A recent research report highlights that surging electricity demand from AI data centers is driving robust demand for gas turbines, favored for their reliable power supply and short construction cycles. However, the supply of hot-section components remains constrained due to high manufacturing complexity, with a concentrated global supplier base. For critical components like turbine blades, only a handful of manufacturers such as PCC and HWM possess the necessary production capabilities. This segment overlaps with the commercial aerospace engine supply chain, further intensifying capacity constraints. Against the backdrop of strong global demand for gas turbines, domestic suppliers with advanced technical and production capabilities are positioned to benefit significantly.
According to market forecasts, the global gas turbine market is projected to reach approximately $22.6 billion in 2025, increasing to $25.4 billion by 2026. From 2026 to 2035, the market is expected to grow at a compound annual growth rate of around 11.2%. The market is highly concentrated, with the top five players—Ansaldo Energia, Mitsubishi Heavy Industries, GE Vernova, Siemens Energy, and Baker Hughes—collectively accounting for 64.5% of the market share in 2025. Data from Siemens Energy reveals that the company sold 194 gas turbines in fiscal year 2025, and orders in its gas services division surged by over 81% year-on-year in the first quarter of fiscal 2026, reaching €8.751 billion. The company secured 102 gas turbine orders during the quarter, a record high, with a quarter of these linked to data centers. Delivery timelines for gas turbines now extend to 2029 and 2030.
Hot-section components, which include turbine blades, combustion chambers, and turbine disks, are directly exposed to high-temperature exhaust gases and are critical to gas turbine efficiency and reliability. These components operate at temperatures exceeding 900°C to 1400°C and are typically manufactured from superalloys. They have become a key bottleneck in gas turbine production capacity expansion. Industry experts note that due to limited suppliers and high technical barriers, rotor forgings and hot-section blades are the primary supply chain constraints. Some large heavy-duty gas turbines are even shipped without rotors or blades, which are installed on-site later to maintain project schedules.
Hot-section components represent a significant portion of gas turbine costs. For instance, a full set of hot-section parts for a 9E gas turbine accounts for nearly 40% of the total machine price. The limited number of specialized suppliers, coupled with overlapping demand from the commercial aerospace sector, exacerbates capacity tightness. In this environment, domestic manufacturers with relevant expertise and production capacity are well-positioned to capitalize on growing demand. For example, one such company has reported increasing engagement with major global gas turbine producers, including strategic and long-term agreements with industry leaders. Its penetration rate for gas turbine blades continues to rise among leading domestic and international manufacturers.
Potential risks include slower-than-expected AI data center construction, delays in capacity expansion by domestic suppliers, and broader macroeconomic volatility.