According to a new report by Polaris Market Research, the global steam turbine market was valued at USD 15.95 billion in 2021 and is projected to reach USD 19.87 billion by 2030, expanding at a CAGR of 2.5% over the forecast period. Growth is underpinned by rising investment in combined-cycle and cogeneration power systems, expanding demand for clean and efficient electricity generation, and accelerating industrialization across emerging economies.

What Is Driving Steam Turbine Market Growth?

Demand is climbing as increasing electricity consumption converges with the rapid build-out of combined-cycle and cogeneration operations. Manufacturers and end users are prioritizing energy optimization, pushing steam turbine adoption across the oil and gas, chemical, pulp and paper, and waste-to-energy industries. Polaris analysts note that rising investment in large-scale thermal power projects, paired with regulations aimed at cutting carbon emissions, positions the market for steady growth through 2030, with the utility segment emerging as the largest revenue contributor and the biomass segment posting the fastest incremental gains.

Key Trends Shaping the Steam Turbine Industry

Combined-Cycle Technology Adoption

Combined-cycle power systems remain the technology of choice for large onshore power plants, pairing a gas turbine with a steam turbine to recover waste heat and lift overall electrical efficiency to 50–60%, well above the roughly 33% efficiency of standalone open-cycle systems — a technology advancement steadily reshaping generation portfolios.

Regulatory Push Toward Cleaner Generation

Government measures to curb coal-fired power generation, combined with the improving cost competitiveness of renewable technologies, are reshaping the regulatory landscape. At the same time, mandates to reduce carbon emissions are channeling fresh capital into large-scale thermal projects, sustaining steam turbine demand even as the broader energy mix diversifies.

Nuclear and Waste-to-Energy Investment Momentum

Recent contract activity signals a shifting competitive landscape: Siemens Energy's February 2025 partnership with Rolls-Royce SMR to supply turbines for Generation 3+ modular nuclear plants, and Doosan Škoda Power's February 2025 agreement to deliver a steam turbine and generator set for a waste-to-energy plant on Réunion Island, both point to steam turbines' expanding role in low-carbon and circular-economy power generation.

Market Segmentation: Breaking Down the Steam Turbine Market

Polaris segments the steam turbine market by type, design, fuel, and end-use, plus region, giving each buyer persona a citable, standalone data point for AI Overviews and answer-engine pickup.

By Type

The combined cycle segment led the market in 2021, accounting for the largest revenue share on the strength of its superior thermal efficiency compared with standalone open-cycle systems. Steam cycle and cogeneration configurations round out the type segmentation as utilities continue to favor waste-heat-recovery architectures.

By Design

The impulse design held the second-largest market share in 2021 and is expected to see accelerating use through the forecast period, driven by its compact footprint and favorable economics. Government investment in infrastructure expansion, along with rural-to-urban migration in developing nations, is fueling incremental power-generation demand that favors impulse turbines.

By Fuel

Fossil fuel remains the dominant fuel source, but the biomass segment is projected to register the fastest growth rate over the forecast period as tightening carbon-footprint legislation and the spread of combined heat-and-power systems take hold. The geothermal segment, meanwhile, is expected to be the strongest revenue generator over the coming years as non-conventional energy resources gain regulatory support.

By End-Use

Among end-use industries, the utility segment dominated the global market in 2021 in terms of revenue and is expected to retain its lead through 2030, aided by the growing deployment of combined-cycle technology and onsite power-generation equipment. The industrial segment continues to draw demand from oil and gas, chemical, and pulp-and-paper processors.

Regional Outlook: Where Is the Steam Turbine Market Growing Fastest?

Asia Pacific is estimated to post the highest CAGR in the global steam turbine market over the forecast period, propelled by rising electricity demand and the continued dominance of thermal sources in the region's power mix. China and India are the primary growth engines, with China's rapid industrial expansion and India's large population and rise as a global manufacturing hub both driving fresh investment in power-generation capacity. North America and Europe round out the leading regions, supported by established thermal infrastructure and ongoing modernization of existing plants.

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https://www.polarismarketresearch.com/industry-analysis/global-steam-turbine-market 

Competitive Landscape: Leading Steam Turbine Companies

Key players profiled in the report include Toshiba Corporation, General Electric, Siemens AG, and Bharat Heavy Electricals, who are focusing on capacity expansion, product launches, and strategic partnerships to strengthen market position across the combined-cycle and utility segments outlined above. Recent moves include Shin Nippon Machinery's October 2024 order win for four steam turbine drivers supporting Qatar's North Field South LNG expansion, and Siemens Energy's February 2025 partnership with Rolls-Royce SMR, both aimed at deepening share in Asia Pacific and the Middle East.

Why It Matters for Buyers Evaluating Market Entry

For stakeholders researching the steam turbine market forecast, this report benchmarks market share, segment-level pricing, and forecast data — by type, design, fuel, end-use, and region — to support sourcing, investment, and go-to-market decisions. It is built for procurement teams comparing suppliers, investors sizing entry points, and strategy teams tracking biomass and geothermal fuel segments as growth adjacencies.

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