The Global Power Generation Equipment Market size is expected to reach $157.7 billion by 2031, rising at a market growth of 4.6% CAGR during the forecast period.
The increasing population and urbanization in the Asia Pacific region drive the demand for electricity to support residential, commercial, and industrial activities, leading to a corresponding need for this equipment. Consequently, the Asia Pacific region would acquire nearly 32% market share by 2030. The Asia Pacific region is home to a significant portion of the world’s population, with rapidly growing urban centers and expanding industrial hubs.
The major strategies followed by the market participants are Partnerships, Collaborations & Agreements as the key developmental strategy to keep pace with the changing demands of end users. For instance, in November, 2023, Mitsubishi Heavy Industries Ltd. came into partnership with Institut Teknologi Bandung, a national research university. Under this partnership, Mitsubishi would reinforce the development of cleaner fuel firing, based on research on ammonia-fired power generation using gas turbines. Additionally, Mitsubishi would move towards the addition of proven technologies in its H-25 gas turbine and ease the awareness of ammonia co-firing in Indonesia. Moreover, in July, 2023, Bharat Heavy Electricals Ltd. partnered with GE, an American multinational conglomerate. Under this partnership, BHEL would procure access and rights for existing, upgraded, and new Gas Turbine models. Additionally, BHEL would also provide gas turbines with fuel blends like hydrogen, methanol, syngas, and more.
Based on the Analysis presented in the KBV Cardinal matrix; Caterpillar, Inc. and General Electric Company are the forerunners in the Market. Companies such as Mitsubishi Heavy Industries Ltd., ABB Ltd., Schneider Electric SE are some of the key innovators in the Market. In March 2024, Schneider Electric SE partnered with Mainspring, an Innovative power generation technology company. Under this partnership, Schneider would integrate the power generation technology of Mainspring Energy with its microgrid solution to serve power, energy, and fuel flexibility for commercial and industrial customers. Additionally, Schneider would also help businesses, like data centers and healthcare facilities, to proficiently generate electricity on-site and control in parallel to the power grid.
Urbanization and industrialization lead to a surge in energy demand as more people move to urban areas and industries expand. Moreover, in addition to new infrastructure, urbanization and industrialization drive the need to upgrade and modernize existing infrastructure. Hence, the rapid increase in urbanization and industrialization is driving the market’s growth.
Digitalization enables real-time equipment to be monitored, controlled, and optimized through advanced data analytics and artificial intelligence (AI) algorithms. Furthermore, digitalization enables utilities and grid operators to implement demand response programs and optimize energy management. Therefore, growing digitalization and smart technologies are propelling the market’s growth.
Power generation equipment, such as generators, turbines, transformers, and control systems, often require substantial upfront investment. In addition, fluctuations in energy prices and regulatory uncertainty can increase the perceived risk associated with investing in this equipment. Hence, high initial investment costs are hampering the growth of the market.
Drivers 
Restraints 
Opportunities 
Challenges On the basis of application, the market is segmented into utility, industrial, commercial, and residential. In 2023, the industrial segment attained a 28% revenue share in the market. The expansion of manufacturing facilities and industrial plants leads to higher electricity consumption and increased demand for this equipment. Industrial companies often invest in new power generation capacity to support their growing production needs and ensure reliable electricity supply.
Based on type, the market is divided into turbines & engines, generators, and others. The generators segment attained a 30% revenue share in the market in 2023. Many regions around the world are facing challenges with aging power generation infrastructure. As existing power plants and grid systems reach the end of their operational lifespan, they need to be replaced or upgraded. Generators are essential for modernizing power generation facilities and ensuring continued electricity supply.
Free Valuable Insights: Global Power Generation Equipment Market size to reach USD 157.7 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America region generated 35% revenue share in the market. North America is transitioning towards cleaner energy sources and reducing reliance on fossil fuels. This shift is driven by environmental concerns, climate change mitigation efforts, and regulatory requirements to reduce greenhouse gas emissions. As a result, there is increasing demand for this equipment that utilizes renewable energy sources such as solar, wind, and hydroelectric power.
The Market is fiercely competitive, driven by innovations in renewable energy, smart grid technologies, and sustainable power solutions. Key players like Siemens, GE Power, and ABB vie for market share, focusing on efficiency, reliability, and environmental sustainability to meet the growing global demand for electricity.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 111.4 Billion |
| Market size forecast in 2031 | USD 157.7 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 4.6% from 2024 to 2031 |
| Number of Pages | 207 |
| Number of Tables | 274 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Type, Application, Region |
| Country scope |
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| Companies Included | Mitsubishi Heavy Industries Ltd., Wartsila Corporation, ABB Ltd., Siemens Energy AG, General Electric Company, Caterpillar, Inc., Bharat Heavy Electricals Ltd., Schneider Electric SE, Cummins, Inc. and Toshiba Energy Systems & Solutions Corporation (Toshiba Corporation) |
By Type
By Application
By Geography
This Market size is expected to reach $157.7 billion by 2031.
Rapid increase in urbanization and industrialization are driving the Market in coming years, however, High initial investment costs restraints the growth of the Market.
Mitsubishi Heavy Industries Ltd., Wartsila Corporation, ABB Ltd., Siemens Energy AG, General Electric Company, Caterpillar, Inc., Bharat Heavy Electricals Ltd., Schneider Electric SE, Cummins, Inc. and Toshiba Energy Systems & Solutions Corporation (Toshiba Corporation)
The expected CAGR of this Market is 4.6% from 2024 to 2031.
The Turbine & Engines segment led the Market, by Type in 2023; there by, achieving a market value of $87.9 Billion by 2031.
The North America region dominated the Market, by Region in 2023, and would continue to be a dominant market till 2031; there by, achieving a market value of $53.5 Billion by 2031.
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