Steam Turbine Market Accelerates with Policy Support and Technology Advances in the U.S. and Japan

Steam Turbine Market growth driven by rising power generation, renewable integration, and industrial expansion, led by Asia-Pacific and U.S. demand.

TEXAS, TX, UNITED STATES, August 28, 2025 /EINPresswire.com/ -- The Steam Turbine Market is undergoing a renewed phase of growth, supported by energy transition policies, modernization of power infrastructure, and growing industrial demand. According to DataM Intelligence analysis, the global market for steam turbines was valued at USD 18.1 billion in 2024 and is projected to surpass USD 24.3 billion by 2030, growing at a CAGR of 5.0% (2025–2031).

A steam turbine is a rotating heat engine utilizing steam to generate mechanical energy, which is then converted to electricity. These turbines are essential in traditional thermal, nuclear, and increasingly in combined-cycle power plants. They are valued for their reliability, efficiency, and scalability across a wide capacity range serving industrial, utility, and institutional needs.

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U.S. Market Outlook

The United States remains a critical market due to its thermal and industrial cogeneration capacity. The U.S. Department of Energy (DOE) recently announced a $475 million investment (June 2025) into clean energy infrastructure, including upgrades for steam turbine efficiency in hybrid renewable–thermal plants.

Furthermore, in July 2025, General Electric Vernova signed an agreement with Duke Energy to upgrade turbine efficiency at two U.S. coal-to-gas transitioning power plants. This marks a key step in extending the lifecycle of steam-based power generation assets while reducing emissions.

Japan Market Dynamics

Japan continues to invest heavily in steam turbine technology as part of its energy security strategy. The Japanese Ministry of Economy, Trade and Industry (METI) announced in May 2025 new incentives for upgrading turbines in biomass and waste-to-energy plants, a move expected to reduce dependency on LNG imports.

Leading Japanese player Mitsubishi Power launched a new steam turbine series (June 2025) with enhanced thermal efficiency designed for biomass and ammonia co-firing plants. This aligns with Japan’s 2050 carbon neutrality goals and supports industrial decarbonization.

Recent M&A Activity

• In July 2025, Siemens Energy acquired select assets of a U.S.-based turbine maintenance firm to strengthen its aftermarket services portfolio.
• In May 2025, Hitachi Zosen Corporation partnered with Sumitomo Heavy Industries for joint development of next-generation steam turbines for waste-to-energy plants in Japan.

Emerging Region Spotlight – India

While the U.S. and Japan lead in advanced turbine innovation, India is rapidly emerging as a high-growth market. According to the International Energy Agency (IEA), India plans to add 50 GW of coal and biomass-based power capacity by 2030, where steam turbines will remain a core technology. Several contracts, including BHEL’s 660 MW supercritical turbine orders (July 2025), reinforce the region’s growth trajectory.

Supporting Industry Trends

• Decarbonization & Efficiency: Modernization of old thermal assets with high-efficiency turbines.
• Hybridization: Integration of steam turbines with renewable hybrid systems (solar thermal + biomass).
• Aftermarket Services: Rising demand for retrofitting, digital monitoring, and lifecycle upgrades in both U.S. and Japan.

Market Players

Major manufacturers dominating the global steam turbine landscape include:
• Power Machines
• Elliott Group
• Mitsubishi Heavy Industries, Ltd
• MAN Energy Solutions
• General Electric
• DongFang Electric Corporation
• Spilling Technologies
• G-Team Inc
• M+M Turbine-Technik GMBH
• Siemens
• Ansaldo Energia

These vendors maintain competitive edges with technological innovation, regional partnerships, and turnkey solutions.

Market Dynamics

Drivers
• Government clean energy mandates and the growing need for grid stability are boosting investments in CHP and combined-cycle plants.
• Efficiency gains and emissions reductions are realized through design advances—integrating steam and gas turbines for greater fuel use and less waste.
• Emerging economies are rapidly expanding electricity capacity, increasing demand for high-capacity and flexible steam turbines.
• ISO and IEC standards promote uniform, safe, and efficient adoption of steam turbine technologies worldwide.

Restraints
• High capital investment for installation, coupled with ongoing maintenance and service costs, restrains wider adoption—especially among smaller operators.
• The complex design and materials requirements for advanced turbines contribute to elevated project costs.

Opportunities
• Deployment of hydrogen co-firing in new turbines, notably in Europe, unlocks cleaner energy pathways and regulatory compliance.
• Gas turbine and steam turbine integration provides utilities with future-proof, agile grid solutions.
• Upgrades and retrofits in industrial and utility sectors, especially in rapidly growing Asia-Pacific markets.

Challenges
• Fluctuating raw material costs and global supply chain uncertainties.
• Addressing emissions and regulatory pressure to phase out older, inefficient coal-based systems.

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Market Segments: Largest and Fastest Growing
By Capacity ( Up to 5 MW, 5 MW to 150 MW, and More than 150 MW)
By Plant Type (Steam Cycle, Combined cycle, Cogeneration)
By End-user (Power and Utility, Industrial, Others (Residential, Commercial and institutional))

By plant type, the combined cycle segment is experiencing robust growth as utilities seek to maximize fuel efficiency and minimize greenhouse gas emissions. This setup uses the waste heat from a gas turbine to generate steam for further power production offering substantial efficiency boosts compared to conventional steam cycles.

Regional Analysis

North America is currently the largest market, thanks to established industrial bases, grid modernization initiatives, and progressive environmental standards. The region is home to extensive upgrades and major plant refurbishments.
Asia-Pacific is the fastest-growing market, driven by post-pandemic electricity demand recovery, strong economic growth in China and India, and heavy investments in utility-scale generation. The region’s utilities and industrial sectors are investing in both greenfield and brownfield steam turbine plants to meet surging energy demand and grid reliability needs.

Unmet Needs and Conclusion
Unmet needs focus on cost reductions for small-to-medium operators, continued improvements in flexibility for integrating renewables, and advances in hydrogen-ready and carbon capture-compatible turbines. Addressing these will determine industry leaders in the clean energy transition.
In conclusion, the steam turbine market’s future is intertwined with global demands for reliable, efficient, and increasingly sustainable electricity. With Asia-Pacific leading demand growth and companies investing in hybrid and clean technology, steam turbines remain foundational to the world’s power infrastructure.

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Sai Kumar
DataM Intelligence 4market Research LLP
+1 877-441-4866
sai.k@datamintelligence.com
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