Latin America Ancillary Services Market Trends

ID: MRFR/EnP/17292-HCR

128 Pages

Garvit Vyas

October 2025

Latin America Ancillary Services Market Research Report Information By Type (Frequency Control Service, Spinning Reserve Service, and Operating Reserve Service), By Application (Industrial Electricity and Residential Electricity)–and Latin America Market Forecast Till 2035.

Latin America Ancillary Services Market Infographic

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Market Trends

Key Emerging Trends in the Latin America Ancillary Services Market

The Latin America ancillary services market has been witnessing notable trends and developments, reflecting changing consumer preferences, airline industry dynamics, and technological advancements. One significant trend in the Latin America ancillary services market is the increasing focus on ancillary revenue generation by airlines as a means to boost profitability in an increasingly competitive landscape. Ancillary services, which include offerings such as baggage fees, seat selection, onboard meals, and priority boarding, have become a vital source of revenue for airlines, accounting for a significant portion of their total income. Airlines in Latin America are leveraging innovative pricing strategies, bundling options, and dynamic pricing algorithms to optimize ancillary sales and maximize revenue per passenger, thereby enhancing their financial performance and competitiveness in the market.

Moreover, there is a growing demand for personalized and premium ancillary services among travelers in Latin America, driven by rising disposable incomes, changing lifestyles, and evolving consumer expectations. Airlines are responding to this trend by diversifying their ancillary offerings to include a range of value-added services such as lounge access, inflight entertainment upgrades, Wi-Fi connectivity, and expedited security screening. By catering to the needs and preferences of discerning travelers, airlines can enhance the overall travel experience, increase customer satisfaction, and differentiate themselves in a crowded marketplace, ultimately driving loyalty and repeat business.

Additionally, the Latin America ancillary services market is witnessing a shift towards digitalization and technology adoption to streamline ancillary sales processes, enhance operational efficiency, and improve the passenger experience. Airlines are investing in advanced reservation systems, mobile apps, and self-service kiosks to enable passengers to conveniently purchase ancillary services at various touchpoints throughout their journey, including during booking, check-in, and onboard. By leveraging digital channels and automation, airlines can reduce reliance on traditional distribution channels, minimize overhead costs, and provide passengers with greater flexibility and control over their travel experience.

Furthermore, there is a growing trend towards ancillary partnerships and collaborations between airlines and third-party service providers in Latin America, aimed at expanding ancillary offerings and enhancing the overall value proposition for passengers. Airlines are forging strategic alliances with hotel chains, car rental companies, travel agencies, and retail brands to offer bundled packages, cross-promotional deals, and loyalty program benefits that incentivize ancillary purchases and drive incremental revenue. These partnerships not only enable airlines to diversify their revenue streams but also provide passengers with access to a wider range of services and amenities, enriching their travel experience and fostering brand loyalty.

Another notable trend in the Latin America ancillary services market is the increasing adoption of ancillary revenue management systems and analytics tools to optimize pricing, inventory management, and distribution strategies. Airlines are leveraging data-driven insights and predictive analytics to forecast demand, identify revenue opportunities, and tailor ancillary offerings to individual customer segments and market conditions. By adopting a dynamic pricing approach and personalized marketing tactics, airlines can maximize ancillary revenue potential, mitigate revenue dilution, and achieve greater revenue per available seat kilometer (RASK), contributing to overall profitability and business growth

Market Highlights

Author

Garvit Vyas

Analyst

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FAQs

What is the projected market valuation of the South America Ancillary Services Market by 2035?

The projected market valuation for the South America Ancillary Services Market is expected to reach 33.18 USD Billion by 2035.

What was the overall market valuation of the South America Ancillary Services Market in 2024?

The overall market valuation of the South America Ancillary Services Market was 22.5 USD Billion in 2024.

What is the expected CAGR for the South America Ancillary Services Market during the forecast period 2025 - 2035?

The expected CAGR for the South America Ancillary Services Market during the forecast period 2025 - 2035 is 3.59%.

Which companies are considered key players in the South America Ancillary Services Market?

Key players in the South America Ancillary Services Market include Enel Américas, Eletrobras, Engie Brasil Energia, Iberdrola, AES Brasil, CPFL Energia, CEMIG, Tractebel Energia, and Neoenergia.

What are the projected values for Maintenance Services in the South America Ancillary Services Market?

The projected values for Maintenance Services in the South America Ancillary Services Market are expected to range from 5.0 to 7.5 USD Billion.

1. Market Overview

2. Market Trends

3. Market Segment Insights

4. Key Players and Competitive Insights

5. Industry Developments

6. Market Segmentation

7. Report Scope

8. Market Highlights

9. FAQs

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Market Summary

As per analysis, the South America Ancillary Services Market is projected to grow from USD 22.5 Billion in 2024 to USD 33.18 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 3.59% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The South America Ancillary Services Market is poised for substantial growth driven by technological advancements and increasing demand for renewable energy integration.

Brazil remains the largest market for ancillary services, reflecting its robust energy infrastructure and diverse energy sources.
Mexico is emerging as the fastest-growing region, propelled by significant investments in energy modernization and regulatory reforms.
Maintenance services dominate the market, while installation services are rapidly gaining traction due to the rising need for new energy solutions.
Key market drivers include increasing urbanization and government policies that incentivize the integration of renewable energy sources.

Latin America Ancillary Services Market

CAGR

3.59%

Market Size & Forecast

2024 Market Size	22.5 (USD Billion)
2035 Market Size	33.18 (USD Billion)
CAGR (2025 - 2035)	3.59%

Major Players

Enel Américas (CL), Eletrobras (BR), Engie Brasil Energia (BR), Iberdrola (ES), AES Brasil (BR), CPFL Energia (BR), CEMIG (BR), Tractebel Energia (BR), Neoenergia (BR)

Market Trends

The South America Ancillary Services Market is currently experiencing a notable evolution, driven by the increasing demand for reliable and efficient energy solutions. This market encompasses a range of services that support the transmission and distribution of electricity, ensuring stability and reliability in power systems. As countries in South America continue to invest in renewable energy sources, the need for ancillary services becomes more pronounced. These services play a crucial role in balancing supply and demand, managing grid frequency, and providing backup power during outages. The integration of advanced technologies, such as smart grids and energy storage systems, further enhances the capabilities of ancillary services, making them indispensable in the region's energy landscape. Moreover, regulatory frameworks across South America are adapting to facilitate the growth of ancillary services. Governments are recognizing the importance of these services in achieving energy security and sustainability goals. Collaborative efforts among stakeholders, including utilities, regulators, and technology providers, are fostering innovation and improving service delivery. As the South America Ancillary Services Market continues to mature, it is likely to witness increased investment and development, positioning the region as a key player in the broader energy transition. The ongoing evolution of this market suggests a promising future, characterized by enhanced operational efficiency and resilience in energy systems.

Growing Demand for Renewable Integration

The South America Ancillary Services Market is witnessing a surge in demand for services that facilitate the integration of renewable energy sources. As countries prioritize sustainability, the need for ancillary services to manage the variability of renewables becomes essential. This trend indicates a shift towards cleaner energy solutions, necessitating advanced grid management techniques.

Technological Advancements in Energy Management

Innovations in technology are reshaping the South America Ancillary Services Market. The adoption of smart grid technologies and energy storage solutions is enhancing the efficiency and reliability of ancillary services. These advancements enable better monitoring and control of energy flows, contributing to improved grid stability.

Regulatory Support for Market Development

Regulatory frameworks in South America are evolving to support the growth of ancillary services. Governments are implementing policies that encourage investment in these services, recognizing their role in ensuring energy security. This regulatory support is likely to drive further development and innovation within the market.

Latin America Ancillary Services Market Market Drivers

Government Policies and Incentives

Supportive government policies and incentives are crucial for the growth of the South America Ancillary Services Market. Various governments in the region are implementing regulatory frameworks that promote the development of ancillary services. For example, Brazil's National Electric Energy Agency has introduced measures to enhance the reliability of the electricity supply, which directly impacts the ancillary services market. Additionally, incentives for renewable energy projects are encouraging investments in ancillary services that support these initiatives. As a result, the South America Ancillary Services Market is likely to experience accelerated growth due to these favorable policies, which aim to create a more resilient and efficient energy landscape.

Integration of Renewable Energy Sources

The transition towards renewable energy sources is a pivotal driver for the South America Ancillary Services Market. Countries like Chile and Argentina are making substantial investments in solar and wind energy, which require robust ancillary services to ensure grid stability. The integration of these intermittent energy sources necessitates advanced management solutions to balance supply and demand effectively. According to recent data, renewable energy accounted for approximately 30 percent of the total energy mix in South America in 2025, and this figure is expected to rise. This shift not only enhances energy security but also propels the South America Ancillary Services Market forward, as ancillary services play a crucial role in accommodating the variability of renewable energy generation.

Technological Innovations in Energy Storage

Technological advancements in energy storage solutions are significantly influencing the South America Ancillary Services Market. The development of battery storage technologies allows for better management of energy supply and demand, particularly in regions with high renewable energy penetration. Countries like Argentina are exploring innovative storage solutions to enhance grid reliability and support ancillary services. The increasing adoption of energy storage systems is expected to facilitate the integration of renewable energy sources, thereby driving the demand for ancillary services. As these technologies evolve, the South America Ancillary Services Market is poised to benefit from enhanced operational efficiencies and improved service delivery.

Rising Consumer Awareness and Demand for Reliability

There is a growing consumer awareness regarding the importance of reliable energy services in South America. As the population becomes more informed about energy issues, the demand for dependable ancillary services is increasing. Consumers are now more inclined to seek energy solutions that ensure uninterrupted power supply and efficient energy management. This trend is particularly evident in urban areas where power outages can have significant economic impacts. The South America Ancillary Services Market is responding to this demand by enhancing service offerings and improving grid resilience. As consumer expectations continue to rise, the industry is likely to adapt and innovate to meet these needs, further driving market growth.

Increasing Urbanization and Infrastructure Development

The rapid urbanization across South America is driving the demand for ancillary services in the region. As cities expand, the need for reliable energy supply and management becomes paramount. The South America Ancillary Services Market is witnessing a surge in investments aimed at enhancing grid stability and reliability. For instance, Brazil's urban centers are experiencing significant infrastructure projects that necessitate improved ancillary services to support the growing population. This trend is expected to continue, with projections indicating that urban areas will account for over 80 percent of the region's population by 2030. Consequently, the South America Ancillary Services Market is likely to benefit from this urban growth, as it necessitates advanced energy solutions to meet the increasing demand.

Market Segment Insights

By Service Type: Maintenance Services (Largest) vs. Installation Services (Fastest-Growing)

In the South America Ancillary Services Market, the maintenance services segment holds the largest market share, benefiting from the rising demand for ongoing support and upkeep of infrastructures. Conversely, installation services have emerged as the fastest-growing segment, fueled by an increase in new projects and technological advancements, representing a significant shift in the types of services that companies are prioritizing. As industries evolve, the need for specialized installation services continues to gain traction across the region.

Maintenance Services (Dominant) vs. Installation Services (Emerging)

Maintenance services are currently the dominant force within the South America Ancillary Services Market, providing essential support for the longevity and efficiency of various systems and equipment. This segment thrives on long-term contracts and strong customer relationships. In contrast, installation services are emerging rapidly, driven by innovations in technology and a booming construction sector. This segment focuses on delivering modern solutions for installations and has become increasingly essential for companies looking to stay competitive. Both segments hold strategic significance, addressing key aspects of operational performance.

By End User: Healthcare (Largest) vs. Telecommunications (Fastest-Growing)

The South America Ancillary Services Market showcases a diverse range of end-user segments, with healthcare emerging as the largest contributor. As the region grapples with increasing healthcare needs, advancements in medical technology and services in urban areas, healthcare remains at the forefront, tapping into the demand for innovative ancillary services. In contrast, telecommunications, while smaller in total market share, is noted for being the fastest-growing segment, driven by the push for digital transformation and the rising importance of connectivity in daily life. Growth trends in the Ancillary Services Market are heavily influenced by the expansion of healthcare infrastructure and the increasing emphasis on operational efficiency in industries such as transportation and manufacturing. The healthcare sector is propelled by an aging population and rising health awareness, while telecommunications benefits from rapid technological advancements and increasing smartphone penetration. As these sectors evolve, the demand for ancillary services, which support core operations, is expected to rise, further reshaping the market landscape in South America.

Healthcare (Dominant) vs. Transportation (Emerging)

In the current landscape of the South America Ancillary Services Market, the healthcare sector stands out as the dominant force, characterized by its robust infrastructure and the critical need for ancillary services that enhance medical care. The sector is synonymous with innovation, integrating new technologies to improve patient outcomes and operational efficiency. On the other hand, transportation is viewed as an emerging segment that is gaining traction rapidly, fueled by urbanization and the growing need for efficient logistics and mobility solutions. As cities expand, the transportation industry is looking towards ancillary services that enable seamless operations and safety, thereby presenting new opportunities for growth within this sector.

By Technology: Cloud Computing (Largest) vs. Artificial Intelligence (Fastest-Growing)

In the South America Ancillary Services Market, the technology segment exhibits a diversified distribution with Cloud Computing holding the largest market share. As businesses increasingly shift towards digitalization, Cloud Computing has become a fundamental service for both small and large enterprises, facilitating operational efficiency and cost-effectiveness. In contrast, Artificial Intelligence has emerged as the fastest-growing segment, driven by revolutionary advancements in machine learning and automation technologies that support various applications across industries. Growth trends in the technology segment are significant, with both Cloud Computing and Artificial Intelligence driving innovation. Organizations are investing in AI-driven solutions to enhance customer engagement, improve decision-making, and streamline processes. Additionally, the proliferation of the Internet of Things (IoT) and Data Analytics is transforming how data is collected and utilized, creating new opportunities for businesses to leverage insights and enhance their service offerings in the competitive landscape of South America.

Cloud Computing: Dominant vs. Artificial Intelligence: Emerging

In the South America Ancillary Services Market, Cloud Computing stands out as the dominant force, providing scalable solutions that cater to a wide range of industries. It enables businesses to adopt flexible computing resources, enhancing operational agility while reducing capital expenditures. On the other hand, Artificial Intelligence is positioned as an emerging powerhouse, attracting significant interest and investments due to its potential to revolutionize business processes. With capabilities in natural language processing, machine learning, and predictive analytics, AI is reshaping customer experiences and operational strategies. Together, these technologies signify a pivotal shift in how ancillary services are delivered, ensuring that businesses stay competitive and responsive to market demands.

By Market Application: Logistics (Largest) vs. Supply Chain Management (Fastest-Growing)

In the South America Ancillary Services Market, the 'Market Application' segment comprises four pivotal areas: Logistics, Supply Chain Management, Facility Management, and Customer Support. Among these, Logistics commands the largest market share due to the region's robust distribution networks and increasing demand for efficient transport solutions. Meanwhile, Supply Chain Management is emerging as a critical component for businesses aiming to streamline their operations in a competitive landscape, thus contributing to its rapid growth. The growth in these segments is largely driven by the surge in e-commerce and the necessity for organizations to enhance operational efficiencies. Increasing investments in technology, such as IoT and automation, are enabling stronger logistics and supply chain capabilities. Furthermore, businesses are increasingly adopting Facility Management and Customer Support services to optimize resource utilization, improve customer experiences, and adapt to evolving market demands, fostering a comprehensive ecosystem that supports ancillary services in South America.

Logistics: Dominant vs. Customer Support: Emerging

In the South America Ancillary Services Market, Logistics stands out as the dominant area, characterized by a high demand for transportation, warehousing, and distribution services. Companies are leveraging technology to enhance logistics efficiency, ensuring timely delivery and reducing operational costs, which solidifies its market position. On the other hand, Customer Support represents an emerging aspect of the market, driven by the growing importance of customer experience in retaining clients. The shift towards digital support channels and personalized service is reshaping Customer Support, making it a vital part of ancillary services that align with consumer expectations. As businesses seek to differentiate themselves, the integration of advanced customer support solutions is anticipated to grow rapidly, complementing the established logistics sector.

Get more detailed insights about Latin America Ancillary Services Market Research Report – Forecast till 2035

Regional Insights

Brazil : Leading the South American Charge

Brazil holds a commanding 10.5% market share in the Ancillary Services sector, valued at approximately $3.5 billion. Key growth drivers include a robust demand for renewable energy integration, supported by government initiatives like the National Energy Plan. The country is witnessing a shift towards smart grid technologies, enhancing efficiency and reliability. Regulatory frameworks are evolving to encourage private investments, while infrastructure improvements are bolstering industrial development across various sectors.

Mexico : Emerging Market with Potential

Mexico accounts for a 4.5% share in the Ancillary Services market, valued at around $1.5 billion. The growth is driven by increasing energy consumption and government reforms aimed at liberalizing the energy sector. Demand for ancillary services is rising, particularly in urban areas like Mexico City and Guadalajara, where industrial activities are concentrated. The government is promoting renewable energy projects, which are expected to enhance market dynamics and consumption patterns.

Argentina : Navigating Market Challenges Ahead

With a 3.5% market share, Argentina's Ancillary Services market is valued at approximately $1.2 billion. The country is focusing on diversifying its energy mix, driven by regulatory changes and investments in renewable energy. Demand trends indicate a growing reliance on wind and solar power, particularly in provinces like Mendoza and Buenos Aires. However, economic challenges and regulatory uncertainties pose risks to market stability and growth.

Rest of South America : Regional Growth Beyond Major Players

The Rest of South America holds a 4.0% market share in the Ancillary Services sector, valued at about $1.3 billion. This sub-region is characterized by varying energy policies and infrastructure development across countries like Chile, Colombia, and Peru. Growth drivers include increasing energy demand and investments in grid modernization. Local players are emerging, but competition remains fragmented, with major companies like Enel and Iberdrola leading the charge in specific markets.

Key Players and Competitive Insights

The Ancillary Services Market in South America is characterized by a dynamic competitive landscape, driven by the increasing demand for reliable energy supply and the integration of renewable sources. Key players such as Enel Américas (CL), Eletrobras (BR), and Engie Brasil Energia (BR) are strategically positioned to leverage their extensive infrastructure and technological capabilities. Enel Américas (CL) focuses on digital transformation and innovation, aiming to enhance operational efficiency and customer engagement. Eletrobras (BR) emphasizes regional expansion and sustainability initiatives, while Engie Brasil Energia (BR) is committed to diversifying its energy portfolio through strategic partnerships and investments in renewable energy projects. Collectively, these strategies shape a competitive environment that is increasingly focused on sustainability and technological advancement.

The market structure appears moderately fragmented, with several key players exerting influence over their respective regions. Companies are adopting various business tactics, such as localizing manufacturing and optimizing supply chains, to enhance their competitive edge. This localized approach not only reduces operational costs but also aligns with the growing emphasis on sustainability and environmental responsibility. The collective influence of these major players fosters a competitive atmosphere where innovation and efficiency are paramount.

In December 2025, Enel Américas (CL) announced a partnership with a leading technology firm to develop a smart grid solution aimed at improving energy distribution efficiency. This strategic move is significant as it positions Enel Américas (CL) at the forefront of digital transformation in the energy sector, potentially enhancing its service reliability and customer satisfaction. The integration of smart technologies is likely to streamline operations and reduce energy losses, thereby contributing to a more sustainable energy ecosystem.

In November 2025, Eletrobras (BR) unveiled plans to invest $500 million in renewable energy projects across Brazil, focusing on solar and wind energy. This investment underscores Eletrobras's commitment to sustainability and its strategic intent to diversify its energy mix. By increasing its renewable capacity, Eletrobras (BR) not only aligns with global energy trends but also positions itself as a leader in the transition towards cleaner energy sources, which may enhance its competitive advantage in the long term.

In October 2025, Engie Brasil Energia (BR) completed the acquisition of a local renewable energy firm, further expanding its portfolio in the wind energy sector. This acquisition is indicative of Engie's strategy to bolster its presence in the renewable market, which is increasingly becoming a focal point for energy companies. By integrating new technologies and expertise from the acquired firm, Engie Brasil Energia (BR) is likely to enhance its operational capabilities and market share in the burgeoning renewable energy landscape.

As of January 2026, current trends in the Ancillary Services Market are heavily influenced by digitalization, sustainability, and the integration of artificial intelligence (AI) into operations. Strategic alliances among key players are shaping the competitive landscape, fostering innovation and collaboration. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident. Companies that prioritize innovation and sustainability are likely to differentiate themselves in an increasingly competitive market, suggesting a future where operational excellence and environmental responsibility are paramount.

Key Companies in the Latin America Ancillary Services Market include

Industry Developments

For Instance, December 2023 Carnival Corporation & plc and ABB have inked a long-term partnership agreement to collaborate on the cruise line's fleet. The goal is to improve operational performance and efficiency by implementing cutting-edge digital solutions for tracking ship conditions, managing critical spare parts, and organizing systematic maintenance plans.

For Instance, November 2023 ABB's research and development in the electrification business sector, the company has negotiated a €500 million deal with the Latin American Investment Bank, the Latin American Union lending arm.

Future Outlook

Latin America Ancillary Services Market Future Outlook

The South America Ancillary Services Market is projected to grow at a 3.59% CAGR from 2025 to 2035, driven by increasing demand for efficient service delivery and technological advancements.

New opportunities lie in:

Expansion of telehealth services in remote areas
Development of integrated logistics solutions for healthcare
Investment in renewable energy sources for ancillary service operations

By 2035, the market is expected to achieve robust growth, reflecting evolving service demands and technological integration.

Market Segmentation

Latin America Ancillary Services Market End User Outlook

Healthcare
Manufacturing
Transportation
Telecommunications

Latin America Ancillary Services Market Technology Outlook

Cloud Computing
Artificial Intelligence
Internet of Things
Data Analytics

Latin America Ancillary Services Market Service Type Outlook

Maintenance Services
Repair Services
Installation Services
Consulting Services

Latin America Ancillary Services Market Market Application Outlook

Logistics
Supply Chain Management
Facility Management
Customer Support

Report Scope

MARKET SIZE 2024	22.5(USD Billion)
MARKET SIZE 2025	23.39(USD Billion)
MARKET SIZE 2035	33.18(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	3.59% (2024 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
Market Forecast Period	2025 - 2035
Historical Data	2019 - 2024
Market Forecast Units	USD Billion
Key Companies Profiled	Enel Américas (CL), Eletrobras (BR), Engie Brasil Energia (BR), Iberdrola (ES), AES Brasil (BR), CPFL Energia (BR), CEMIG (BR), Tractebel Energia (BR), Neoenergia (BR)
Segments Covered	Service Type, End User, Technology, Market Application
Key Market Opportunities	Expansion of digital payment solutions enhances accessibility in the South America Ancillary Services Market.
Key Market Dynamics	Growing demand for renewable energy sources drives innovation in ancillary services across South America.
Countries Covered	Brazil, Mexico, Argentina, Rest of South America