U.S. Engine and Turbine Market Set for 5.1% CAGR Through 2032 Amid Rising Energy Demand

According to the latest market research study published by P&S Intelligence, the U.S. engines and turbines market is set for robust growth, with its value projected to rise from USD 40.4 billion in 2024 to USD 59.5 billion by 2032, registering a CAGR of 5.1% during the period. This momentum is fueled by the surging national energy demand, rapid technological advancements, and the push for environmentally friendly power generation methods.

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Engines and turbines remain indispensable across industries — from thermal power plants and renewable energy projects to automotive, marine, aerospace, and defense applications. Their dual capability for propulsion and electricity generation reinforces their role as a cornerstone of modern infrastructure.

The adoption of energy-efficient, multi-fuel, and low-emission systems is accelerating, aligning with the U.S. pledge under the UN Framework Convention on Climate Change to cut greenhouse gas emissions by over 60% from 2005 levels by 2035. With strong government support for clean energy transitions and major industrial upgrades, the sector is poised for steady expansion in the coming years.

Key Insights

• Turbines dominate the market with a 70% share in 2024 and represent the fastest-growing product category, supported by their extensive use in power generation, industrial operations, and renewable energy integration.
• Natural gas turbines lead the power sector, but installations of wind and hydro capacity are expanding, backed by technological progress in gas turbine efficiency and reduced environmental footprint.
• Hydrogen is the fastest-growing fuel type, expected to capture 60% share growth over the forecast years, driven by clean energy investments, net-zero emission goals, and innovations in green hydrogen production.
• In October 2023, Duke Energy unveiled plans for an integrated facility in Florida to produce, store, and burn green hydrogen in turbines for electricity generation.
• Power generation remains the largest application segment with 65% market share in 2024, as turbines are integral to producing electricity from diverse sources including natural gas, wind, biomass, nuclear, and geothermal.
• Aerospace & defense is the fastest-growing application category, supported by rising global demand for commercial and military aircraft; Boeing and Airbus together held over 14,900 pending aircraft orders as of January 2025.
• Marine applications are fueled by the need for large-scale diesel engines in cargo vessels and cruise ships, with notable examples such as the Wartsila RT-flex96C producing 107,390 hp and standing 44 feet tall.
• The South leads regionally with a 40% share, underpinned by Texas, Louisiana, and Florida’s strong manufacturing base, high power demand, and significant oil & gas activity.
• The West is the fastest-growing regional market, benefiting from expanding renewable energy infrastructure and aerospace manufacturing capabilities.
• Competitive dynamics are shaped by specialization — companies often focus on either turbines or engines, with niche leadership in multi-fuel and hybrid solutions.
• Key industry players include General Electric Company, Siemens AG, Caterpillar Inc., Cummins Inc., Mitsubishi Heavy Industries Ltd., Rolls-Royce Holdings plc, Wärtsilä Corporation, ABB Ltd., Baker Hughes Co., Doosan Heavy Industries, Kawasaki Heavy Industries Ltd., and Woodward Inc.
• In March 2025, GE Aerospace committed USD 1 billion to upgrade its U.S. factories and supply chain, aiming to boost production capacity and integrate advanced manufacturing technologies.
• In February 2025, Pratt & Whitney secured a USD 1.5 billion, three-year contract with the U.S. Air Force to maintain F119 engines for F-22 Raptors, enhancing operational readiness and lowering lifetime costs.
• Industry trends point to a shift toward hybrid and combined-cycle turbine systems, which support both baseline and peak power needs while optimizing fuel efficiency.
• The integration of digital monitoring and predictive maintenance tools is enhancing operational efficiency, reliability, and lifespan of engines and turbines.
• Combined heat and power (CHP) systems are gaining traction across industrial facilities, delivering cost savings and reduced carbon footprints by generating both electricity and heat simultaneously.

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How Is Data Center Power Generators Market Driven by Migration from Server Rooms to Data Centers?

The data center power generators market valued $5,097.1 million in 2021, which will grow with a CAGR of 5.9% from 2021 to 2030. At this rate, it is expected to reach $8,572.6 million by the year 2030. The increasing demand for customized generators is the major factor leading to the market growth. Moreover, the growing production of data that large organizations need to store, manage, and analyze is resulting in the rise in the fabrication of new data centers. The launch 5G networks and increasing adoption of IoT are also elevating the market growth.

Large data centers require power reliability due to their expansive infrastructure. It becomes crucial to have power backup equipment in order to protect critical equipment from power failures and surges. Large data centers demand efficient solutions for power monitoring and management for their servers, security systems, networking devices, and HVAC equipment. Enterprises that use cloud computing extensively require generators in data centers as a necessity. Thus, the rising count of hyper-scale facilities drives the use of DRUPS systems.

The highest growth rate in the data center power generators market will be witnessed by 0–1.5-MW-power-capacity generators, ascribed to their growing adoption in small-scale data centers, considering their cost-effectiveness. Moreover, a large number of data storage and management facilities requiring a power supply of <5 MW are being constructed to keep operational costs to the minimum. Thus, with most of the data centers in developing countries being developed with a lower power requirement in mind, the sale of these variants will keep rising.

North America held a significant data center power generators market share, of 39%, in 2021. It was due to the proliferation of public cloud and hybrid cloud services. Cloud data center developers and colocation and telecommunication service providers are the major contributors to generator sales. Big players in the market, such as Caterpillar Inc., Generac Holdings Inc., and Cummins Inc., are also present in the region, as are major IT firms, such as Facebook, Amazon, Microsoft, IBM, and Accenture.

Thus, the increase in the internet usage is leading to the expansion of the market, with the growing migration from server rooms to the cloud.

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