The sector has evolved beyond traditional baseload generation, emerging as a critical enabler of grid stability, frequency control, and energy storage integration. Key trends include the rise of clutch-enabled “synchronous condenser” retrofits, rapid adoption of high-pressure impulse turbines for biomass-to-energy projects, and specialized steam turbines for Long-Duration Energy Storage (LDES) applications. Asia Pacific, led by China and India, dominates the market with over 70% share, driven by advanced ultra-supercritical power plants, nuclear expansions, and industrial captive power growth.
Chicago, Feb. 05, 2026 (GLOBE NEWSWIRE) — The global steam turbine market was valued at 25.5 billion in 2025 and is expected to reach US$ 33.7 billion by 2035, growing at a CAGR of 2.8% from 2026 to 2035.
In late 2025, the steam turbine market is robustly positioned as the “kinetic backbone” of the global energy transition, having successfully decoupled its long-term viability from fossil fuel dependency. The sector has pivoted from a volume-driven model to a value-driven one, where the primary currency is grid stability and functional flexibility rather than simple baseload generation. Manufacturers have entrenched themselves in the industrial “behind-the-meter” segment, capitalizing on the surge in decentralized Combined Heat and Power (CHP) to insulate manufacturers from grid volatility. Furthermore, by combining with carbon capture systems and converting aging assets into synchronous condensers, the market has secured a defensive moat against total electrification. This ensures that steam turbines remain indispensable for frequency control and reliability in high-renewable zones.
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Low-Cost, Quick-Payback Turbines Shift Industrial Clients Away from Premium OEMs
For decades, the assumption was that Western OEMs in the global steam turbine market held an unassailable lead in metallurgy and aerodynamics. However, 2025 data suggests a dangerous erosion of this moat, particularly within the 50–150MW industrial steam turbine segment. State-owned enterprises from China and India have successfully pivoted from “copycat” engineering to “frugal innovation,” creating a standardized turbine architecture that is undercutting premium OEMs by alarming margins.
According to the Global Power & Energy Statistics 2025 report released this quarter, Chinese exports of industrial steam turbines to Southeast Asia and Africa surged by 28% year-over-year. This captured US$ 1.2 billion in market value that traditionally went to European Tier-1 players.
This disruption in the steam turbine market is directly linked to the physical manufacturing of the turbine. A teardown analysis by Power Engineering International reveals that these competitors use standardized, locally cast turbine casings that reduce capital expenditure (CAPEX) by 32% compared to Western bespoke designs. While the thermodynamic efficiency of these units trails premium models by about 1.5%, the 18-month payback period offered by these low-cost steam turbines is proving irresistible to price-sensitive industrial clients.
Clutch-Enabled Steam Turbines Fuel Retrofit Boom Across ERCOT and AEMO Grids
As grids become saturated with inverter-based renewables, the massive rotating rotor of the steam turbine market has become a monetizable asset independent of steam generation. Smart Grid operators in high-renewable zones like Texas (ERCOT) and Australia (AEMO) are paying premiums for stability, leading to a decoupling of the steam turbine from the boiler.
The FERC 2025 Grid Reliability Report highlights a massive pivot: payments for “Synchronous Inertia” services have grown by 45% in the last twelve months. This has driven a retrofit boom specifically for steam turbines. We are seeing a surge in “Clutch-Enabled” turbine conversions, where the generator is physically decoupled from the steam turbine rotor to spin freely as a synchronous condenser when steam is unavailable.
In 2025 alone, 3.8 GW of coal-fired capacity underwent this modification, creating “Zombie Turbines” that generate revenue purely from inertia provision in the steam turbine market. The economics are compelling; average spot prices for inertia in South Australia hit US$ 14/MWh-equivalent in Q3 2025. Competitors offering steam turbines with integrated SSS clutches are capturing 60% of Life Extension (LEX) contracts, proving that the turbine’s physical weight is becoming as valuable as its megawatt output.
High-Pressure Impulse Turbines Drive Reliability and Flexibility in Biomass-to-Energy Projects
Impulse turbines are gaining prominence due to their superior performance under high-pressure environments exceeding 150 bar. Single-stage impulse configurations can generate up to 1,000 kW, while multi-stage impulse units achieve efficiency levels near 92%, minimizing energy losses during continuous operation.
With maintenance intervals extending up to 50,000 hours and a rapid startup time of just 15 minutes, impulse turbines deliver unparalleled reliability. The flexibility to handle up to 40% load variations without mechanical stress enhances their suitability for dynamic energy grids. In 2025 alone, impulse technology has been adopted across about 200 biomass-to-energy projects, cementing its leadership in the global steam turbine market.
Molten Salt and Crushed Rock Batteries Depend on Advanced Steam Turbines
While conventional fossil fuel orders stabilize, a critical lifeline has emerged for the steam turbine sector via Long-Duration Energy Storage (LDES). The market is transitioning from “Fire-to-Steam” to “Storage-to-Steam,” where molten salt and crushed rock thermal batteries rely exclusively on specialized steam turbines to discharge stored heat as electricity.
Data from the LDES Council’s Q3 2025 Update indicates that 12.4 GWh of thermal storage projects in the steam turbine market reached financial close this year. This created fresh demand for about 2.1 GW of “power block” steam turbines.
However, Sandia National Laboratories recently highlighted that steam turbines integrated with TES (Thermal Energy Storage) systems must endure daily “cold-start-to-full-load” ramp rates of 15% per minute, nearly double the stress profile of a traditional peaker unit. Consequently, manufacturers who have adapted their turbine control logic and valve metallurgy to handle these rapid enthalpy drops are winning. Recent tenders show a 15% price premium being awarded for steam turbines certified for “Daily Deep Cycling,” confirming that the thermal battery sector is now a high-value vertical specifically for steam engineering.
Asia Pacific Emerges as Epicenter of Global Steam Turbine Market
The sheer gravitational pull of the Asia Pacific region in the 2025 steam turbine market is undeniable, controlling a massive 70.45% of global market share. This hegemony is driven by a sophisticated industrial strategy in China and India that prioritizes high-efficiency baseload power.
China is aggressively replacing older infrastructure with Advanced Ultra-Supercritical (A-USC) units, which now achieve net thermal efficiencies of 49.5%. This creates a sustained demand for high-pressure, nickel-alloy turbines. Furthermore, China’s nuclear sector has accelerated, commissioning approximately 6 GW of new turbine capacity this year alone. Meanwhile, India’s “Make in India” initiative has spurred an 8.5% year-over-year growth in the captive power sector, where heavy industries utilize 30MW to 150MW industrial steam turbines.
Steam Turbine Market Major Players:
- Fuji Electric Co., Ltd.
- Kawasaki Heavy Industries, Ltd.
- Ansaldo Energia
- Toshiba Corporation
- Mitsubishi Power Ltd.
- General Electric
- Siemens Energy
- Doosan Škoda Power
- BHEL
- Elliot Group
- TRILLIUM FLOW TECHNOLOGIES
- MAN Energy Solutions
- Other Prominent Players
Key Market Segmentation:
By Design
- Reaction
- Impulse
By Exhaust
- Condensing
- Non-condensing
By Fuel
- Fossil Fuel
- Biomass
- Geothermal
By End Use
- Industrial
- Utility
By Technology
- Steam Cycle
- Combined Cycle
- Cogeneration
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
- South America
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