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Global Steam Turbine Market: Rising Combined-Cycle Retrofits and Growing Nuclear SMR Demand to Drive Market Growth

The global steam turbine market was valued at over USD 17.8 billion in 2025 and is projected to register a compound annual growth rate of approximately 2.8% from 2025 to 2035. The market covers steam turbines used in coal, nuclear, combined-cycle gas, biomass, and concentrated solar power applications, sold to utilities and independent power producers primarily as part of larger power plant projects rather than as standalone equipment purchases. Combined-cycle and gas-fired steam turbine applications represent the fastest-growing sub-segment, supported by continued conversion of coal-fired plants to cleaner combined-cycle configurations and the broader gas turbine order surge that has accompanied rising electricity demand from data centers.

The market is expected to grow at a comparatively modest pace through the forecast period relative to gas and wind turbine categories, owing to the market’s greater maturity and its continued exposure to coal-fired plant retirements in several developed markets. Growth is nonetheless supported by emerging demand from small modular nuclear reactor projects, continued combined-cycle retrofit activity, and sustained large-scale thermal power investment across Asia-Pacific and the Middle East. Asia-Pacific accounted for the largest share of the market in 2024, driven by continued coal, gas, and biomass-fired power plant expansion in China and large-scale thermal projects in India.

Executive Snapshot

What is the size and growth rate of the global steam turbine market?
The market was valued at over USD 17.8 billion in 2025 and is projected to grow at approximately a 2.8% compound annual growth rate from 2025 to 2035, a comparatively modest rate reflecting the category’s overall maturity.

Why is the gas-fired and combined-cycle steam turbine sub-segment growing faster than the broader market?
Combined-cycle and gas-fired steam turbines represent the fastest-expanding sub-segment, supported by continued coal-to-gas plant conversion activity and large combined-cycle contracts such as those awarded to Siemens Energy for projects in Saudi Arabia.

How is small modular nuclear reactor development creating new demand for steam turbine technology?
An exclusive partnership announced in 2025 between Siemens Energy and Rolls-Royce Small Modular Reactors established Siemens Energy as the steam turbine and generator supplier for a planned fleet of 470-megawatt nuclear power plants.

Which manufacturers hold the largest combined share of the global steam turbine market?
The five largest manufacturers, including Siemens Energy, GE Vernova, and Mitsubishi Power, together account for approximately 48% of total market share as of 2025.

Which region currently leads the global steam turbine market, and which is growing fastest?
Asia-Pacific held the largest regional market share as of 2024, driven by continued large-scale thermal power expansion in China and India, while North America is expected to register the fastest growth, supported by a shift toward cleaner combined-cycle generation.

What technical standards govern steam turbine design, safety, and performance testing globally?
Design and safety requirements are shaped in part by standards coordinated through the International Electrotechnical Commission, applicable across coal, nuclear, and combined-cycle steam turbine applications.

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Market Dynamics: Global Steam Turbine Market

  • Combined-cycle and gas-fired steam turbine demand continues to outpace the broader steam turbine market average. Due to this, large contracts such as Siemens Energy’s USD 1.6 billion award for Saudi Arabia’s Rumah 2 and Nairyah 2 combined-cycle projects continue to support faster growth in this sub-segment than the overall market.
  • Small modular nuclear reactor development is emerging as a new long-term demand source for steam turbine technology. The exclusive partnership between Siemens Energy and Rolls-Royce SMR continues to position steam turbine suppliers for a potential new wave of nuclear plant construction beyond traditional large-scale reactors.
  • Coal-to-gas conversion projects continue to support retrofit demand for combined-cycle steam turbine equipment. Continued plant conversion activity, including retrofit contracts secured by Mitsubishi Power, continues to support demand from operators transitioning away from coal-fired generation.
  • Asia-Pacific continues to account for the largest share of global steam turbine demand by region. Continued large-scale thermal power expansion in China and India continues to anchor the region’s position as the largest single steam turbine market globally.
  • Digital monitoring and predictive maintenance platforms continue to be introduced for combined-cycle plant operations. Digital platform launches tailored for combined-cycle plant analytics continue to expand asset reliability and operational efficiency offerings within the broader steam turbine services category.
  • Concentrated solar power and geothermal applications continue to represent a smaller but technically distinct demand category. Specialized molten salt and high-efficiency geothermal steam turbine applications, including projects commissioned by Shanghai Electric, continue to support round-the-clock renewable power generation use cases.

Market Segmentation: Global Steam Turbine Market

By Design
  • Reaction
  • Impulse
By Exhaust
  • Condensing
  • Non-condensing
By Technology
  • Steam cycle
  • Combined cycle
  • Cogeneration
By Fuel
  • Fossil fuel
  • Biomass
  • Geothermal
By Capacity
  • ≤ 3 MW
  • > 3 MW – 100 MW
  • 100 MW – 300 MW
  • 300MW-600 MW
  • Above 600 MW
By End Use
  • Industrial
    • Refinery
    • Chemical plant
    • Sugar plant
    • Pulp & paper
    • Others 
  • Utility
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: Global Steam Turbine Market

  1. Continued combined-cycle and coal-to-gas conversion activity is sustaining demand for gas-fired steam turbine equipment. Due to this, large contracts including Siemens Energy’s Saudi combined-cycle award continue to support growth in this sub-segment, and the market is expected to grow on the back of continued plant conversion activity through the forecast period.
  2. Emerging small modular nuclear reactor development is creating a new long-term demand category for steam turbine suppliers. The Siemens Energy and Rolls-Royce SMR partnership continues to position steam turbine technology for a potential future wave of modular nuclear construction.
  3. Continued large-scale thermal power investment across Asia-Pacific is sustaining the region’s leading market position. Ongoing coal, gas, and biomass-fired power plant expansion in China and India continues to anchor sustained regional demand.
  4. Growing retrofit and modernization demand for aging thermal fleets is supporting service and upgrade-related revenue. Continued retrofit activity from manufacturers including Mitsubishi Power continues to extend the operating life and efficiency of existing thermal power assets.
  5. Continued digital platform investment is supporting improved combined-cycle plant reliability and operational analytics. New digital monitoring platform introductions continue to expand predictive maintenance capability across combined-cycle steam turbine installations.
  6. Sustained niche demand from concentrated solar power and geothermal applications continues to support specialized turbine categories. Continued project activity from suppliers including Shanghai Electric continues to support specialized molten salt and geothermal steam turbine demand.

Regional Outlook: Global Steam Turbine Market

  • Asia-Pacific: Largest regional market, accounting for over 46% of global share in 2024, driven by continued large-scale thermal expansion in China and India.
  • Europe: Significant established market, with strong activity from Siemens Energy across combined-cycle and emerging nuclear SMR applications.
  • North America: Fastest-growing regional market, supported by a continued shift toward cleaner, more efficient combined-cycle generation and retrofit activity from GE Vernova.

Competitive Landscape: Global Steam Turbine Market

Notable key players include Siemens Energy, GE Vernova, Mitsubishi Power, Doosan Škoda Power, Toshiba Energy Systems, and Shanghai Electric.

Recent Developments

  • Siemens Energy entered an exclusive partnership in 2025 with Rolls-Royce Small Modular Reactors, establishing Siemens Energy as the supplier of steam turbines, generators, and auxiliary systems for a planned fleet of 470-megawatt nuclear power plants.
  • Siemens Energy secured a USD 1.6 billion contract in 2025 to deliver four SST6-5000 steam turbines, six SGT6-9000HL gas turbines, and associated generators for the Rumah 2 and Nairyah 2 combined-cycle power plants in Saudi Arabia, adding approximately 1.8 GW of capacity designed for future carbon capture integration.

Consultant POV

The steam turbine market is growing at a notably slower pace than gas or wind turbine categories, reflecting its overall maturity and continued exposure to coal-fired plant retirements in several developed markets. Within that modest overall growth rate, however, two distinct sub-segments stand out: combined-cycle and coal-to-gas conversion projects, which continue to expand faster than the category average, and small modular nuclear reactor development, which represents an emerging long-term demand source that did not meaningfully exist for steam turbine suppliers until quite recently. Asia-Pacific remains the largest regional market by a wide margin, while North America is positioned for the fastest growth as the region continues shifting toward combined-cycle generation. Overall, the market is expected to grow due to continued combined-cycle retrofit activity, emerging SMR-related demand, and sustained large-scale thermal investment across Asia-Pacific and the Middle East.

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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.

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