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Indirect Drive Turbine Market Size & Share, by Application (Power Generation, Mechanical Drive, Propulsion); Design; End user; Capacity; Technology - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2026-2035

  • Report ID: 8205
  • Published Date: Oct 31, 2025
  • Report Format: PDF, PPT

Indirect Drive Turbine Market Outlook:

Indirect Drive Turbine Market size was valued at USD 6.2 billion in 2025 and is projected to reach USD 11.5 billion by the end of 2035, rising at a CAGR of 6.4% during the forecast period, i.e., 2026-2035. In 2026, the industry size of indirect drive turbine is estimated at USD 6.6 billion.

The indirect drive turbine market is expanding rapidly and is driven by the national energy transition, efficiency mandates and infrastructure modernization. Government and nonprofit data confirm that there is a rising capacity and investment across key regions. The market is underpinned by the national energy strategies. According to data released by the International Renewable Energy Agency in March 2025, 4,448,051 MW of renewable energy were produced overall by the end of 2024, with indirect drive systems playing a major role in the installation of gas and hybrid turbines in various industrial sectors.

The IEA data in 2024 depicts that the global energy investment exceeds USD 3 trillion in 2024, including investments in renewable energy, grid infrastructure, fossil fuels, and low-carbon technologies. This massive expenditure is covering a broad range of investments such as renewable energy, grid infrastructure, fossil fuels, and low-carbon technologies. Besides, Japan and South Korea are investing in the development of hybrid turbine technologies, which combine AI-based diagnostics to reduce the operational time. Meanwhile, various countries are using the turbine deployment method in their rural electrification programs to meet their national energy access objectives. Such changes reveal that there is a transition to modular, scalable turbine solutions, which are customized according to local energy requirements and the energy ​‍​‌‍​‍‌​‍​‌‍​‍‌policy.

Indirect Drive Turbine Market Size
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Growth Drivers

  • Demand​‍​‌‍​‍‌​‍​‌‍​‍‌ growth in emerging Asia-Pacific economies: The fast-economic growth and electrification in such countries as India, Indonesia, and Vietnam are the main factors that require massive new power generation investments. To meet the increasing demand, natural gas is considered the main fuel while attempts are made to reduce air pollution. The ADB is funding many gas infrastructure projects, thus confirming the region's long-term trend in demand for turbine ​‍​‌‍​‍‌​‍​‌‍​‍‌technology.
  • Replacement​‍​‌‍​‍‌​‍​‌‍​‍‌ of Aging Coal and Nuclear Fleet: One of the major reasons is the replacement of the old coal and nuclear power plants that are mainly located in the regions of North America and Europe. The most common replacement is the gas-fired turbines, as their emissions are lower, and their efficiency is higher. It results in a direct, immediate demand for new, very efficient combined-cycle plants with an indirect drive turbine. According to the EIA data in February 2025, generators are planning to retire 2.6 GW of U.S. natural gas capacity, which is 0.5% of the natural gas fleet that was in operation at the end of 2024. This, therefore, highlights the sector's trend of continuous ​‍​‌‍​‍‌​‍​‌‍​‍‌modernization.
  • Government-Led Decarbonization and Hydrogen Blending: National climate commitments and research and development in the field of low-carbon fuels are gaining momentum. In this context, hydrogen-capable turbines are allowing for the gradual decarbonization of existing power infrastructure. The Department of Energy data in August 2024 depicts that the projects targeting the achievement of 100% hydrogen combustion in gas turbines. As a result, this direction opens up a long-term way of evolution for turbine technology, where manufacturers compete in terms of fuel ​‍​‌‍​‍‌​‍​‌‍​‍‌flexibility.

Challenges

  • Inconsistent and fragmented government energy policies: The energy policies are unpredictable, and tax incentives create a huge risk for manufacturers. The government might abruptly shift from natural gas to extensive renewables by reducing the investments in turbine technology. This policy is the main barrier for manufacturers to justify a long-term investment and infrastructure upgrades. For instance, the U.S. Production Tax Credit has witnessed periodic lapses and changes in the cycle that complicate for both turbine suppliers and public utilities that procure them.
  • High​‍​‌‍​‍‌​‍​‌‍​‍‌ capital investment and cost recovery barriers: Firstly, manufacturers face constraints in the research and development (R&D) and certification costs that are required for advanced turbine systems. These expenses, which are considered a hurdle for governments as payers, result in a high capital expenditure at the beginning of the installation of a power plant, thus complicating the allocation of the budget and slowing down the replacement of the old infrastructure.

Indirect Drive Turbine Market Size and Forecast:

Report Attribute Details

Base Year

2025

Forecast Year

2026-2035

CAGR

6.4%

Base Year Market Size (2025)

USD 6.2 billion

Forecast Year Market Size (2035)

USD 11.5 billion

Regional Scope

  • North America (U.S. and Canada)
  • Asia Pacific (Japan, China, India, Indonesia, Malaysia, Australia, South Korea, Rest of Asia Pacific)
  • Europe (UK, Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Latin America (Mexico, Argentina, Brazil, Rest of Latin America)
  • Middle East and Africa (Israel, GCC, North Africa, South Africa, Rest of the Middle East and Africa)
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Indirect Drive Turbine Market Segmentation:

Application Segment Analysis

Power generation dominates the segment and is expected to hold a share value of 55.4% by 2035. The segment is driven due to the replacement of coal with highly efficient natural gas for baseload and flexible power applications. According to a report by the EIA in April 2024, the U.S. power generation from wind turbines totaled 425,235 gigawatt hours in 2023. On the other hand, the investments in hydrogen-capable turbines, aided by U.S. Department of Energy R&D programs, focus on decarbonizing the power sector, ensuring for a long-term demand for advanced gas turbines in this application.

Design Segment Analysis

The power turbine is projected to lead the design segment and is estimated to hold the largest share by 2035. The dominance is due to the role in high-power applications, mainly in utility-scale electricity generation and large-scale mechanical drives for the oil and gas industry. As per the NTRS data in July 2025, the National Science Foundation and the Lewis Research Center have jointly engaged in a Wind Energy Program that includes the erection and design of a 100-kW wind turbine generator.

End user Segment Analysis

Utilities​‍​‌‍​‍‌​‍​‌‍​‍‌ dominate the end user segment and are poised to hold a significant share by 2035. The segment remains the main consumer because of their ongoing expenditures in replacing the old infrastructure and constructing new natural gas-fired power plants. The adoption of carbon capture and storage, facilitated by government policies and incentives, plays a significant role. For example, Natural Resources Canada highlights the critical role of gas-fired generation with CCS in achieving net-zero goals, compelling utilities to invest in the latest indirect drive turbine technology to meet both energy and climate mandates.

Our in-depth analysis of the market includes the following segments:

Segment

Subsegments

Design
  • Power Turbine
    • <20 MW
    • 20-50 MW
    • 50 MW
  • Gas Generator
    • <20 MW
    • 20-50 MW
    • 50 MW

Capacity
  • <20 MW
  • 20-50 MW
  • 50 MW

Application
  • Power Generation
  • Mechanical Drive
  • Propulsion

End user
  • Utilities
    • Power Generation
  • Oil & Gas
    • Power Generation
    • Mechanical Drive
  • Industrial Manufacturing
    • Power Generation
    • Mechanical Drive
  • Marine
    • Propulsion

Technology
  • Heavy-Duty
  • Aeroderivative
Vishnu Nair
Vishnu Nair
Head - Global Business Development

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Indirect Drive Turbine Market - Regional Analysis

APAC Market Insights

Asia Pacific is dominating the indirect drive turbine market and is expected to hold a market share of 40.3% by 2035. The region is driven by the rapid industrialization, urbanization, and escalating energy demand. The massive investment in new power generation infrastructure, mainly in natural gas-fired plants is the primary driver, which are favored as an alternative to coal for baseload and peak power. According to the Asian Development Bank data in July 2023, Asia-Pacific’s investment in renewable energy generation could reach USD 1.3 trillion annually, while electricity grid and transmission investments total about USD 1 trillion per year, to meet regional demand and modernization needs.

China​‍​‌‍​‍‌​‍​‌‍​‍‌ is the leading player in the market and is driven by its Dual Carbon objectives that entail a significant changeover from coal to gas. The National Development and Reform Commission's 14th Five-Year Plan for a Modern Energy System aims at increased natural gas consumption, driving demand for high-efficiency turbines. According to the Global Energy Monitor data as of July 2025, China had installed 4.4 GW of offshore wind capacity in the previous year. This represents a sustained growth rate.

Total Installed Wind Power Capacity from 2014-2024

Year

Capacity (GW)

2014

96

2015

129

2016

147

2017

162

2018

181

2019

204

2020

271

2021

302

2022

335

2023

404

2024

480

Source: CET 2024

India’s market is projected to be the second largest shareholder in the APAC region by 2035. The country is driven by rapid industrialization and clean energy initiatives. The Global Wind Energy Council in August 2025 reports that India is the 3rd largest wind manufacturing hub. It is set to meet approximately 10% of global demand and create new job opportunities of 1,54,000 by surging the annual installations to 15 GW. Further, the growth is mainly witnessed in Tamil Nadu and Gujarat, due to the demand for an efficient rise in energy conversion.

North America Market Insights

North America is the fastest-growing region in the indirect drive turbine market. The market is driven by the regional focus on energy security and modernizing its power and industrial infrastructure. The main drivers include the replacement of aging coal fired plants with efficient natural gas units that can utilize turbines for power generation. As per the U.S. Department of Energy report in January 2025, an announcement was made by the DOE on the investment of USD 6.25 million for aerodynamics research on large wind turbines. This helps to enhance blade design, rotor efficiency, and overall turbine performance.

The​‍​‌‍​‍‌​‍​‌‍​‍‌ U.S. market is characterized by a major effort of technological innovation aimed at improving fuel flexibility and efficiency. The market is energized by the requirements of federal decarbonization, the change of the aging infrastructure, and the innovations of hybrid turbines. The FRED data shows that in September 2025, the prices for turbine and turbine generator set manufacturing went up from 276.308 in July to 274.952 in August 2025; thus, the increase in prices highlights strong demand. Besides that, the Electric Power Research Institute highlights increased deployment of indirect turbines in combined-cycle plants to improve efficiency and reduce emissions.

The​‌‍​‍‌​‍​‌‍​‍‌ market in Canada is characterized by the hydro-dominant energy mix and federal clean energy policies. According to the January 2022 IEA report, Canada has committed to lowering its greenhouse gas emissions by 40% to 45% over the next five years, which is encouraging investments in clean technology and turbine modifications. On the other hand, Natural Resources Canada supports turbine retrofitting in hydroelectric plants and promotes innovation in turbine efficiency. Canada's energy transformation includes increased funding for grid modernization and turbine integration.

Europe Market Insights

The indirect drive turbine market in Europe is driven by the continent's strong decarbonization policy and the reduction of coal and nuclear power. the main trend is the strategic pivot to hydrogen as a clean fuel, with considerable investments directed to developing hydrogen-capable turbines for long-term energy security and grid stability, the REPowerEU plan accelerates this shift, reducing reliance on Russian gas and boosting domestic renewable hydrogen production. Growth is concentrated in Western Europe, where national governments and utilities are investing heavily in new, highly efficient natural gas plants that can be converted to hydrogen, serving as a critical bridge in the energy transition while supporting intermittent renewable sources like wind and solar.

Germany is fueled by its accelerated Energiewende (energy transition) and is projected to hold the highest revenue share in Europe. The elimination of nuclear power and coal demands for the rapid deployment of highly efficient, flexible gas-fired power plants to back up renewable energy. As per the Clean Energy Wire data in January 2025, 2,405 new turbines were licensed in the country with a capacity of over 14 GW.  This licensing and installation activity highlights the country’s commitment to ensuring grid stability during the transitioning to a low-carbon energy system.

France is projected to be the second-largest revenue shareholder by 2035. This is basically attributed to a strategic pivot from nuclear-centric energy to diversified renewables. The state-supported Programmation Pluriannuelle de l’Énergie (PPE) in France points out the major changes being made in turbine technologies for both central and local energy systems. France’s emphasis on energy sovereignty and reducing reliance on imported fuels is accelerating turbine deployment across regions. Some of the new trends are turbine connection with hydrogen electrolysis units and AI-based performance ​‍​‌‍​‍‌​‍​‌‍​‍‌monitoring.

Indirect Drive Turbine Market Share
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Key Indirect Drive Turbine Market Players:

    Here is a list of key players operating in the global market: 

    • General Electric (U.S.)
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Pratt & Whitney (U.S.)
    • Siemens Energy (Germany)
    • MAN Energy Solutions (Germany)
    • Baker Hughes (Italy)
    • Rolls-Royce (UK)
    • Ansaldo Energia (Italy)
    • Mitsubishi Heavy Industries (Japan)
    • Kawasaki Heavy Industries (Japan)
    • IHI Corporation (Japan)
    • Doosan Enerbility (South Korea)
    • Hanwha Aerospace (South Korea)
    • Bharat Heavy Electricals Limited (BHEL) (India)
    • Larsen & Toubro (L&T) (India)
    • Samaiden Group Berhad (Malaysia)
    • Solar Turbines (U.S.)
    • Elliott Group (U.S.)
    • Peter Brotherhood (UK)
    • Dresser-Rand (U.S.)
       

    The indirect drive turbine market is highly competitive and is dominated by well-established giants from various regions such as Europe, the U.S., and Japan. These companies invest in R&D and use an extensive global service network. Key players are actively following various strategic initiatives that are mainly focused on technological innovations to improve the turbine efficiency and reliability, especially for floating offshore wind applications. For instance, in April 2024, ENOVA announced the acquisition of 6 wind farms from private individuals in 3 different states in Germany in Q1 of 2024. These collaborations are vital for addressing the global demand for the market.

    Corporate Landscape of the Market: 

    • General​‍​‌‍​‍‌​‍​‌‍​‍‌ Electric utilizes its vast power generation portfolio to offer highly efficient, integrated solutions in the indirect drive turbine market. The company's strategic actions are aiming at the improvement of digital twin technology and data analytics for the optimization of turbine performance and maintenance operations. This ensures maximum availability and reliability for their global customers.
    • Pratt and Whitney are renowned for their aerospace propulsion. The company applies advanced aerodynamics and material science to the market. Their key strategy involves transferring enhanced aerospace technology to power turbines, aiming for lightweight, durable designs providing a superior fuel efficiency and lower emissions. Further, 57% of the total sales of the turbines by the company were to the U.S.
    • Siemens Energy is leading the indirect drive turbine market in Europe, highlighting sustainability and digitalization. Their primary strategic initiative is the development of turbines capable of running on 100% hydrogen, positioning them at the forefront of the decarbonization movement in the power generation sector. According to the Q4 2024 report, revenue of €9.7 billion was earned mainly due to Grid Technologies and Siemens Gamesa driving a strong revenue growth in the offshore business. 
    • MAN Energy Solutions leads in large bore engines and turbomachinery for applications in the marine and energy sectors. Their strategic aim is to create a fuel-flexible turbine system and promote future fuels such as synthetic natural gas and ammonia to make a sustainable energy transition for clients.
    • Baker​‍​‌‍​‍‌​‍​‌‍​‍‌ Hughes is also a leading player in the indirect drive turbine market with a fullstream approach, which basically means the combination of turbomachinery with oilfield services. The major initiative of their company involves integrating advanced sensor technology and AI-driven analytics to deliver on-demand performance monitoring and emissions management for upstream and midstream ​‍​‌‍​‍‌​‍​‌‍​‍‌operations.

Recent Developments

  • In October 2025, GE Vernova announced that it would fully acquire the remaining 50% stake in Prolec GE, a joint venture with Xignux. This strategic acquisition gives GE Vernova complete control over the power transformer and grid solutions business, enhancing its transmission and renewable integration portfolio.
  • In April 2025, Senvion India announced the launch of the 3.1M130 Wind Turbine with RLMM entry. This launch will start grid-connected commercial installations across the country.
  • In March 2025, Siemens Gamesa entered into a strategic partnership agreement with TPG and others to divest a majority stake of its Indian wind business. Siemens Gamesa divests 90% of its wind business in India and Sri Lanka, and the remaining 10% stake is retained in the transferred business.
  • Report ID: 8205
  • Published Date: Oct 31, 2025
  • Report Format: PDF, PPT
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Frequently Asked Questions (FAQ)

In the year 2025, the industry size of the indirect drive turbine market was over USD 6.2 billion.

The market size for the indirect drive turbine market is projected to reach USD 11.5 billion by the end of 2035, expanding at a CAGR of 6.4% during the forecast period i.e., between 2026-2035.

The major players in the market are General Electric, Baker Hughes, MAN Energy Solutions, and others.

In terms of the application segment, the power generation sub-segment is anticipated to garner the largest market share of 55.4% by 2035 and display lucrative growth opportunities during 2026-2035.

The market in APAC is projected to hold the largest market share of 40.3% by the end of 2035 and provide more business opportunities in the future.

Indirect Drive Turbine Market Report Scope

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