The gas turbine market in South America is expected to grow from US$ 1866.94 million in 2018 to US$ 2326.34 million by 2027; it is estimated to grow at a CAGR of 2.5% from 2019 to 2027.
The organizations are drifting away from the centralized system toward integrated networks that include both distributed and centralized elements. Electric power systems are driving the decentralization through the deployment and use of distributed power technologies. Distributed power systems would be used to provide electrical and mechanical power to the nearest point of use, which is driving the demand for gas turbines. The substitution of coal and nuclear-powered turbines with gas turbines to reduce carbon emission is among the other factors boosting the demand for the later.
To contain the outbreak of COVID-19, the governments across South America are imposing containment measures such as factory shutdowns, travel bans, and lockdowns, which would affect the revenue generation and growth opportunities in this region. So far, Brazil is the worst-hit country by the COVID-19 outbreak in SAM, followed by Ecuador, Chile, Peru, and Argentina, among others. SAM would face lower export revenues due to the drop in commodity prices and reduction in export volumes, especially to China, Europe, and the US, which are important trade partners. Containment measures in several countries of South America are likely to reduce economic activity in the manufacturing sectors for at least the next quarter, and the economy is likely to bounce back once the pandemic is under control.
The power generation segment led the South America gas turbine market, based on application, in 2018. Gas turbines heat a mixture of air and fuel at extremely high temperatures that cause the turbine blades to spin. These spinning blades drive the generator to produce power. It is the production of hot gas during fuel combustion that spins the turbine blades. The gas turbine can also be used in combination with a steam turbine by using combined cycle technology to efficiently produce power. Gas turbines can make use of a variety of fuel such as natural gas, fuel oils, and synthetic fuels for power generation.
The overall South America gas turbine market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining overview and forecast for the South America gas turbine market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the South America gas turbine market. General Electric Company, Siemens Ag, Mitsubishi Hitachi power systems Ltd, and Bharat Heavy Electricals Limited are a few of the major players operating in the market in this region.