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A steam engine exhausting to atmosphere will have an efficiency (including the boiler) of 5% but with the addition of a condenser the efficiency is greatly improved to 25% or better. A power station with exhaust reheat, etc. will achieve 30% efficiency.
One source of inefficiency is that the condenser causes losses by being somewhat hotter than the outside world. Thus any closed-cycle engine will always be somewhat less efficient than any open-cycle engine, because of condenser losses.
The operation of the engine portion alone is not dependant upon steam; any pressurised gas may be used. Compressed air is sometimes used to test or demonstrate small model "steam" engines.