Gas turbine market seen reaching $25.4B by 2030

By AI, Created 11:46 AM UTC, May 27, 2026, /AGP/ – Allied Market Research projects the global gas turbine market will rise from $18.5 billion in 2020 to $25.4 billion by 2030, driven by electricity demand, cleaner power generation and distributed energy growth. Asia-Pacific led the market in 2020, while North America is expected to post the fastest growth through 2030.

Why it matters: - The gas turbine market sits at the intersection of rising electricity demand, grid reliability needs and lower-emission power generation. - Gas turbines are a key technology for utilities, industrial users and infrastructure operators that need flexible power with lower emissions than coal-fired systems. - The market’s growth matters because it tracks the shift toward cleaner energy systems without sacrificing baseload and backup capacity.

What happened: - Allied Market Research said the global gas turbine market was valued at $18.5 billion in 2020 and is projected to reach $25.4 billion by 2030. - The report forecasts a 3.3% CAGR from 2021 to 2030. - The report was released May 27, 2026. - A downloadable brochure and a purchase option for the full report are available online.

The details: - The market is being supported by higher electricity demand, rapid industrialization, distributed power generation growth and concerns about greenhouse gas emissions. - Technological gains in turbine efficiency and the shift from coal-based plants to gas-fired systems are creating additional demand. - Gas turbines convert fuel energy into mechanical energy and then electrical energy through compressed air, fuel ignition and spinning turbine blades. - Gas turbines are used in power generation, oil and gas, marine transportation, aerospace, manufacturing and process plants. - Gas turbines offer high efficiency, fast startup, lower emissions than coal-based systems and operational flexibility. - The combined cycle technology segment held more than three-fifths of the market in 2020. - Combined cycle systems capture waste heat from the gas turbine to drive a steam turbine, boosting efficiency and cutting fuel use. - The heavy-duty design segment also held more than three-fifths of global revenue in 2020. - Heavy-duty turbines are used in large-scale power generation and industrial operations because of their high power output, durability and lower investment costs. - The aero-derivative segment is expected to grow strongly because of demand for lightweight, flexible and fast-start systems. - By rating capacity, the above 300 MW segment held more than half of total revenue in 2020. - By application, power generation led with about 27.5% of total revenue in 2020. - The oil and gas sector uses gas turbines for mechanical drive, pumping, compression and electricity generation. - Aerospace and marine applications are also expanding, with aerospace expected to post the highest CAGR during the forecast period. - Asia-Pacific accounted for about 44.5% of global revenue in 2020. - North America is projected to register the highest CAGR through the forecast period. - The market faces pressure from natural gas price volatility, competition from solar and wind and high upfront installation costs. - COVID-19 reduced industrial activity, supply chains and energy demand, which weighed on market performance in 2020. - Major companies profiled include General Electric, Siemens, Bharat Heavy Electricals Limited, Capstone Green Energy, Kawasaki Heavy Industries, Mitsubishi Hitachi Power Systems, Wärtsilä and Caterpillar.

Between the lines: - The report points to a market that is not growing explosively, but remains strategically important as power systems shift away from coal. - Combined cycle and heavy-duty turbines remain the core of the market because utilities still want large, efficient and reliable generation assets. - The strongest growth opportunities appear to be tied to grid flexibility, distributed power and industrial backup applications rather than pure replacement demand. - Hydrogen-compatible turbines and low-emission combustion technologies could become a differentiator as decarbonization accelerates.

What’s next: - Demand is expected to stay supported by new electricity needs, coal plant retirements and investment in distributed energy systems. - Gas turbine makers are likely to keep focusing on efficiency improvements, digital monitoring, lower emissions and hydrogen compatibility. - Asia-Pacific should remain the largest regional market, while North America is positioned for the fastest growth. - The market is expected to remain a key part of global power infrastructure through 2030 and beyond.

The bottom line: - Gas turbines are still a steady-growth business, powered by the need for reliable electricity and cleaner thermal generation.