Thermal Power Steam Turbine Market Size, Share, Growth, and Industry Analysis, By Types (Non-Condensing Steam Turbine,Condensing Steam Turbine), By Applications Covered (Closed Thermal Power Plant,Open-air Thermal Power Plant), Regional Insights and Forecast to 2033

Thermal Power Steam Turbine Market Size

The global thermal power steam turbine market was valued at USD 6.23 Billion in 2024 and is expected to reach USD 6.52 Billion by 2025. The market is forecasted to grow to USD 9.34 Billion by 2033, exhibiting a compound annual growth rate (CAGR) of 4.6% during the forecast period [2025–2033]. The demand is driven by increasing power generation needs, retrofitting of aging thermal plants, and advancements in turbine efficiency. The move toward cleaner and more efficient combined-cycle systems is further supporting market expansion, especially in developing economies.

In 2024, the United States added around 3,200 megawatts (MW) of new thermal steam turbine capacity, contributing approximately 18% of global capacity additions that year. Nationally, operational capacity exceeded 95,000 MW, with natural gas combined-cycle plants making up 63% of new installations. Over 40 turbine upgrade projects were undertaken across U.S. plants to boost efficiency and reliability, with states like Texas and Florida leading in turbine-related activity.

Key Findings

• Market Size: Valued at 5.2 Billion in 2025, expected to reach 9.34 Billion by 2033, growing at a CAGR of 4.6%.
• Growth Drivers: 48% grid reliability demand, 58% capacity via condensing turbines, 44% turbine upgrades in Asia
• Trends: 60% include real-time diagnostics, 42% retrofits in India/China, 33% hybrid project adoption
• Key Players: General Electric, Siemens, Dongfang Turbine, Shanghai Electric, Mitsubishi Power
• Regional Insights: Asia-Pacific 42%, North America 23%, Middle East & Africa 16%, Europe 19%. Each region reflects infrastructure maturity and power mix
• Challenges: 25% drop in coal project financing, 30% face regulatory barriers, 22% competition from gas turbines
• Industry Impact: 29% deployment of AI turbines, 18% rise in lifecycle retrofits, 24% improved turbine durability via materials
• Recent Developments: 19% modular turbine orders, 21% new AI systems, 20% utility retrofits

The thermal power steam turbine market plays a critical role in global electricity generation, serving as the backbone of fossil-fuel-based power plants. With the ongoing modernization of aging thermal facilities and expansion in industrial and grid-scale energy projects, the thermal power steam turbine market continues to experience steady demand. Steam turbines are valued for their high efficiency, long operational lifespan, and ability to support baseload power generation. Technological upgrades, emission reduction mandates, and strategic investments in energy infrastructure across Asia-Pacific and the Middle East are further influencing market performance.

Thermal Power Steam Turbine Market Trends

The thermal power steam turbine market is undergoing technological transformation to improve efficiency and environmental compliance. One major trend is the retrofitting of existing power plants. In 2024, nearly 42% of steam turbine upgrades globally were directed at thermal power stations, particularly in India and China. These retrofits are primarily aimed at increasing operational efficiency, reducing emissions, and extending plant life.

High-capacity turbines above 300 MW remain the most demanded, accounting for 55% of new installations globally. However, small-scale turbines under 100 MW are gaining traction in developing countries for distributed thermal power applications. Integration with digital monitoring systems is another key trend. Over 60% of newly commissioned turbines in 2024 featured real-time performance analytics, vibration monitoring, and AI-based fault detection.

Hybridization of thermal power plants is emerging, where steam turbines are integrated with renewable sources. For example, thermal-solar hybrid projects in the Middle East are being designed with multi-stage steam turbines to enhance energy output during peak hours. Additionally, OEMs are developing modular turbine designs to reduce installation time and cost. The demand for customized steam turbine solutions tailored to plant-specific parameters is also rising, especially among independent power producers.

Thermal Power Steam Turbine Market Dynamics

The thermal power steam turbine market is driven by infrastructure expansion, energy reliability concerns, and decarbonization strategies. Countries with large-scale coal-fired and gas-based power plants are focusing on lifecycle extension through turbine upgrades and maintenance. Government mandates on thermal efficiency are creating demand for high-performance steam turbines with improved thermal integration.

On the flip side, the market faces growing pressure from environmental policies aimed at reducing carbon emissions. Investments are increasingly funneled into cleaner alternatives, forcing traditional thermal plants to justify their economic and environmental viability. However, with grid stability and peak load requirements still reliant on thermal generation in many regions, steam turbines remain indispensable.

OPPORTUNITY

Technological advancements in high-efficiency turbines and hybrid systems

The thermal power steam turbine market is capitalizing on innovations that improve thermal cycle efficiency and reduce fuel consumption. In 2024, turbine manufacturers launched ultra-supercritical models operating at higher temperatures and pressures, offering up to 15% fuel savings compared to conventional units. Countries such as Japan and South Korea are piloting carbon capture-integrated steam turbine systems to extend thermal power viability under climate mandates. Moreover, hybrid projects integrating steam turbines with concentrated solar power (CSP) are gaining traction in sun-rich regions, offering flexible generation. These developments open new avenues forcleaner and smarter thermal power operations.

DRIVERS

Growing demand for grid stability and base-load energy supply

In regions with high renewable energy penetration, thermal power steam turbines continue to provide critical grid stability. In 2024, countries like India, Indonesia, and Vietnam saw over 19 GW of steam turbine-based thermal capacity added to ensure baseload reliability. Over 48% of national utilities in Asia-Pacific reported dependence on thermal plants to balance variable renewables. In the U.S., steam turbines remain essential for dispatchable power, especially in areas with limited hydro or nuclear options. These grid dynamics underscore the enduring relevance of thermal power steam turbine market assets in the global energy mix.

RESTRAINT

"Environmental regulations and decarbonization targets"

Environmental concerns present a significant restraint to the thermal power steam turbine market. In 2024, over 30 countries tightened emission norms for thermal plants, affecting the deployment of steam turbines in new fossil-fuel projects. The EU’s industrial emissions directive now requires advanced flue gas treatments, raising turbine installation costs by 18% on average. Additionally, carbon pricing in regions like Europe and Canada makes coal-based steam turbine projects less economically viable. Public resistance and climate activism have also caused delays or cancellations of over 10 GW worth of planned thermal power capacity globally.

CHALLENGE

"Declining investments in new coal-fired thermal infrastructure"

A key challenge for the thermal power steam turbine market is the global decline in coal-fired project financing. In 2024, major financial institutions in Europe and North America further restricted funding for fossil-fuel projects. This has led to a 25% drop in new orders for large-capacity steam turbines. Additionally, competition from gas turbines and renewable sources like wind and solar, which require lower capital expenditure and faster commissioning, is shifting investment patterns. OEMs are also challenged to maintain profitability amidst shrinking order volumes and increasing customization demands.

Thermal Power Steam Turbine Market Segmentation Analysis

The thermal power steam turbine market is segmented by type and application, each reflecting specific operational demands. By type, the market includes condensing and non-condensing steam turbines. Condensing turbines dominate in high-efficiency baseload thermal plants, while non-condensing variants are preferred in cogeneration and industrial applications. By application, closed thermal power plants constitute the majority, offering controlled environments for efficient turbine operations. Open-air thermal plants, although declining in some regions, are still prominent in areas with land availability and water access. These segmentation trends help manufacturers tailor turbine solutions based on customer plant configurations and energy policies.

By Type

• Non-condensing steam turbine: Non-condensing steam turbines are primarily used in cogeneration and industrial facilities where steam output is repurposed for heating or process needs. In 2024, non-condensing units accounted for 32% of the global thermal power steam turbine market. These turbines are especially favored in chemical, pulp and paper, and food processing industries across Europe and East Asia. Their simplicity, cost-effectiveness, and suitability for localized generation make them attractive for off-grid or small-scale operations. The demand for process-integrated energy solutions is contributing to steady growth in this segment.
• Condensing steam turbine: Condensing steam turbines remain the cornerstone of the thermal power steam turbine market, contributing approximately 68% of installed capacity in 2024. Used extensively in utility-scale power generation, these turbines maximize thermal efficiency by converting steam into water under vacuum conditions. They are critical for coal, gas, and biomass-fired plants operating under high-capacity requirements. Countries such as China, India, and Russia continue to deploy condensing turbines for grid power projects. Modern condensing turbines incorporate advanced blade designs and sealing technologies to reduce mechanical losses and improve output efficiency.

By Application

• Closed thermal power plant: Closed thermal power plants dominate the thermal power steam turbine market, comprising nearly 72% of total installations globally. These facilities offer a controlled setting that supports high-efficiency turbine operation, stable water usage, and environmental compliance. In 2024, China and the U.S. led global closed-plant deployments, driven by urban energy demand and policy mandates. These plants are typically equipped with advanced emission controls and are integrated into centralized grid systems. Their long-term operational reliability makes them ideal for public and private sector utilities aiming for consistent energy delivery.
• Open-air thermal power plant: Open-air thermal power plants still play a role in specific geographies where environmental controls and zoning restrictions are less stringent. Accounting for 28% of global steam turbine use in 2024, open-air plants are common in parts of Africa, Southeast Asia, and South America. These setups are often used in regions with abundant land and water resources, and they tend to have lower setup costs. However, they face increasing scrutiny over cooling water use and emissions. Technological improvements in turbine efficiency and water recycling systems are helping extend their operational viability in developing economies.

Thermal Power Steam Turbine Market Regional Outlook

The thermal power steam turbine market exhibits diverse regional dynamics shaped by local policies, energy demand, and infrastructure modernization. Asia-Pacific leads due to industrial expansion and reliance on coal-fired power plants. North America is witnessing retrofitting trends and hybrid applications, while Europe focuses on efficiency upgrades in aging plants. The Middle East & Africa region is emerging with investments in utility-scale and hybrid power projects. Each region shows unique deployment patterns based on policy, technological integration, and energy portfolio strategies.

North America

North America accounts for approximately 23% of the thermal power steam turbine market, with the U.S. being the largest contributor. In 2024, over 60% of U.S. thermal turbine installations involved lifecycle extension or digital monitoring retrofits. The region emphasizes combined cycle gas turbine (CCGT) systems, with steam turbines supporting post-combustion energy recovery. Canada reported a 17% increase in industrial cogeneration steam turbines. Utilities are integrating predictive maintenance solutions in turbines, boosting operational lifespan. Government support for dispatchable backup generation ensures steam turbines remain crucial despite the rise of renewables.

Europe

Europe holds about 19% of the thermal power steam turbine market share, driven by stringent environmental policies and modernization programs. Germany and Poland continue to operate high-efficiency thermal plants, with 34% of turbine assets upgraded for lower emissions in 2024. France deployed 900 MW in hybrid thermal-renewable configurations. Eastern Europe relies on coal and biomass-fired steam turbines for local power and heating. OEMs in Europe are investing in closed-loop steam turbine systems to meet stricter efficiency thresholds. The region also leads in carbon capture-enabled thermal projects supported by EU green funding.

Asia-Pacific

Asia-Pacific leads the thermal power steam turbine market with around 42% share due to expanding electricity demand and reliance on coal-based generation. China commissioned over 16 GW of new steam turbine capacity in 2024, mainly for ultra-supercritical plants. India implemented turbine retrofit programs across 100+ thermal stations. Indonesia and Vietnam are also investing in mid-scale steam turbines for industrial and public utility projects. Over 58% of Asia-Pacific's installations in 2024 used condensing steam turbines. The region is a key target for modular, digitally connected turbine systems by major OEMs.

Middle East & Africa

Middle East & Africa contribute roughly 16% to the thermal power steam turbine market, led by Saudi Arabia, UAE, Egypt, and South Africa. Saudi Arabia added 2.2 GW of new thermal power capacity in 2024, using high-performance condensing turbines. The UAE is piloting solar-thermal hybrid projects integrating steam turbines. Egypt deployed refurbished turbines for utility-scale coal and gas plants. In Sub-Saharan Africa, decentralized steam generation is emerging for mining and industrial needs. Water-cooled and air-cooled turbine variants are being customized for local environmental conditions.

List of Top Thermal Power Steam Turbine Companies

Investment Analysis and Opportunities

The thermal power steam turbine market is witnessing a surge in investment toward lifecycle extension, hybrid integration, and emission-reducing technologies. In 2024, more than 40 major utility firms allocated capital to steam turbine upgrades across Asia-Pacific and North America. Retrofit solutions to improve thermal efficiency were a top investment focus, with several OEMs launching customized digital-twin platforms.

Capital is flowing into ultra-supercritical steam turbine development, especially in countries like China, South Korea, and Japan. These turbines operate at higher temperature thresholds, enabling up to 15% efficiency gains. Financial backing from public and private sectors in the Middle East has expanded for solar-thermal hybrid steam plants. Additionally, several African nations are receiving international development aid to fund compact steam turbines for remote industrial projects.

Technology-driven startups have entered the market, attracting investor interest in next-gen modular steam turbine designs and carbon capture-ready solutions. In Europe, green bonds are being used to finance turbine retrofitting projects aligned with the EU taxonomy for sustainable energy. The fusion of financing innovation, emissions compliance, and flexible energy design is shaping the investment landscape of the thermal power steam turbine market.

New Products Development

Product development in the thermal power steam turbine market has centered on enhancing operational flexibility, emissions control, and digital interactivity. In 2023–2024, over 75 new models were introduced by leading OEMs, including advanced multi-stage configurations and small-scale modular systems. Steam turbines with integrated AI for autonomous load balancing and condition-based maintenance are gaining traction.

Hybrid-compatible turbines were rolled out by companies like Mitsubishi Power and Siemens, tailored for use with solar thermal and biomass heat sources. Water-saving cooling system integration has become a new benchmark, with new turbines reducing cooling water usage by up to 28%. OEMs have also developed high-performance sealing and blade coating technologies to improve turbine durability and reduce maintenance costs.

Compact steam turbines optimized for district heating and cogeneration facilities were introduced across Europe and East Asia. Real-time thermal stress monitoring tools are now embedded in turbine cores, aiding predictive servicing and lifecycle tracking. These new products are setting new standards for adaptability, sustainability, and smart grid alignment in the thermal power steam turbine market.

Recent Developments

• In 2024, Siemens launched an ultra-flex steam turbine model designed for hybrid thermal-renewable power stations.
• Mitsubishi Power reported a 19% rise in orders for modular steam turbines tailored for solar thermal and biomass hybrid use.
• Harbin Electric introduced an AI-enabled turbine diagnostics system rolled out in 15 Chinese utility-scale plants in 2023.
• General Electric partnered with an Indian utility to retrofit 12 GW of steam turbines for extended lifecycle and emission compliance.
• In 2024, Doosan developed a multi-pressure-level turbine for industrial cogeneration, deployed in Southeast Asia and the Middle East.

Report Coverage

This report delivers comprehensive insights into the thermal power steam turbine market, segmented by type, application, and region. It analyzes market demand, regulatory shifts, OEM innovation, and utility behavior. The study highlights key players, investment patterns, and regional deployment trends driving the steam turbine market’s evolution.

Detailed assessments of hybrid system integrations, carbon capture retrofits, and turbine lifecycle services are included. The report draws from government energy data, OEM publications, and investment announcements to evaluate current market conditions and future prospects. Industry challenges, such as financing gaps and emission mandates, are balanced against technology breakthroughs and digital twin adoption. This coverage provides energy stakeholders, developers, and investors with a strategic roadmap for participation and leadership in the thermal power steam turbine market.