| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 3.15% |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America DC Distribution Network Market Analysis by Mordor Intelligence
The South America DC Distribution Network Market is expected to register a CAGR of 3.15% during the forecast period.
The market was negatively impacted by COVID-19 in 2020. Presently the market has reached pre-pandemic levels.
- Over the long term, factors such as growth in the region's renewable energy sector, its compatibility with battery storage devices, and advantages over AC distribution, like power sharing between systems with different frequencies, are expected to drive the market over the forecast period.
- On the other hand, high initial costs and complexity compared to generic distribution networks are expected to hinder the market's growth.
- Nevertheless, the DC distribution network is considered an essential factor regarding the future aspects of smart grids. Also, solar power is estimated to supply one-third of the world's energy demand by 2060, thereby proliferating DC distribution in the future, as solar energy generates a direct current.
- Brazil is expected to dominate the market due to increasing HVDC transmission projects during the forecast period.
South America DC Distribution Network Market Trends and Insights
EV Fast Charging Systems to Witness Significant Growth
- The countries in South America are rapidly growing in terms of electric vehicle usage. With incentives and a growing charging station network, the region wants to stimulate electric car demand and cut transport emissions.
- The government is converting the fleet of public transport buses to electric which is expected to drive the country market in coming years. For instance, in January 2021, BYD announced that it had bagged a cumulative order to supply 1,002-unit pure-electric buses to Bogota, Colombia. These buses were scheduled to be delivered from 2021 to the first half of 2022 and will be put into operation on 34 bus routes across five city regions.
- Vehicle tax in the country is based on the overall valuation of the car, varying anywhere from 1.5% - 3.5%. However, this has been relaxed to only 1% for Electric Vehicles. In addition to tax rebates, the government is also lowering electricity tariffs that would make charging EVs even more affordable. Also, major automobile companies like Renault, BMW, Hyundai, and KIA are actively introducing their electric portfolio in Colombia.
- As of November 2021, Mexico was the South American country with the most charging stations for electric vehicles, with 290 recharging points registered across the territory. It was followed by Brazil and Chile, with 273 and 244 stations, respectively.
- Moreover, in March 2022, Shell exclaimed to install the first EV chargers in the service station network. The company is working on its e-mobility strategy for the Latin-American region and plans to deploy its first EV chargers in Argentina. The company is currently assessing the initiative through a partnership with Audi and Volkswagen and has recently acquired a number of chargers to install in its Argentinian service stations.
- Owing to the above points and the region's recent developments, EV fast-charging systems are expected to witness significant growth during the forecast period.
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Brazil is Expected to Dominate the Market
- Brazil has the largest electricity market in South America. Hydroelectricity provides more than 70% of Brazil's generation. Its total power generation installed capacity is comparable to that of Italy and the United Kingdom, although with a much more extensive transmission network.
- Brazil generates the third-highest amount of electricity in the Americas. The region is followed by Chile and the rest of the central and Southern American regions. Hydroelectricity is the major form of electricity, and the remaining electricity gets generated by fossil fuel and biomass.
- Electricity generation in Brazil amounted to over 656 terawatt-hours in 2021, an increase of some 5.6% compared to the previous year. Hydropower is the most important electricity generation source in Brazil, accounting for more than half of the country's output in 2021.
- Moreover, in December 2021, Iberdrola, through its subsidiary Neoenergia, was selected by the Agência Nacional de Energia Eletrica (ANEEL) to build a 500 kV substation in the state of Minas Gerais. The award was granted by the Agência Nacional de Energia Elétrica (ANEEL), Brazil's electricity system regulator, in an international tender with the aim of attracting investment to upgrade and expand the country's transmission networks. This, in turn, culminates in the growth of DC distribution network supplies across the country.
- Owing to the above points and the recent developments, Brazil is expected to dominate the market during the forecast period.
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Competitive Landscape
The South American DC distribution network market is moderately consolidated. The key companies in the market (in no particular order) include ABB Ltd, Siemens AG, Vertiv Group Corp., Eaton Corporation PLC, and Sécheron SA.
South America DC Distribution Network Industry Leaders
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ABB Ltd
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Vertiv Group Corp
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Eaton Corporation PLC
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Sécheron SA
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Siemens Energy AG
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- December 2022: The government of Colombia announced that it plans to connect up to 3,000 MW of its renewable energy capacity to the national grid via an overhead high-voltage direct current (HVDC) transmission line in the country's north.
- July 2022: Sterlite Power Grid Ventures Limited announced that it had won two HVDC transmission projects in Brazil through its subsidiary Sterlite Brazil. The project is spanned across 5,425 kilometers of transmission lines in Brazil.
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South America DC Distribution Network Market Report Scope
The DC distribution system is simply an extension of the multiple DC links that already exist in all propulsion and thruster drives, which usually account for more than 80 percent of the electrical power consumption on electric propulsion vessels.
The South American DC Distribution Network Market is segmented by type. By end user, the market is segmented by remote cell towers, commercial buildings, data centers, military applications, EV Fast charging systems, and other end users. The report also covers the market size and forecasts for the oil and gas pipeline market across the major region or countries. The report offers the market size and forecasts in revenue (USD billion) for all the above segments.
End-User
| Remote Cell Towers |
| Commercial Buildings |
| Data Centers |
| Military Applications |
| EV Fast Charging Systems |
| Other End Users |
Geography
| Brazil |
| Argentina |
| Colombia |
| Rest of South America |
| End-User | Remote Cell Towers |
| Commercial Buildings | |
| Data Centers | |
| Military Applications | |
| EV Fast Charging Systems | |
| Other End Users | |
| Geography | Brazil |
| Argentina | |
| Colombia | |
| Rest of South America |
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Key Questions Answered in the Report
What is the current South America DC Distribution Network Market size?
The South America DC Distribution Network Market is projected to register a CAGR of 3.15% during the forecast period (2025-2030)
Who are the key players in South America DC Distribution Network Market?
ABB Ltd, Vertiv Group Corp, Eaton Corporation PLC, Sécheron SA and Siemens Energy AG are the major companies operating in the South America DC Distribution Network Market.
What years does this South America DC Distribution Network Market cover?
The report covers the South America DC Distribution Network Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South America DC Distribution Network Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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South America DC Distribution Network Market Report
Statistics for the 2025 South America DC Distribution Network market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South America DC Distribution Network analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
