Table of Contents
Overview
New York, NY – December 05, 2025 – The global Power Generation Equipment Market is on a steady growth path and is expected to reach USD 163.3 billion by 2034, rising from USD 99.3 billion in 2024, with a projected CAGR of 5.1% between 2025 and 2034. Asia-Pacific continues to lead the market, holding around 47.30% share, supported by rapid electrification, expanding renewable capacity, and large-scale infrastructure development.
Power generation equipment includes turbines, generators, transformers, control systems, and related infrastructure used across thermal plants, wind farms, hydropower stations, microgrids, and utility-scale renewable projects. Its role has grown far beyond traditional electricity production, becoming a core enabler of cleaner, efficient, and more resilient energy systems.
Market expansion is closely linked to grid upgrades, industrial power demand, and global efforts toward energy security and decarbonization. Governments are actively supporting this transition. Notable funding includes Britain increasing offshore wind incentives to USD 720 million, along with a USD 20 million U.S. Department of Energy initiative focused on wind-turbine recycling technologies.
Additional momentum comes from innovation-led investments, such as USD 121 million directed toward turbine financial infrastructure, €6 million allocated for advanced wind-turbine transmission research, and USD 10 million supporting hydrokinetic turbine startups. Opportunities continue to grow as next-generation systems gain backing, highlighted by the UK’s £86 million investment in super-turbines and the development of hybrid power-generation technologies.
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Key Takeaways
- The Global Power Generation Equipment Market is expected to be worth around USD 163.3 billion by 2034, up from USD 99.3 billion in 2024, and is projected to grow at a CAGR of 5.1% from 2025 to 2034.
- In the Power Generation Equipment Market, turbines hold 39.8%, showing strong adoption across renewable and conventional power systems.
- The Power Generation Equipment Market is led by fossil fuels with 56.9%, reflecting existing installed infrastructure demand.
- In the Power Generation Equipment Market, medium capacity systems at 44.3% dominate due to balanced scalability and efficiency.
- The Power Generation Equipment Market sees baseload generation at 41.2%, supporting uninterrupted electricity supply requirements globally.
- In the Power Generation Equipment Market, the utility sector leads with 49.7%, driving long-term project installations.
- The market value in Asia-Pacific reaches USD 46.9 billion, reflecting large infrastructure needs.
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Report Scope
| Report Features | Description |
|---|---|
| Market Value (2024) | USD 99.3 Billion |
| Forecast Revenue (2034) | USD 163.3 Billion |
| CAGR (2025-2034) | 5.1% |
| Segments Covered | By Equipment Type (Turbines, Engines, Boilers, Heat Exchangers, Power Transformers), By Fuel Source (Fossil Fuels, Renewable Energy, Nuclear Energy), By Capacity Range (Small (Up to 5 MW), Medium (5-50 MW), Large (Over 50 MW)), By Application (Baseload Generation, Peak Generation, Combined Heat and Power (CHP), Emergency Power), By End-use (Utility, Industrial, Commercial, Residential) |
| Competitive Landscape | ABB, Bharat Heavy Electricals Limited, Briggs & Stratton, Caterpillar, Champion, Cummins Power Systems, Eaton, General Electric, Honda Power, Hyundai Power |
Key Market Segments
By Equipment Type Analysis
In 2024, turbines secured a leading place in the By Equipment Type segment of the Power Generation Equipment Market, accounting for a 39.8% market share. This dominance highlights their vital function in transforming mechanical energy into electricity across multiple power generation systems, including wind, hydropower, and conventional thermal facilities. Turbines are widely adopted in both large utility-scale plants and smaller distributed energy installations, making them indispensable to modern power infrastructure.
Their continued growth is supported by the ongoing modernisation of aging power plants worldwide. Many operators are upgrading or replacing older turbine units to improve efficiency, reduce fuel consumption, and enhance reliability.
Turbines also benefit from their versatility, operating effectively across renewable and fossil-based energy sources. As global electricity demand rises and electrification expands in both emerging and developed regions, turbines remain central to ensuring grid stability and reliable power generation while supporting long-term energy transition goals.
By Fuel Source Analysis
In 2024, fossil fuels led the By Fuel Source segment of the Power Generation Equipment Market, holding a 56.9% share. This leadership underscores the ongoing dependence on coal, natural gas, and oil-driven systems for dependable, large-scale electricity generation. These sources continue to play a critical role due to their well-established infrastructure, reliable operating performance, and strong ability to meet continuous baseload power needs.
Despite growing investments in renewable energy, fossil fuel-based power plants remain essential in many regions to maintain grid balance and ensure an uninterrupted electricity supply. Their relevance is further reinforced by regular maintenance activities, system refurbishments, and technological upgrades aimed at improving efficiency and reducing downtime.
Such efforts help extend the operational life of existing assets while supporting energy security. As a result, fossil fuels continue to serve as a foundational element of the global power generation landscape alongside emerging clean-energy solutions.
By Capacity Range Analysis
In 2024, the Medium (5–50 MW) capacity range emerged as the leading segment in the By Capacity Range category of the Power Generation Equipment Market, capturing a 44.3% market share. Its strong position is driven by suitability for industrial operations, commercial facilities, and regional utilities that require reliable yet manageable electricity output.
Systems within the 5–50 MW range are widely deployed in distributed power networks, where rapid installation, operational flexibility, and localized energy supply are essential. This capacity range offers a practical balance between performance, cost efficiency, and scalability, making it attractive for both standalone applications and grid-linked setups.
As global demand grows for resilient and stable power infrastructure, medium-capacity equipment continues to gain preference. It delivers dependable generation without the high capital intensity or operational complexity associated with large utility-scale plants, ensuring sustained adoption across diverse end-use sectors.
By Application Analysis
In 2024, Baseload Generation dominated the By Application segment of the Power Generation Equipment Market, accounting for a 41.2% market share. This leading position highlights its critical role in delivering uninterrupted and stable electricity to power grids, which is essential for industrial operations, public services, and urban infrastructure.
Baseload power systems are built for continuous operation and consistent output, allowing them to meet constant electricity demand regardless of seasonal changes or peak-load fluctuations. Their dependable performance makes them a foundational component of both national and regional energy planning.
Continued investment in the modernization and maintenance of existing power facilities further supports this segment’s strength. Upgrading lifecycle equipment and improving operational efficiency help ensure long-term reliability. As a result, baseload generation remains central to power system stability and energy security across global markets.
By End-use Analysis
In 2024, the Utility segment led the By Application category of the Power Generation Equipment Market, securing a 49.7% market share. This dominance reflects the extensive use of power generation equipment within national and regional grid systems designed to handle growing and consistent electricity demand.
Utility providers depend on proven, high-efficiency equipment to deliver stable power over long operating periods. These systems support a wide range of end users, including residential communities, industrial facilities, and commercial operations, while maintaining grid reliability and balanced supply.
Ongoing attention to system upgrades, equipment replacement, and performance optimization continues to strengthen this segment. As electrification expands and power infrastructure is reinforced globally, utility-scale installations remain the primary focus for investment and technology adoption, shaping the direction of equipment demand across the global power generation landscape.
Regional Analysis
Asia-Pacific led the Power Generation Equipment Market with a 47.30% share, valued at USD 46.9 billion, supported by heavy investment in power infrastructure, rapid industrial expansion, and continuous grid enhancement. Rising urbanisation and strong electricity demand from manufacturing and commercial activities continue to drive equipment adoption across the region.
North America displays consistent demand for advanced power generation technologies as utilities and industries focus on improving reliability and upgrading ageing generation assets. System modernisation and performance optimisation remain key priorities across the region.
Europe follows a well-planned transition path, emphasising equipment upgrades that improve efficiency, durability, and long-term grid resilience across diverse national energy systems. The Middle East & Africa region is witnessing growing installation activity to support electrification, industrial growth, and expanding utility networks, particularly in developing economies.
Latin America continues its gradual progress through selective upgrades and steady capacity additions, strengthening both grid-connected and distributed power generation infrastructure across the region.
Top Use Cases
- Utility-Scale Electricity for Cities & Industry: Large power generation equipment (like coal, natural-gas or hydro turbines with generators) produce electricity on a big scale to supply homes, factories, offices and cities. This backbone infrastructure keeps lights on, runs industries and supports modern life.
- Hydroelectric Power from Water Resources: Hydropower plants use water — from rivers or dams — to spin turbines that drive generators. This clean, renewable method often achieves high conversion efficiency and supplies electricity without burning fuel.
- Backup and Standby Power in Grid Outages: Smaller generation equipment — like diesel/gas generators — serve as backup power sources. They kick in during blackouts or emergencies to keep hospitals, data centers, telecom towers or remote installations running smoothly.
- Remote or Off-Grid Power for Isolated Communities: In areas where grid power doesn’t reach — rural villages, islands, remote bases — standalone generation systems (diesel, solar, micro-hydro or hybrid setups) provide essential electricity for lighting, water pumps, clinics, schools, etc.
- Microgrids and Distributed Generation for Flexibility & Resilience: Small-scale, local power systems (mixing renewables, storage, and/or conventional generators) — called microgrids — help communities and businesses manage power locally, improve reliability, and reduce dependence on large grid-scale plants.
Recent Developments
- In February 2025, BHEL won a contract to supply a 1320 MW package (boiler, turbine, generator) for the Koradi thermal power station. This adds to their ongoing role in building large thermal plants.
- In December 2024, ABB agreed to acquire the power conversion business of Gamesa Electric, which includes doubly-fed induction generator (DFIG) wind converters, utility-scale solar inverters, and battery energy-storage system (BESS) electronics.
Conclusion
The Power Generation Equipment Market continues to evolve as global energy systems focus on reliability, efficiency, and long-term sustainability. Demand remains strong across both conventional and cleaner power sources, driven by ongoing electrification, industrial growth, and infrastructure upgrades.
Utilities and industries are prioritizing dependable equipment that supports a stable power supply while adapting to modern grid requirements. Technological improvements, system modernization, and lifecycle upgrades are strengthening performance and operational resilience.
As energy networks expand and diversify, power generation equipment plays a critical role in ensuring secure electricity production, supporting economic development, and enabling
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