Energy - Industry - South America Market, Share and Trends 2023-2028

Summary of Energy

The energy markets across South America are undergoing significant changes driven by economic growth, changing consumption patterns and a transition toward more sustainable sources. However— the COVID-19 pandemic introduced additional challenges as well as opportunities for innovation.

According to our analysis of industry data and proprietary consumer research, some overarching trends include increased investments in renewable energy like solar and wind, expansion of natural gas and LNG trade, rising energy demand from electrification of transport, and focus on energy access across the diverse region. Younger consumers have also driven demand for greater transparency and sustainability commitments from energy providers.

By thoughtfully navigating ongoing dynamics, players across South America’s energy sector can build resilience and pave the way for long-term sustainable growth. Strategic planning and targeted policies will be key to balance energy security with environmental commitments.

Based on our estimates, we project that the South America’s regional energy market is growing at a CAGR of 8.33 % from $184 billion in 2023 to $1159.68 billion in 2029.

Recent Trends and Insights

The emerging technology sector in South America is gaining momentum as countries recognize its potential to accelerate economic development and social progress. Over the past few years, some notable trends and insights have emerged:

Brazil has been particularly proactive in advancing technologies like:– artificial intelligence, cloud computing and digital infrastructure. Startups in these fields are attracting significant venture capital investment. The government also launched an “AI Strategy” to guide responsible AI development and identify economic opportunities.

Argentina has introduced tax incentives for companies investing in areas such as:– robotics, nanotech, biotech and renewable energy. This is spurring private sector R&D spending on locally-relevant solutions. The government additionally aims to boost STEM education to cultivate more domestic tech talent.

Colombia has seen fintech blossom, with its capital Bogota now hosting dozens of startups in:– blockchain, payments, lending and insurtech. Recognizing this potential, the nation developed a “Digital Transformation Strategy” focused on expanding :– digital services, skills and connectivity nationwide.

Across the region, the COVID-19 pandemic accelerated the adoption of technologies that enable remote work like:– cloud computing and collaboration tools. It also highlighted the need to close digital divides, with many governments pledging broadband expansion plans.

Blockchain use cases are proliferating as well, from tracking supply chains to digital identity/KYC to remittance networks. Governments explore blockchain’s role in modernizing outdated systems and facilitating financial inclusion too.

If South American countries continue prioritizing emerging tech, it could help diversify their economies and make them more competitive on the global stage. Ongoing investments and initiatives signal a promising outlook, though digital skills gaps and infrastructure bottlenecks still need addressing.

Product Insights

Variable renewable energy sources like solar, wind and small-scale hydropower are experiencing strong capacity growth across the region driven by declining technology costs and national climate commitments. Countries with abundant solar resources like– Chile, Peru and Brazil are global leaders in solar additions relative to their size.

Wind capacity is also expanding rapidly, led by Argentina, Brazil, Uruguay and Chile. However— large hydropower remains important in countries like Brazil, Ecuador and Venezuela. Thermal generation from natural gas, coal and oil still dominates the power matrix in many nations, though the emphasis is increasingly on integrating more renewables and phasing out the dirtiest fuels over time.

South America is home to major oil and gas reserves and producers. Argentina and Brazil in particular have seen increased exploration and production investment in recent years as large offshore pre-salt fields come online. Meanwhile— countries like Colombia are working to expand natural gas infrastructure and trade to fuel industry and power sectors. Regional LNG trade is also growing, with Peru, Chile and Argentina importing LNG to diversify fuel sources. Major projects are underway to monetize and export Guyana’s recent oil and gas discoveries.

Energy storage technologies like lithium-ion batteries are gaining traction across South America’s power systems to help balance intermittent renewable energy. Electric vehicle adoption is accelerating in countries like Brazil, Chile, Colombia and Argentina where supportive policies are in place. Investments are also being made across the region to modernize transmission and distribution grids through “smart grid” digital technologies that enhance reliability and efficiency. This includes advanced metering infrastructure and distribution automation equipment.

Key Companies

Some major players within this vast domain of industry are

• Enel Green Power S.p.A.
• Iberdrola S.A.
• Aes gener sa
• Vestas Wind Systems A/S
• Electricite de France SA
• Chevron Corporation
• Petrobras
• Exxon Mobil Corporation

Regional Analysis

As the largest economy— Brazil is a key player across South America’s energy landscape. It has considerable oil and natural gas reserves and is a top renewable energy market led by hydropower, wind and solar. Expanding domestic power capacity and infrastructure is a priority to support economic growth.

Argentina has sizable shale oil and gas reserves and is increasingly focused on developing its vast Vaca Muerta formation. It also has potential for significant wind and solar capacity growth. Expanding energy trade ties within South America and as a gas exporter are strategic priorities.

Chile has ambitious targets to decarbonize its power matrix heavily reliant on imports. It is among the global leaders in non-hydro renewable capacity additions relative to its size, especially for solar and wind. Electrification of transport is also gaining momentum.

With large hydroelectric resources and oil and gas reserves, Colombia is working to strengthen energy security and access. It is focused on increasing natural gas utilization and renewable capacity to fuel economic and industrial development.

Peru is rich in mineral and fossil fuel resources but also has considerable solar and wind potential. Expanding energy access across its diverse geography and connecting new renewable capacity to national grids are ongoing priorities.

Market Segmentation

By Type:

• Oil & Gas
• Coal
• Nuclear
• Hydroelectric
• Wind
• Solar
• Other Renewables

By End User:

• Residential
• Commercial
• Industrial
• Transportation

By Enterprise Size:

• Large Enterprises
• Small & Medium Enterprises

By Countries:

• Brazil
• Argentina
• Columbia

Our Methodology

We have offered a well-founded review of the South America’s regional energy market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.