Steam Turbine Market Industry: Market Size & Forecast 2026

Steam turbines remain a cornerstone of global electricity generation, converting thermal energy from coal, natural gas, nuclear, biomass, and concentrated solar into mechanical power that drives electrical generators. The market encompasses new unit sales as well as an expanding aftermarket segment for maintenance, parts, and upgrades, with the aftermarket alone estimated at roughly $12.50 billion in 2025 and projected to reach around $16 billion by 2031. A significant installed base of turbines operating worldwide for decades continues to drive demand for modernization, efficiency improvements, and life-extension services.

• •Market valued at approximately $21.53 billion in 2025 across new equipment, services, and aftermarket.
• •Combined turbine systems including gas turbines represent a broader segment worth roughly $31 billion globally.
• •Aftermarket for parts, maintenance, and upgrades projected near $16 billion by 2031.

Rising global electricity demand, particularly in developing nations, sustains construction of new fossil-fuel and combined-cycle power stations that rely on steam turbine technology. Growing use of biomass and waste-to-energy facilities, which require steam Rankine-cycle systems, provides a renewable-linked demand channel. Additionally, operators of existing coal and nuclear plants are investing in turbine retrofits and efficiency upgrades to comply with emissions standards and extend asset lifespans.

• •Combined-cycle and biomass power plant deployments continue to drive new steam turbine orders.
• •Industrial process heat and district heating applications remain strong end markets in Europe and Asia.
• •Aging infrastructure in developed markets creates demand for retrofits, overhauls, and digital monitoring upgrades.

The market is typically divided by rated capacity into segments below 60 MW, 60-200 MW, and above 200 MW, with larger utility-scale units dominating new installations in Asia and the Middle East. Condensing, back-pressure, and extraction-condensing configurations serve distinct applications ranging from base-load power generation to cogeneration in refineries and chemical plants. North America and Europe show strong aftermarket activity driven by fleet modernization, while Asia-Pacific leads new unit shipments supported by capacity expansion in China, India, and Southeast Asia.

• •Above 200 MW utility-scale turbines dominate new orders for large power generation projects.
• •Asia-Pacific represents the largest regional market for new installations and capacity additions.
• •North American and European markets emphasize retrofits, digital upgrades, and service contracts.

What are the recent trends and outlook?

Integration of digital monitoring, predictive maintenance, and IoT sensors is transforming turbine operations, reducing unplanned downtime and optimizing efficiency across installed fleets. Manufacturers are developing designs compatible with hydrogen co-firing and carbon-capture-ready configurations to align with decarbonization commitments. Over the forecast period, the market is expected to grow at a measured pace of approximately 3.14% to 5% depending on scope, as demand for baseload power, industrial steam, and energy storage via concentrated solar and thermal storage systems sustains long-term order activity.

• •Digital twin and predictive-maintenance technologies are becoming standard on new and retrofitted turbine installations.
• •Hydrogen-compatible and carbon-capture-ready turbine designs are under active development by leading OEMs.
• •Concentrated solar power and thermal energy storage projects represent emerging application areas for steam turbine technology.