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The Global Steam Turbine Market was valued at USD 28 billion in 2025. Influenced by the growing electricity demand, advancements in nuclear energy deployments, and increased installation of industrial cogeneration facilities. 

In addition, there has been an increase in capital investments to renovate and upgrade old thermal plants, which is expected to contribute positively to market growth. 

However, the market faces notable constraints. Stringent environmental regulations and the global shift away from coal-fired power generation have limited new installations of conventional steam turbines. Furthermore, the rapid expansion of renewable energy sources, particularly wind and solar, has reduced reliance on traditional thermal power generation technologies.

Despite these challenges, growth opportunities remain in high-efficiency steam turbine technologies, flexible and modular turbine designs, and applications in combined heat and power (CHP), biomass, and nuclear power generation, where steam turbines continue to play a critical role.

Drivers

Expansion of Thermal and Nuclear Power Plants 

The development of thermal and nuclear power stations remains a significant driving force behind the steam turbines industry, fueled by an ever-increasing demand for electricity and the need to ensure the stability of power grids.

As of 2025, thermal power accounted for about 60-62% of total electricity generation worldwide, featuring a substantial share generated from coal and natural gas resources.

For instance, India’s electricity demand reached around 242 GW during peak summer periods in 2025, driven by extreme heatwaves and rising cooling demand across the country.

During these periods, the power system relied primarily on the existing thermal fleet, supported by an increasing contribution from renewable energy, to maintain grid stability rather than significantly expanding new coal capacity.

At the same time, selective capacity additions have continued, with NTPC Limited undertaking projects such as the expansion of thermal units at Talcher and North Karanpura to enhance supply reliability and operational efficiency.

As far as gas is concerned, there has also been an expansion of Combined Cycle Power Plants (CCPP), especially in Asia and the Middle East regions, where flexible generation systems are needed to cope with intermittent renewables. The steam turbine in CCPPs is a critical component of their combined cycle performance.

There has also been a revival of nuclear energy, with nations looking for sustainable baseload energy options. Nuclear power capacity rose to 400 GW in the year 2025, with more than 60 reactors being built around the world.

China has commissioned new reactors like Zhangzhou-1 in 2025, and India has made progress on its PHWRs and Kudankulam reactors. Each of these nuclear power plants needs steam turbines, thereby ensuring steady demand.

Moreover, the modernization of aging power stations is another significant growth driver. In 2025, over 15% of global thermal generation capacity was modernized or refurbished, such as replacing existing turbines, which can increase efficiency by 3-5%. Ultra-supercritical technologies have increased efficiency above 45%, up from 35% for subcritical technologies.

Such measures prolong the life cycle while being compliant with emission standards, thus further increasing turbine demand. Overall, although the renewable sector is expanding rapidly, the growth of thermal and nuclear facilities remains a steady demand driver for the steam turbine industry.

Restraints

Stringent Environmental Regulations

Strict environmental policies are the global trend of moving away from coal, which greatly limits the growth potential of steam turbines, especially those that use coal traditionally. However, while coal capacity is declining in developed regions, it continues to expand in emerging economies such as India, reflecting the diverging impact of regulatory pressure across markets.

Central to these regulatory pressures is the Paris Agreement, which has compelled signatory nations to adopt stricter carbon neutrality objectives and emissions reduction targets, directly influencing policy decisions around coal-fired investments and making it increasingly difficult for new coal projects to secure regulatory approvals.

Environmental regulations such as national emission norms, carbon pricing mechanisms, and coal phase-out policies in several countries are collectively reducing the reliance on coal-based power generation.

National governments have translated these international obligations into domestic legislation, with emission norms, carbon pricing mechanisms, and mandatory coal phase-out timelines becoming standard policy tools across major economies. This is particularly evident across European economies, where regulatory pressure has translated into concrete capacity reductions.

In 2025, global coal plant additions slowed down in several regions, including Europe, where coal net capacity was reduced by more than 10 GW, as countries accelerated their coal exit strategies.

Germany, for instance, has pursued its coal phase-out program by decommissioning several lignite and hard coal facilities in 2025, lowering its coal dependency below 20%. 

Likewise, the UK has phased out coal energy, with its contribution falling below 1% of total electricity generation, effectively eliminating the need for coal-powered steam turbines in the country.

However, even in growing markets such as India's steam turbine market, there is an increasing constraint due to the shift away from coal, driven by environmental regulations and the rapid development of renewables. India's renewable energy accounts for 40% of installed capacity, while its share in actual generation is significantly lower.

Nonetheless, with a record addition of 41 GW in 2025 alone, the policy shift towards more sustainable energy sources is clearly underway, gradually reducing dependence on new coal-based power production and, by extension, dampening demand for coal-based steam turbines.

These regulatory pressures are structurally reducing the addressable market for coal-based steam turbines, particularly in developed economies, while also beginning to shape investment decisions in emerging markets.

Although gas-fired and nuclear applications provide a partial offset, the net effect of tightening environmental regulations on coal-based steam turbine demand remains firmly negative. As regulatory frameworks continue to tighten globally, this structural shift is expected to intensify over the forecast period.

Market Opportunity

The steam turbine market offers significant opportunities primarily for OEMs and service providers as the energy sector transitions toward more efficient and sustainable systems.

Manufacturers and OEMs will benefit from increasing investments in nuclear energy, biomass, and the waste-to-energy market, where steam turbines remain essential components for electricity generation. This shift toward low-carbon and alternative energy sources will drive demand for advanced and high-efficiency turbine technologies.

At the same time, service providers will see strong growth opportunities through the retrofitting and modernization of aging thermal power plants.

Upgrades aimed at improving efficiency, flexibility, and operational life will create sustained demand for maintenance, repair, and digital optimization services across the existing turbine fleet.

Market Segment

The worldwide steam turbine market is mainly classified according to applications, which include power generation, industrial, and combined heat and power (CHP). Power generation has been observed to hold the highest market share, as steam turbine technology plays a vital role in the process.

The power generation market segment dominates the industry, as steam turbines play an important part in generating electricity from coal, nuclear, biomass, and waste-to-energy power plants. Thermal power plants (coal and gas) contribute up to 54% of electricity production worldwide, and nuclear energy constitutes a steady source of baseload power.

India generates almost 70% of its power from coal, implying the significant role of steam turbine technology. Moreover, global nuclear energy generation capacity surpassed 400 GW in 2026.

Other key market segments include the industrial sector that applies steam turbines in mechanical drives and energy production within plants. Oil & Gas, refineries, chemicals, and steel are examples of industries where steam turbines are used.

Industrial energy demand makes up about 30% of global total energy demand, and this highlights the strong potential for steam turbine applications in industrial processes.

The combined heat and power (CHP) segment is another emerging trend because of the high efficiency level and sustainability of these systems. High efficiency levels, of between 70% and 80% compared to regular power generators, make CHP very effective in areas where there is a need for better energy efficiency and emission reduction measures.

Regional Analysis

Global steam turbine trends in the period 2025 – 2026 are dominated by the need to generate more thermal power due to increasing demands in the grid system and industry.

Asia continues to act as the primary growth engine for the global steam turbine market, driven by rising electricity demand and ongoing industrialization.

For instance, China is actively advancing its large-scale thermal power projects, such as the Inner Mongolia Ordos Ultra-Supercritical Coal Power Project, which involves 2 × 1,000 MW units. This project reflects the country’s continued investment in high-efficiency coal-based power generation, directly supporting demand for advanced steam turbine systems.

Additionally, China’s thermal power capacity reached approximately 1.47 TW by mid-2025, of which around 1.21 TW was coal-based, indicating a strong reliance on coal-fired generation.

This dominance of thermal power endorses sustained demand for steam turbines across utility-scale power plants.

Furthermore, regional production of steam turbine generators increased significantly, with output rising by 49.13% in the first half of 2025, reflecting strong manufacturing activity and continued investment in power infrastructure.

In North America, electricity demand is witnessing steady growth, driven by electrification, industrial expansion, and increasing data center loads. In the United States, total electricity consumption reached approximately 4,000 TWh in 2025.

The region is also undergoing a structural shift in its energy mix, with natural gas accounting for around 43% of electricity generation, while coal has declined to nearly 16%, reflecting a move toward cleaner fuels. 

Trends & Developments

• The steam turbines market is witnessing rising demand for advanced steam turbines with higher efficiency and operational flexibility. Technologies such as ultra-supercritical (USC) systems are achieving efficiency levels above 45%, significantly improving performance compared to older systems. Additionally, turbines are being designed for faster ramping to complement intermittent renewable energy sources. 

• Nuclear energy is emerging as a key growth segment for the steam turbines market due to its low-carbon and baseload characteristics. Several countries, including China and India, are investing in new nuclear power plants and extending the life of existing reactors.

• Industrial sectors such as oil & gas, chemicals, and steel are increasingly adopting combined heat and power (CHP) systems. These systems use steam turbines to generate both electricity and useful heat, significantly improving overall energy efficiency. CHP installations can achieve efficiency levels of up to 70-80%, making them highly attractive for industrial applications.

• Toshiba Corporation will integrate its subsidiary, Toshiba Energy Systems & Solutions Corporation, through an absorption-type merger scheduled for April 2026. As part of its Revitalization Plan, following the merger, Toshiba Corporation will remain the surviving entity, with ESS fully absorbed into its operations.

• As of March 2026, Volkswagen (VW) is in the process of selling a majority stake in its heavy engine and marine engineering subsidiary, Everllence (formerly known as MAN Energy Solutions). The deal is valued at USD 9.6 billion.

• In August 2025, UK-based energy data and infrastructure provider Stark announced an agreement to acquire Siemens’ UK Energy Services business.
  

The new report from Blackridge Research on the Global Steam Turbine Market comprehensively analyzes the Steam Turbine Market and provides deep insight into the current and future state of the industry.

The study examines the market dynamics and regional trends influencing the Global Steam Turbine Market demand and growth.

The report coverage also addresses present and future market opportunities, market trends & developments, important commercial developments, trends, regions, and segments covered poised for the fastest growth, the competitive landscape, and the market share of key players.

Furthermore, the report will present the market size, demand trends, and projected market growth rates of the Steam Turbine Market through the global forecast period ending in 2031.

The findings are based on a strong research methodology that includes both primary and secondary research, ensuring accuracy and reliability of the insights. This methodology enables a comprehensive evaluation of the market by incorporating expert interviews, data triangulation, and in-depth analysis of relevant industry sources.

What Do We Cover in the Report?

Global Steam Turbine Market Drivers & Restraints

The study covers all the major underlying forces that help the market develop and grow, and the factors that constrain growth.

The report includes a meticulous analysis of each factor, explaining the relevant qualitative information with supporting data.

Each factor's respective impact in the near, medium, and long term will be covered using the Harvey balls for visual communication of qualitative information and functions as a guide for you to analyze the degree of impact.

Global Steam Turbine Market Analysis

This report discusses market overview, the latest updates, important commercial developments, structural trends, and government policies and regulations.

Global Steam Turbine Market Size and Demand Forecast

The report provides the Global Steam Turbine Market size and demand forecast until 2031, including year-on-year (YoY) growth rates and CAGR.

Global Steam Turbine Market Industry Analysis

The report examines the critical elements of the Steam Turbine industry supply chain, its structure, and its participants.

Using Porter's five forces framework, the report covers the assessment of the Global Steam Turbine Industry's state of competition and profitability.

Global Steam Turbine Market Segmentation & Forecast

The report dissects the Global Steam Turbine Market into various segments. 

A detailed summary of the current scenario, recent developments, and market outlook will be provided for each segment.

Further, market size and demand forecasts will be presented, along with various drivers and barriers for individual market segments.

Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.

Regional Market Analysis

The report covers detailed profiles of major countries across the world. Each country's analysis covers the current market scenario, market drivers, government policies and regulations, and market outlook.

In addition, market size, demand forecasts, and growth rates will be provided for all regions.
The following are the regions covered: 
North America - United States, Canada, Mexico, and the rest of North America
Europe - Russia, Norway, the United Kingdom (UK), and the rest of Europe
Asia Pacific - China, India, Japan, South Korea, Australia, Rest of APAC
Rest of the world - Nigeria, South Africa, the Middle East, Latin America, and other countries 

Key Company Profiles

This report presents detailed profiles of key companies in the Steam Turbine industry, such as Siemens Energy, Mitsubishi Heavy Industries, GE (General Electric)Steam Power, MAN Energy Solutions, Bharat Heavy Electricals Limited, Kawasaki Heavy Industries, etc. In general, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.

Competitive Landscape

The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.

The study also discusses the strategies adopted by leading players in the industry.

Executive Summary

The executive summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.

The report begins with an Executive Summary chapter and ends with Conclusions and Recommendations.