South America Gas Turbine Market Size and Growth 2031

The South America gas turbine market size is expected to reach US$ 1,715.48 million by 2031 from US$ 1,289.38 million in 2024. The market is estimated to register a CAGR of 4.3% during 2025–2031. Growing emphasis on hydrogen-blended and zero-carbon gas turbines is likely to bring new trends to the market in the coming years.

South America Gas Turbine Market Analysis

The increasing energy demand and power generation needs are among the key enablers of the South America gas turbine market growth. In addition, natural gas availability and infrastructure development are anticipated to fuel the demand for gas turbines from 2025 to 2031. Government policies favoring gas over coal to reduce carbon dioxide emissions are projected to propel the gas turbine market growth during the analyzed timeframe. Further, integration with renewable energy and focus on hybrid power plants will serve as a major opportunity for companies operating in the market.

South America Gas Turbine Market Overview

The South America gas turbine market is a dynamic and evolving landscape, driven by rising electricity demand, industrialization, urbanization, and the abundance of natural gas resources. The market in this region is also influenced by government initiatives to aid the transition from petroleum-fired and coal power plants to cleaner energy sources. The requirement for reliable power generation to support economic growth also fuels the market in the region. South American countries are experiencing rapid industrial growth, resulting in the need for efficient and reliable power generation. Gas turbines are progressively being adopted to meet this demand owing to their efficiency, flexibility, and lower emissions compared to coal-fired power plants.

Governments and private companies are investing heavily in natural gas infrastructure, including storage and pipeline facilities. Ongoing infrastructure developments in the natural gas sector are projected to support the growth of the gas turbine market by ensuring a steady supply of natural gas for power generation and industrial applications utilizing various relevant gases. Gas turbines are anticipated to play a vital role in implementing renewable energy sources into the grid. Their ability to offer consistent backup power and grid stability is projected to make them an important component of South America's energy transition landscape. Further, as South America continues its transition toward a low-carbon energy economy, gas turbines are projected to play a noteworthy role in bridging the gap between conventional fossil fuels and renewable energy sources. With a focus on innovation and sustainability, the market in this region is set to position itself as a frontrunner in the global energy landscape over the forecast period.

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South America Gas Turbine Market Drivers and Opportunities

Rising Energy Demand and Power Generation Needs

Electricity demand is on the rise in South America owing to population growth and industrial expansion in major countries in the region. Hydropower, accounting for ~54% of the region's electricity, faces constraints from climate variations and resistance faced by governments toward large dam projects due to environmental and social impacts. Electricity consumption increased by ~1.8% per year between 2015 and 2023 to reach 594 TWh, after recording a rapid surge of 3.8% per year from 2001 and 2015. According to Empresa de Pesquisa Energética (EPE), power consumption in Brazil rose by ~5.3% in 2024, wherein consumption in households grew by more than 7% while the industry and services segment recorded more than 5% upsurge in usage. Burgeoning industrialization and progress in the manufacturing sector also fuel the demand for electricity and power generation. Automotive is one of the most crucial sectors in Brazil, Argentina, and Chile, contributing significantly to the region’s GDP. International automakers such as General Motors, Volkswagen, Fiat, and Toyota have established manufacturing plants in cities such as São Paulo, Minas Gerais, and Rio Grande do Sul. Embraer, a prominent domestic brand known for its aircraft manufacturing, also plays a vital role in the industrial and manufacturing sector. Brazil has encouraged electric vehicle (EV) production in recent times, with new investments to capture a share of the growing global EV market, which further bolsters the demand for energy and power generation.

Integration with Renewable Energy and Focus on Hybrid Power Plants

Gas turbines are being integrated with renewable energy sources to create more flexible and sustainable power systems. This integration allows these turbines to handle the intermittency of renewables, particularly with solar and wind energy, ensuring grid stability and reducing reliance on fossil fuels. As power generation trends shift to sustainable fuels and renewable energies, advanced gas turbines will play a vital role in expanding the competence of natural gas as a "transition fuel." The transition toward renewables decreases fuel consumption and keeps greenhouse gas emissions to a minimum. At the same time, CO₂ capture and other purgative technologies for flue gases can be implemented to significantly cut down secondary emissions.

The government of Argentina has set targets for renewable energy. Its National Energy Plan aims to achieve ~20% energy generation from renewable sources by 2025. Furthermore, the government intends to raise this share to ~35% by 2030. It has rolled out several policies to support the growth of renewable energy in the country. For example, the government’s Renovation Program for Renewable Energy Sources (RenovAr) offers financial incentives for the development of renewable energy projects; the program includes tax exemptions, subsidies, and soft loans for the construction of renewable energy projects and hybrid power plants. Thus, the growing integration of renewable energy sources and proliferation of hybrid power plants are anticipated to offer lucrative growth opportunities to the South America gas turbine market.

South America Gas Turbine Market Report Segmentation Analysis

Key segments that contributed to the derivation of the South America gas turbine market analysis are technology, capacity, and application.

• By technology, the market is bifurcated into open-cycle and combined cycle. The combined cycle segment dominated the market in 2024.
• By capacity, the market is categorized into below 40 MW, 40–120 MW, 120–300 MW, and above 300 MW. The 120–300 MW segment dominated the market in 2024.
• By application, the market is segmented into power generation, oil and gas, and industrial. The power generation segment dominated the market in 2024.

South America Gas Turbine Market Share Analysis by Country

The South America gas turbine market is segmented into Brazil, Argentina, and the Rest of Asia Pacific. Argentina dominated the market in 2024, followed by Brazil and Rest of South America. Continuous technological and industrial evolution drives the economic development of countries such as Brazil and Argentina. Conducive economic conditions, the expansion of new manufacturing industries, and growing support from governments for the expansion of industrial production stipulate a huge growth potential for the gas turbine market players in South America. Furthermore, ongoing developments in oil and gas industries are anticipated to boost the demand for gas turbines. Although currently the use of gas turbines is relatively low in South American countries as compared to other developed regions such as North America, government emphasis on transitioning from coal and oil to natural gas as a primary energy source will likely have a positive impact on the gas turbine market in these countries. The integration of gas turbines with renewable energy sources, such as wind and solar, is also gaining momentum in a few of the South American countries. The hybrid approach improves grid stability and consistency, allowing for a more resilient energy system.

South America Gas Turbine Market Report Scope

South America Gas Turbine Market Players Density: Understanding Its Impact on Business Dynamics

The South America Gas Turbine Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

South America Gas Turbine Market News and Recent Developments

The South America gas turbine market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. Key developments in the market are listed below:

• GE Vernova Inc. announced that its industry-leading H-Class gas turbine technology surpassed more than 3 million commercial operating hours across 116 units globally, which is equivalent to the capacity needed to power more than 50 million US homes. The fleet benefits customers by providing efficient and dispatchable baseload power, and supporting their energy transition and decarbonization efforts, which is expected to offer significant value for GE Vernova through long-term maintenance and services contracts. (Source: GE Vernova Inc, Press Release, March 2025)
• GE Vernova, Inc. announced the completion of the acquisition of Woodward, Inc.’s heavy-duty gas turbine combustion parts business based in Greenville, S.C. This acquisition plays an important role in GE Vernova's strategy to invest in US manufacturing and employment, while also strengthening its domestic supply chain. (Source: GE Vernova Inc, Press Release, March 2025)

South America Gas Turbine Market Report Coverage and Deliverables

The "South America Gas Turbine Market Size and Forecast (2025–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• South America gas turbine market size and forecast at the regional and country levels for all the key market segments covered under the scope
• South America gas turbine market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• South America gas turbine market analysis covering key market trends, regional and country framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the South America gas turbine market
• Detailed company profiles