APAC’s Urbanising Economies Power the Global Steam and Gas Turbine Market

Why It Matters

APAC’s dominance in turbine demand will dictate global equipment supply chains and influence the pace of the region’s energy‑transition strategies. Investors and OEMs must navigate the tension between immediate energy security and long‑term climate commitments.

Key Takeaways

• APAC gas turbine market projected $7.4bn by 2030.
• Urbanisation drives 5% annual power demand growth in region.
• Steam turbines hold 76.9% global market share in 2025.
• Decarbonisation pushes modernisation of coal‑based turbines.
• OEMs in China, India, South Korea lead production.

Pulse Analysis

Asia‑Pacific’s unprecedented urban migration is reshaping the global power landscape. By 2050 the region’s urban population will swell by half, translating into a relentless surge in electricity consumption that outpaces most other markets. Utilities are therefore prioritising firm, dispatchable capacity, and thermal generation—particularly gas‑fired combined‑cycle plants—offers the speed and scalability required to meet short‑term peaks while still aligning with emerging emissions standards. This demand elasticity makes gas turbines a strategic asset for grid operators seeking to balance renewable intermittency with reliable supply.

At the same time, the steam‑turbine segment, dominated by coal‑fired units, retains a commanding 76.9 % share of the global market. However, stringent climate policies, carbon‑pricing mechanisms and the Paris Agreement’s decarbonisation agenda are compelling owners to retrofit existing plants with supercritical and ultra‑supercritical technology, boosting thermal efficiency and cutting CO₂ intensity. OEMs in China, India and South Korea are leveraging their scale to supply both upgraded steam solutions and next‑generation gas turbines, positioning themselves as indispensable partners in the region’s modernization drive. The convergence of digital monitoring, predictive analytics and modular design further accelerates asset life‑extension and performance optimization.

For investors and industry stakeholders, APAC’s turbine boom signals a shift in capital allocation toward flexible, lower‑carbon thermal assets. The rise of hydrogen‑ready gas turbines and the integration of carbon‑capture-ready designs align with policy incentives such as the Inflation Reduction Act in the U.S. and comparable frameworks across the region. As governments balance energy security with net‑zero pledges, the next decade will likely see a gradual pivot from new coal installations to retrofits and gas‑based solutions, creating lucrative opportunities in engineering services, component supply chains, and aftermarket support. Companies that can deliver high‑efficiency, emissions‑compliant turbine technology will capture a disproportionate share of this expanding market.