South America Gas Turbine Market is expected to reach US$ 1,715.48 Million by 2031

Natural Gas Availability and Infrastructure Development Boost South America Gas Turbine Market Growth

According to our latest market study on "South America Gas Turbine Market Size and Forecast (2025–2031), Country Share, Trend, and Growth Opportunity Analysis—by Technology, Capacity, and Application,” the market was valued at US$ 1,289.38 million in 2024 and is anticipated to reach US$ 1,715.48 million by 2031; it is estimated to register a CAGR of 4.3% during 2025–2031. The report includes prospects in light of the current South America gas turbine market trends and factors influencing market growth.

The natural gas sectors in Brazil and Argentina, among other South American countries, are undergoing continuous development due to a surged domestic demand as a result of infrastructure development and market reforms. Brazil has the fourth-largest natural gas reserves in South and Central America. The country is striving to develop its natural gas infrastructure and foster healthy competition in this space. Natural gas markets across South American countries display different dynamics influenced by regulatory frameworks, resource availability, and demand patterns. In 2024, natural gas production in South America accounted for an annual average of ~153 million cubic meters per day (m³/d), 2% higher than the previous year, when it was ~150 million m³/d. In 2024, most of the production was achieved from pre-salt reservoirs, which represented ~78.29% of the national oil and natural gas production on average in barrels of oil equivalent. Post-salt and onshore production accounted for ~16.33% and ~5.38%, respectively, of the country’s production on average.

South America Gas Turbine Market Analysis – by Country, 2024

Source: The Insight Partners Analysis

The Vaca Muerta shale formation has uplifted the natural gas production capacity of the country. From January 2021 through September 2024, natural gas production rose by ~27% in the country, according to data from the country’s energy ministry—the Secretaría de Energía de la República Argentina (SESCO). An average of ~5.0 billion cubic feet per day (Bcf/d) of natural gas was produced in Argentina over the first 9 months of 2024, which was ~5.2% higher than the output recorded in the same period in 2023. In August 2024, natural gas production in Argentina averaged ~5.4 Bcf/d, the most of any month in 21 years. The Vaca Muerta formation holds over ~70% of Argentina’s natural gas production, reaching 74% (3.8 Bcf/d) in September 2024. Its natural gas imports through pipeline decreased by ~47% in the first 9 months of 2024 compared with the same period in 2023. The decline can be associated mainly with the discontinuation of pipeline imports from Bolivia in September 2024, which made up nearly 50% of Argentina’s natural gas imports in 2023. Meanwhile, the country is capitalizing on building infrastructure to expand its natural gas distribution scope from the Vaca Muerta formation to northern Argentina; the expansion efforts include reversing pipelines designed for imports from Bolivia in order to export natural gas to Brazil. Such developments in the natural gas sector, with ample availability and developing infrastructure, have a positive influence on the gas turbine market share in South America, as natural gas is one of the primary fuels required for gas turbine operations.

The scope of the South America gas turbine market report focuses on Brazil, Argentina, and the Rest of South America. Argentina held the largest South America gas turbine market share in 2024. The market in the country is anticipated to witness significant progress in the coming years as a result of rising demand for clean and efficient power generation.

Crude oil production in Argentina surged by ~50% from 2021 through 2024, while natural gas production increased by ~27%, lifting output of both fuels to near the records set in the early 2000s, as per the data from the SESCO, i.e., the energy ministry. Vaca Muerta, situated in Argentina's Neuquén province, has ~308 trillion cubic feet (tcf) of technically recoverable shale gas resources and ~16 billion barrels of technically recoverable shale oil and condensate resources. The country ranks among the five leading holders of shale crude oil and natural gas resources in the world. Therefore, the flourishing oil and gas sector in Argentina generates a significant demand for gas turbines. Further, the power generation sector in Argentina constitutes one of the substantial positions in the power market across South America. It relies mostly on thermal generation and hydropower generation for electricity generation. However, the current natural gas-fired thermal generation is at risk owing to uncertainties around the future gas supply infrastructure and policies. This market scenario might hamper the demand for gas turbines in Argentina. Nonetheless, changes in government policies and regulatory frameworks can potentially influence market dynamics and drive the growth of the gas turbine market in Argentina in the coming years.

Approximately 90% of its electricity was generated from low-carbon sources in 2024, which was much above the global average of ~41%. Brazil was the 6^th largest country by electricity demand in 2024. Its cumulative share of wind and solar power (~24%) is above the global average (~15%); it is also higher than other South American economies such as Argentina (~14%). Brazil depended on fossil fuels for just ~10% of its electricity in 2024. Its power sector emissions per capita were the lowest among all G20 countries and a fifth of the global average. The Brazilian government has been actively endorsing natural gas as a cleaner substitute for coal and oil. The transition from coal and oil to natural gas is supported by the expansion of natural gas infrastructure, including processing facilities and pipeline networks, which enables the use of gas turbines for efficient power generation.

According to the International Energy Agency, Brazil is the 7^th largest oil producer worldwide and the largest in South America. In 2024, the country's oil output contributed significantly to global oil supply growth. Petrobras, one of the major oil producers in Brazil, is taking the initiative to extract as much oil as it can from its existing fields while searching for new deposits. Thus, the development in the oil and gas sector is presenting lucrative growth opportunities for the gas turbine market in Brazil.

The Rest of South America includes countries such as Chile, Colombia, and Peru. These countries are experiencing high growth in the power generation, and oil and gas industries. Moreover, there is a rising emphasis on lowering greenhouse gas emissions across these South American countries. Governments are actively promoting natural gas as a cleaner alternative to coal and oil, which is associated with efforts to combat climate change. Further, the demand for small-capacity gas turbines for distributed energy generation is mounting in the Rest of South America, owing to their capability to enhance energy security and resilience, particularly in remote areas.

Mitsubishi Heavy Industries Ltd; Siemens AG; GE Vernova Inc.; Caterpillar Inc; Kawasaki Heavy Industries Ltd; Baker Hughes Co; Industrial Boilers America; Capstone Green Energy Holdings, Inc.; MTU Aero Engines AG; and Aurelia Turbines Oy are among the major companies profiled in the South America gas turbine market report. Several other players also contribute considerably to the South America gas turbine market growth, and these players have been analyzed in the report to get a holistic view of the market and its ecosystem. The South America gas turbine market forecast can help stakeholders plan their growth strategies. The market analysis provides detailed market insights, which help the key players strategize their growth.

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