Oil & Gas Industry Turbomachinery Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented by Deployment (Onshore, Offshore), Industry (Upstream, Downstream), Type (Gas & Steam Turbine, Gas Compressor, Pump, and Others), By Region, Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 12.81 Billion
CAGR (2026-2031)	4.28%
Fastest Growing Segment	Downstream
Largest Market	North America
Market Size (2031)	USD 16.47 Billion

Market Overview

The Global Oil & Gas Industry Turbomachinery Market will grow from USD 12.81 Billion in 2025 to USD 16.47 Billion by 2031 at a 4.28% CAGR. Turbomachinery in the global oil and gas industry encompasses critical rotary mechanical devices, specifically turbines, compressors, and pumps, utilized for energy conversion and fluid transfer across extraction, transportation, and processing operations. The primary driver supporting market growth is the escalating global energy requirement, which necessitates substantial investment in pipeline networks and liquefied natural gas (LNG) infrastructure to ensure supply security. This expansion is substantiated by recent industry data; According to the International Gas Union, in 2025, global natural gas demand is projected to increase by 71 billion cubic meters, a volume growth that directly necessitates increased procurement of compression and power generation equipment.

Despite this positive trajectory, a significant challenge impeding market expansion is the intensifying regulatory pressure regarding industrial decarbonization. Stringent environmental mandates aimed at reducing carbon emissions and methane leakage are forcing operators to direct capital toward costly compliance retrofits rather than new capacity projects. This regulatory environment complicates the approval process for greenfield developments and necessitates complex engineering modifications to existing machinery, potentially delaying equipment deployment and slowing overall market momentum.

Key Market Drivers

The strategic shift toward natural gas and liquefied natural gas (LNG) infrastructure is fundamentally reshaping the turbomachinery landscape as operators prioritize lower-carbon transition fuels. This trend drives substantial procurement of high-pressure compression trains and gas turbines essential for liquefaction plants and pipeline transmission networks. As nations seek to decouple from coal and secure energy supplies, the demand for specialized equipment to handle cryogenic processes and high-volume gas transport has surged. According to Baker Hughes, January 2025, in the 'Fourth-Quarter and Full-Year 2024 Results', the company recorded $13.0 billion in orders for its Industrial & Energy Technology segment, a figure heavily bolstered by gas infrastructure equipment awards. This capital allocation confirms the industry's sustained focus on expanding gas value chains to meet consumption needs while adhering to interim decarbonization goals.

Intensified offshore and ultra-deepwater exploration projects are simultaneously creating a robust growth avenue for high-specification turbomachinery. As accessible onshore reserves deplete, energy majors are sanctioning complex deepwater developments that require floating production units equipped with compact, high-efficiency power generation and compression modules. These marine environments demand machinery with superior reliability to minimize platform weight and maintenance interventions. According to Offshore Norge, December 2024, in its annual investment analysis, total spending on the Norwegian Continental Shelf is estimated to reach $24.6 billion in 2025, driven largely by new field developments. This resurgence in marine capital expenditure correlates with a wider market recovery; according to Siemens Energy, in 2024, the company secured a record order backlog of €123 billion, underscoring the sustained global demand for advanced energy technology solutions.

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Key Market Challenges

The intensification of regulatory pressure regarding industrial decarbonization presents a formidable challenge that is directly hampering the growth of the Global Oil & Gas Industry Turbomachinery Market. As environmental mandates force operators to minimize carbon footprints and methane leaks, substantial capital is being diverted away from capacity expansion and toward compliance-driven retrofitting of existing assets. This necessitates complex engineering modifications to install low-emission technologies and electrification systems, which drains financial resources that would otherwise be allocated for the procurement of new turbines, compressors, and pumps. Consequently, the focus shifts from purchasing new machinery to upgrading legacy equipment, creating a significant bottleneck for market volume growth.

This trend of capital diversion is substantiated by recent industry data highlighting the financial scale of these regulatory obligations. According to Offshore Energies UK (OEUK), in 2024, decommissioning activities driven by strict environmental and end-of-life regulations were projected to account for approximately 22% of the total cumulative oil and gas expenditure over the coming decade. Such a significant portion of budgets being tied up in non-productive, compliance-mandated activities restricts the funds available for new greenfield developments, thereby reducing the demand for new turbomachinery units and slowing the market's overall expansion.

Key Market Trends

The Electrification of LNG and Upstream Compression Trains is rapidly gaining traction as operators seek to eliminate Scope 1 emissions from their mechanical drive fleets. Instead of utilizing traditional gas-fired turbines to drive compressors, facilities are increasingly integrating high-voltage electric motors supplied by renewable grid power. This structural change not only decarbonizes liquefaction and extraction processes but also enhances process control and reduces maintenance requirements associated with combustion engines. This pivot toward low-carbon mechanical solutions is reflected in major procurement activities; according to Baker Hughes, January 2025, in the '2024 Annual Report', orders for its New Energy sector, which includes electric-driven compression and other energy transition technologies, reached $1.3 billion, signaling a definitive commercial shift toward electrified infrastructure.

Simultaneously, the Development of Hydrogen-Capable Gas Turbines represents a critical technological evolution aimed at future-proofing power generation assets within the oil and gas sector. Manufacturers are redesigning combustion systems and turbine blades to handle the higher flame speeds and temperatures associated with hydrogen fuel, allowing operators to blend hydrogen with natural gas or run on 100% hydrogen as availability increases. This capability ensures that substantial capital investments in turbomachinery remain viable in a net-zero regulatory environment. The commercial application of this technology was highlighted when, according to GE Vernova, November 2024, in a company press release, the manufacturer secured a milestone order for four aeroderivative gas turbines specifically engineered to operate on 100% renewable hydrogen, validating the industry's move toward zero-carbon rotary equipment.

Segmental Insights

The Downstream segment is currently identified as the fastest-growing category within the Global Oil & Gas Industry Turbomachinery Market, primarily driven by the surging global demand for refined petroleum products and petrochemicals. Rapid industrialization and urbanization in emerging economies have necessitated significant expansion of existing refining capacities, directly boosting the requirement for heavy-duty compressors and turbines. Furthermore, stringent environmental mandates are compelling facility operators to upgrade infrastructure for improved energy efficiency and reduced emissions. These factors collectively stimulate substantial investment in processing plants, ensuring the Downstream segment outpaces other market sectors in development.

Regional Insights

North America holds a dominant position in the Global Oil & Gas Industry Turbomachinery market, driven by extensive shale exploration and production activities. The presence of well-established midstream infrastructure, particularly in the United States, creates consistent demand for compressors and turbines to support pipeline transmission. Furthermore, strict environmental mandates from the U.S. Environmental Protection Agency necessitate the modernization of aging equipment to meet emission standards. This convergence of high resource output and regulatory compliance requirements reinforces the region's status as a primary hub for turbomachinery procurement.

Recent Developments

• In November 2025, Baker Hughes received a significant order for 25 aeroderivative gas turbines from Dynamis Power Solutions to support mobile power generation in the oil and gas sector. The contract includes the supply of LM2500, LM6000, and LM9000 units, which will be integrated into mobile power fleets for drilling, refining, and petrochemical operations. This agreement also marks the first deployment of the LM9000 gas turbine in a mobile configuration, offering higher power density and reduced emissions for remote applications. The technology aims to provide reliable, flexible power solutions to meet the industry's evolving energy needs.
• In December 2024, MHI Compressor International Corporation delivered critical turbomachinery to the Golden Triangle Polymers Company for its new facility in Texas. The delivery consisted of advanced compressor trains designed to support the production of polyethylene, a key material in the downstream oil and gas sector. This project, a joint venture involving major energy players, relies on the supplied equipment to ensure efficient and reliable plant operations. The successful delivery highlights the manufacturer's capability to execute complex orders for large-scale petrochemical infrastructure, reinforcing its position in the global downstream turbomachinery market.
• In June 2024, Siemens Energy signed a contract worth $1.5 billion to supply key power plant technologies for the Taiba 2 and Qassim 2 projects in Saudi Arabia. The company will deliver HL-class gas turbines, steam turbines, and generators to construct two of the world’s most efficient combined-cycle power plants. These facilities are designed to replace aging oil-fired power stations, significantly reducing carbon dioxide emissions while ensuring a stable energy supply for the region. The deal also includes a 25-year long-term maintenance agreement, emphasizing the company's commitment to supporting the Kingdom's energy transition and infrastructure development.
• In January 2024, MAN Energy Solutions was commissioned by Equinor to provide three compressor bundles for the Troll A platform in the North Sea. The scope of the project involves the delivery of centrifugal rotor bundles and associated components to revamp the existing compression systems on the platform. This upgrade is intended to maintain gas production efficiency as reservoir conditions change over time. The company will also provide engineering, project management, and on-site services for the bundle exchange, ensuring the continued reliability of gas supplies from the Norwegian continental shelf to Europe.

Key Market Players

• General Electric Company
• Siemens AG
• Sulzer Ltd
• Air Products & Chemicals, Inc.
• MAN SE
• Caterpillar Inc.
• Elliott Group Ltd.
• Atlas Copco AB Class A
• Kobe Steel Ltd
• Galileo Technologies S.A.

By Region

North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Oil & Gas Industry Turbomachinery Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Oil & Gas Industry Turbomachinery Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE