Industrial Gas Turbine Market: Growing Cogeneration Demand and Steel and Petrochemical Plant Decarbonization to Drive Market Growth

The global industrial gas turbine market was valued at over USD 9.4 billion in 2025 and is projected to register a compound annual growth rate of approximately 6.4% from 2026 to 2035. The market covers small to medium-frame gas turbines, typically below 100 megawatts, used in cogeneration, mechanical drive, and distributed industrial power applications, serving steel, petrochemical, refining, and manufacturing customers that require both electricity and process steam at a single facility. Demand has been supported in particular by industrial decarbonization initiatives, as energy-intensive manufacturers replace older boiler-based generation systems with higher-efficiency gas turbine combined-cycle configurations to reduce both fuel consumption and emissions.

The market is expected to grow steadily through the forecast period, owing to continued industrial energy efficiency upgrades, growing demand for blast furnace gas and other byproduct-fired turbine technology in the steel sector, and sustained cogeneration investment across petrochemical and manufacturing facilities in Asia. Manufacturers have continued to introduce new turbine models specifically designed to replace conventional boiler-turbine-generator configurations with more efficient combined-cycle alternatives, reflecting growing customer demand for technology that can meaningfully reduce operating costs and emissions at existing industrial sites.

Executive Snapshot

What is the size and growth rate of the global industrial gas turbine market?
The market was valued at over USD 9.4 billion in 2025 and is projected to grow at approximately a 6.4% compound annual growth rate from 2026 to 2035, supported by industrial decarbonization initiatives and cogeneration demand.

How are steel producers using industrial gas turbines to improve energy efficiency and reduce emissions?
Steel manufacturers increasingly adopt blast furnace gas-fired turbine technology, such as the M100S model from Mitsubishi Power, as a replacement for conventional boiler-based power generation at steel plants.

What role do industrial gas turbines play in cogeneration applications specifically?
Cogeneration facilities use industrial gas turbines to simultaneously generate electricity and process steam, an application served by manufacturers including Mitsubishi Power through models such as the H-25, supplied for petrochemical facility conversions in Taiwan.

How significant is mechanical drive demand within the broader industrial gas turbine market?
Mechanical drive applications, including compressor and pump drive systems for oil and gas processing facilities, continue to represent an established demand category served by manufacturers including Solar Turbines.

What proportion of the global blast furnace gas-fired turbine market does the leading supplier control?
One leading manufacturer, Mitsubishi Power, holds a global market share exceeding 60% for blast furnace gas-fired turbines specifically, reflecting strong specialization in this application.

What technical standards apply to industrial gas turbine design, emissions, and safety requirements globally?
Design, emissions, and safety requirements are shaped in part by standards coordinated through the International Electrotechnical Commission, applicable across industrial applications worldwide.

Market Dynamics: Industrial Gas Turbine Market

Steel industry decarbonization continues to drive adoption of byproduct gas-fired industrial turbine technology. Due to this, demand for blast furnace gas-fired turbines, including the M100S model from Mitsubishi Power, continues to grow as steel producers replace conventional boiler-based generation.
Petrochemical facility conversions from coal and oil-fired boilers to gas-fired cogeneration continue to support order volume. Conversion projects, including those served by Mitsubishi Power’s H-25 turbine for a Taiwan petrochemical facility, continue to support steady industrial turbine demand.
Mechanical drive applications continue to represent a stable, established demand category independent of cogeneration trends. Compressor and pump drive applications served by suppliers including Solar Turbines continue to provide consistent baseline demand from oil and gas processing customers.
Manufacturers continue introducing new turbine models specifically designed for boiler replacement applications. New product development from Mitsubishi Power continues to target customers seeking to replace legacy boiler-turbine-generator configurations with more efficient combined-cycle alternatives.
Regional manufacturing presence in China and other major industrial markets continues to support localized turbine supply. Local subsidiary and licensed manufacturing arrangements, including those used by Mitsubishi Power in China, continue to support efficient regional supply chain execution for industrial customers.
Continued emphasis on energy efficiency and emissions reduction is broadening the addressable industrial customer base. Growing manufacturer focus on efficiency and emissions improvement continues to expand the range of industrial customers considering gas turbine combined-cycle conversion.

Market Segmentation: Industrial Gas Turbine Market

By Fuel Type

Natural Gas
Liquid Fuels (Diesel/Kerosene/LPG)
Other Fuel Types (Hydrogen, Biogas)

By Product

Aero-derivative
Heavy duty

By Technology

Open cycle
Combined cycle

By Application

Power generation
Oil & gas
Other manufacturing

By Capacity

1-2 MW
2-5 MW
5-7.5 MW
7.5-10 MW
10-15 MW
15-20 MW
20-30 MW
30-40 MW
40-100 MW
100-150 MW
150-300 MW
300+ MW

By Geography

North America: United States, Canada, and Mexico
Europe: Germany, U.K., France, Italy, Spain, Russia, Benelux, Nordics, and Rest of Europe
Asia Pacific: China, Japan, India, South Korea, Australia, New Zealand, Taiwan, South East Asia, and Rest of Asia Pacific
Latin America: Brazil, Argentina, Columbia, Chile, Peru, and Rest of Latin America
Middle East: Saudi Arabia, United Arab Emirates, Oman, Qatar, and Rest of Middle East
Africa: Nigeria, Egypt, Ethiopia, South Africa, and Rest of Africa

Key Growth Drivers: Industrial Gas Turbine Market

Continued industrial decarbonization initiatives are driving replacement of legacy boiler-based generation systems. Due to this, demand for combined-cycle conversion technology from Mitsubishi Power continues to grow, and the market is expected to grow on the back of sustained industrial efficiency upgrades through the forecast period.
Growing steel sector adoption of byproduct gas-fired turbine technology is expanding a specialized demand category. Continued adoption of blast furnace gas-fired turbines continues to support sustained order growth from steel sector customers.
Sustained petrochemical and refining sector cogeneration investment continues to support steady industrial turbine demand. Ongoing facility conversion projects continue to support consistent demand from petrochemical and refining customers across Asia.
Continued mechanical drive demand from oil and gas processing facilities is supporting a stable baseline market. Established compressor and pump drive applications served by Solar Turbines continue to provide steady demand independent of broader cogeneration trends.
Continued new product development targeting boiler replacement applications is expanding addressable market opportunities. Ongoing innovation from manufacturers including Mitsubishi Power continues to broaden the range of industrial facilities for which gas turbine conversion is economically viable.
Growing regional manufacturing localization continues to support cost-competitive supply to major industrial markets. Continued investment in regional and licensed manufacturing capacity continues to support efficient supply chain execution across major industrial demand centers.

Regional Outlook: Industrial Gas Turbine Market

Asia-Pacific: Largest regional market, supported by extensive steel, petrochemical, and manufacturing demand, with strong regional presence from Mitsubishi Power.
North America: Significant mechanical drive and cogeneration demand, supported by suppliers including Solar Turbines and GE Vernova.
Europe: Established cogeneration and industrial energy efficiency demand, supported by continued investment from Siemens Energy.

Competitive Landscape: Industrial Gas Turbine Market

Notable key players include Siemens Energy, Solar Turbines, Mitsubishi Power, GE Vernova, Kawasaki Heavy Industries, and Baker Hughes.

Recent Developments

Mitsubishi Power announced in September 2025 its first order for the newly developed M100S blast furnace gas-fired gas turbine combined-cycle system, supplied to Jiangsu Lihuai Steel in China as a replacement for conventional boiler-based power generation.
Mitsubishi Power announced in November 2025 a second order for an H-25 gas turbine to power a high-efficiency natural gas-fired cogeneration facility at Chang Chun Petrochemical’s Miaoli factory in Taiwan, converting the site from heavy oil and coal-fired boilers.
Mitsubishi Power confirmed that its M100S turbine, fired by blast furnace gas with co-firing capability for other steel plant byproduct gases, was developed by combining large-scale blast furnace gas turbine technology with its state-of-the-art JAC natural gas turbine platform.

Consultant POV

The industrial gas turbine market continues to be shaped significantly by decarbonization pressure on energy-intensive sectors, particularly steel and petrochemicals, where manufacturers are increasingly replacing decades-old boiler-based generation with more efficient combined-cycle alternatives. Specialized byproduct gas-fired turbine technology has emerged as a particularly active growth category, reflecting close collaboration between manufacturers and large industrial customers to address sector-specific fuel and emissions requirements. Mechanical drive applications continue to provide a stable, less cyclical demand base alongside this more dynamic cogeneration growth. Overall, the market is expected to grow due to continued industrial decarbonization initiatives, growing steel sector adoption of byproduct-fired turbines, and sustained cogeneration investment across petrochemical and manufacturing facilities in Asia.

About Constancy Researchers Private Limited

Constancy Researchers is a global market intelligence and strategic advisory firm helping organizations navigate complex markets and make high-impact decisions with confidence. In an environment defined by rapid technological change, shifting demand patterns, and evolving competitive dynamics, we provide clarity where it matters most—at the point of decision-making. By combining deep industry understanding, rigorous analytics, and structured thinking, we enable leadership teams to identify opportunities, mitigate risks, and build strategies that drive sustainable growth.