South & Central America Servo Motors and Drives Market Analysis and Forecast by Size, Share, Growth, Trends 2031

The South & Central America servo motors and drives market size is expected to reach US$ 564.48 million by 2031 from US$ 449.83 million in 2024. The market is estimated to record a CAGR of 3.3% from 2024 to 2031.

Executive Summary and South & Central America Servo Motors and Drives Market Analysis:

The South & Central America servo motors and drives market growth is driven by the expanding automotive industry and increasing demand for servo motors and drives in Brazil, Argentina, and other countries. Many automotive players have increased their investment to develop sustainable components used in vehicles. This also supports automotive manufactures to attract customers in Brazil. For instance, according to Volkswagen AG data from April 2023, the automotive industry in South & Central America is projected to grow at a rate of 11% by the end of 2030. The growth in the automotive industry encouraged automotive manufacturers to invest significantly and expand their production by meeting the dynamic demand of consumers. Volkswagen AG planned to invest 40% of its capital in Brazil's automotive industry to launch 15 new electric and flex-fuel vehicle models by 2025. Moreover, the company also plans to invest US$ 1.05 billion by 2026 in the South & Central America automotive market, which is expected to drive the demand for servo motors and drives in robotics, assembly lines, CNC machines, and conveyor systems during the forecast period. Servo motors and drives are used to power robotic arms that conduct various assembly line jobs, including welding, part installation, painting, and material handling. It is also used in the production of electric vehicles (EVs) and manages the speed of electric seat and steering wheel adjustment systems in vehicles. Thus, the increasing investment in the automotive industry and the rising consumer demand for sustainable solutions in the region are expected to generate lucrative opportunities for the servo motors and drives market during the forecast period.

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South & Central America Servo Motors and Drives Market: Strategic Insights

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South & Central America Servo Motors and Drives Market Segmentation Analysis:

Key segments that contributed to the derivation of the South & Central America servo motors and drives market analysis are component, product type, brake technology, and industry.

• Based on component, the South & Central America servo motors and drives market is segmented into controller modules, electronic amplifiers, sensors, encoders, and other. The controller modules segment held the largest share of the market in 2024.

• By product type, the South & Central America servo motors and drives market is segmented into servo motor and servo drive. The servo motor segment held a larger share of the market in 2024.

• Based on brake technology, the South & Central America servo motors and drives market is segmented into permanent magnet, spring, and others. The permanent magnet segment held the largest share of the market in 2024.

• Based on industry, the South & Central America servo motors and drives market is segmented into automotive and transportation, semiconductor and consumer electronics, food processing industry, textile industry, and others. The automotive and transportation segment held the largest share of the market in 2024.

South & Central America Servo Motors and Drives Market Report Scope

South & Central America Servo Motors and Drives Market Players Density: Understanding Its Impact on Business Dynamics

The South & Central America Servo Motors and Drives Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

South & Central America Servo Motors and Drives Market Outlook

The new generation of small servo drive systems is fueling the servo motors and drives market growth. These modern and compact technologies are designed to provide higher precision and greater energy efficiency, which are critical in applications such as robotics, automation, and packaging. The next generation and small servo drives enable smoother operation and reduce maintenance requirements of industries. The demand for cutting-edge technology, such as innovative algorithms, real-time feedback control, and improved heat management with a focus on lower operational expenses, encouraged market players to develop new-generation small servo drive systems. For instance, in January 2024, Siemens AG innovated the Sinamics S210 servo drive system with new hardware and software that are suitable for a larger range of applications. Siemens is updating the well-known Sinamics S210 servo drive system with a new hardware design and V6 software generation, expanding its range of applications. The servo drive system is ideal for high-dynamic applications with power outputs ranging from 50 W to 7 kW, such as packaging machines, pick-and-place applications, and digital printing. Moreover, as businesses demand greater precision, flexibility, and economy from automation, the use of high-performance servo systems such as the Sinamics S210 is increasing among industries. Moreover, the increasing focus of market players on product development to attract new customers is boosting the market. For instance, WITTENSTEIN SE's newly designed cyber simco drive 2 servo drives are 30% more compact and offer maximum connectivity with their multiple ethernet interfaces. They also include real-time CIP sync, decentralized intelligence, and STO safety features suitable for flexible programming of applications. Thus, the evolution of these advanced and compact servo drive systems is inextricably related to the overall expansion of the servo motors and drives market.

South & Central America Servo Motors and Drives Market Country Insights

Based on country, the South & Central America servo motors and drives market comprises Brazil, Argentina, and the Rest of South & Central America. Brazil held the largest share in 2024.

The servo motors and drives market in Brazil is projected to grow during the forecast period, owing to significant investments by automotive manufacturers to increase vehicle production. For instance, Volkswagen has announced plans to invest US$1.06 billion in order to increase vehicle production by 40% by 2026. This strategic investment is intended to support the company's ambitious goal of expanding its electric and flex-fuel vehicle portfolio, with 15 new models set to be released by the end of 2025. Increased vehicle production capacity is projected to fuel demand for advanced automation systems, particularly servo motors and drives. These components are critical for precision control in modern manufacturing, enabling vital processes such as robotic assembly, material handling, and quality control. As automakers such as Volkswagen increase their production of EVs, the servo motor and drive are highly adapted to meet the growing need for high-efficiency, high-performance components in modern manufacturing lines.

South & Central America Servo Motors and Drives Market Company Profiles

Some of the key players operating in the market include ABB Ltd, Delta Electronics Inc, Fanuc Corp, Mitsubishi Electric Corp, Fuji Electric Co Ltd, Nidec Corp, Rockwell Automation Inc, Schneider Electric SE, Siemens AG, and Yaskawa Electric Corp, among others. These players are adopting various strategies such as expansion, product innovation, and mergers and acquisitions to provide innovative products to their consumers and increase their market share.

South & Central America Servo Motors and Drives Market Research Methodology:

The following methodology has been followed for the collection and analysis of data presented in this report:

Secondary Research

The research process begins with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data for each market. Commonly referenced secondary research sources include, but are not limited to:

• Company websites, annual reports, financial statements, broker analyses, and investor presentations.

• Industry trade journals and other relevant publications.

• Government documents, statistical databases, and market reports.

• News articles, press releases, and webcasts specific to companies operating in the market.

Note:

All financial data included in the Company Profiles section has been standardized to USD. For companies reporting in other currencies, figures have been converted to USD using the relevant exchange rates for the corresponding year.

Primary Research

The Insight Partners conducts a significant number of primary interviews each year with industry stakeholders and experts to validate its data analysis and gain valuable insights. These research interviews are designed to:

• Validate and refine findings from secondary research.

• Enhance the expertise and market understanding of the analysis team.

• Gain insights into market size, trends, growth patterns, competitive dynamics, and future prospects.

Primary research is conducted via email interactions and telephone interviews, encompassing various markets, categories, segments, and sub-segments across different regions. Participants typically include:

• Industry stakeholders: Vice Presidents, business development managers, market intelligence managers, and national sales managers

• External experts: Valuation specialists, research analysts, and key opinion leaders with industry-specific expertise