The South American Gas Turbine market will grow at a CAGR of 5.82% from USD 0.936 billion in 2025 to USD 1.242 billion in 2030.
The South American gas turbine market is rising due to various outlining factors that include an increase in the development of renewable power plants, an increase in electricity demand due to urbanization, and increasing government policies and initiatives that support power production to change from coal and petroleum-fired energy power plants. According to the International Energy Agency (IEA), the total electricity production in Brazil, Argentina, and Peru was 6,56,109 GWh, 1,53,179 GWh, and 56,773 GWh, respectively, in 2021.
A National Renewable Energy Development Plan was established by Peru's government, funded by the Annual Budget Law, external debt operations, direct investments, and international institutional contributions for addressing the public necessity of renewable energy development. Further, In July 2022, Eco Green Energy introduced a new distributor, Panel Solar Peru, a family-owned company in Peru, which joined Eco Green Energy's EGE Global Partners team.
Additionally, in April 2024, as per the International Trade Administration (ITA), Peru is transforming its gas transportation system through the Integrated Gas Transport System - Southern Zone of Peru project, overseen by the private investment promotion agency, PROINVERSIÓN, aiming to harness natural gas resources for economic and social development. This will likely bring more demand for gas turbines in the South American market.
The South American gas turbine market is thriving as industrialization and urbanization drive the need for dependable power solutions. Natural gas deposits are abundant, particularly in Argentina and Brazil, which fuels investment in gas-fired power facilities. Additionally, gas turbines play an important role in supplementing intermittent renewables and guaranteeing grid stability. Favorable market conditions and supporting legislation accelerate market expansion. Overall, the region's growing energy demands and emphasis on efficiency are driving the South American gas turbine market’s growth.
Some of the major companies include General Electric, Siemens AG, and Solar Turbines Inc., among others.
South America is witnessing an increasing demand for electricity due to the increasing population. in the region. Further, urbanization and rapid industrialization in the major regions are also one of major driving factors in the growth of the market. According to the U.S. Energy Information Administration, the total energy production and consumption in Peru from nuclear, renewable, and other sources saw an increase from 2021 to 2022.
Moreover, power plants and power generation projects in major countries are also going to boost the gas turbines market in South America. For instance, in February 2024, IGNIS plans to develop six renewable energy projects in Peru, with two solar projects in southern Peru in 2025, and four wind projects in northern Peru, expected to generate a total of 1,469 MW of energy in the National Interconnected Electric System (SEIN) by 2028.
By country, the South American gas turbine market is segmented into Brazil, Argentina, Peru, and others. Peru’s fast-paced economic growth and industrialization have intensified the need for robust and efficient power generation, with gas turbines offering flexibility and comparatively lower emissions. In addition, the increasing number of natural gas reserves and efforts to develop Peru's gas infrastructure have also influenced the use of gas turbines.
Peru’s mining industry uses billions of dollars for its operations, and investors are crucial to the development and prosperity of the nation’s mining sector. As Peru's mining sector expands, the energy demand goes up, consequently opening the door to the option of using gas turbines for power supply. Gas turbines contribute to the reliable energy supply of both centralized mining operations and remote or grid sites and, consequently, help to develop the industry. The increasing demand for gas turbines by the industry is the driving force in the expansion and modernization of Peru's gas turbine market.
Moreover, according to the most recent Annual Survey of Mining Companies 2021 published by the Fraser Institute, Peru dropped for the third year in a row in the index of the most desirable nations and areas for mining investments. The Ministry of Energy and Mines (MINEM) reports that despite this, Peru's investment in the mining industry hit $5.2 billion in 2021, above the planned target. Mining equipment (+65%), exploration (+76%), infrastructure (+43%), and development/preparation (+52%) are the four investment sectors that saw an increase.
In addition to this, Peru's gas turbine business is growing because of beneficial market conditions, high natural resource abundance, and supporting regulations. The growing fuel production is another important factor driving the market growth. For instance, Peru produced 4,87,687 terajoules of natural gas in 2021, followed by crude oil making 1,92,015 terajoules.
The Peruvian gas turbine market is influenced by a variety of government activities. Peru's government has classified the production of power from renewable energy sources as a public requirement of national importance. The country adopted a National Renewable Energy Development Plan, which would be supported by the Annual Budget Law, external debt operations, direct investments, and contributions from international organizations.
Besides that, market participants in Peru's gas turbine market strategize by creating alliances, inventing technology, providing tailored solutions, and maintaining regulatory compliance. These strategies allow them to capitalize on different industrial demands, notably in mining and manufacturing, while also adjusting to Peru's changing energy market and environmental regulations. . For instance, in February 2024, MidOcean Energy, an LNG firm founded and managed by EIG, a prominent institutional investor in the global energy and infrastructure sectors, announced that it had reached a formal agreement with SK Earthon to buy SK's 20% stake in Peru LNG ("PLNG").
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| South America Gas Turbines Market Size in 2025 | US$0.936 billion |
| South America Gas Turbines Market Size in 2030 | US$1.242 billion |
| Growth Rate | CAGR of 5.82% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | Brazil, Argentina, Peru, Others |
| List of Major Companies in the South America Gas Turbines Market | |
| Customization Scope | Free report customization with purchase |
Segmentation