Industrial Gas Turbine Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Global Industrial Gas Turbine Market Trends and Insights

Rising Power Demand in Emerging Economies

Nigeria’s 1,350 MW plant, Vietnam’s plan for 84 GW of LNG-based capacity by 2035, and Tanzania’s first combined-cycle facility illustrate how developing nations leapfrog to cleaner gas technology to meet industrialization-driven consumption spikes. Export-credit agencies and multilateral lenders, such as the U.S. International Development Finance Corporation, underpin project bankability, accelerating turbine orders across sub-Saharan Africa. Given their fast-ramp capability and lower particulate emissions compared to coal, regional policymakers view gas turbines as pragmatic complements to renewables.^{(1)Sumitomo Corporation, “Tanzania Kinyerezi II Combined Cycle Power Plant,” sumitomocorp.com}

Coal-to-Gas Shift in Utility Generation Mix

Utilities replacing coal with high-efficiency combined-cycle plants report up to 70% CO₂ reductions and capital cost savings of 30% versus greenfield builds by reusing existing infrastructure. Asian projects such as Guangdong Huizhou deploy 9HA-class turbines capable of 10% hydrogen blends today, with roadmaps to 100%, aligning national decarbonization policies with grid reliability. Cumulative coal-to-gas conversions have already averted 500 million t of CO₂ since 2010, underscoring the transition’s climate significance.

Renewable-Balancing Flexibility Needs

Gas turbines’ sub-5-minute start-up windows provide critical ancillary services as wind and solar penetration climb. A 48 MW UK peaking plant achieves full output in 2.5 minutes, balancing intermittent renewables for 20,000 homes. New designs emphasize fast cycling and part-load efficiency, while hybrid configurations pair aeroderivative turbines with battery systems for multi-hour resilience.

Data-Center CHP Build-Out Surge

AI-driven data centers could require 1,000 TWh by 2030, comparable to Japan’s total electricity demand, and investors are turning to gas turbine-based CHP for reliable, efficient on-site power.^{(2)International Energy Agency, “Data Centers and Digitalization Outlook 2024,” iea.org} LM2500XPRESS packages replace fleets of diesel gensets, cut energy costs by up to 60%, and already operate on hydrogen blends. A USD 10 billion Pennsylvania campus will pair seven 7HA.02 turbines with carbon capture to supply hyperscale compute loads.

Renewables’ LCOE Under-Cutting Gas

Solar PV costs have plummeted by 90% since 2010 to USD 0.044/kWh, and 81% of new renewables outperform fossil alternatives in price in 2023. Dispatchable value keeps combined-cycle plants competitive where grid services command a premium. Gas turbines, therefore, pivot from baseload to flexible peakers, demanding design upgrades for rapid cycling.

Natural-Gas Price Volatility

LNG spot prices swung 21% up then 29% down within Q4 2023, underscoring geopolitical risk. Forward curves indicate 2025 Asian LNG at USD 13/mmBtu, which is double India’s regulated price, prompting buyers to opt for long-term contracts and diversified fuels.^{(3)Institute for Energy Economics and Financial Analysis, “LNG Market Tracker Q4 2024,” ieefa.org} OEMs answer the uncertainty with dual-fuel capability and higher hydrogen blend limits.

Segment Analysis

By Capacity: Utility-Scale Units Dominate While Mid-Range Turbines Surge

Above-300 MW machines accounted for 49% of the industrial gas turbine market share in 2024, favored for their capital efficiency and readiness for carbon capture. A flagship 5,300 MW Thai complex using eight M701JAC units illustrates the scale benefits of these giants. In parallel, the 120-300 MW class, the fastest-growing segment at a 9.8% CAGR, caters to modular power schemes, microgrids, and distributed generation. Such projects align perfectly with climate-resilient grid strategies and staged investment models. Supply chain limitations constrain ultralarge frame production slots until 2030, driving customers toward the mid-range, where lead times are shorter and shipment logistics simpler.

OEMs continuously refine combustion systems for both classes, initially targeting 50% hydrogen blends and pathways to 100% by upgrading burners and control software. The mid-range units' industrial gas turbine market size is projected to expand significantly as governments incentivize the rapid deployment of low-carbon capacity.

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

By Frame Type: Heavy-Duty Reliability Outweighs Aero-Derivative Agility—Yet Growth Favors the Latter

Heavy-duty configurations secured 70% of 2024 revenue, a testament to their multidecade lifecycle in baseload service. Efficiency now exceeds 64% in combined-cycle mode with the latest HL platforms. Aero-derivative packages, which account for just 30% of revenue, are expected to expand at an 8.5% CAGR through 2030, driven by demand for 10-50 MW blocks that can cold-start in minutes. LM2500XPRESS units, for instance, shave construction schedules by 40% and accept 35% green hydrogen from day one. Heavy-duty vendors address this by modularizing auxiliary skids and shortening outage windows, thereby narrowing the total-cost-of-ownership gaps with the aero-fleet.

By Cycle: Combined Cycle Efficiency Drives Market Preference

Combined cycle units accounted for 62.5% of the industrial gas turbine market share in 2024 and are projected to record a 7.4% CAGR during 2025–2030, underscoring their clear cost-to-performance edge over simple-cycle alternatives. Their ability to push facility efficiencies beyond 60% by harvesting exhaust heat for steam generation cements their role in baseload and intermediate duty, especially where carbon regulations favor high thermal performance. Projects such as Saudi Arabia’s Taiba and Qassim complexes demonstrate how utilities can fast-track multi-gigawatt expansions while reducing CO₂ emissions by 60% compared to oil-fired plants. Simple-cycle packages remain relevant for peaking service, emergency backup, and markets that prize rapid dispatch at lower upfront cost.

Continuous upgrades to heat-recovery steam generators and tighter steam-turbine integration shrink installation windows and boost operating flexibility. China’s Zhoushan plant illustrates the trajectory: its 9HA.02 turbines began service on a 10% hydrogen blend with scope to reach 50%, proving combined-cycle assets can migrate toward cleaner fuels without sacrificing efficiency. Modular balance-of-plant skids and factory-finished HRSG sections compress construction schedules, a decisive benefit as grid operators rush to pair high-renewable penetration with firm capacity. As a result, the combined-cycle slice of the industrial gas turbine market size is expected to expand in absolute terms, even as simple-cycle orders remain steady in niche applications.

By Application: Power Utilities Lead While Industrial CHP Accelerates

Power utilities dominated the sector, accounting for 71% of the industrial gas turbine market size in 2024, reflecting the continual expansion of the grid and the replacement of aging coal assets. Large integrated utilities value turbine durability, high efficiency, and compatibility with emerging carbon capture systems as they modernize their baseload fleets. In contrast, industrial combined heat and power (CHP) is the fastest riser, with a 9.2% CAGR through 2030, driven by energy-intensive manufacturers seeking efficiency gains and lower Scope 1 emissions. The switch from coal boilers to gas-turbine CHP at Tate & Lyle’s plant lifted overall efficiency above 80% while sharply reducing pollutants, showcasing the segment’s economic rationale.

Industrial CHP economics remain compelling: facilities capture 20–60% in energy-cost savings and trim demand charges by more than 40% compared to separate heat-and-power configurations. Data centers now form a high-growth subsegment, repurposing turbine exhaust for absorption chillers that support rack cooling. U.S. Environmental Protection Agency studies confirm that gas-turbine CHP can achieve an overall efficiency of 80% or higher, a metric prized by regulators and investors. In marine propulsion, Baker Hughes and Hanwha’s small ammonia-fueled turbine under development mirrors the wider market pivot toward cleaner fuels. Collectively, these trends position CHP and specialized industrial uses to claim a larger share of the industrial gas turbine market, even as the utility segment retains its volume leadership.

Geography Analysis

The Asia-Pacific region accounted for 46% of global revenue in 2024, driven by coal-to-gas transitions, relentless urbanization, and state-backed investment. China's hydrogen-ready Zhoushan project and Vietnam's 84 GW LNG roadmap exemplify policy commitment to swift decarbonization without compromising energy security. India's upgrading of gas pipeline infrastructure and Australia's peaking-plant mandates further reinforce regional appetite. The Asia-Pacific's industrial gas turbine market is the world's largest and is projected to grow at a 6.9% CAGR in the region.

North America's mature fleet continues to expand through data center CHP and renewable projects. Duke Energy's booking of up to 11 American-made 7HA turbines speaks to robust domestic demand, heavy states. Europe's focus has shifted to hydrogen readiness and carbon-capture-enabled technologies, as seen in EnBW's Stuttgart-Münster installation. In the Middle East, Vision 2030 initiatives translate into multigigawatt tenders in Saudi Arabia and the UAE, where natural gas remains a strategic bridge fuel. Africa showcases several projects, such as Nigeria's 1,350 MW plant, which will supply 11% of the nation's demand. South America selectively adds high-efficiency combined-cycle stations, with Brazil emphasizing dispatchable capacity to firm its hydro-dominant grid.