Japan Gas Turbines Market Size, Share, Opportunities, And Trends By Power Rating (<100 MW, >100 MW - <300 MW, >300 MW), By Type (Gas Cycle, Combined Cycle, Cogeneration), And By Application (Power Generation, Oil & Gas, Others) - Forecasts From 2025 To 2030
Description
Japan Gas Turbines Market Size:
The Japanese gas turbines market is set to reach USD 2,164.125 million in 2030, growing at a CAGR of 7.47% from a valuation of USD 1,052.875 million in 2020.
Japan Gas Turbines Market Highlights
- Dominance of domestic manufacturers: Mitsubishi Power and Kawasaki Heavy Industries lead the market with advanced, high-efficiency gas turbine technologies tailored for power generation.
- Shift toward decarbonization: Government policies promote co-firing and full combustion of hydrogen and ammonia in gas turbines to reduce emissions.
- Focus on hydrogen-ready turbines: Ongoing developments enable gas turbines to transition from natural gas to zero-carbon fuels like hydrogen.
- Integration with energy security goals: Gas turbines support a stable power supply amid increasing renewables and nuclear restarts in Japan's energy mix.
The??? market is mainly driven by the upgrading and efficiency enhancement of current assets rather than by large capacity additions. This indicates a well-established installed base and stable patterns of electricity demand. In terms of market share, combined-cycle gas turbine systems hold the majority due to their high efficiency, lower emissions, and ability to provide rapid load following and grid stabilization in a power mix where the share of renewables is ???increasing.
Investment??? momentum in next-generation turbine systems is being further driven by government policy support. This transition is occurring without compromising the reliability of thermal power. Industrial cogeneration and captive power applications continue to provide a stable energy supply, especially to those energy-intensive sectors aiming to enhance their operational efficiency and reduce emissions. The market, however, faces several challenges, including high capital intensity, fuel price volatility, and the rising competition from renewable and storage technologies. Despite these challenges, gas turbines remain a crucial solution during this transition phase in the changing energy environment.
Japan Gas Turbines Market Overview
Government-backed energy transition policies in Japan continue to drive investments in next-generation gas turbines that can be co-fired with hydrogen and ammonia, thus directly combining the market with the country’s long-term goals of carbon neutrality, while also ensuring the reliability of thermal power. The main instrument of this effort is the Green Growth Strategy Through Achieving Carbon Neutrality in 2050, spearheaded by the Ministry of Economy, Trade and Industry (METI), which identifies hydrogen and ammonia as the major decarbonization fuels for the power sector. This is confirmed by the Basic Energy Plan, which advocates the use of advanced thermal power with lower emissions, and the Strategic Energy and Environment Plan, which supports demonstration and early deployment of fuel-flexible gas turbines. Furthermore, the Hydrogen Basic Strategy and Ammonia Roadmap established the policy and funding framework for co-firing projects and technology validation, thus ensuring that gas turbines continue to be a pivotal, dependable transition technology in Japan’s low-carbon energy system that is progressively ???evolving.
After??? nuclear power capacity has been limited for quite some time, gas turbines have taken on a significant role in ensuring grid stability and catering to peak as well as intermediate electricity demand, especially when the output of renewable energy sources is variable. The market growth mainly depends on the upgrades and life-extension projects of the existing gas-fired plants, which outnumber the installations of new plants.
In 2024, Japan bought ¥1.36 trillion worth of Gas Turbines, thus making it the 14th most imported product (out of 1,215) in Japan. In 2024, the predominant sources of Japan's gas turbine imports were the United States (¥935 billion), the United Kingdom (¥217 billion), France (¥37.3 billion), Germany (¥33 billion), and Canada (¥17.9 ???billion). ???
Key??? players in the Japanese gas turbine market consist of both international and local leaders, indicating a combination of technological expertise and regional market dominance. Top companies such as General Electric Company, Mitsubishi Heavy Industries Ltd, Siemens Energy, Kawasaki Heavy Industries Ltd, and IHI Corporation are at the forefront of large-scale and high-efficiency turbine solutions, whereas Mitsui E&S Co., Ltd., Fuji Electric Co., Ltd., Meidensha Corporation, Yanmar Power Technology Co., Ltd., and Capstone Turbine Corporation are the ones offering specialized, small- to medium-scale, and flexible turbine applications that are used in industrial, cogeneration, and decentralized power generation sectors in ???Japan.
Overall,??? the market is mainly supported by ongoing technology-driven upgrades, policies that encourage innovation, and continuous demand for flexible and dispatchable power generation ???capacity.
Japan Gas Turbines Market Drivers
- Increasing Demand for Efficient and Reliable Power Generation
The Japanese gas turbine market is rising due to an increase in demand for efficiency and reliability in power generation areas. Rapid urbanization, industrial expansion, and the need for energy security in a resource-scarce country propel this demand. The overall electricity consumption in Japan is growing due to the population increase in big cities, such as Tokyo and Osaka, where the most energy-consuming sectors are residential and commercial.
Gas turbines, especially combined cycle gas turbines, have thermal efficiencies higher than 60%, which are significantly greater compared to coal plants. Thus, power can be drawn while keeping grid stability, so they are unavoidably relied on for power generation purposes.
In addition to this, the post-Fukushima scenario was critical, and renewable energy, including natural gas, became a key alternative to nuclear energy. Hence, understanding the need for grid stability made Japan rely even more on imported LNG. The Japanese Government has forecasted that by 2030, natural gas will account for 27% of Japan's renewable energy mix. Meanwhile, it is also expected that the Renewable Energy Institute (REI) proposal will consider it to be as high as 54% for the same year under a sustainability scenario and BAU case – REI's assessment at 39%.
Moreover, according to the Japan Electric Power Information Center, Inc. (JEPIC) report titled ‘Electric Power Industry in Japan 2025’, the electricity generation in Japan accounted for a total of 945 TWh in 2023, of which natural gas accounted for the highest, which was 33%. This was followed by coal at 28%, renewables at 26%, nuclear at 9%, and oil and other fossils at 5%.
Furthermore, as per the same report, natural gas becomes an integral part of Japan's future energy mix: under one of the policy scenarios for 2040, the primary energy supply from natural gas is projected at about 74 million tons, indicating that although Japan is targeting steep greenhouse gas reductions and greater use of renewables/nuclear, gas (mostly imported as LNG) will still be a major source of thermal energy in the country’s energy outlook. Japan, with a mature and technologically advanced economy, will always need energy in industry sectors, including manufacturing, semiconductor production, commercial services, and data centers, necessitating newer, more efficient generation technologies, especially gas turbines.
Japan Gas Turbines Market Segmentation Analysis
- By Type: Combined Cycle
Based on type, the Japanese gas turbines market is categorized into gas cycle, combined cycle, and cogeneration. The decarbonization goals, such as “Carbon Neutrality 2050,” established by Japan have transformed its power generation with more emphasis being put on energy generation technologies that offer high efficiency, low-emission, and assist in achieving grid stability, along with low-cost maintenance. Hence, a combined cycle gas turbine fulfils such criteria by acting as a reliable-base source with greater grid flexibility.
Similarly, ongoing technological developments, followed by efforts to replace traditional power units in GTCC power plants in Japan, have also played a major role in driving industrial demand for combined cycle turbines in the country. For instance, in November 2025, Toshiba Energy Systems & Solutions Corporation formed a memorandum of understanding (MoU) with GE Vernova, which involved the development of a combined cycle gas turbine by integrating the latter’s exhaust gas recirculation (EGR) system with Toshiba’s carbon capture solution. Such collaboration aims to improve the CO2 separation & capture efficiency in Japan GTCC plants.
Additionally, in April 2025, GE Vernova announced that the Goi Thermal Power Station started its commercial operation in Chiba prefecture, part of the Greater Tokyo area. The power station features GE’s “9HA0.2” gas turbine and will provide more than 2.3 gigawatts (GW) of reliable energy supply in the country. Moreover, the well-established presence of major gas turbine manufacturers, such as Mitsubishi Heavy Industries, Ltd., which offers the “J-Series” gas turbine, has also impacted the overall segment growth.
The constant shift towards sustainable alternatives, which minimizes the overall usage of coal and other conventional sources for energy production, has led to strategic collaborations to explore new opportunities in green energy, further impacting the overall market scope. For instance, in August 2024, Mitsubishi Power formed a strategic partnership with Hygenco Green Energies, aiming to explore the development of a combined cycle gas turbine powered by green hydrogen.
- By Application: Power Generation
Based on application, the Japanese gas turbine market is divided into power generation, oil & gas, and others. Renewable integration is gaining traction in Japan, fuelled by the implementation of favourable policies such as the “7th Strategic Energy Plan” launched by the Japanese government in February 2025. Hence, such initiatives aimed to reduce the country’s carbon emissions up to 73% by 2040 and bolster its energy security. Additionally, the country’s constant efforts to achieve grid stability prioritize transforming its power infrastructure with targeted plans set in motion to boost the adoption of alternatives that feature quick ramp-up and load-following capabilities.
Moreover, the replacement of aging power infrastructure in Japan is also in motion. For instance, in September 2025, JERA Co., Inc. announced the decommissioning of units 5 and 6 of its Anegasaki thermal power station, unit 1 of the Sodegaura thermal power station, unit 5 of Chita thermal power station, and unit 2 of Hirono thermal power station. Hence, the aging power infrastructure is to be replaced with state-of-the-art combined cycle gas turbines, thereby enabling JERA to ensure a stable long-term energy supply.
The strategic collaboration of major market players, such as Mitsubishi Heavy Industry, Ltd. and GE Vernovoa, has partnered with various major Japanese power suppliers, transforming the overall market landscape. Likewise, the improvement frequency of data centers is also expected to escalate the overall energy demand, thereby further propelling the market usage. According to the International Energy Agency, by 2030, the data center electricity consumption in Japan is set to increase by 80% of 15 TWh in comparison to the 2024 energy level.
Moreover, the same source also stated that, in 2024, nearly 30.1% of the total electricity was generated by coal, followed by natural gas with 29.9%. Hence, gas turbines are mainly employed in natural gas-powered plants. With government efforts to minimize GHG emissions, the efforts to bolster natural gas consumption in power generation are accelerating, thereby opening new opportunities for the installation of gas turbines in Japan.
Japan Gas Turbines Market Segmentation:
- By Power Rating
- <100 MW
- >100MW - <300MW
- >300 MW
- By Type
- Gas Cycle
- Combined Cycle
- Cogeneration
- By Design Type
- Frame (Heavy-Duty) Gas Turbine
- Aeroderivative Gas Turbine
- By Application
- Power Generation
- Oil and Gas
- Others
Table Of Contents
1. Executive Summary
2. Market Snapshot
2.1. Market Overview
2.2. Market Definition
2.3. Scope of the Study
2.4. Market Segmentation
3. Business Landscape
3.1. Market Drivers
3.2. Market Restraints
3.3. Market Opportunities
3.4. Porter’s Five Forces Analysis
3.5. Industry Value Chain Analysis
3.6. Policies and Regulations
3.7. Strategic Recommendations
4. Technological Outlook
5. Japan Gas Turbines Market By Type
5.1. Introduction
5.2. Gas Cycle
5.3. Combined Cycle
5.4. Cogeneration
6. Japan Gas Turbines Market By Design Type
6.1. Introduction
6.2. Frame (Heavy-Duty) Gas Turbine
6.3. Aeroderivative Gas Turbine
7. Japan Gas Turbines Market By Power Rating
7.1. Introduction
7.2. <100 MW
7.3. >100MW - <300MW
7.4. >300 MW
8. Japan Gas Turbines Market By Application
8.1. Introduction
8.2. Power Generation
8.3. Oil and Gas
8.4. Others
9. Competitive Environment and Analysis
9.1. Major Players and Strategy Analysis
9.2. Market Share Analysis
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Competitive Dashboard
10. Company Profiles
10.1. General Electric Company
10.2. Mitsubishi Heavy Industries, Ltd.
10.3. Siemens Energy
10.4. Kawasaki Heavy Industries, Ltd.
10.5. IHI Corporation
10.6. Mitsui E&S Co., Ltd.
10.7. Fuji Electric Co., Ltd.
10.8. Meidensha Corporation
10.9. Yanmar Power Technology Co., Ltd.
10.10. Capstone Green Energy Corporation
11. Research Methodology
List of Figures
List of Tables
Companies Profiled
General Electric Company
Mitsubishi Heavy Industries, Ltd.
Siemens Energy
Kawasaki Heavy Industries, Ltd.
IHI Corporation
Mitsui E&S Co., Ltd.
Fuji Electric Co., Ltd.
Meidensha Corporation
Yanmar Power Technology Co., Ltd.
Capstone Green Energy Corporation
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