Gas Turbine Market Size, Share & Trends Analysis Report By Type (Combined Cycle, Open-Cycle), By Capacity (Up to 50 MW, 50 MW – 100 MW, Above 100 MW), By End-User (Aerospace, Marine, Power, Oil and Gas, Chemicals, Industrial, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Gas Turbine Market Size

The global gas turbine market size was valued at USD 21.5 billion in 2024 and is projected to grow from USD 22.6 billion in 2025 to reach USD 34.4 billion by 2033, exhibiting a CAGR of 5.3% during the forecast period (2025-2033).

A gas turbine is a combustion engine used in power generation plants to convert fuels, such as natural gas or liquid fuels, into mechanical energy. This mechanical energy drives a generator that produces electrical energy. The combustion turbine works by heating a mixture of air and fuel to extremely high temperatures, causing the turbine blades to spin and generate electricity. In many cases, gas turbines are combined with steam turbines in a combined-cycle power plant to maximize efficiency in power generation.

Gas turbines can be powered by a wide range of fuels, including Arabian Extra Light (AXL) crude oil, biodiesel condensate, Natural Gas Liquids (NGL), Dimethyl Ether (DME), ethane, heavy crude oil, hydrogen blends, kerosene (Jet A or Jet A-1), lean methane, Liquefied Natural Gas (LNG), Liquefied Propane Gas (LPG), methanol/ethanol (alcohol), naphtha, and natural gas (NG). However, around 90% of the combustion turbines worldwide are fueled by natural gas or LNG.

The efficiency of gas turbines generally ranges from 40% to 60%, demonstrating their effectiveness in converting fuel into usable power during continuous operation. Regular overhauling is required every 25,000 to 50,000 hours of service, depending on the application. This highlights the durability and efficiency of combustion turbines, making them suitable for a wide array of power-demanding applications.

Gas Turbine Market Trends

Increasing demand for efficient and reliable power generation solutions

The global market is driven by the rising demand for efficient and reliable power generation solutions amid increasing electricity needs. As residential and industrial sectors surge in energy consumption, alternative solutions like gas-based electricity plants are gaining prominence. These plants are vital for grid balancing, supported by domestic gas availability and competitive pricing, particularly as renewable energy storage remains under development.

Moreover, efforts to reduce greenhouse gas emissions are boosting the transition to gas-based power plants in both developed and emerging economies.

• For example, in the U.S., 9,132 MW of new natural gas-fired turbine capacity was recently added, including 7,376 MW in combined cycle plants and 1,756 MW in simple cycle installations.

Such developments highlight the growing importance of combustion turbines in meeting energy demands while advancing sustainability goals, positioning the market for significant growth globally.

Gas Turbine Market Growth Factors

Demand from the aviation industry and marine propulsion systems

Gas turbines are crucial in the aviation and marine industries due to their high power-to-weight ratio, compact design, and efficiency. Their application spans military fast patrol boats, corvettes, hovercraft, and commercial vessels, including luxury yachts and fast ferries, driving demand across these sectors. In the military, combustion turbines power rapid-response vessels, enhancing defense capabilities.

Moreover, in the commercial sector, major cruise lines like Carnival Corporation, Cunard Line, and Princess Cruises utilize gas turbines for propulsion in their fleets, providing high-speed, reliable power.

• A notable example is the Royal Caribbean Group, which employs GE Vernova LM2500 gas turbines in eight ships across their brands, making them one of the largest operators of this turbine globally. The continued adoption of combustion turbines in marine and aviation systems ensures their ongoing growth in these key industries.

Restraining Factors

Stringent norms aimed towards reducing greenhouse gaseous emissions

Stringent environmental regulations aimed at reducing greenhouse gas emissions pose a significant challenge to the widespread adoption of gas turbines in power generation. While gas-based power plants emit fewer greenhouse gases than traditional fossil fuel-based plants, they still contribute to environmental pollution. Natural gas, the primary fuel for these plants, contains methane and other hydrocarbons that, when burned, release nitrogen oxides (NOx) and sulfur oxides (SOx), which are key contributors to air pollution and greenhouse gas emissions.

In California, for example, stationary energy sources account for 21% of NOx emissions, with natural gas plants contributing about 1% of total NOx emissions. Despite being cleaner than coal, the combustion of natural gas still results in emissions that hinder the market growth of combustion turbines, especially in regions with strict environmental standards. These regulatory pressures challenge the industry's ability to expand, driving the need for cleaner and more sustainable alternatives.

Market Opportunities

Technological advancements aimed at enhancing the efficiency of gas turbines

Technological advancements are creating significant opportunities in the global market by enhancing efficiency and performance. Innovations in material science, such as superalloys and thermal barrier coatings (TBCs), allow turbines to operate at temperatures exceeding 1500°C, improving their efficiency and longevity. Moreover, additive manufacturing enables the production of complex turbine components, optimizing design, and reducing costs.

• A prime example is GE’s 9HA gas turbine, which incorporates advanced materials to achieve higher efficiency and lower emissions. This turbine’s ability to operate at higher temperatures boosts power output.

Furthermore, the integration of digital technologies, including digital twins and predictive maintenance, is revolutionizing turbine operations. Using sensors and data analytics, companies like Siemens can predict failures and optimize performance, reducing downtime and maintenance costs. These innovations are driving combustion turbines across industries, from power generation to aerospace, offering operational efficiency and cost-effectiveness.

Regional Insights

Asia-Pacific: Dominant region with majority market share

Asia-Pacific is emerging as the leading region in the global market, driven by the diverse applications of gas turbines across various sectors, including power generation and mechanical propulsion in aviation and marine systems. The region's rapidly growing industrial landscape, coupled with a booming population, is propelling the demand for alternative energy solutions such as gas-fired power plants. These plants offer advantages like quick start-up capabilities and seamless integration into power grids, enabling energy distribution across vast areas.

• For example, India, which holds approximately 6.7% of the global market share in electricity generation using natural gas, is actively working to increase natural gas's share in its energy mix to 15% by 2030. Currently, India operates 62 gas-based power plants with a total capacity of 23,845 MW. The country is set to further expand with 5,000 MW of new NTPC gas-based capacity to meet the projected peak demand of 230 GW by 2030.

North America: Rapidly growing region

North America, particularly the United States, plays a crucial role in the global market, with a booming aviation industry and rising energy demands. The U.S. is home to major aircraft manufacturers like Boeing, Airbus, Lockheed Martin, and Bombardier, all of which heavily rely on combustion turbines for propulsion and power. This wide adoption in aviation, combined with the growing use of combustion turbines in electricity generation, underscores the region's market potential.

• According to the U.S. Energy Information Administration, gas-fired power plants contribute approximately 4% to the nation’s total electricity generation capacity. This expanding usage in both aerospace and energy sectors signals strong future growth prospects for gas turbines in North America as the demand for efficient and reliable power generation continues to rise.

Countries Insights

• Germany - Germany plays a pivotal role in the European gas turbine market, with significant developments underway to transition towards cleaner energy. The country launched tenders in 2024 for 10GW of new gas-fired power plant capacity as part of its efforts to move away from fossil fuels and embrace clean hydrogen.

LEAG, a prominent German coal miner, plans to develop several gas-fired plants, including an 870 MW facility at Schwarze Pumpe. These initiatives drive the demand for combustion turbines and strengthen Germany's role in the growing energy sector.

• South Africa -South Africa is a key user of gas turbines in Africa, particularly for electricity production. Eskom, the largest power supplier on the continent, operates numerous combustion turbine plants, including new facilities in Atlantis and Mossel Bay. Siemens supports the installation of turbines, with capacities of 147 MW each, contributing to the country's expanding power infrastructure.

These projects are crucial for meeting South Africa's increasing energy demands and highlight the region's reliance on gas turbines for reliable electricity generation.

• Brazil -Brazil is witnessing significant growth in its gas turbine market, with Eneva, a major electricity and natural gas supplier, leading the way. Eneva has contracted GE for the supply of over half a dozen 7F combustion turbines for its plants in Maranhão. The new reserve power plant at Azulão will also use the advanced 7HA.02 combustion turbine. These installations are central to Brazil's expanding energy infrastructure, providing reliable and efficient power generation to meet rising demand in the region.

• Saudi Arabia -Saudi Arabia is accelerating its decarbonization efforts with the help of advanced gas turbines. Mitsubishi Power supplied J-class gas turbines, known for their 64% efficiency, to power the SATORP Strategic Expansion Industrial Steam and Electricity Cogeneration Plant in Jubail.

This project is part of the Kingdom's broader strategy to reduce its carbon footprint and embrace cleaner energy sources. The integration of high-efficiency combustion turbines underscores Saudi Arabia's commitment to sustainable energy production while supporting its industrial expansion.

Gas Turbine Market Segmentation Analysis

By Type

Combined cycle gas turbines dominated the market with the largest revenue growth. Combined-cycle gas turbines (CCGT) utilize the exhaust heat from combustion turbines to generate steam via a heat recovery steam generator (HRSG), which is then used to power a steam turbine. Offshore CCGTs achieve an energy conversion efficiency of approximately 50%, while onshore CCGTs reach around 60%. CCGTs are widely used in marine propulsion and power generation, offering the advantage of lower emissions such as sulfur dioxide (SO2), nitrogen oxides (NOx), and carbon dioxide (CO2) compared to coal-fired plants.

They are also highly responsive to changes in electricity demand, making them ideal for peak-load power generation. Their ability to quickly ramp up in response to demand spikes ensures reliability in both base and peak load scenarios.

By Capacity

Upto 50 MW accounted for the major market share. Gas turbines with capacities ranging from 5-40 MW are crucial in various industries such as oil and gas, chemicals, paper production, and food processing. These small-capacity turbines are commonly used in mid-size power plants to cater to peak energy demands, industrial power production, and cogeneration systems.

They are particularly effective in balancing the intermittent nature of renewable energy sources like solar and wind, offering quick ramp-up capabilities for backup power. This flexibility makes small-capacity turbines a valuable solution for industries that require reliable, on-demand energy and helps stabilize power grids by supporting fluctuating energy supply.

By End-User

Power end-use accounts for the majority of market share. The power generation sector holds the largest market share for gas turbines, with demand expected to grow significantly. The global rise in electricity demand, driven by economic development, extreme weather conditions, and the increasing use of electricity-powered technologies such as electric vehicles (EVs) and heat pumps, is fueling the growth of combustion turbines.

Gas-fired power plants, utilizing natural or synthetic fuels, are key players in meeting this demand. According to the International Energy Agency (IEA), the global electricity demand is surging, especially in fast-growing economies in Asia, as well as gas-rich regions like Africa and the Middle East. These areas are expected to drive the demand for gas turbine-based power generation, offering an efficient solution to meet rising energy needs.

Company Market Share

Key market players in the gas turbine industry are heavily investing in research and development (R&D) to improve the efficiency of combustion turbines. These efforts focus on optimizing fuel utilization, enabling turbines to generate maximum power output with minimal fuel consumption. Alongside R&D, leading combustion turbine manufacturers are adopting strategic approaches such as technical collaborations, mergers, acquisitions, and partnerships to expand their market presence.

Moreover, many players are targeting untapped regions to increase their global footprint, leveraging their broad product portfolios to cater to diverse energy needs. These strategies enable companies to stay competitive, innovate continuously, and meet the rising demand for more efficient and sustainable power generation technologies.

Mitsubishi Power: Leading Company

Mitsubishi Power is a leading player in the global market and is known for its continuous innovation and development of high-efficiency turbines. The company has made significant strides in research and development, focusing on improving the performance and efficiency of gas turbines and related machinery.

One of its notable achievements is the development of the J-class turbine, which is the world’s first combustion turbine to achieve an efficiency level above 64%. This milestone positions Mitsubishi Power at the forefront of the industry, driving advancements in energy generation technologies and setting new standards for operational efficiency.

Recent Developments

• Mitsubishi Power secured its first order from the Saudi Arabian region for a J-class turbine to power the SATORP Strategic Expansion Industrial Steam and Electricity Cogeneration Plant in Jubail, located in Saudi Arabia's Eastern Province.
• The company also installed a 5,300 MW combined cycle power plant in Thailand. This project, a joint venture between Gulf Energy Development Public Company Limited and Mitsui & Co., Ltd., highlights Mitsubishi Power’s strong presence in Southeast Asia.
• Mitsubishi Power supplied M701F gas turbines and a steam turbine for the 500 MW gas turbine combined cycle (GTCC) power plant in Sarawak, Malaysia. The project was developed by Sinohydro Corporation Limited.
• Mitsubishi Heavy Industries (MHI), along with its Chinese partner Dongfang Turbine Co., Ltd., reached a significant milestone by delivering 150 gas turbines through its subsidiary Dongfang Electric Corporation in Deyang, Sichuan Province, China.

Mitsubishi Power also secured a combustion turbine supply order from Samsung C&T Corporation in Saudi Arabia. This includes the supply of M501JAC combined-cycle (CCGT) hydrogen-ready gas turbines for a new industrial steam and electricity co-generation plant.

Recent Developments

• June 2024- Siemens Energy secured a USD 1.5 billion contract for the delivery of advanced combustion turbine technology for two major combined-cycle power plants in Saudi Arabia: Taiba 2 and Qassim 2. These plants are among the largest, most modern, and most efficient combined-cycle power plants in the world, utilizing both steam and gas for power generation.
• January 2024 - GE Vernova and IHI Corporation signed a Joint Development Agreement (JDA) to develop a new gas turbine combustor capable of utilizing 100% ammonia as a viable fuel option for power generation. The combustor will be compatible with GE Vernova's 6F.03, 7F, and 9F combustion turbines, marking a major step toward cleaner energy solutions for the power industry.

Analyst Opinion

As per our analyst, the rapidly growing population and accelerating industrialization are fueling the demand for efficient and clean energy sources, significantly driving the adoption of gas turbines for power generation. Technological advancements in fuel types and turbine design aimed at improving efficiency are further propelling market growth.

Additionally, major economies' shift towards decarbonization and their efforts to reduce dependence on traditional fossil fuel-based plants to curb greenhouse gas emissions are playing a crucial role in the expansion of the combustion turbine market. Strategic technical collaborations and partnerships between industry players are also boosting their market presence.

However, challenges such as high initial investment costs, maintenance complexities, and the need for continuous technological upgrades to ensure competitiveness and efficiency pose hurdles to market growth. Moreover, the integration of combustion turbines with renewable energy sources remains a key challenge as the industry works to balance sustainability and energy security.