APAC’s urbanising economies power the global steam and gas turbine market

Core Insights - APAC is projected to have over 2.2 billion urban residents by March 2025, making it the most populous urban region globally, with a forecasted 50% increase in urban population by 2050, leading to significant electricity demand growth [1] - The gas turbine market in APAC is expected to reach $7.4 billion by 2030, driven by rapid urban development, particularly in East and Southeast Asia [2] - The 2025 gas turbine market value in APAC is estimated at $4.6 billion, significantly surpassing the EMEA region by $1.8 billion and representing less than 22% of the APAC market for the Americas [3] Market Dynamics - The steam and gas turbine sectors are on distinct trajectories, with steam assets modernizing for emissions improvements while gas-fired assets are viewed as cleaner alternatives for energy security [4] - Gas turbines are favored in markets balancing emissions targets with capacity demand, while steam turbines, primarily coal-fired, provide high capacity but with a higher emissions profile [5] - APAC is recognized as the largest and most strategically vital market for steam and gas turbines within the global thermal power industry [6] Energy Security and Decarbonization - The report emphasizes the importance of thermal power in rapidly urbanizing economies like China and India, where energy security is critical amid rising electricity demand and industrialization [7] - Many APAC countries have ambitious decarbonization targets, but the soaring electricity demand complicates these goals, necessitating a continued reliance on thermal power [8] - Gas turbines, especially in combined-cycle configurations, are seen as a cleaner alternative to coal, aligning with decarbonization efforts [9] Regional Market Insights - Asia is experiencing the fastest power demand growth globally at approximately 5% annually, with APAC holding 76.9% of the global steam turbine market share in 2025 [11] - The region's domestic industries, particularly in China, India, and South Korea, are leading in turbine manufacturing due to robust demand [12] - The trajectory for steam turbines is shifting due to international decarbonization efforts, leading to modernization trends and the adoption of more efficient technologies [13] Growth Drivers - Key drivers for the growth of steam and gas turbine markets in APAC include urbanization, industrialization, and the need for reliable grid operation, resulting in increased electricity demand [14] - Rapid industrialization in APAC, particularly in India and Southeast Asia, is expected to make these regions the largest and fastest-growing markets for energy services [15] - Countries like China dominate in lithium-ion battery and solar module production, while Vietnam and Malaysia are emerging as key manufacturing hubs [16][17] Future Outlook - The energy security landscape in APAC requires a balance between rapid urbanization and industrialization, with a focus on maintaining baseload reliability through steam turbine generation and flexible gas turbine technologies [19] - Policy frameworks, such as the Paris Agreement, are influencing the market trajectory, pushing for a transition away from high-carbon assets [20] - The APAC region's unique challenges and opportunities suggest that modernization projects and emissions-compliant retrofitting will be the primary business opportunities moving forward [24]