Market Trends of Mexico Factory Automation and ICS Industry
This section covers the major market trends shaping the Mexico Factory Automation & ICS Market according to our research experts:
Robotics Segment to Hold Major Growth
- Mexico is predominantly a production hub for car manufacturers and automotive parts suppliers that export to the United States, and increasingly to South America. At USD 2.45 trillion, Mexico is the fifteenth-largest global economy and home to 20 plus automotive assembly plants, including BMW, Mercedes, Audi, Ford, Chrysler, and Nissan. They are putting more pressure on the local plants to increase the quality, get better safety, get better throughput, which is driving automation and robotics.
- The Mexican manufacturing industry has propelled and digitalized significantly in recent years to enhance productivity, primarily owing to the automotive sector in the country, which is the seventh-largest maker of motor vehicles in the world. Mexico exports 94.5% of its tractor truck production to the United States, making it the world's leading exporter.
- With the implementation of the USMCA trade agreement between the United States, Mexico, and Canada in June 2020 – which renews previously established free trade regulations between the North American neighbours – the already existing partnership for the automotive industry in these three countries is expected to grow even more in this new phase.
- Therefore, Mexico’s manufacturing and most prominently the automobile manufacturing sector has made the country one of Latin America’s powerhouses for innovation and technology. In order to support the country’s growing manufacturing industry, the Association for Advancing Automation (A3) has launched A3 Mexico to support the proliferation of the manufacturing sector with robotics.
Understand The Key Trends Shaping This Market
Download Sample
Utility Segment to Witness Major Growth
- According to the Ministry of Energy, the Mexican power generation sector is expected to witness investments over MXN 2039.89 billion by 2030, with most of the investments diverted toward power generation establishments and power transmission infrastructure.
- CFE announced in March 2020 that it intends to issue an international tender for the construction of six combined-cycle natural gas-fired power plants with a total installed capacity of 4,322 MW. Furthermore, the number of natural gas-fired power facilities in the country is likely to rise in response to rising electricity demand.
- For example, Mexico's Comisión Federal de Electricidad (CFE) announced in December 2020 that the long-delayed 642 MW Huexca combined-cycle thermal power plant in the central state of Morelos had started producing electricity.
- With such a positive investment scenario in the country’s utility sector, led by renewal or new construction projects, the demand for factory automation and industrial control system solutions is expected to grow rapidly.
