South America Hazardous Location Motor Starters Market Trends and Insights
Offshore Oil and Gas Development in Brazil
Petrobras has allocated USD 69.2 billion to exploration and production under its 2026-2030 business plan. This allocation represents the company’s largest upstream capital program, with 62% of spending directed toward pre-salt fields. Petrobras plans to complete 11 FPSOs at Búzios by 2027, supporting demand for certified equipment on production platforms. Each large FPSO requires motor-driven compressors, seawater lift pumps, and injection modules that operate in gas-hazardous areas. These applications require motor starters suitable for Zone 1 or Zone 2 environments and compliant with Brazilian certification requirements. Consequently, the South America hazardous area motor starters market is expected to benefit as offshore projects progress from planning to equipment procurement. Petrobras is expected to approve the final investment decision for the Sergipe Deepwater project in April 2026, committing USD 5 billion to develop two FPSOs with a combined production capacity of 240,000 barrels per day. The project will open an offshore development area in northeastern Brazil, where certified supplier infrastructure remains less developed. This development is expected to increase the value of vendors that can supply pre-approved assemblies within project schedules. WEG and Siemens maintain certification pipelines that cover IECEx and INMETRO requirements, strengthening their ability to address this demand. Petrobras also plans to connect 75 wells in Espírito Santo through 2030. These connections will increase demand for certified motor-control packages in onshore and shallow-water gas-hazardous environments.Mining and Mineral Processing Expansion
Mining investment is expected to support demand for hazardous-area equipment in dust-prone processing environments. Vale Base Metals is expected to proceed with the Coarse Particle Flotation project at Salobo in Pará in August 2026. The project is projected to add 6 million tonnes of annual ore-processing capacity, increasing total capacity to 42 million tonnes per year when operations begin in the first half of 2028. New conveyors, mills, pumps, and related processing circuits will require reliable motor control in combustible-dust environments. As processing capacity expands, this equipment demand is expected to support the South America hazardous area motor starters market. Argentina’s Filo del Sol and Josemaría projects are also expected to move toward larger capital deployment in 2026. Vicuña Corp is projected to invest USD 400 million in 2025 and target a further USD 800 million in 2026. The planned concentrator infrastructure will require motor starters for milling, pumping, conveying, and ventilation applications. These operations can create Zone 21 combustible-dust conditions within mineral-processing facilities. The International Energy Agency expects South America to refine 20% of the key energy minerals extracted in the region by 2025. The agency estimates that stronger regional refining could generate USD 185 billion to USD 220 billion in potential economic value by 2035, indicating the potential for additional processing infrastructure and associated demand for certified motor-control equipment.High Cost of Certified Hazardous-Area Equipment
Ex-certified motor starters can cost three to five times more than non-certified equipment with similar power ratings. Operators in Argentina and Colombia often struggle to absorb this premium when currencies weaken, and import financing remains constrained. INMETRO assessment requirements further increase manufacturing and compliance costs. Manufacturers must engage accredited certification bodies, complete factory audits, and maintain approved designs through ongoing surveillance activities. These requirements are reflected in equipment prices. The resulting price gap can slow replacement activity across grain storage, chemical warehousing, and coal-preparation facilities. The restraint is particularly pronounced when imported equipment faces tariffs or limited access to foreign currency. In Argentina, these conditions can increase the landed cost of European and North American Ex assemblies by 15% to 30% above list prices. As a result, buyers may have limited practical options, primarily locally produced products and a smaller pool of qualified panel builders. WEG’s regional manufacturing presence is significant in this context, as it can reduce dependence on imported assemblies. Smaller operators may continue using non-certified alternatives when they cannot justify the required expenditure. Long procurement cycles also limit end users’ ability to respond quickly following a regulatory review or safety incident.Other drivers and restraints analyzed in the detailed report include:
- Thermal Overload and Motor Protection Demand
- Industrial Automation and Connected Motor Control
- Limited Awareness of Correct Hazardous-Area Installation
Segment Analysis
Low-voltage motor starters are projected to hold 50% of the segment in 2025, reflecting the extensive installed base of motors rated below 1 kV. These starters are widely used in oil refineries, chemical plants, grain operations, and other processing facilities. Their market position is supported by the long-standing use of IEC 60947 contactors and thermal overload relays. Local panel builders can assemble these configurations at costs suitable for standard projects and obtain INMETRO certification for relevant assembly designs. Full-voltage starters, including direct-on-line and reversing configurations, remain suitable for auxiliary loads where low cost is a primary consideration. Manual motor starters also remain relevant in older platforms, water-injection systems, and maintenance-focused utility applications that do not always require remote control. Other starter types, including solid-state soft starters, autotransformer starters, and star-delta hybrid configurations, are projected to expand at a CAGR of 11.5% through 2031. WEG’s SSW900 reflects the shift toward equipment designed for demanding motor-starting applications and more controlled pump and fan operations.Thermal-magnetic protection is projected to account for 40% of the technology segment in 2025 and remain the largest category. Its position reflects lower unit costs, an established INMETRO certification pathway, and broad suitability for existing motor circuits. Many industrial plants in South America continue to operate legacy motor systems with protection arrangements familiar to maintenance personnel. Consequently, thermal-magnetic equipment remains a practical option for replacement and maintenance activities. Flameproof and explosion-proof enclosures compliant with ABNT NBR IEC 60079-1 remain standard protection solutions for direct-on-line starters used in Zone 1 refinery and petrochemical applications. Electronic overload protection is gaining adoption where operators require precise trip curves and remote diagnostic capabilities, particularly in mining applications. Solid-state motor control is projected to expand at a CAGR of 13.8% through 2031. A technical study scheduled for 2026 is expected to report that silicon carbide and gallium nitride devices can reduce switching losses by 80% compared with legacy silicon devices and operate at frequencies of up to 100 kHz. ABB is expected to introduce an ATEX- and IECEx-certified IE6 SynRM Increased Safety motor in May 2026 and states that it can provide up to 60% lower energy losses than common IE3 induction motors. These developments increase the importance of compatible, low-disturbance starter systems for high-efficiency motor platforms.
Complete Report Scope:
- By Starter Type
- Low-Voltage Motor Starters
- Full-Voltage Motor Starters
- Manual Motor Starters
- Other Starter Types
- by Protection and Control Technology
- Thermal-Magnetic Protection
- Electronic Overload Protection
- Solid-State Motor Control
- Flameproof and Explosion-Proof Enclosures
- Other Protection and Control Technology
- Market Size and Growth Forecasts by Voltage
- Up to 1 kV
- Above 1 kV
- By Application
- Oil Refineries
- Petrochemical Facilities and Oil Rigs
- Chemical Storage and Handling Facilities
- Coal Preparation Plants
- Grain Elevators
- Other Applications
- Market Size and Growth Forecasts by Country
- Brazil
- Argentina
- Colombia
- Rest of South America
List of Companies Covered in this Report:
- Eaton Corporation plc
- Schneider Electric SE
- ABB Ltd
- WEG S.A.
- Rockwell Automation, Inc.
- Siemens AG
- Emerson Electric Co.
- R. STAHL AG
- Pepperl+Fuchs SE
- Hubbell Incorporated
- Honeywell International Inc.
- GE Vernova Inc.
- Mitsubishi Electric Corporation
- BARTEC Top Holding GmbH
- Warom Technology Incorporated Company
- Adalet
- Benshaw, Inc.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Eaton Corporation plc
- Schneider Electric SE
- ABB Ltd
- WEG S.A.
- Rockwell Automation, Inc.
- Siemens AG
- Emerson Electric Co.
- R. STAHL AG
- Pepperl+Fuchs SE
- Hubbell Incorporated
- Honeywell International Inc.
- GE Vernova Inc.
- Mitsubishi Electric Corporation
- BARTEC Top Holding GmbH
- Warom Technology Incorporated Company
- Adalet
- Benshaw, Inc.

