Steam Turbine Market Size, Share, and Growth Analysis, By Type (Steam Cycle (Conventional), Combined Cycle), By Rated Capacity (1-120 Mw, 121-350 Mw), By Exhaust Type, By Application, By Region - Industry Forecast 2025-2032

Steam Turbine Market size was valued at USD 23.5 billion in 2023 and is poised to grow from USD 24.58 billion in 2024 to USD 35.23 billion by 2032, growing at a CAGR of 4.6% during the forecast period (2025-2032).

The increasing commissioning of nuclear power plants is set to drive demand for steam-generating turbines, particularly as the U.S. emerges as the largest market in North America by 2022, surpassing Canada. The rise of combined-cycle natural gas power plants is a key factor contributing to this demand, as they are favored for their reliability. U.S. policymakers are focused on creating sustainable energy solutions, which will likely enhance steam turbine installations. Furthermore, the government's emphasis on energy-efficient and environmentally friendly power generation supports the growth of combined heat and power (CHP) systems. However, the steam turbine sector faces challenges, including parts shortages and delays from the COVID-19 pandemic, leading to reduced turbine orders. Manufacturers are adapting by utilizing digital tools and safety measures to maintain operations.

Top-down and bottom-up approaches were used to estimate and validate the size of the Steam Turbine market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Steam Turbine Market Segments Analysis

Globalsteam turbine marketis segmented by Type, Rated Capacity, Exhaust Type, Application and region. Based on Type, the market is segmented into Steam Cycle (Conventional), Combined Cycle and Cogeneration. Based on Rated Capacity, the market is segmented into 1-120 Mw, 121-350 Mw, 351-750 Mw and Above 750 Mw. Based on Exhaust Type, the market is segmented into Condensing and Non-Condensing. Based on Application, the market is segmented into Coal, Biomass, Nuclear and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Steam Turbine Market

The global demand for electricity is experiencing a continual upward trend, driven by factors such as population growth, urbanization, and industrial advancement. In this context, steam turbines are essential for power generation, especially within thermal power plants, where they effectively transform thermal energy into electrical energy. This escalating need for energy creates a robust market environment for steam turbines, making their role increasingly vital as societies seek efficient solutions to meet the growing electricity requirements. As the quest for reliable power sources intensifies, the steam turbine market stands to benefit significantly from these ongoing developments.

Restraints in the Steam Turbine Market

The steam turbine market faces notable challenges due to the substantial capital requirements associated with installations, which encompass equipment, infrastructure, and setup costs. This high level of initial investment often acts as a significant obstacle, especially for smaller power generation projects or in regions where financial resources are limited. As a result, the capital-intensive nature of steam turbine systems can hinder the expansion and development of the market, deterring potential investors and slowing progress for initiatives that could otherwise benefit from steam turbine technology. Consequently, this restraint impacts overall growth prospects within the industry.

Market Trends of the Steam Turbine Market

The global steam turbine market is experiencing a significant upward trend driven by the increasing focus on renewable energy sources, as nations aim to lower carbon emissions and combat climate change. Steam turbines are integral to renewable applications, particularly in concentrated solar power (CSP), biomass, geothermal energy, and waste-to-energy facilities. This growing alignment with sustainable practices is fostering heightened demand for advanced steam turbines capable of efficiently integrating with these clean energy systems. As investments in renewable projects surge worldwide, the steam turbine market is poised for robust growth, highlighting its pivotal role in the transition to a greener energy landscape.