Nigeria’s expanding oil prospects and growing liquefied natural gas (LNG) production, alongside exploration activity across the continent, are helping to drive demand for industrial gas turbines as the global market heads into a new phase of growth. A recent IndexBox report on the Industrial Gas Turbine market projects that the sector will enter a transformative decade between 2026 and 2035, shaped by rising energy‑security concerns, the need for grid flexibility, and the global push to cut emissions.
The report notes that the oil and gas industry accounts for about 18 percent of industrial gas turbine demand, mainly through mechanical‑drive applications such as natural gas pipeline compression, LNG liquefaction, and gas lift or injection in upstream operations. Gas turbines are favoured in these settings for their high power density, reliability, and suitability for remote and offshore environments. Demand tracks closely with global natural gas production and trade, with growth hotspots including Nigeria and Mozambique in Africa, as well as Qatar, Saudi Arabia, and the United Arab Emirates in the Middle East, plus the Permian Basin and LNG export hubs in North America.
At the same time, the trend toward electrifying offshore platforms and the use of gas turbines to power floating LNG (FLNG) vessels is opening new opportunities. As power grids around the world integrate more wind and solar generation, gas turbines are increasingly valued for their fast‑start, flexible, dispatchable performance, shifting them from traditional baseload assets to key balancing tools that back up variable renewables.
The IndexBox analysis also highlights how strict emissions rules, particularly on NOx and CO₂ in Europe, North America, and parts of Asia, are forcing utilities and industrial users to retire older, less efficient turbines and replace them with newer, cleaner, more digitally integrated models. Mature markets are focusing on efficiency upgrades, digital retrofits, and hydrogen‑ready designs, while fast‑growing economies in Asia, the Middle East, and Africa are adding fresh capacity to meet rising electricity demand and industrial expansion.
The aftermarket, covering spares, maintenance, and digital monitoring, remains the most resilient profit segment, with major original equipment manufacturers increasingly bundling long‑term service agreements with hardware sales. Innovation is increasingly software‑driven, with digital twins, predictive maintenance, and flexible fuel systems, including the ability to co‑fire hydrogen, becoming key competitive differentiators. The sector is dominated by a handful of global OEMs, though regional players and white‑label solutions are gaining ground in more price‑sensitive markets.
The baseline forecast for the global Industrial Gas Turbine market from 2026 to 2035 points to steady, moderate growth, with installed capacity expanding at a compound annual growth rate of about 2.8 percent in unit shipments. The value of the market is expected to grow faster than volume because of the rising share of high‑efficiency, low‑emission, and digitally enabled turbines. The report’s index, set at 100 in 2025, is projected to reach 132 by 2035, reflecting this combined effect of technology upgrades and higher service intensity.
Power generation will remain the largest application, accounting for over 60 percent of demand, with a clear shift toward peaking and mid‑merit plants rather than pure baseload operation. Oil and gas uses, especially pipeline compression and LNG liquefaction, will provide a stable, long‑term support base, particularly in the Middle East and North America. Marine propulsion, while a smaller share, is being sustained by naval modernisation and the adoption of LNG‑fueled ships.
The aftermarket is expected to grow at a faster pace than new unit sales as the global installed base ages and operators prioritise life‑extension projects and emissions compliance. Key assumptions underpinning the forecast include annual global GDP growth of about 2.5–3.0 percent, continued expansion of renewables that will require firm gas‑fired backup, and no major disruption to natural gas supply chains. Downside risks include faster declines in battery‑storage costs or policies that accelerate the retirement of fossil‑fuel‑based assets, while upside risks include stricter hydrogen‑blending mandates and large‑scale industrial electrification that increases the need for reliable, dispatchable power.