The gas turbine market is expected to maintain steady growth through 2031, supported by rising global electricity demand, investment in power generation infrastructure, the transition from coal to gas, and the need for flexible generation capacity alongside renewable energy.
At the same time, the industry is undergoing a technological transformation. Hydrogen-ready combustion systems, carbon capture, advanced control systems and technologies designed to improve gas turbine efficiency and power output are becoming increasingly relevant.
For operators, this means that market growth is not only creating opportunities for new generation capacity. It is also increasing the importance of maximizing the performance of existing gas turbine assets.
What is the gas turbine market outlook through 2031?
The global gas turbine market is expected to continue expanding through 2031. Allied Market Research valued the market at $19.6 billion in 2021 and projected it to reach $32.1 billion by 2031, representing a compound annual growth rate (CAGR) of 5.1%.
Other market analyses point in the same direction. IMARC Group estimated the global gas turbine market at $25.2 billion in 2023 and projected it to reach $33.8 billion by 2032, with a CAGR of 3.23%.
Although estimates vary depending on methodology and market scope, these forecasts indicate a common trend: gas turbines are expected to remain an important part of the global power generation landscape over the coming years.
Gas turbine market at a glance
| Market indicator | Outlook |
|---|---|
| Market size | $32.1 billion by 2031 according to Allied Market Research |
| Expected growth | 5.1% CAGR from 2022 to 2031 according to Allied Market Research |
| Alternative forecast | $33.8 billion by 2032 according to IMARC Group |
| Leading technology | Combined-cycle gas turbines |
| Leading design | Heavy-duty gas turbines |
| Main end user | Power generation |
| Leading region | Asia-Pacific |
| Key growth drivers | Electricity demand, power infrastructure investment and energy transition |
| Technology trends | Hydrogen, carbon capture, advanced cooling and smart controls |
| Efficiency opportunity | Turbine Inlet Air Cooling (TIAC) |
What is driving gas turbine market growth?
Several structural trends are supporting the expansion of the gas turbine market.
Rising global electricity demand
One of the most important factors is the continued increase in electricity consumption.
According to the International Energy Agency (IEA), global electricity demand grew by 2.2% in 2023, with faster growth expected in subsequent years. Growing economies have been particularly important contributors to this increase.
Higher electricity consumption requires additional generation capacity and greater investment in power infrastructure. Gas turbines can play an important role in this context because of their flexibility, scalability and ability to provide dispatchable power.
Transition from coal to natural gas
Increasingly strict emissions regulations and decarbonization objectives are also influencing investment decisions.
In a number of markets, natural gas-fired generation has been used as an alternative to more carbon-intensive coal generation, both through new projects and the modernization of existing thermal power infrastructure.
Gas turbines can therefore contribute to power systems undergoing a transition toward lower-carbon generation, although their long-term role will increasingly depend on improvements in efficiency, fuel flexibility and emissions reduction.
Renewable energy integration
The growth of wind and solar generation is changing the way conventional power generation assets operate.
Because renewable electricity production varies according to weather conditions, power systems need technologies capable of responding to changes in supply and demand.
Gas turbines can provide flexible and dispatchable generation, helping electricity systems balance periods when renewable production does not match demand.
This operational flexibility is likely to remain an important market driver as the share of renewable generation increases.
Growing power demand from data centers
The rapid expansion of data centers, particularly facilities supporting artificial intelligence and high-performance computing, is adding another source of electricity demand.
Large data centers require significant and highly reliable power capacity. As these facilities expand, utilities and power producers face increasing pressure to provide additional generation while maintaining grid reliability.
This creates opportunities not only for new generation assets but also for technologies capable of increasing the available output of existing gas turbines.
Aviation and industrial applications
Power generation represents the main end-use segment of the gas turbine market, but turbines also remain important in aviation and a range of industrial applications.
This diversification contributes to the overall resilience and technological development of the market.
Gas turbine market by technology, design and region
Market analysis also provides insight into which segments currently account for the largest shares of the gas turbine industry.
According to IMARC Group:
- Combined-cycle gas turbines represent the leading segment by technology.
- Heavy-duty or frame gas turbines lead by design type.
- Large-capacity installations represent an important part of the market.
- Power generation is the leading end-user segment.
- Asia-Pacific represents the leading regional market.
Combined-cycle gas turbine plants are particularly relevant because they use heat from the gas turbine exhaust to generate additional electricity through a steam cycle, increasing overall plant efficiency compared with simple-cycle configurations.
Key players in the gas turbine market
The global gas turbine market includes major manufacturers and technology providers operating across power generation, industrial and aviation applications.
Companies identified in market analyses include:
- Kawasaki Heavy Industries
- Siemens Energy
- GE Vernova
- Mitsubishi Power
- Ansaldo Energia
- Harbin Electric
- Solar Turbines
- MAN Energy Solutions
- Bharat Heavy Electricals Limited (BHEL)
- Centrax
Competition among manufacturers is increasingly influenced not only by turbine capacity and reliability, but also by efficiency, emissions performance, fuel flexibility and compatibility with emerging technologies such as hydrogen and carbon capture.
From post-pandemic recovery to long-term market growth
The COVID-19 pandemic temporarily disrupted the gas turbine industry as industrial activity slowed, supply chains were affected and several power generation investments were postponed.
However, the market subsequently recovered as investment resumed and governments, utilities and industrial companies accelerated energy infrastructure projects.
The longer-term outlook has increasingly shifted away from pandemic recovery toward broader structural challenges: growing electricity demand, energy security, decarbonization, renewable integration and the need to extract more performance from existing generation assets.
These factors are now more relevant to the gas turbine market outlook through 2031.
Key gas turbine market trends through 2031
Beyond market growth itself, several technological developments are likely to determine how gas turbines evolve over the coming years.
More efficient combined-cycle generation
Efficiency remains one of the most important priorities for gas turbine operators.
Combined-cycle configurations allow plants to recover heat from gas turbine exhaust and use it to produce additional electricity, improving the overall efficiency of power generation.
Advances in turbine materials, combustion systems and plant integration continue to improve performance while reducing fuel consumption and operating costs.
Hydrogen-ready gas turbines
Hydrogen is emerging as a potential pathway for reducing the carbon intensity of gas-fired power generation.
Manufacturers are developing combustion systems capable of operating with blends of natural gas and hydrogen, while technological development continues toward higher hydrogen concentrations.
The ability to progressively incorporate hydrogen could increase the long-term flexibility of gas turbine assets as energy systems decarbonize.
Carbon capture integration
Carbon Capture and Storage (CCS) and Carbon Capture, Utilization and Storage (CCUS) are another potential pathway for reducing emissions associated with gas-fired power generation.
Both new installations and existing plants may incorporate carbon capture technologies to reduce the amount of CO₂ released into the atmosphere.
Advanced materials and combustion systems
New materials are improving turbine reliability and allowing components to operate under increasingly demanding conditions.
At the same time, advanced combustion systems are being developed to increase efficiency, reduce fuel consumption and minimize emissions such as nitrogen oxides (NOx).
These improvements can contribute to longer equipment lifespans, lower maintenance requirements and reduced downtime.
Digitalization and advanced control systems
Modern gas turbines increasingly rely on smart monitoring and control systems.
Real-time operational data can help operators adjust turbine performance to changing electricity demand, ambient conditions and generation requirements.
This becomes particularly relevant in power systems where gas turbines must operate more flexibly to complement variable renewable generation.
Gas turbine power augmentation
Growing electricity demand does not always have to be addressed exclusively by installing additional gas turbines.
Another option is to increase the output available from existing generation assets.
This is particularly relevant in regions with high ambient temperatures, where gas turbine performance can fall precisely when electricity demand is at its highest.
Technologies such as Turbine Inlet Air Cooling (TIAC) can help address this challenge.
How does ambient temperature affect gas turbine output?
Gas turbine performance is directly influenced by the temperature of the air entering the compressor.
As ambient temperature rises, air density decreases. This reduces the mass flow entering the gas turbine and consequently reduces the power output that the turbine can produce.
The effect can be particularly important in hot climates and during periods of peak electricity demand.
This creates a significant operational challenge: the turbine can lose generating capacity at the same time that the electricity system needs more power.
For operators, recovering this lost capacity can therefore be an alternative to adding entirely new generation assets.
How Turbine Inlet Air Cooling supports gas turbine performance
Turbine Inlet Air Cooling (TIAC) reduces the temperature of the air entering a gas turbine.
By cooling the inlet air, its density increases, allowing a greater air mass flow through the turbine. This helps recover power output that would otherwise be lost as ambient temperatures rise.
Unlike solutions that depend directly on ambient conditions, properly designed TIAC systems can provide controlled inlet-air conditions and help stabilize turbine performance.
Depending on the gas turbine model, ambient conditions and cooling system configuration, inlet air cooling can provide significant additional power output during high-temperature periods.
For power producers, this creates an important strategic opportunity: additional generating capacity can be obtained from existing gas turbine assets without necessarily installing another turbine.
New gas turbine capacity vs. increasing existing turbine output
As electricity demand grows, operators must decide how additional generating capacity should be provided.
| New gas turbine capacity | Power augmentation with TIAC |
|---|---|
| Requires additional generation equipment | Uses existing gas turbine assets |
| Higher initial capital investment | Potentially lower investment per additional MW |
| Longer project and procurement timelines | Can increase capacity from installed turbines |
| Adds new turbine capacity | Recovers output lost due to high ambient temperatures |
| Requires additional plant integration | Integrates with existing gas turbine infrastructure |
The most appropriate solution depends on the plant, turbine configuration, ambient conditions and required capacity.
However, in suitable applications, power augmentation can provide an efficient way to obtain additional MW from existing infrastructure.
Real-world example: more than 146 MW of additional power
The potential of Turbine Inlet Air Cooling can be seen in real operating projects.
ARANER implemented TIAC systems across three Independent Power Projects for Aramco, designed to increase gas turbine performance under challenging ambient conditions.
Across the three projects, the systems provided more than 146.16 MW of additional power capacity.
This demonstrates how turbine inlet cooling can turn ambient-temperature-related performance losses into recoverable generation capacity and help operators maximize existing gas turbine assets.
Gas turbine market outlook: what to expect through 2031
Gas turbines are likely to continue playing an important role in global power generation through 2031, but the conditions surrounding their operation are changing.
Electricity demand is rising. Renewable generation is expanding. Data centers and other energy-intensive industries are increasing pressure on power infrastructure. At the same time, utilities and industrial operators face increasingly demanding efficiency and emissions objectives.
The future of the gas turbine market will therefore depend not only on how much new capacity is installed, but also on how efficiently existing and future assets are operated.
Hydrogen-capable combustion, carbon capture, advanced materials, digital controls and power augmentation technologies will all contribute to this evolution.
Within this context, Turbine Inlet Air Cooling provides a way to mitigate one of the fundamental limitations of gas turbine operation: the loss of power output caused by high ambient temperatures.
By recovering this capacity, power producers can increase the performance of existing assets and respond to growing electricity demand with a more efficient use of installed infrastructure.
Our successful project with Oil & Gas company Aramco has showcased how top-tier TIAC technology can enhance gas turbine performance: across three Independent Power Projects, our TIAC systems guaranteed more than 146.16 MW of extra power, with low capital costs.
Interested in learning more about TIAC technologies and their role in providing top efficiency for breakthrough gas turbine market initiatives? Get in touch with our team and discover how we can help you.
Frequently asked questions about the gas turbine market
What is the gas turbine market forecast for 2031?
The global gas turbine market is expected to continue growing through 2031. Allied Market Research projects a market value of approximately $32.1 billion by 2031, compared with $19.6 billion in 2021.
What is driving the growth of the gas turbine market?
Key drivers include rising electricity demand, investment in power generation infrastructure, coal-to-gas transitions, renewable energy integration and growing demand for flexible generation capacity.
Which region leads the gas turbine market?
Asia-Pacific represents the leading regional gas turbine market according to current market analyses, supported by increasing electricity demand and investment in power infrastructure.
What technologies are shaping the future of gas turbines?
Major developments include hydrogen-ready combustion, carbon capture, advanced turbine materials, digital control systems and technologies designed to increase efficiency and power output.
How does ambient temperature affect gas turbine performance?
Higher ambient temperatures reduce inlet-air density and mass flow, which can decrease the power output available from a gas turbine.
How can gas turbine output be increased in hot climates?
Turbine Inlet Air Cooling (TIAC) can cool the air entering the turbine, increasing air density and helping recover power output that would otherwise be lost at high ambient temperatures.
What role can gas turbines play alongside renewable energy?
Gas turbines can provide flexible, dispatchable generation that helps balance electricity systems when variable renewable sources such as wind and solar are unable to meet demand.
Can existing gas turbines provide additional generation capacity?
Yes. Depending on plant conditions and turbine configuration, power augmentation technologies such as TIAC can increase the output available from existing gas turbine assets without installing an additional turbine.
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