| Study Period | 2019 - 2030 |
| Market Size (2025) | USD 585.96 Million |
| Market Size (2030) | USD 737.23 Million |
| CAGR (2025 - 2030) | 4.70 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Naval Gas Turbine Market Analysis
The Naval Gas Turbine Market size is estimated at USD 585.96 million in 2025, and is expected to reach USD 737.23 million by 2030, at a CAGR of 4.7% during the forecast period (2025-2030).
Global defense spending growth and joint naval exercises and procurement programs are propelling the naval gas turbine market. Anticipated growth in the market is attributed to the expanding use of gas turbines, including their integration with storage and renewable sources. In addition, the market is set to benefit from replacing older gas turbines, enabling more efficient combustion of hydrogen and other sustainable fuels.
Furthermore, the naval gas turbine market is poised for advancements because of the heightened focus on energy efficiency and overall effectiveness. Modern turbine systems highlight energy efficiency and achieve maximum output with minimal fuel consumption. Consequently, buyers are significantly emphasizing design, materials, and operational efficiency.
Naval Gas Turbine Market Trends
The Destroyers Segment is Expected to Witness Significant Growth During the Forecast Period
Escalating territorial conflicts and global governmental initiatives to bolster naval defenses are prompting nations, including India, the United States, and the United Kingdom, to ramp up their acquisitions of advanced destroyers. Rising focus on enhancing naval capabilities and procuring next-generation naval vessels drives market growth.
For instance, in June 2023, Hindustan Aeronautics Limited (HAL), a prominent Indian aerospace and defense firm, secured a substantial contract valued at INR 1,173.42 crore (USD 147 million) from Cochin Shipyard Limited (CSL). The agreement, aimed at supplying critical equipment for the Indian Navy's Next Generation Missile Vessel (NGMV) project, signifies a pivotal step in advancing these cutting-edge warships. Under the agreement, HAL is expected to produce and deliver six sets of LM2500 gas turbines (GT) and their accompanying gas turbine auxiliaries (GTAE). Additionally, the deal includes the supply of essential spare parts and tools crucial for these propulsion systems' seamless operation and maintenance.
Furthermore, in April 2022, the US Navy unveiled plans for a nine-ship multi-year procurement strategy for its upcoming Arleigh Burke Flight III destroyers. Concurrently, global players like General Electric and IHI Power Systems Company are crafting advanced gas turbines to power these new destroyer classes. Such developments are expected to drive the growth of the segment during the forecast period.
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North America is Expected to be the Largest Market During the Forecast Period
North America actively engages in several military naval vessel modification programs, a strategic move that will bolster its growth trajectory. In March 2024, the US Navy unveiled an ambitious goal as part of its FY 2025 30-year (FY 2025-FY 2054) shipbuilding plan. The plan outlines a vision of maintaining a fleet comprising 381 manned ships alongside 134 large, unmanned surface and underwater vehicles. The US Navy's active ship count has surged, driven by heightened military demands spanning daily operations, crisis responses, and regional conflict resolutions.
Further underlining this trend, in March 2024, TEI, a prominent engine company from Turkey, inked a deal to provide depot-level maintenance and overhaul services for the US Navy's LM2500 marine gas turbines. This service agreement spans 14 months and extends through October 2026. Moreover, US shipyards are actively modernizing civilian vessels with cutting-edge technologies, aligning them with global standards. These concerted efforts underscore the country's commitment to market growth in the coming years.
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Naval Gas Turbine Industry Overview
The naval gas turbine market is semi-consolidated. Some of the most prominent players in the market include Bharat Heavy Electricals Limited, General Electric Company, IHI Power Systems Co. Ltd, Kawasaki Heavy Industries Ltd, and Mitsubishi Heavy Industries Ltd. In the current landscape, original equipment manufacturers (OEMs) increasingly prioritize the advancement of gas turbines for naval vessels, aiming to enhance overall efficiency.
Highlighting this trend, in April 2023, the US Navy launched the USS Santa Barbara (LCS 32), featuring a propulsion system driven by two GE LM2500 gas turbines, notable for their GE-manufactured lightweight composite enclosures. This innovative enclosure significantly reduced the turbine's weight, facilitated easier repairs, lowered operational temperatures, and enhanced sound suppression. Furthermore, given the disruptions in the global supply chain, exacerbated by events like the Russia-Ukraine War, a notable surge is anticipated in the indigenous development and production of naval gas turbines. A case in point is the decisive move by the Indian Ministry of Defence (MoD) in September 2023, which fast-tracked the development of indigenous marine gas turbines (MGT) to power the nation's naval fleet.
Naval Gas Turbine Market Leaders
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Bharat Heavy Electricals Limited
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IHI Power Systems Co. Ltd.
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Kawasaki Heavy Industries, Ltd
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Mitsubishi Heavy Industries, Ltd.
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General Electric Company
- *Disclaimer: Major Players sorted in no particular order
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Naval Gas Turbine Market News
May 2024: Azad Engineering Limited (Azad) secured a contract from DRDO to build an advanced turbo engine. The agreement mandates Azad to produce and assemble an innovative gas turbine engine (IGTE). This engine is designed to power key defense applications, including the Kaveri turbofan for the Tejas fighter and the marine gas turbine (MGTE) for potential Indian Navy vessels. Azad is on a tight schedule, with the first set of engines slated for delivery by early 2026.
February 2024: Austal and Gotlandsbolaget of Sweden inked a Memorandum of Understanding (MOU) to pave the way for the 'Gotland Horizon X' catamaran. This cutting-edge aluminum catamaran, set to be christened 'Gotland Horizon X,' will boast high-speed capabilities. It is designed to utilize gas turbines in a combined cycle, facilitating the seamless transport of up to 1,450 passengers and goods and vehicles between the Swedish mainland and Gotland Island.
Naval Gas Turbine Industry Segmentation
A gas turbine is a system or mechanism used to generate electricity or create thrust, which propels a naval vessel. Gas turbines use fuel to generate power, as opposed to steam engines, which use steam.
The naval gas turbine market is segmented by vessel type, application, and geography. By vessel type, it is divided into naval carriers, destroyers, frigates, and other vessel types. The other vessel types include patrol boats, corvettes, and cruisers. By application, it is divided into gas turbine generators and main gas turbines. The report also covers the market sizes and forecasts for the naval gas turbine market in major countries across different regions. For each segment, the market size and forecast are provided in terms of value (USD).
| By Vessel Type | Naval Carriers | ||
| Destroyers | |||
| Frigates | |||
| Other Vessel Types (Patrol Boats, Corvette, and Cruisers) | |||
| By Application | Gas Turbine Generators | ||
| Main Gas Turbines | |||
| Geography | North America | United States | |
| Canada | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | India | ||
| China | |||
| Japan | |||
| Rest of Asia-Pacific | |||
| Latin America | Brazil | ||
| Rest of Latin America | |||
| Middle East and Africa | United Arab Emirates | ||
| Saudi Arabia | |||
| Rest of Middle East and Africa | |||
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Naval Gas Turbine Market Research FAQs
How big is the Naval Gas Turbine Market?
The Naval Gas Turbine Market size is expected to reach USD 585.96 million in 2025 and grow at a CAGR of 4.70% to reach USD 737.23 million by 2030.
What is the current Naval Gas Turbine Market size?
In 2025, the Naval Gas Turbine Market size is expected to reach USD 585.96 million.
Who are the key players in Naval Gas Turbine Market?
Bharat Heavy Electricals Limited, IHI Power Systems Co. Ltd., Kawasaki Heavy Industries, Ltd, Mitsubishi Heavy Industries, Ltd. and General Electric Company are the major companies operating in the Naval Gas Turbine Market.
Which is the fastest growing region in Naval Gas Turbine Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Naval Gas Turbine Market?
In 2025, the North America accounts for the largest market share in Naval Gas Turbine Market.
What years does this Naval Gas Turbine Market cover, and what was the market size in 2024?
In 2024, the Naval Gas Turbine Market size was estimated at USD 558.42 million. The report covers the Naval Gas Turbine Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Naval Gas Turbine Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Naval Gas Turbine Industry Report
Statistics for the 2025 Naval Gas Turbine market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Naval Gas Turbine analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
