVID levels of service in the market.

LATEST TRENDS

Integration of Hydrogen as an Alternative Fuel to Drive Market Growth

A prominent trend in the gas turbine industry is the growing acceptance of hydrogen as a cleaner fuel option. With concerns about the environment becoming more pressing, and targets for carbon reductions becoming more tangible, manufacturers are joining the industry using turbines with hydrogen, or blends of hydrogen and natural gas. This trend is not only lowering emissions but is helping establish gas turbines as a legitimate part of the transition to greener energy systems. Firms are developing clever combustion solutions designed with hydrogen’s attributes to develop solutions that run more efficiently and safer. Firms are finding creative ways to operate in the space of decarbonization without losing energy output or energy use, and hydrogen is a significant part of that effort.

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GAS TURBINES MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into Combined Cycle, Open Cycle:

• Combined Cycle Gas Turbines: Combined Cycle Gas Turbines are becoming more prevalent due to their superior efficiency and lower emissions compared to less efficient fossil fuel power systems. Combined Cycle Gas Turbines have both gas and steam turbines paired together to extract more energy from the same amount of fuel Combines Cycle Gas Turbines are highly beneficial to energy production because they can also extract useful electricity through the conversion of waste heat. Combined Cycle Gas Turbines are primarily used in utility and industrial scale power plants and are meant to achieve the most efficiency and environmental compliance. There is increasing urgency placed on sustainable energy production and modernized-three efforts/upgrades to grid infrastructures all contribute to positive momentum for the use of combined cycle turbines in both supply and emerging markets.
• Open Cycle Gas Turbines: Open cycle gas turbines are crucial for applications requiring startup speed and flexibility including peak load power generation and emergency backup options. Open cycle gas turbines generate power directly from combustion, and do not recover waste heat for further power generation. Open cycle gas turbines are less complex, cheaper (capital cost), and have faster installation schedules which are favorable for temporary or rapidly changing energy circumstances. Temporary energy situations with open cycle systems are typically portable and easy to maintain; therefore, are readily available in industries and remote situations. Open cycle gas turbines will not be used for base load generation because they are less efficiency than combined cycles; however, they remain an important supply of power in times when there is greater need and immediate and dependable supply of energy is thought to be necessary.

BY APPLICATION

Based on application, the global market can be categorized into Industrial, Aviation, Power Generation, Marine, Oil & Gas, Others:

• Industrial: Gas turbines are popular in industrial applications for mechanical drive and on-site power. Industries such as chemical, manufacturing and petrochemical endorsed the gas turbine reliability, small footprint and ability to run continuous heavy applications. Gas turbines are designed to continually run in demanding environments where operational efficiency and unplanned downtime is costly. Cogeneration systems allow the gas turbines to improve energy utilization of an installation by concurrently generating electricity and useful heat. The increased prevalence of industrial automation and emphasis on energy efficient production is driving the use of gas turbines in a myriad of industrial applications in both developed and developing economies.
• Aviation: Gas turbines are the engines behind jet propulsion systems in commercial, military, and private aircraft. Their light weight, high thrust-to-weight ratio, and ability to operate under high altitude conditions make them well suited to aviation. Aircraft engines provide thrust in several ways: turbofan, turbojet, and turboprop engines are all based on a turbine, have numerous advancements in development for improved fuel efficiency and emissions reductions. With aviation industry's call for more sustainable operational use, there has been increased research and developed adaptation of turbine technology such as noise reduction and hybrid propulsion systems. As air travel rebounds and increases significantly across the globe, there continues to be a steady demand for more advanced gas turbine engines.
• Power Generation: Gas turbines are increasingly embraced for power generation both because they can generate electricity quicker than other methods, and because they can provide both baseload and peak-load generation to help balance electrical loads with demands. Gas Turbines are a mid-step to cleaner energy because they generally produce fewer emissions than coal-based systems. Gas-fired power plants generally utilize gas turbines in open cycle for a quicker power response, and in combined cycle for input-output power, fuel and efficiency benefits. Gas turbines will continue to grow in energy space as both the electrification of the electricity footprint increases, and the grid infrastructure modernization increases required much more flexible and reliable power solutions.
• Marine: Gas turbines are used in marine applications to power vessels, both military and commercial, and offshore platforms. The advantages of gas turbines for propulsion systems are their compactness, specifically power density and quick acceleration. Whereas diesel engines will always have some level of vibration, gas turbines have the advantages of less vibration and noise, resulting in improved comfort and operability. Gas turbines have been especially desirable in naval defense applications where speed and rapid maneuvering are emphasized. Furthermore, gas turbines are now being adapted for hybrid and electrical systems in response to environmental standards. The increasing priority of high-performance naval fleets and environmentally friendly shipping operations will continue to spur this market segment.
• Oil & Gas: Gas turbines are essential to the oil and gas industry powering compressors, pumps and customers in remote locations and offshore. Gas turbine solutions in upstream and midstream markets are highly reliable because of their rugged and wide operating range, requiring little maintenance. Turbines generate continuous power and are reliability is key to upstream exploratory efforts or processing facilities. There is a strong push from the oil & gas industry to consume less and master emissions, and with the availability of new turbine configurations and advanced turbine modern systems and designs and digital depot and remote controls, innovation in turbines is at an all-time high. With ongoing worldwide investments in liquefied natural gas and continued worldwide demand and growth in exploration there are many markets for gas turbines.
• Others: The Others category has applications specific to the gas turbine, distributed energy systems, mobile power units and aerospace testing projects. Specialty applications have used gas turbines due to their flexibility, scalability and fast startup capabilities; notably ability to quickly started in emergency power supply situations. For example, mobile turbines are sometimes used as a emergency power supply unit when a quickly activated energy source (the turbine) is a necessity. Largely custom turbines are used in education and research projects and are typically used in research & development promotional initiatives. Although this category represents a smaller portion of the overall market it is an important segment in developing innovation and niche technologies. The unique operating conditions of gas turbine operation will allow this market to continue to be viable and provide opportunities for providing solutions for custom-engineering turbines in the future.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                          

DRIVING FACTORS

Rising Demand for Cleaner Energy Solutions to Boost the Market

One of the significant demand drivers for the Gas Turbines market growth is the worldwide demand for a “cleaner” and more “sustainable” energy source. As countries work to meet emissions targets and shift away from coal-fired power, gas turbines are also a cleaner source of energy. Gas turbines have less of a carbon footprint and can work with renewable systems, making them the cleaner "transitional" energy solution. Also, combined cycle gas turbines promote efficiency while supporting global decarbonization agendas. Demand is most pronounced in countries that are modernizing outdated power infrastructure or improving access to utilities and energy supply, as gas turbines - provide energy supply that is easy to deploy and flexible.

Technological Advancements in Turbine Design to Expand the Market

Ongoing development in turbine technology is an important component for market growth. Turbine developers are using new materials, new aerodynamics, and new digital monitoring technology to push gas turbine efficiencies and lifetime higher. Reducing maintenance costs and increasingly fuel consumption, gas turbine technology is becoming a more viable option for certain industry segments. Along with new materials, aerodynamics, and digital monitoring technology, the development of hydrogen-materials technology turbines and hybrid systems are likely to provide gas turbines unique energy applications in green energy projects. Moreover, advanced model turbines can offer increased operational flexibilities and adaptations with lower emissions; such advancements will shape the market for turbine applications for customers with energy needs and sustainability goals.

RESTRAINING FACTOR

High Initial Investment and Maintenance Costs to Potentially Impede Market Growth

One of the key constraints to the gas turbine market is the relatively large capital cost. Installation and commissioning of gas turbines involves significant capital investment (either purchase or installed), as well as a lot of engineering work which may not be feasible for smaller or capital-constrained operations. While modern gas turbines incorporate ever greater efficiencies than past generations, they involve longer-term operation and maintenance, skilled labor, and ongoing parts replacement where operational costs may still be relatively high. These capital constraints impact the incentives to invest in power plants, especially in developing areas or small conditions industries, because initial investment capital would form a relatively small part of the technology adoption decision.

Growing Adoption in Emerging Economies to Create Opportunity for The Product in The Market

Opportunity

The growing energy infrastructure in developing countries presents a major opportunity for the gas turbines market. The developing countries in Asia, Africa, and Latin America continue to experience industrialization and urbanization in tandem with increased electricity demand. These developing countries are looking for power solutions that are fast, efficient and scalable. Gas turbines are already positioned quite well to address this demand because they deploy quickly and have many applications, including combined heat and power. The ability for governments of developing countries to change the favorability of policies to encourage private investment in these energy projects is also a consideration. In developing regions, the energy infrastructure is being modernized with a move towards cleaner and more reliable energy solutions, therefore gas turbines are likely going to be the approach of THI to provide power generation solutions in those regions that they are already is established.

Volatility in Fuel Prices Could Be a Potential Challenge for Consumers

Challenge

The gas turbines industry is facing significant challenges in the reactions of natural gas prices that heavily influence operating costs, as well as the viability of long-term projects. Natural gas turbines consume significant quantities of fuel and thus consistent fuel supplies are a key requirement throughout project development and operation. Changes in global fuel markets can clearly disrupt budgets and damage profit expectations. This volatility can deter investment, notwithstanding the relative attractiveness of a project from other perspectives. This issue becomes even larger in those areas where natural gas distribution systems are limited, underdeveloped, or reliant on imports. Price fluctuations can also cause some users to reconsider their adoption of turbines or simply delay decisions in favor of technologies that are either more stable in cost projections or truly renewable, which can problematize market growth trends and financial planning timelines.

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GAS TURBINES MARKET REGIONAL INSIGHTS

NORTH AMERICA

North America was, is, and continues to hold the most dominant gas turbines market share of the global gas turbines market due to the nature of energy infrastructure and the presence of important turbine manufacturers and suppliers. In the U.S., grid modernization and flexible power generation are key parameters that drive demand for both open and combined cycle gas turbines – in terms of the United States Gas Turbines market, we see demand for traditional combined cycle turbines, to an uptake of smaller and flexible utility-scale and distributed utility-scale projects. While significant exploration and development are made for the large-scale integration of renewables, gas turbines are still being used primarily as backup sources for stability and reliability in a grid program. Figure 1 illustrates a simplistic grid or energy model. Currently, North America has a plentiful supply of natural gas, particularly in the southern region, guaranteeing fuel supply. Finally, with governments supporting cleaner energy and decarbonization, resultant innovation will materialize with hydrogen-capable turbine technologies across the entire country.

EUROPE

Growth in the natural gas turbine sector across Europe is being driven by the regions goals to achieve clean energy initiatives and the regulated transition away from coal fired generation. Countries like Germany, the UK, and France are building gas-based infrastructure to provide a resource to existing renewable energy mixes. Gas turbines have many fast ramp up operational characteristics to support intermittent power sources like wind and solar. Regulatory architecture is under research related to hydrogen blends and heat and power (CHP) systems which is fore fronting the development of energy systems and product design and development. Regardless of if the regulations end up entrapping development in some unproductive way, continued regulatory support fostered highly efficient and low-carbon turbines and enabled high viable conditions for innovation and long-term sustainable energy in general.

ASIA

Beyond Japan, the gas turbine market in Asia is pursuing growth with great zeal, encouraged by rapidly developing economies that are attempting to meet increased energy demand and are developing urban areas and industrial regions. In the countries of China, India and Southeast Asia, demand for, and investment in, scalable, reliable power generation systems (notably gas turbines), is being developed. Gas turbines are being deployed to meet the baseload and peak-load demands in the cities that are being built. Coupled with the transition to sustainable alternatives from coal and the demand for cleaner technologies, as well as a shift away from coal, many new gas-turbines are being installed. Favorable government policies, revitalization of infrastructure investment projects in the utility sector, along with an interest in advancing relevant power sector reform, is also contributing to the development of gas turbines in many types of power delivery in the region. With such vast population and industry influence, this region of the world has the potential to influence gas turbine use globally.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

Realizing the numerous possibilities to shape their industry, the key firms in the gas turbines market are developing and enhancing product opportunities by establishing new approaches through game changing products, partnerships, green energy inquiry, and geographical expansion. The major firms in this market, like General Electric, Mitsubishi Hitachi Power Systems, and Siemens AG, are developing alternative turbine cycle designs, digital performance monitoring, low-emission technologies and renewable dispatchable electricity to meet the continuously evolving energy customer needs. Other firms, including Capstone Turbine, and Rolls Royce, are developing smaller and smaller more efficient models for specialty applications. Gas turbines could even contribute to hydrogen or hybrid type production as future legislatives focus on decarbonization and sustainability over the next decades. In summary, gas turbines are still a relevant and future energy source and the continuing investment in research and development, innovative ideas, and strong service chains will ensure that they hold a place in the global market and technological development in the future.

LIST OF TOP GAS TURBINES MARKET COMPANIES

• Zorya-Mashproekt (Ukraine)
• Capstone Turbine Corporation (U.S.)
• Mitsubishi Hitachi Power Systems (Japan)
• Vericor Power Systems (U.S.)
• NPO Saturn (Russia)
• Siemens AG (Germany)
• Ansaldo Energia (Italy)
• Cryostar (France)
• MAN Diesel & Turbo (Germany)
• Solar Turbines Incorporated (U.S.)
• General Electric (U.S.)
• Harbin Electric International Company (China)
• Kawasaki Heavy Industries (Japan)
• Bharat Heavy Electricals (India)
• Rolls Royce (U.K.)
• Alstom (France)
• Opra Turbines (Netherlands)

KEY INDUSTRY DEVELOPMENT

June 2025: The U.S. Energy Information Administration indicated a disproportionate expansion in planned combined-cycle gas turbine capacity as we approach the end of the decade, signaling a return to the prioritized integrity of grid reliability and energy flexibility amid the broader energy transition. Specifically, demand for electricity along with integration of more renewable energy resources has reinforced the significance of developing large-scale, long-duration back-up resources. This planned growth suggests a recognition of the importance and value of gas turbine systems to maintain power reliability while securing a path to transition to cleaner technologies like hydrogen-capable systems in future developments.

REPORT COVERAGE       

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis considers both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth. The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.