Steam Turbine Market By Capacity (Up to 150 MW, 151-300 MW and More than 300 MW), and Application (Power & Utility, Industrial and Others), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023-2032
Market Perspective
The global Steam Turbine Market size was valued at approximately USD 17.2 billion in 2022 and is expected to reach around USD 22.78 billion by 2032, growing at a CAGR of 2.85% between 2023 and 2032.
The rising demand for power globally has led to an increase in the deployment of steam turbines in countries such as China, the U.S., India, Germany, Russia, and others. In 2022, steam turbines generated 70% of the world's electricity, and this trend is expected to continue. The efficiency of steam turbines, which is over 60% compared to traditional methods, has driven the demand for steam turbines.
Governments in countries such as the U.S., U.K., and India are focusing on building energy-efficient and environmentally responsible power plants, resulting in a growth in Combined Heating Plants (CHP) installations. Steam turbine manufacturers are investing in providing efficient turbines to customers and improving technology to maintain efficiency and reduce operational costs. The growth of the market may be slightly impacted by the adoption of renewable energy sources.
Key Insights
- Based on capacity, the more than 300 MW segment held the largest market share
- Based on application, the power & utility segment generated the highest revenue
- On the basis of region, Asia Pacific accounted largest market share
Favorable Government Policies to Drive Global Steam Turbine Market
Recent regulatory changes and requirements have increased the demand for reliable and efficient steam turbine technologies to meet these standards. Improved reliability, and compliance with global regulations, further enhance customer satisfaction and trust, making steam turbines a more attractive option for customers. Increased efficiency can also help reduce costs associated with steam turbines, reducing their overall cost of operation and making them an even more cost-effective solution. In addition, advances in technology such as improved control and monitoring systems have made steam turbines even more user-friendly and easy to operate, which further encourages the adoption of the technology and drives product demand.
Requirement of High Capital Investment to Limit Market Growth
High capital costs associated with steam turbines can act as a major limitation to the growth and adoption of this technology. Steam turbines are highly complex machines that require significant investments in research and development to implement new technologies effectively. Additionally, the cost of installation and maintenance can be high, limiting demand in markets where capital investments may be scarce. Additionally, a lack of qualified personnel to operate and maintain steam turbines can also be a barrier to adoption.
Recent Development
In November 2022 General Electric and EDF signed an agreement to acquire General Electric’s Steam Power activities. These operations include the production of traditional island facilities for new power plants, such as the Arabelle steam turbines, as well as the uphaul and repair of established power plants all over the Americas.
Segmentation Analysis
The global market's largest revenue share (54%) comes from steam turbines with a capacity of over 300 MW, mainly used for industrial and commercial purposes. Growing industrialization in both developed and developing countries drives demand for these turbines. However, a shift towards renewable energy may lead to a decline in revenue for large-scale turbines. Meanwhile, developing economies in the Asia Pacific will remain a strong market due to growing energy needs. Small-scale steam turbines, with a capacity of 151-300 MW, are also in high demand for use in chemical, cement, and steel industries, making this segment the fastest growing in the forecast period.
Based on application, the power and utility segment dominated the market share by generating over 78% of the total revenue globally. Generally, steam turbines have been utilized in the generation of electrical power. Coal has been preferred as a fuel to power the turbines. However, rising environmental issues such as massive carbon emissions, and restrictions on the utilization of coal as a fuel in power plants are observed. The expansion of the industrial segment can be linked to the worldwide expansion of industrial activity. CHP turbines are utilized in industrial applications as steam turbines. These units are more efficient than single units and generate multiple power outputs.
Regional Landscape
Asia Pacific is Dominating the Market Share Due to the Rising Development & Electricity Generation
Asia Pacific leads the way with 65% of global revenue in the steam turbine market. This trend is expected to continue as countries like India, China, Indonesia, South Korea, and Bangladesh drive demand through power plant development and growth in electricity generation. The need for steam turbines is fueled by industrialization, urbanization, and a rising population, leading to increased efforts for clean coal technology. Cost-effectiveness compared to traditional electricity generation processes is a key factor driving the market's growth in Asia Pacific. The market is further boosted by government and private investment, providing ample opportunities for growth in the forecast period.
North America is the Fastest Growing Market Owing to Ongoing Developments in Manufacturing
North America is poised for continued growth in the steam turbine market, with CHP applications leading the way in the United States. Unlike gas turbines, steam turbine-based generators produce electricity as a byproduct of heat (steam) production. These turbines require external heat sources and use high-pressure steam from boilers to drive generators. Get ready for growth in North America as steam turbines continue to play a crucial role in the energy industry.
Competitive Landscape
- Ansaldo Energia S.p.A.
- Arani Power Systems Ltd
- Bharat Heavy Electricals Limited
- Bradken
- GENERAL ELECTRIC
- HOWDEN GROUP
- MITSUBISHI HEAVY INDUSTRIES, LTD.
- SHANGHAI ELECTRIC
- Siemens Energy
- Turbopar.eu
The global steam turbine is segmented as follows:
By Capacity
- Up to 150 MW
- 151-300 MW
- More than 300 MW
By Application
- Power & Utility
- Industrial
- Others
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Steam Turbine Market By Capacity
- February-2023
- 148
- Global
- energy-and-power
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