South America Internal Combustion Engines - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

• Over the medium term, increasing demand for ICE two-wheelers and the rise of plug-in hybrid ICE vehicles (PHEV) are expected to drive the growth of the South America Internal Combustion Engines Market during the forecast period.
• On the other hand, the rising electric vehicle market and demand for the adoption of cleaner fuels in regard to the green climate goals are expected to hinder the growth of South America's Internal Combustion Engines Market during the forecast period.
• Nevertheless, technological innovation and adaptation of the latest technologies in plug-in hybrid vehicles are likely to create opportunities for the South America Internal Combustion Engines Market during the forecast period.
• Brazil dominates the market and is also likely to witness the highest growth during the forecast period.

South America Internal Combustion Engines Market Trends

Diesel is Likely to Dominate the Market

• Diesel Internal Combustion engines are one of the most significant internal combustion engines that have been in use since the 1870s. These engines are designed to generate mechanical energy after the combustion of an air-diesel mixture. No auxiliary component like a spark plug is used to ignite the air-diesel mixture; instead, it uses the elevating temperature of the air, which is compressed by a piston moving inside an engine block.
• The South American region has witnessed moderate growth in the demand for diesel engines in recent years, mainly driven by increasing investments in the construction sector, combined with increasing demand for uninterrupted power supplies and an increase in sales of diesel vehicles.
• Due to its advantages over gasoline engines, diesel engines have been used in several industries for decades. In recent years, the industry witnessed certain developments to cope with the global and country-based engine emission standards for automobiles like Euro 5 & 6, Bharat Stage 5 & 6, China V & VI (b), and a few others.
• Diesel ICE engines, being fuel fuel-efficient and having better acceleration, towing, and hauling potential than gasoline engines, have been quite a familiar and popular fuel source in South America. In addition to this, South America is also becoming a hub for developing ICE engines that can cope with biodiesel, a form of diesel, as a fuel, given the South American region is a major producer of biodiesel.
• In October 2023, MAHLE GmbH announced that it had established a Global Bio-Mobility Center in Jundiaí, Brazil, to support the development and global rollout of environmentally friendly combustion engines that can run on bio-diesel.
• Diesel engine vehicles have been a prominent feature of South America's transportation landscape for decades. Additionally, the biggest share of demand for diesel engines is coming from Brazil and Colombia. The moderate growth trend is also expected to continue during the forecast period.
• According to the International Organization of Motor Vehicle Manufacturers, a major share of the sales of new vehicle registration data from 2023 in South America was from diesel vehicles, which the graph showed is increasing when compared to the 2022 new vehicle registration data in South America, thus promising a strong market for Diesel ICE engines.
• Thus on the basis of the above points, diesel ICE engines will likely dominate the South America Internal Combustion Engines Market.

Brazil is Likely to Dominate the Market

• Brazil is a country that, in recent years, has yet to witness a fast transition from Fossil fuels to Electric vehicles in all commercial and private vehicles of all types, including Buses, Cars, Two-wheelers, and Trucks, because of the nation's geography, historic strong base for ICE engines, easy availability and well-supported infrastructure for diesel and gasoline fuels.
• Diesel engine vehicles have been a prominent feature of South America's transportation landscape for decades due to their power, efficiency, and affordability advantages.
• Internal Combustion Engine manufacturing in Brazil has been developing technologies such as selective catalytic reduction systems, particulate filters, and oxidation catalysts to reduce carbon emissions.
• On the other hand, Brazil has been showing a resonant use of both Fossil and Non-Fossil fuels, with the growing popularity among the nation's family households for the use of Plug-In Hybrid Electric vehicles in public transport and commercial heavy vehicles is key to the growth of Gasoline and Diesel powered ICE engines coupled with Battery packs.
• In September 2023, Renault, a French multinational automobile manufacturer in Brazil, announced that despite a Government Pushing for stricter vehicle emission control norms and standards, the company will continue its production of nine in 10 cars that are equipped to run on a mixture of gasoline and the biofuel, thus maintaining the production of ethanol-fueled internal combustion engine vehicles in Brazil.
• According to the International Organization of Motor Vehicle Manufacturers, a major share of new vehicle registration data sales from 2023 in Brazil was from diesel, gasoline, and PHEV vehicles, with the total of all three powertrains combined going close to 70%. The graph also showed an increasing sales trend for these ICE powertrain vehicles compared to the 2022 new vehicle registration data in Brazil, thus promising future positive outlooks for ICE Production market players in Brazil.
• Thus on the basis of the above points Brazil will dominate the South America Internal Combustion Engines Market during the forecast period.

South America Internal Combustion Engines Industry Overview

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