As per MRFR analysis, the Europe Gas Turbine Market Size was estimated at 7.48 (USD Billion) in 2023.The Europe Gas Turbine Market is expected to grow from 7.77(USD Billion) in 2024 to 11.73 (USD Billion) by 2035. The Europe Gas Turbine Market CAGR (growth rate) is expected to be around 3.821% during the forecast period (2025 - 2035).
Key Europe Gas Turbine Market Trends Highlighted
The growing need for cleaner energy sources and the move toward the integration of renewable energy sources are driving notable changes in the European gas turbine market. Because gas turbines offer flexible power generation that supplements intermittent renewable sources like solar and wind, some European nations are increasing their reliance on them.
As Europe works to meet its climate goals under the European Green Deal, which places a strong emphasis on cutting greenhouse gas emissions and advancing a sustainable energy system, this flexibility is essential.
Key market factors include legislative backing, technical developments, and an emphasis on energy efficiency are driving governments throughout Europe to invest in modernizing and expanding their energy infrastructure.
The renovation of current gas turbines and developments in turbine technology, such as the creation of hydrogen-fueled gas turbines, are opportunities that should be investigated since they support Europe's objective of having a carbon-neutral economy by 2050.
The market's changing demands are demonstrated by the considerable demand for hybrid systems and combined heat and power applications as countries move toward greener energy solutions.
Many businesses are investing in smart technology for improved performance monitoring and predictive maintenance, indicating a discernible shift towards digitalization in gas turbine operations. Reducing downtime and increasing operational efficiency are possible through the use of IoT, AI, and big data analytics.
Innovation in turbine design and emission controls is also being aided by the growing cooperation between manufacturers and research organizations. All things considered, these patterns suggest that the European gas turbine market is a dynamic and changing environment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Gas Turbine Market Drivers
Increasing Demand for Renewable Energy Integration
The shift towards cleaner energy sources in Europe has significantly increased the demand for gas turbines, particularly in hybrid applications with renewable resources. European Union policies, such as the European Green Deal, aim to reduce greenhouse gas emissions to net zero by 2050.
This transition requires reliable backup systems, where gas turbines play a crucial role in maintaining grid stability and flexibility. The European power generation sector aims to transform about 60% of its capacity to renewables by 2030, according to the European Commission.
In 2020, renewable energy accounted for nearly 38% of the electricity generated in Europe, further driving the need for gas turbine technology to support this integration and compensate for intermittent renewables. The presence of major players like Siemens and General Electric in this region enhances the development and deployment of advanced gas turbine technologies that support this transition.
Regulatory Support and Policy Frameworks
In Europe, strong regulatory frameworks and government support initiatives are pivotal drivers for the gas turbine market. The European Union's efforts to enhance energy security and reduce reliance on fossil fuels have led to funding programs that promote innovation in gas turbine technology.
According to the European Parliament, investments in energy projects from the European Union budget can reach up to 1 trillion Euros over the next decade, focusing on boosting energy efficiency and reducing emissions. Regulatory incentives provided by individual European countries, such as Feed-in Tariffs and Renewable Energy Auctions, create favorable conditions for the market.
Additionally, organizations like the European Gas Association advocate for the advancement of natural gas infrastructure, further solidifying the role of gas turbines in the energy mix. These policies ensure continued investment and progress within the Europe Gas Turbine Market.
Technological Advancements and Innovations
Technological advancements in gas turbine designs and manufacturing processes are propelling the growth of the Europe Gas Turbine Market. Innovations such as improved efficiency, enhanced reliability, and lower emissions are becoming standard expectations from modern gas turbines.
Recent patents filed by companies headquartered in Europe reflect a growing trend in the industry to harness advancements such as additive manufacturing and advanced materials, which significantly improve turbine performance.
The European Patent Office revealed that the gas turbine sector accounted for over 12% of all energy-related patents filed in Europe in the past five years, indicating purposeful innovation to compete in efficiency and emissions standards.
As manufacturers like Rolls-Royce and Siemens invest in Research and Development to enhance their technologies, the competitive edge in the gas turbine sector further stimulates market growth.
Europe Gas Turbine Market Segment Insights
Gas Turbine Market Type Insights
The Type segmentation within the Europe Gas Turbine Market reveals critical insights into the structure and dynamics of this evolving industry. The market is divided into three main categories: Industrial, Heavy-Duty, and aeroderivative turbines, each serving unique applications and industries.
Industrial gas turbines are integral for applications requiring continuous and reliable power supply, often utilized in manufacturing and cogeneration plants. Their efficiency and adaptability enable them to dominate in sectors where operational performance is prioritized.
Heavy-duty turbines are vital for large power generation facilities, contributing significantly to base-load electricity production. Their robust design and ability to handle harsh conditions provide a reliable solution for utilities and large industrial facilities, making them a staple in the regional power generation landscape.
Aeroderivative turbines are known for their versatility and quick start-up capabilities, making them suitable for peak load and backup power applications. They also find applications in offshore and remote locations, where mobility and efficiency are critical.
The importance of these segments stems from the rising demand for cleaner energy solutions and the push for efficiency in power generation, which are driving innovations within the Europe Gas Turbine Market.
As Europe aims to transition towards greener energy systems, the role of gas turbines, especially in hybrid systems with renewables, becomes increasingly significant. Overall, the segmentation highlights how each type fulfills specific needs within the market, contributing to its overall growth and transformation amidst evolving energy policies and technological advancements in the region.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Gas Turbine Market Rating Capacity Insights
The Rating Capacity segment of the Europe Gas Turbine Market plays a crucial role in shaping the industry's dynamics, with distinct categories such as Less Than 40 MW, 40 to 120 MW, 121 to 300 MW, and Above 300 MW.
Each category serves varying energy demands, where Less Than 40 MW turbines are often preferred for small-scale applications and combined heat and power systems, offering flexibility and efficiency. The 40 to 120 MW range typically caters to medium-sized industrial applications, balancing cost-effectiveness with power generation needs.
Turbines rated between 121 to 300 MW are essential for large-scale power plants, contributing significantly to grid stability as they can operate at higher efficiencies. Lastly, the Above 300 MW category dominates the landscape of utility-scale projects, favored for their lower cost per megawatt and ability to support renewable energy integration.
This segment's importance is further underscored by ongoing advancements in gas turbine technology, aimed at enhancing efficiency and reducing emissions, aligning with Europe's stringent environmental regulations and energy transition goals. The varying capacities within this segment highlight its adaptability and key role in meeting Europe's diverse energy requirements.
Gas Turbine Market End-User Insights
The Europe Gas Turbine Market, particularly in the End-User segment, encompasses various industries that rely heavily on efficient energy conversion and power generation. The Power Generation sector significantly drives the market as it seeks to meet the growing energy demands across the region.
This sector emphasizes the transition to cleaner energy solutions, making gas turbines an appealing option due to their lower emissions compared to traditional sources. The Oil and Gas industry plays a vital role, utilizing gas turbines for both power generation and mechanical drive applications, which contributes to operational efficiency and reduced carbon footprints.
The Marine segment is gaining traction as well, with gas turbines being employed in naval vessels and offshore applications, showcasing their effectiveness in terms of power-to-weight ratios. Process Plants utilize gas turbines for their flexible operation and ability to work in combination with other generating technologies.
Other industries also contribute to the diversity of applications, showcasing the multifaceted nature of gas turbines within Europe's industrial and energy landscape.
The overall Europe Gas Turbine Market benefits from continuous advancements in technology, promoting increased efficiency and sustainability, while regulatory frameworks also encourage adoption, providing significant growth opportunities within these End-User categories.
Gas Turbine Market Technology Insights
The Technology segment of the Europe Gas Turbine Market is crucial as it encompasses various configurations that significantly influence performance, efficiency, and application in power generation. Open Cycle technology is known for its flexibility and quick startup times, making it a preferred choice for peaking power plants and situations requiring rapid response to demand fluctuations.
On the other hand, Combined Cycle technology integrates gas and steam turbines, resulting in improved overall efficiency and reduced greenhouse gas emissions.
This technology has gained significant traction due to increasing regulatory pressures focused on sustainability and the transition towards greener energy sources within Europe. Furthermore, investments in infrastructure and modernization of existing plants are driving the need for advanced gas turbine technologies.
As the European Union emphasizes the importance of energy independence and decarbonization goals, the market dynamics around these technologies are expected to evolve, providing opportunities for innovation and enhancing competitive advantages.
The focus on hybrid solutions, digitalization, and smart grid implementation is also creating new growth avenues within the Europe Gas Turbine Market. Overall, the intersection of technological advancements and regulatory frameworks illustrates the strategic importance of the Technology segment in shaping the future energy landscape in Europe.
Gas Turbine Market Regional Insights
The Europe Gas Turbine Market is characterized by a diverse regional segmentation, encompassing key markets such as Germany, the UK, France, Russia, Italy, Spain, and the Rest of Europe, each playing a vital role in the overall landscape.
Germany remains a crucial player due to its robust industrial base and renewable energy transition efforts, leading to significant demand for gas turbines in power generation and cogeneration applications. The UK, focused on reducing carbon emissions, is shifting towards gas turbines to improve efficiency and integration with renewable sources.
France, with its substantial nuclear energy reliance, is increasingly exploring gas turbines as a complementary solution to bolster energy security and support grid stability. Russia's vast natural gas resources position it uniquely, driving consistent growth in gas turbine installations, particularly in the power generation sector.
Italy and Spain are investing in modernizing their energy infrastructures, making gas turbines a favored choice given their flexibility and lower emissions compared to coal. The Rest of Europe presents myriad opportunities as smaller nations seek to enhance their energy independence and sustainability goals through the adoption of advanced gas turbine technologies.
The evolving energy landscape across Europe, with a focus on efficiency and environmental considerations, positions the gas turbine segment as a key element in achieving future energy systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Gas Turbine Market Key Players and Competitive Insights
The Europe Gas Turbine Market is characterized by a highly competitive landscape driven by technological advancements, regulatory changes, and increasing energy demands. The market encompasses various segments, including industrial, commercial, and utility applications.
As countries strive to meet their energy transition goals while increasing efficiency and reducing emissions, several key players are innovating their product offerings and enhancing their operational capabilities.
This competitive environment is influenced by factors such as the growing emphasis on sustainability, investment in renewable energy integration, and the need for backup power solutions. The presence of established companies alongside emerging players further intensifies the competition, encouraging strategic alliances, mergers, and acquisitions, which ultimately shape the market dynamics.
Solar Turbines is a prominent player in the Europe Gas Turbine Market, recognized for its commitment to providing efficient and reliable gas turbine systems tailored for various industrial applications. The company's strengths lie in its advanced technology and diverse product lineup, which includes turbine systems designed for power generation, cogeneration, and compression.
Solar Turbines has established a robust market presence in Europe, emphasizing customer-focused solutions and after-sales support, which enhances energy efficiency and operational reliability for clients.
The company's dedication to innovation is evident in its investments in research and development, allowing it to stay ahead of market trends and deliver superior performance in a highly competitive environment.
Bharat Heavy Electricals Limited has positioned itself as a significant contender in the Europe Gas Turbine Market through its diverse portfolio of power generation equipment, specifically high-efficiency gas turbines.
The company focuses on providing comprehensive solutions that include manufacturing, installation, and maintenance services, ensuring that customers receive holistic support throughout the product lifecycle. Bharat Heavy Electricals Limited benefits from its strong engineering capabilities and the ability to cater to customized demands, which allows it to maintain relevance in the dynamic European energy market.
The company has enhanced its market presence through strategic partnerships and collaborations in Europe and has engaged in mergers and acquisitions to strengthen its technological base and expand its footprint.
The emphasis on sustainable practices reflects its alignment with Europe’s energy transition objectives, showcasing the company’s commitment to delivering eco-friendly solutions while addressing the growing energy needs across the region.
Key Companies in the Europe Gas Turbine Market Include:
Europe Gas Turbine Market Developments
Recent developments in the Europe Gas Turbine Market highlight significant activity among major players such as General Electric, Siemens, Rolls-Royce, and Alstom.
In September 2023, General Electric announced the successful launch of its latest gas turbine technology aimed at enhancing efficiency and reducing emissions, reflecting the industry's push towards sustainability. Similarly, Siemens is advancing its digital solutions to optimize performance and reduce operational costs for gas turbine users.
Mergers and acquisitions have been pivotal in shaping the competitive landscape, with Rolls-Royce completing a strategic acquisition in August 2023 to strengthen its capabilities in power generation. Moreover, in July 2022, Mitsubishi Power expanded its reach in Europe by acquiring a key technology firm to bolster its portfolio in low-emission solutions.
The valuation of companies in this sector is on an upward trajectory, driven by increasing demand for cleaner energy solutions and government incentives aimed at reducing carbon footprints across Europe. Looking back, in January 2022, Alstom secured a major contract for the supply of gas turbines in a renewable energy project, contributing to a robust market outlook.
The evolving landscape underscores a dynamic shift towards innovation and emission reduction in the European gas turbine sector.
Europe Gas Turbine Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 7.48 (USD Billion) |
| MARKET SIZE 2024 | 7.77 (USD Billion) |
| MARKET SIZE 2035 | 11.73 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 3.821% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Solar Turbines, Bharat Heavy Electricals Limited, Turbomeca, Siemens, Elliott Group, Turbinia, General Electric, RollsRoyce, Wood Group, Alstom, Capstone Turbine, GE Aviation, Mitsubishi Power, DresserRand, Ansaldo Energia |
| SEGMENTS COVERED | Type, Rating Capacity, End-User, Technology, Regional |
| KEY MARKET OPPORTUNITIES | Rising demand for cleaner energy, Increasing investments in renewable integration, Expansion of power generation capacity, Advancements in turbine efficiency, Growth in industrial applications |
| KEY MARKET DYNAMICS | rising energy demand, environmental regulations, technological advancements, government incentives, competitive pricing |
| COUNTRIES COVERED | Germany, UK, France, Russia, Italy, Spain, Rest of Europe |
Frequently Asked Questions (FAQ) :
The Europe Gas Turbine Market is expected to be valued at 7.77 USD Billion in 2024.
The market is projected to reach 11.73 USD Billion by 2035.
The expected CAGR for the Europe Gas Turbine Market from 2025 to 2035 is 3.821%.
The Heavy-Duty type is expected to hold the largest market share, valued at 4.77 USD Billion by 2035.
The Industrial gas turbines are projected to be valued at 3.5 USD Billion in 2035.
Germany is expected to dominate the market with a valuation of 3.25 USD Billion by 2035.
The UK gas turbine sector is projected to reach a valuation of 2.3 USD Billion in 2035.
The gas turbine market in Russia is valued at 1.0 USD Billion in 2024.
Key players include General Electric, Siemens, and Rolls Royce among others.
The Aeroderivative gas turbine segment is expected to grow to 3.46 USD Billion by 2035.
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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