South Korea Gas Turbine Market Research Report: Forecast (2026–2032)

South Korea Gas Turbine Market Size: Forecast (2026-2032)

The South Korea Gas Turbine Market size is valued at around USD 432 million in 2025 and is projected to reach USD 611 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 5.08% during the forecast period, i.e., 2026-32.

South Korea Gas Turbine Market Outlook:

South Korea’s Gas Turbine Industry is poised for steady growth between 2026 and 2032, supported by accelerated energy transition goals, export-oriented manufacturing, and rising investments in flexible, hydrogen-ready power systems. The country’s strategic focus on cleaner thermal generation continues to drive demand for high-efficiency turbines, particularly as older coal and oil plants are decommissioned. For instance, South Korea’s gas turbine market could gain from IHI’s new ammonia-fueled gas turbines, tested in July 2024 at its Aioi Works, which showed lower N₂O and NOₓ emissions. This progress supports Korea’s plans to develop and produce cleaner, hydrogen- and ammonia-ready turbine technologies locally.

Meanwhile, South Korea’s participation in international clean-energy partnerships, such as the Korea-UAE Hydrogen Corridor and the Asia Clean Energy Initiative, is opening new export channels for turbine components and engineering expertise. By 2032, domestic manufacturers aim to supply a substantial portion of hydrogen-compatible turbine equipment to projects across Southeast Asia and the Middle East. Overall, the outlook for South Korea’s Gas Turbine Market remains highly positive, characterized by advanced technology integration, strong policy alignment, and expanding regional export potential. These dynamics will position the nation as a competitive hub for next-generation, low-carbon turbine solutions in Asia’s evolving energy landscape.

South Korea Gas Turbine Market Recent Developments:

• April 2025: Doosan Enerbility signed a memorandum of understanding with HD Hyundai Marine Engine to jointly develop precision-casting manufacturing technology for gas turbine blades, boosting the domestic supply-chain content of turbine parts in Korea and positioning the firms to respond to rising global turbine demand.
• September 2025: Hanwha Power Systems (part of the Hanwha group) received Approval in Principle from American Bureau of Shipping (ABS) to retrofit 174,000 m LNG-carrier vessels with ammonia-fuel-capable gas turbines, signaling a shift in South Korean turbine market toward maritime and dual-fuel (gas/ammonia) applications.

South Korea Gas Turbine Market Scope:

South Korea Gas Turbine Market Drivers:

Coal-to-Gas Conversion Policy Driving Gas Turbine Demand

South Korea’s Gas Turbine Market is strongly driven by the government’s Coal-to-Gas Conversion Policy under the Ministry of Trade, Industry, and Energy (MOTIE). The policy, introduced in 2023, includes plans to convert 24 coal-fired power units into gas-based POWER turbines by 2034, promoting cleaner and more efficient energy production. This transition is expected to significantly increase demand for high-capacity gas turbines and advanced retrofit technologies.

Additionally, utilities such as Korea Southern Power (KOSPO) are implementing conversion projects totaling 3GW of capacity between 2026 and 2031, supporting the national goal of reducing carbon emissions while maintaining grid stability. This large-scale replacement of coal units’ positions with gas turbines is a central technology in Korea’s energy transformation strategy.

Domestic Manufacturing and R&D Expansion Driving Market Growth

Domestic manufacturing and research expansion have become key drivers of South Korea’s Gas Turbine Industry, strengthening the nation’s technological independence and export capability. For instance, the Korean government allocated around USD1.9 billion in 2025 for clean technology innovation, including hydrogen, carbon-neutral tech, and advanced power systems. These advancements not only reduce dependence on foreign suppliers but also enable local production of high-efficiency turbines for domestic and export projects, establishing South Korea as an emerging hub for next-generation gas turbine technology.

South Korea Gas Turbine Market Trends:

Integration of Hydrogen and Ammonia Co-Firing

The integration of hydrogen and ammonia co-firing has become a major trend in South Korea’s Gas Turbine Market as the country moves toward carbon neutrality. The government aims to generate 13 TWh of hydrogen-based electricity by 2030as per the Hydrogen Power Generation Auction in May 2024. This initiative encourages power producers to install hydrogen-ready gas turbines capable of blending hydrogen or ammonia with natural gas.

Companies like Doosan Enerbility and Hanwha Power Systems are developing dual-fuel turbines to support this transition. The shift allows existing combined-cycle plants to cut emissions while using Korea’s expanding hydrogen infrastructure, making co-firing technologies a vital part of the nation’s clean energy strategy and future gas turbine investments.

South Korea Gas Turbine Market Challenges:

Competition from Nuclear & Renewable Sources

A major challenge for South Korea’s Gas Turbine Market is the growing competition from nuclear and renewable power sources. For reference, under South Korea’s 10th Electricity Plan (2022–2036), the World Nuclear Association notes that nuclear power’s share is set to reach 34.6% by 2036, with capacity increasing from 24.7 GW in 2022 to 28.9 GW by 2030. Additionally, South Korea operates 26 nuclear reactors with a total capacity of around 26 GW, underscoring the nation’s strong reliance on nuclear energy for stable, low-carbon power generation.

Moreover, large-scale solar and offshore wind projects in Jeolla and Ulsan are expanding rapidly, supported by national decarbonization goals. These developments reduce reliance on gas-based generation, thereby limiting new gas turbine installations. As renewable and nuclear projects receive strong governmental backing, turbine manufacturers face slower demand growth and increased pressure to innovate in flexible, low-carbon designs.

South Korea Gas Turbine Market (2026-32) Segmentation Analysis:

The South Korea Gas Turbine Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Product Type

• Heavy-Duty Gas Turbines
• Industrial Gas Turbines
• Aeroderivative Gas Turbines

Heavy-duty gas turbines clearly dominate South Korea’s installed gas-power landscape, with the market share of more than 60%. The core reason is the country’s dependence on large combined-cycle power plants (CCGTs) that supply bulk electricity to a dense, highly urbanized population. Utilities such as KOMIPO, Korea Western Power, Korea Southern Power, and independent power producers operate multiple 800–2,000 MW CCGT complexes, like Incheon, Pyeongtaek, Shinsejong, Gimpo, and Tongyeong, which rely on 300–500+ MW heavy-duty frame turbines from GE, Mitsubishi, Siemens, and Doosan. These plants run as baseload or mid-merit units, providing efficiency, grid stability, and fuel flexibility.

Because nearly all utility-scale gas generation in Korea uses heavy-duty frames, these turbines represent the largest share of installed capacity and operational hours across the country. Their dominance comes directly from Korea’s centralized grid structure and preference for high-output, high-efficiency generation assets.

Based on End User

• Power Generation Plants
• Oil & Gas & Petrochemical Industry
• Industrial & Manufacturing Sector
• Aerospace & Defense
• Renewable Energy Hybrid Systems

Power generation plants remain the most dominant end-user of gas turbines in South Korea, driven by the country’s focus on reliable, large-scale, and low-emission electricity production. The national energy transition plan promotes replacing coal-fired units with gas-based combined-cycle systems, making power utilities the key adopters of turbine technology. For instance, Nova, South Korea’s power-generation sector, operates over 78 installed gas turbine units with a combined capacity exceeding 14 GW, highlighting the overwhelming use of turbines in large-scale electricity production. These plants offer superior efficiency, faster start-up times, and compatibility with future hydrogen or ammonia fuels, aligning with government goals for cleaner energy.

Additionally, consistent investments from public and private utilities ensure continuous upgrades and maintenance of existing power infrastructure. Compared to other end users, such as oil and gas, manufacturing, aerospace, and hybrid systems, the power sector demonstrates far higher demand, reflecting its essential role in sustaining South Korea’s stable and sustainable energy supply.

Leading Players of the South Korea Gas Turbine Market:

• Doosan Enerbility

Doosan Enerbility (founded 1962) manufactures heavy industrial power-generation equipment, including steam and gas turbines, and serves the Korean combined-cycle and gas turbine sector as a key domestic supplier of large-frame units and components.

• Korea Electric Power Corporation

It (established in 1898) operates as South Korea’s integrated electricity utility, driving demand for gas-turbine equipment via its thermal and LNG power-plant investments and shaping the turbine supply chain in the domestic market.

• Hyundai Heavy Industries

It (founded in 1972) has expanded beyond shipbuilding into industrial machinery and power systems, and through its turbomachinery division supplies components and services for industrial-gas-turbine installations in South Korea.

Mitsubishi Heavy Industries, General Electric (GE) Korea, Siemens Energy Korea, Ansaldo Energia (Korea Branch), Turbowin Global, T&S – Technology and Services, Hanwha Techwin, and Others are the key players in the South Korea Gas Turbine Market.

South Korea Gas Turbine Market (2026-32): Regional Projection

Seoul plays a central and commanding role in South Korea’s Gas Turbine Industry, serving as the headquarters for major energy and engineering firms as well as national policy institutions. For instance, Hanwha Aerospace, a key player in turbine engine systems, and POSCO Energy, which operates combined-cycle gas turbine plants, are both headquartered in Seoul, highlighting the city’s central role in South Korea’s gas turbine industry. Similarly, Korea Electric Power Corporation (KEPCO) maintains strategic offices in this region to oversee generation projects and collaborate on efficiency programs.

Additionally, the Seoul Energy Corporation, established by the Seoul Metropolitan Government, leads initiatives to promote cleaner and more efficient gas-based power generation within urban energy systems. The presence of advanced infrastructure, skilled engineering talent, and proximity to governmental bodies such as the Ministry of Trade, Industry, and Energy (MOTIE) further reinforces Seoul’s dominance as the decision-making and innovation hub of South Korea’s gas turbine industry.

Gain a Competitive Edge with Our South Korea Gas Turbine Market Report

• South Korea Gas Turbine Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
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