4.20% CAGR Forecast as Latin America Wind Energy Market Adds USD 10.30 Billion by 2033

Market Overview

The Latin America wind energy market reached a size of USD 6.80 Billion in 2024 and is projected to expand to USD 10.30 Billion by 2033, growing at a CAGR of 4.20% during 2025-2033. Growth is driven by increasing investments in renewable energy, supportive government policies, and technological advancements, especially in key countries like Brazil and Mexico. The demand for clean energy and ongoing capacity additions underpin the market's positive outlook.

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Study Assumption Years

Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033

Latin America Wind Energy Market Key Takeaways

The Latin America wind energy market size was USD 6.80 Billion in 2024.
The market is expected to reach USD 10.30 Billion by 2033, with a CAGR of 4.20% between 2025-2033.
Government policies and incentives including tax credits, long-term power purchase agreements, and auctions in countries like Brazil, Mexico, Argentina, Colombia, Chile, and Uruguay are pivotal in market expansion.
Grid modernization efforts and infrastructure improvements are increasing wind energy integration and reliability.
Brazil and Mexico lead in capacity additions and investments.
Regional cooperation and cross-border energy agreements facilitate renewable energy sharing.
International organizations and development banks provide financial and technical support to transition renewable energy.

Market Growth Factors

The Latin America wind energy market is expanding due to increasing investments in renewable energy and favorable government policies. Countries such as Brazil, Mexico, Argentina, and Colombia are implementing tax credits, long-term power purchase agreements (PPAs), and special auctions. For instance, in October 2023, Colombia launched Latin America's first-ever auction for offshore wind projects with aims to reach 7 GW offshore wind capacity by 2040 and 13 GW by 2050. Brazil's A-5 and Mexico's energy reform auctions foster competitive pricing and promote a sustainable energy mix.

Grid integration and expansion are major growth drivers. Offshore wind developments require substantial investments in upgrading transmission infrastructure, including the installation of high-capacity lines and substation upgrades. Countries invest in grid modernization and intelligent grid technologies to enhance grid flexibility for wind power. These efforts minimize transmission losses and support stable energy supply, facilitating large-scale wind projects and enhancing overall energy security.

Furthermore, regional cooperation through cross-border energy agreements is enhancing renewable energy sharing across Latin American nations. Supported by international organizations and development banks, financial aid and technical expertise accelerate renewable energy adoption. For example, GE Vernova's Grid Solutions plans to supply substations for a 756 MW wind complex in Brazil, increasing wind energy share. These factors collectively drive market development and future renewable initiatives.

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Market Segmentation

Location of Deployment Insights

Onshore: The majority of wind energy deployment occurs onshore, benefiting from established infrastructure and strong capacity additions, especially in Brazil and Mexico.
Offshore: Emerging offshore wind projects are gaining momentum, with Colombia initiating the region's first offshore wind auction targeting significant capacity growth by 2040 and 2050.

Regional Insights

Brazil and Mexico are dominant players in the Latin America wind energy market, leading with the highest capacity additions and investments. Brazil notably lists 232 GW of offshore wind projects under environmental licensing, while Colombia's offshore wind roadmap identifies a reference capacity potential of 50 GW. These regional dynamics support the market's growth trajectory and energy security initiatives.

Recent Developments & News

In August 2024, Scala Data Centers and Serena entered a renewable energy supply agreement to start in 2025, delivering wind power from two Brazilian farms in Bahia with a combined capacity of 393 MW to power hyperscale data centers, including AI workloads. In March 2024, Brazil and Colombia announced key offshore wind farm plans aligning with their net-zero goals and energy security strategies. Brazil has 232 GW of offshore wind projects at its environmental licensing office IBAMA, and Colombia's Offshore Wind Roadmap estimates a 50 GW potential, with supportive legislation progressing these projects.

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Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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