Steam Turbines Market: Market Size & Forecast 2026

Steam turbines are critical rotating equipment that convert steam pressure into shaft power, serving utility-scale power plants, combined heat and power facilities, and a wide range of industrial processes including refineries, chemical plants, and pulp and paper mills. The global market was valued at approximately USD 18.1 billion in 2025, with projections to reach roughly USD 22 to USD 24 billion by 2030 depending on the forecast model. This represents a moderate-growth market when compared to the broader combined gas and steam turbine sector, which was estimated at around USD 31 billion in 2025.

• •Market size in 2025: ~USD 18.1 billion; expected to reach ~USD 22-24 billion by 2030
• •Combined gas and steam turbine market valued at ~USD 31 billion in 2025
• •Growth rates across reports range from ~2.9% to ~5.0% CAGR, reflecting differing assumptions on energy transition speed

Rising electricity demand in developing nations, particularly across Asia-Pacific, is a primary catalyst as countries build and expand baseload and mid-merit power infrastructure. Industrial users in oil refining, chemicals, and manufacturing sectors continue to require steam turbines for process steam, cogeneration, and waste-heat recovery applications. Meanwhile, aging turbine fleets in developed economies are being retrofitted or replaced to meet higher efficiency standards and comply with emissions regulations.

• •Electrification and urbanization in emerging economies drive new power generation capacity requiring steam turbines
• •Industrial process steam demand from refineries, chemical plants, and pulp/paper mills supports steady replacement demand
• •Retrofitting aging plant infrastructure for efficiency gains and emissions compliance fuels aftermarket and upgrade business

The market is typically segmented by rated capacity into small (under 200 MW), medium (200-500 MW), and large (over 500 MW) turbines, with utility-scale generation accounting for the largest share by value. Geographically, Asia-Pacific dominates the market, driven by coal-plant retirements paired with renewable integration, while Europe's stringent decarbonization regulations accelerate fleet modernization. North America sees demand from combined heat and power expansion, particularly in district heating and industrial co-generation projects, while the Middle East and Africa represent a smaller but growing market for new capacity additions.

• •Asia-Pacific leads the global market, supported by expanding power infrastructure and coal-to-renewables transition
• •Europe's stringent emissions policies and aging infrastructure drive replacement and upgrade demand
• •North America sees growth from CHP adoption, while emerging markets in Middle East and Africa add new capacity

What are the recent trends and outlook?

Digitalization is transforming the market, with predictive maintenance powered by sensors and machine learning helping operators extend asset life and reduce unplanned downtime. Retrofits and upgrades to existing turbine fleets are expected to outpace new installations in many mature markets, as decarbonization goals make greenfield fossil-fuel projects increasingly difficult to permit. At the same time, turbine manufacturers are developing hydrogen-compatible and carbon-capture-ready designs to position their products for a lower-carbon future.

• •Digital twin technology and AI-driven predictive maintenance are becoming standard in the aftermarket
• •Retrofit and upgrade demand is projected to exceed new build in developed markets through 2030
• •Hydrogen-compatible and carbon-capture-ready turbine designs are under active development by leading manufacturers