Columbia Advanced Manufacturing - Industry - Market, Share and Trends 2023-2028

Summary of Advanced Manufacturing

Colombia has seen significant growth in its advanced manufacturing sector in recent years. The country has invested heavily in developing industrial parks with the necessary infrastructure to attract foreign investment in areas like automotive production, aerospace, medical devices and electronics.

Based on our estimates, we can say that the Columbia’s advanced manufacturing industry is forecasted to be a $2.98 billion industry in 2029 from $2.10 billion in 2023 with a CAGR of 6 %.

Some of the largest industrial parks developed include – Zona Franca near Barranquilla – which hosts over 100 companies and generates over $2 billion in annual exports. Tecnoparque in Bogotá focuses on advanced technology and is home to R&D centers for companies like Siemens. Zona Franca Occidente outside Cali has attracted medical device manufacturers like Bayer.

This investment in industrial infrastructure has paid off – foreign direct investment in Colombian manufacturing grew at an average annual rate of 12% from 2015-2020 and making it reach $2.3 billion according to industry insights.

German industrial giant Siemens has invested over $100 million since 2015 to expand its operations in Colombia, where it produces gas and wind turbines. Medical device maker Bayer opened a new $50 million manufacturing plant in 2020, solidifying Colombia as its regional hub.

However—Colombia still faces challenges in developing a large pool of skilled manufacturing workers and local suppliers. Only about 15% of components used in domestic vehicle production are sourced within Colombia currently, according to the Ministry of Trade. This presents an opportunity to deepen local supply chains and boost the economic impact of advanced manufacturing investments.

Recent Trends and Insights

Multinational corporations establishing production operations in Colombia over this period included GM, which opened a $250 million vehicle assembly plant in 2018. Airbus began assembling plane fuselages in 2021 at its $130 million facility.

Between 2010-2020 – Colombia invested over $5 billion USD in expanding industrial parks and special economic zones according to the World Bank.

Colombia has emerged as one of the fastest growing destinations for advanced manufacturing investments in Latin America. Production has increased at an average of over 5% annually since 2015, well above the regional average of 3%. This strong growth has been driven by expanding foreign direct investment.

Some of the largest investments over this period include GM’s $250 million vehicle assembly plant in Bogota, which began operations in 2018. The plant currently produces the Chevrolet Spark and Onix models, with plans to double vehicle output to 150,000 annually by 2023.

Airbus inaugurated its $130 million aircraft component factory near Bogota in 2021. The facility employs 400 workers assembling plane fuselages for Airbus’ A320 family of aircraft. This investment established Colombia as the only country in Latin America with aerospace assembly capabilities.

Beyond large greenfield investments, many multinationals like 3M and Honeywell have significantly scaled up existing operations, taking advantage of Colombia’s 10 free trade agreements that allow duty-free access to over 60 countries worldwide. This strategic access has helped attract export-oriented advanced manufacturing.

Product Insights

Aerospace manufacturing has made significant advances but remains focused primarily on aircraft assembly. Airbus’ new facility specializes in joining fuselage sections. To capture more value, Colombia seeks to develop local capabilities in advanced composites, aircraft engines and systems integration. Composites producer Core Composites has invested in R&D that could support future aerospace opportunities.

In automotive – local production is primarily focused on light vehicles like sedans and SUVs. GM’s plant in Bogota currently manufactures the Chevrolet Spark and Onix, which are aimed at the mass market. There is potential to move into more complex components as domestic supply chains mature. Nearby parts producers like Brafimar could expand into higher-tech auto parts.

Medical devices production is centered on less complex items like surgical supplies, bandages and orthopedic braces. As companies like – Bayer and 3M expand local R&D – there is potential to develop devices for fast-growing areas like minimally invasive surgery, cardiovascular and oncology applications.

Electronics assembly has yet to establish at scale in Colombia with most production catering to the domestic market. Attracting investments that leverage nearby free trade zones could help launch exports of electronics to the rest of Latin America over time.

Key companies

Some major players within this vast domain of industry are:

• Samsung
• Alorica
• SCcommerce
• GE Appliances
• Husqvarna Consumer Outdoor
• Honda
• Marshall Advanced Manufacturing Center
• Imperial Machine & Tool Co.

Country Analysis

Bogotá is the largest city in Colombia and the epicenter of its advanced manufacturing industry. It hosts major production facilities like GM’s vehicle assembly plant. Many multinational corporations also base their Colombian headquarters and R&D centers in Bogotá to leverage the concentration of skilled talent.

Medellín is another important manufacturing hub, particularly for automotive and medical devices. Companies like Bayer have established operations there to serve the domestic market and export regionally.

Industrial parks outside major cities have also attracted significant investment. Zona Franca near Barranquilla is a leading free trade zone, with over 100 companies utilizing its strategic Caribbean port access. It hosts manufacturers exporting across Latin America.

Colombia’s free trade zones provide tax incentives that have drawn labor-intensive and export-oriented industries. Infrastructure limitations in more remote inland regions pose logistical challenges. This has contributed to advanced manufacturing remaining concentrated in and around cities for now.

Going forward— Colombia seeks to develop new clusters in provinces like Santander, Norte de Santander and Valle del Cauca through continued investment in industrial infrastructure outside major population centers. This could help broaden the geographic distribution of these high-productivity industries.

Market segmentation

By Type:

• Additive manufacturing/3D printing
• Automation/robotics
• Industrial internet of things (IIoT) and industrial analytics
• Plant asset management (PAM)
• Manufacturing execution systems (MES)
• Industrial controls

By End user:

• Manufacturer and Retailer
• Distinct industries like automotive, aerospace, electronics
• Process industries like oil & gas, chemicals, pharmaceuticals
• Energy and utilities
• Food and beverage

By Enterprise Size:

• Large Industries
• Small & Medium Industries

Our Methodology

We have offered a well-founded review of Columbia’s advanced manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.