Gas Turbine Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Gas Turbine Market Trends and Insights

Asia-Pacific Coal-to-Gas Transition Accelerating Utility Orders

Large-scale conversions from coal to gas are driving record turbine procurement. Malaysia awarded a 1,400 MW combined-cycle contract in 2024, and Vietnam commissioned more than 2,700 MW of LNG-to-power capacity in 2025. China cleared 12 GW of new gas capacity in 2025 to complement intermittent renewables, with domestic OEMs winning the bulk of orders. Thailand signed a 5,300 MW framework that specifies hydrogen-ready units capable of 30% blends. Singapore brought a 670 MW hydrogen-capable plant online in 2025, strengthening the city-state’s decarbonization pathway.^{[1]Editorial Board, “Hydrogen-Ready Turbines Gain Traction,” ft.com}

LNG-Linked Island Grids in SEA Driving Mobile Aeroderivative Demand

Island grids are fast-tracking mobile aeroderivative sets to avoid expensive fixed infrastructure. The Bahamas restored post-hurricane supply with four TM2500 units in 2024, leased under 72-hour redeployment clauses. Indonesia’s PLN ordered 20 similar units in 2025 for scattered mining and agro-processing hubs. Puerto Rico and several Caribbean nations adopted multi-year leasing pools that integrate rental, fuel logistics, and O&M in single contracts, compressing timelines from three years to under one.

Petrochemical Cogeneration Build-out in Middle East

Greenfield petrochemical complexes are embedding cogeneration from day one. Saudi Aramco added 475 MW of capacity at SATORP in 2024, achieving 85% CHP efficiency. ADNOC ordered 1,200 MW of turbines in 2025 to supply steam and power under a 25-year tolling structure. Qatar Energy’s North Field expansion adopted a multi-OEM sourcing model that spreads technology risk and accelerates delivery.

Disaster-Relief Leasing Surge for Aeroderivative Sets in Caribbean

Climate-driven outages have made sub-24-hour mobilization a procurement prerequisite. Puerto Rico leased 360 MW of aeroderivative turbines in 2024 under contracts allowing redeployment to neighboring islands within two days. The Bahamas and the Dominican Republic structured regional “turbine-sharing pools,” while Haiti restored 80 MW of capacity with World Bank-backed leases in 2025.

Gas-Price Volatility Post-Ukraine War Curtailing EU Projects

Persistent gas-price swings are eroding project economics. Germany’s RWE delayed 1,800 MW of projects in 2024, and Italy’s Enel withdrew a 1,200 MW plant in 2025 after failing to secure PPAs above EUR 80 per MWh. Spain redirected capital to batteries, while the UK capacity market cleared at lower prices as imports rose.

ESG-Driven Financing Restrictions under EU Taxonomy

The European Investment Bank rejected EUR 2.3 billion of gas projects in 2024 for failing to meet emissions limits, and Germany’s KfW withdrew from a 900 MW loan in 2025 without a carbon-capture commitment.^{[2]European Investment Bank, “2024 Annual Report,” eib.org} Sixty percent of institutional investors now exclude unabated gas, cutting the available capital pool by GBP 15 billion.

Segment Analysis

By Capacity: Mid-Range Units Capture Modular Demand

Mid-range turbines between 31 and 120 MW recorded the fastest growth at a 6.8% CAGR through 2031, reflecting demand for modular projects that avoid multi-year permitting. Above 120 MW machines still represented 58.3% of 2025 installations, but grid-connection bottlenecks and environmental reviews are tempering new orders. The gas turbine market size for the 31 to 120 MW bracket is expected to surpass USD 18 billion by 2031, underpinned by fast-track approvals in Southeast Asia. Regulatory fast-track schemes, such as the Philippines’ nine-month permitting window for sub-100 MW plants, underline this momentum.

Project sponsors prefer mid-range sets for incremental expansion. GE’s LM6000 secured 18 orders in 2024, citing 12-month delivery schedules.^{[3]GE Vernova, “Investor Presentation 2024,” ge.com} Siemens Energy’s SGT-400 continues to dominate emergency back-up throughout the Caribbean disaster-relief segment. Large-frame developments still proceed in Asia-Pacific, but developers increasingly split capacity into multiple 120 MW blocks to mitigate construction risk and align with financing milestones.

Note: Segment shares of all individual segments available upon report purchase

By Operating Cycle: Combined Cycle Dominates Efficiency Race

Combined-cycle plants controlled 74.9% of the gas turbine market share in 2025 and are forecast to grow at a 7% CAGR to 2031. The gas turbine market size accruing to combined-cycle configurations is projected to add USD 21 billion between 2026 and 2031 as operators pursue 63% net electrical efficiency benchmarks.^{[4]Siemens Energy, “Technical Whitepaper 2024,” siemens-energy.com} Simple-cycle machines retain value in peaking and ancillary-service markets, but their share is declining as batteries claim frequency-regulation revenues.

Coupling turbines with desalination is reinforcing combined-cycle economics in the Middle East. UAE’s 2,400 MW Hassyan plant pairs power generation with 120 million gallons per day of water production, halving water costs versus standalone reverse-osmosis. Concessional financiers like the Asian Development Bank now use ISO 50001 certification as a gatekeeper for gas-power loans above USD 200 million, further standardizing high-efficiency designs.

By Fuel Type: Hydrogen Blending Reshapes Market Dynamics

Natural gas retained a 90.2% share in 2025, yet hydrogen, biogas, and RNG are expanding at a 16.1% CAGR, the fastest of any fuel category. The gas turbine market size for hydrogen-capable equipment is forecast to reach USD 14 billion by 2031 as OEMs race for full-hydrogen certification. GE Vernova’s 7HA.03 achieved 100% hydrogen firing in Ohio in 2024, and Siemens Energy booked eight hydrogen-ready units across Germany and the Netherlands in 2025.

Liquid fuels remain essential in remote and offshore contexts where pipeline gas is impractical. Baker Hughes’ dual-fuel NovaLT12 enables rapid fuel switching, ensuring resilience for drilling and mining operations. The EU Renewable Energy Directive III requires 5% renewable content in turbine fuels by 2030, likely pushing biogas adoption across agricultural regions.

Note: Segment shares of all individual segments available upon report purchase

By End-User Industry: Oil & Gas Monetizes Stranded Gas

Power generation absorbed 69.8% of 2025 demand, yet the oil-and-gas sector is the swing buyer, directing cogeneration units to monetize associated gas and cut diesel consumption. Baker Hughes turbines at Saudi Arabia’s Jafurah field saved USD 85 million annually by replacing diesel in 2024. ExxonMobil’s Guyana offshore project deployed LM2500 units to capture flare gas, while Shell’s Prelude FLNG in Australia reduced emissions 40% after installing SGT-400 turbines.

Industrial users such as data centers and chemicals are adopting on-site generation for energy security. Microsoft and Google each ordered distributed turbines in 2024 configured for renewable natural gas blends, underscoring demand diversification.

Geography Analysis

Asia-Pacific generated 59.5% of global revenue in 2025 and is set to expand at an 7.3% CAGR through 2031, cementing its lead in the gas turbine market. China approved 12 GW of new gas capacity in 2025, with local OEMs securing 70% of orders. India projects 25 GW of additions by 2030, incentivizing joint ventures that localize high-value components. LNG-to-power pipelines totaling 14 GW across Southeast Asia will enter construction before 2028 with multilateral financing support.

North America accounted for 22% of 2025 revenue, with growth focused on data-center backup power, LNG export cogeneration, and hydrogen pilots. The United States added 4.8 GW in 2024, and Mexico awarded 2.4 GW of combined-cycle contracts in 2025. Canada’s LNG Canada project relies on 1.2 GW of GE turbines for liquefaction, highlighting the role of gas generation in energy exports. Stricter EPA emissions thresholds from 2025 raise capital costs by 8% due to required selective catalytic reduction systems. Europe held 14% of 2025 revenue but faces headwinds from volatile gas prices and ESG financing limits. Germany and Spain deferred combined-cycle projects in 2024, while the UK opted for hydrogen-ready units to meet decarbonization goals. Southern Europe accelerated battery storage approvals, reducing gas peaker prospects.

The Middle East and Africa generated 12% of revenue in 2025, propelled by petrochemical cogeneration and water-plus-power projects. Saudi Arabia commissioned 3.8 GW in 2024, and Egypt placed Africa’s largest single turbine order in 2024 for 4.8 GW. South Africa pilots aeroderivative peakers to stabilize coal-heavy grids with African Development Bank support. South America captured 5% of revenue in 2025, leveraging turbines to offset hydropower variability. Brazil and Chile see peaker installations aligned with renewable integration roadmaps.