Gas turbines are a critical component of modern power generation and industrial energy systems. Known for their high efficiency, operational flexibility, and ability to provide rapid power output, gas turbines play an essential role in meeting growing global electricity demand while supporting the transition toward cleaner energy sources.

The global gas turbine industry was valued at US$ 17.1 billion in 2024. Supported by rising power demand, expansion of gas-fired power plants, and increasing integration of renewable energy, the market is estimated to grow at a CAGR of 5.4% from 2025 to 2035, reaching US$ 29.8 billion by the end of 2035.

Global Gas Turbine Market Overview

A gas turbine is an internal combustion engine that converts natural gas or other fuels into mechanical energy, which is then used to generate electricity or power industrial equipment. Gas turbines are widely used in:

• Power generation plants
• Oil & gas facilities
• Aviation and marine propulsion
• Industrial manufacturing operations

Their ability to start quickly and adjust output rapidly makes them particularly valuable for balancing electricity grids with high renewable energy penetration.

Key Market Growth Drivers

Rising Global Electricity Demand

Urbanization, industrial growth, and population expansion are driving sustained increases in electricity consumption worldwide. Gas turbines provide reliable and scalable power generation, especially in regions experiencing rapid economic development.

Shift Toward Cleaner Fossil Fuel Alternatives

Natural gas emits significantly fewer greenhouse gases compared to coal and oil. As countries seek to reduce carbon emissions without compromising energy security, gas turbines are increasingly deployed as a lower-emission alternative in power generation.

Integration with Renewable Energy

Gas turbines are often used as backup or peaking power sources to complement intermittent renewable energy sources such as wind and solar. Their fast ramp-up capability helps maintain grid stability and reliability.

Expansion of Combined Cycle Power Plants

Combined cycle gas turbine (CCGT) plants achieve higher efficiency by utilizing waste heat to generate additional electricity. The growing adoption of CCGT technology is a major contributor to market growth.

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Market Segmentation

By Type

• Aeroderivative
• Heavy Duty Gas Turbine

By Output Range

• 1 to 40 MW
• 40 MW to 120 MW
• 120 MW and Above

By Fuel Type

• Diesel fuel
• Heavy fuel
• Dual fuel
• Natural gas

By Application

• Power generation
• Mechanical drive
• Others

Regional Market Insights

Asia Pacific dominates the global gas turbine market, driven by rapid industrialization, expanding electricity infrastructure, and increasing investments in gas-based power generation in countries such as China, India, and Southeast Asia.

North America represents a mature but significant market, supported by shale gas availability, modernization of aging power plants, and increased deployment of combined cycle systems.

Europe continues to invest in high-efficiency gas turbines as part of its strategy to phase out coal while maintaining grid stability during renewable energy expansion.

Competitive Landscape

• General Electric
• Siemens
• Mitsubishi Hitachi Power Systems, Ltd
• Ansaldo Energia
• Kawasaki Heavy Industries Ltd
• Capstone Turbine Corporation
• MAN Energy Solutions
• OPRA Turbines
• Caterpillar
• Centrax Gas Turbines
• Bharat Heavy Electricals Limited
• Solar Turbines Incorporated
• Shanghai Electric
• IHI Corporation
• Destinus Energy

Emerging Trends in the Gas Turbine Market

• Hydrogen-Ready Gas Turbines: Development of turbines capable of operating on hydrogen blends to reduce carbon emissions
• Digitalization & Predictive Maintenance: Use of AI and IoT to enhance performance monitoring and reduce downtime
• High-Efficiency Materials: Advanced alloys and cooling technologies to improve durability and efficiency
• Decentralized Power Generation: Growing use of gas turbines in distributed energy systems and microgrids

Challenges and Restraints

Despite strong demand, the gas turbine market faces challenges such as:

• Volatility in natural gas prices
• Increasing competition from renewable energy technologies
• Stringent emission regulations in developed regions

However, technological innovation and fuel flexibility are helping mitigate these challenges.

Frequently Asked Questions (FAQs)

1. What is the current size of the global gas turbine market?
The market was valued at US$ 17.1 billion in 2024.

2. What is the growth forecast for the gas turbine market?
The market is projected to grow at a CAGR of 5.4% from 2025 to 2035, reaching US$ 29.8 billion by 2035.

3. Why are gas turbines important in power generation?
They provide efficient, flexible, and reliable power, especially for peak load and grid balancing applications.

4. Which region leads the gas turbine market?
Asia Pacific leads due to rapid infrastructure development and increasing electricity demand.

5. What role do gas turbines play in the energy transition?
Gas turbines act as a bridge technology, supporting renewable integration while reducing emissions compared to coal-based power.