Aeroderivative Gas Turbine Market

Aeroderivative Gas Turbine Market Outlook (2025 to 2035)

The aeroderivative gas turbine market is projected to grow at a CAGR of over 6.9% over the forecast period. The market was valued at USD 3.6 billion in 2024. By 2035, it is expected that the aeroderivative gas turbine industry to be worth USD 7.4 billion. The dynamic of the industry will be positively impacted by the rising expansion and development of manufacturing techniques along with the growing emphasis on sustainable energy development.

Increased investments in regenerative gas turbine facilities along with favorable regulatory body policies, such as subsidies, tax breaks, and incentives, to boost product demand. The adoption of the product to be aided by rising investments across the aviation sector and the use of contemporary technology in gas-fired turbines.

An increasing emphasis on improving the capabilities of aviation and maritime defense forces will boost the aeroderivative gas turbine market. The advantages of being lightweight, having a small carbon footprint, offering high cycle flexibility, and requiring minimal downtime for maintenance makes it more desirable than other options available.

The growth of the industry is also being complemented by the appropriate government initiatives to resume operations across key industries, manufacturing facilities, and infrastructure projects.

Moreover, players operating in the market are engaging in significant collaborations and forming strategic alliances to launch latest and technologically advances in turn boost the market further.

For instance, in November 2024, Black & Veatch announced collaboration with Baker Hughes on Standard LNG Solution Utilizing PRICO Technology at ADIPEC 2024. Black & Veatch are in process of deploying PRICO with Baker Hughes’ LM9000 and compression technology on a current project in construction and they will now be able to offer this optimized solution to both onshore and floating LNG facilities.

Report Attributes	Details
Aeroderivative Gas Turbine Market Size (2024A)	USD 3.6 Billion
Estimated Market Value (2025E)	USD 3.8 Billion
Expected Market Value (2035F)	USD 7.4 Billion
Global Market Growth Rate (2025 to 2035)	6.9% CAGR
East Asia Market Share (2025)	26.0%
China Market Growth Rate (2025 to 2035)	8.3% CAGR
Key Companies Profiled	General Electric; Ansaldo Energia; Nanjing Turbine & Electric Machinery; Baker Hughes Company; Harbin Electric Corporation; Capstone Green Energy Corporation; UEC-Saturn, OPRA Turbines; MAN Energy Solutions; VERICOR; Bharat Heavy Electricals Limited (BHEL); Kawasaki Heavy Industries, Ltd.; Wärtsilä; Mitsubishi Heavy Industries; Siemens.

Historic Analysis (2020 to 2024) and Future (2025 to 2035) Pathway Analysis for the Aeroderivative Gas Turbine Market

The market for aeroderivative gas turbine grew at a growth rate of 5.7% from 2020 to 2024, and by the end of 2024, it was valued at USD 3.6 billion. The main factors accelerating the product portfolio are lower operational costs, smaller carbon footprints, and compact size.

Historical Report Attributes	Details
Market Size (2020A)	USD 2.8 billion
Market Size (2024A)	USD 3.6 billion
Historical CAGR (2020 to 2024)	5.7%
Forecasted CAGR (2025 to 2035)	6.9%

• Short Term (2025 to 2028): There are many reasons due to which the aeroderivative gas turbine market is expected to grow in a steady rate in the coming years. One of the key drivers for demand is the growing penetration of renewable energy sources, such as solar and wind, on the power grid, which requires reliable backup and peaking power that can be supplied by aeroderivative gas turbines. These turbines are increasingly focused on sustainability and lowering greenhouse gas emissions, as they typically use either natural gas or biofuels, making them generally more energy-efficient and environmentally-friendly.
• Medium Term (2028 to 2032): In light of this, the demand for aeroderivative gas turbines will increase in various industries. The increasing share of renewable energy power generation plants will lead to changed utilization in the power generation sector, while emphasizing the need for flexible backup solutions. The oil and gas industry will also support demand, especially for offshore applications. The marine industry is also loosening its grip and starting to adopt these turbines for naval propulsion and offshore rigs. Aeroderivative gas turbines are expected to penetrate into other sectors like industrial and aviation
• Long Term (2030 to 2035): AGTs are flexible in terms of fuel, this will drive the demand for natural gas or biogas as fuel and is has a compact structure so that it can be installed in space constrained urban setting. Advancement in technologies have reduced maintenance need as a result lowering operational costs and downtime. AGTs can be engineered to produce low emissions, making them good source for renewable energy like wind and solar.

On the back of the aforementioned facts, the aeroderivative gas turbine market is anticipated to grow at a CAGR of 6.9% during the forecast period from 2025 to 2035, According to the Fact.MR, a market research and competitive intelligence provider.

Market Dynamics

What are the Factors Propelling Global Sales of Aeroderivative Gas Turbine?

“The environmental awareness and the demand for sustainable materials are driving the market for Aeroderivative Gas Turbine”

To reduce carbon emission, electricity will be produced by using gas turbine power plants. As gas turbine is responsible for low carbon emission, power plants have replaced their conventional turbines with aeroderivative gas turbines.

When compared to other turbines, aeroderivative turbines are stronger and require low maintenance. This advantage makes them an attractive choice for various applications. Robust design of AGTs make them more reliable and efficient in power generation.

Every nation is boosting its military might, and aircrafts are essential for this. Aeroderivative gas turbine is frequently used in military aircraft because of its cutting-edge feature. These are the forces which drives the global aeroderivative gas turbine market.

What are the future trends in the Aeroderivative Gas Turbine Market?

“The Aeroderivative Gas Turbine market is expected to grow significantly due to upcoming technological innovations”

There is continuous advancement in gas turbine technology which includes hybrid systems and improved performance metrics. These technological innovations enhance the efficiency and reliability of aeroderivative gas turbines, making them more inviting for various applications. This technological advancement is sustainable in nature and zero-carbon emission based. Due to this there is increase in use of gas-fired turbines and they are more environment friendly than coal.

What are the Challenges Aeroderivative Gas Turbine Market faces?

“High Initial Cost and other alternatives are big challenges for this market”

High production cost of AGTs becomes a big hindrance and sustaining in the market becomes difficult. To overcome this market should have potential buyers. When it comes to competition, alternate energy sources like wind and solar are the potential competitors as they are more sustainable and require less maintenance.

As inflation is a big problem in every industry because of which prices of raw materials used for manufacturing aeroderivative gas turbine keeps fluctuating which remains a big issue. Another restraint is limitation in fuel flexibility, not all types of fuels can be used in case of aeroderivative gas turbine market which is again a big limitation.

Country-wise Insights

How the Market is performing in United States?

“As the country is moving towards sustainable growth this market has witnessed steady growth”

In United States the market size is expected to be USD 0.7 billion 2025 and the CAGR is projected to be 6.1% for forecast period 2025 to 2035. This investment will help enhance the convention power plant, with reduced emissions of carbon with combined cycle gas turbine plants installations.

The U.S. shale revolution has enhanced the production of natural gas and improved the techniques of drilling and extraction in the region. Due to this, gas-fired technology is seen as an affordable and dependable source of energy.

USA is home to many large aerospace companies and the largest fleet of aircrafts in the world. These are the forces that propel the market expansion of aeroderivative gas turbines in the country.

The market for aeroderivative gas turbines in North America is expected to grow manifold with an increasing regional emphasis on CCGT power plant technology solutions. The market size is expected to be USD 1.0 Billion in 2025 and the projected CAGR is 6.2% for forecast period 2025 to 2035.

How is China’s Contribution to the Market Giving East Asia the Highest Market Share?

“Rapid Industrial and shifting towards sustainable development”

China’s market size is expected to be USD 0.5 billion in 2025 and the CAGR is projected to reach 8.3% for forecast period 2025 to 2035. This can be attributed to the factor of China’s low carbon emission policies such as generating electricity from gas-fired generations instead of coal-fired ones. The aeronautical sector is also expected to open up in China along with the demand for aero-derivative gas turbines.

Category-wise Insights

Which Application to Boost the AGT Market Revenue During the Forecast Period?

“A thriving aviation industry to accelerate market revenue growth during the forecast period”

This expansion is attributed to ongoing efforts to maintain an aircraft at a weight that is efficient and constant. Rapid industrialization and strict energy efficiency regulations have made it compulsory for industries to develop more efficient power-generating systems. The expansion of processing and manufacturing facilities around the world has increased due to the rising demand for manufactured goods, which will ultimately affect the growth of self-regulated power generating units.

Government programs to introduce a sustainable energy mix could fuel aeroderivative gas turbine growth. Due to rising migrants and tourism mobilization in line with rising travel and living standards across major economies, the industry has experienced significant growth.

Additionally, the continued demand for aircrafts in the defence sector as a result of increasing national security and safety compliance is set to fuel market dynamics.

Competitive Landscape

Key players in the aeroderivative gas turbine market are General Electric, Ansaldo Energia, Nanjing Turbine & Electric Machinery; Baker Hughes Company, Harbin Electric Corporation, Capstone Green Energy Corporation, UEC-Saturn, OPRA Turbines, MAN Energy Solutions, VERICOR, Bharat Heavy Electricals Limited (BHEL), Kawasaki Heavy Industries, Ltd., Wärtsilä, Mitsubishi Heavy Industries, and Siemens among others.

Major companies also using cutting-edge product development techniques as a strategic move to improve their market positioning with consumers.

• In April, 2024 GE Verona announced that they will now deliver 58 heavy-duty gas turbines. Their production has increased by 9%. This achievement will help them to shift their focus on renewable energy and advanced power solutions.
• In November 2023, Mitsubishi Heavy Industries announced that they have made notable advancement in hydrogen technology. Mitsubishi Power successfully operates an advanced class gas turbine with 30% hydrogen fuel co-firing at Grid-Connected T-Point 2.

Fact.MR has provided detailed information about the price points of key manufacturers of aeroderivative gas turbine positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Aeroderivative Gas Turbine Industry Research

• By Capacity :

  • < 50 kW
  • 50 kW to 500 kW
  • 500 kW to 1 MW
  • 1 to 30 MW
  • 30 to 70 MW
  • 70 MW

• By Technology :

  • Open Cycle
  • Combined Cycle

•  By Application :

  • Power Plants
  • Oil & Gas
  • Process Plants  
  • Aviation
  • Marine  
  • Others

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa