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

Summary of Advanced Manufacturing

Mexico has established itself as a major advanced manufacturing hub in recent years, enabled by competitive labor costs, free trade agreements, and government support. The country is the world’s 7th largest producer of vehicles and boasts a $100 billion medical device industry.

According to our own estimate – we can say that the advanced manufacturing industry in Mexico is forecasted to be a $ 18.72 Billion industry in 2029 from $ 11.16 Billion in 2023 with a CAGR of 9 %.

Key drivers spurring advanced manufacturing growth include— rising wages in China, Mexico’s proximity to the large US market and coordinated public-private initiatives like: the Aerospace Industry Strategic Program and the Automotive Industry Development Program.

Mexico aims to move into higher value-added manufacturing through investments in R&D, workforce training, and Industry 4.0 technologies. Challenges remain around infrastructure, rule of law and energy costs. But the country’s strengths position it well to advance economically through advanced manufacturing.

Our analysis leads us to believe that Mexico has manufacturing hubs across border states nurturing both foreign and domestic firms. Sustained infrastructure and workforce development will strengthen Mexico’s advanced manufacturing leadership.

Recent Trends and Insights

Adoption of smart factory technologies like industrial IoT, collaborative robots, virtual reality, and 3D printing, facilitated through government subsidies. Expansion of multinationals’ facilities across sectors like automotive, aerospace, medical devices, and electronics. Companies investing include BMW, Boeing, and Phillips.

Developing domestic ecosystems around sectors like biotech and nanotech through new R&D centers and university programs. Reshoring of manufacturing operations from Asia back to Mexico given its geographic and cost advantages.

Increasing focus on sustainability and circular economy principles in production. Recently, significant opportunities for exports of U.S. has made AM technologies exist across eight important and impactful sectors in Mexico that are— automotive production, heavy truck production, automotive parts, appliances, medical devices, pharmaceuticals, electronics and in the food and beverage industry.

Mexico’s trade deficit with the rest of the world in robotics and sensors amounts to USD 30 million in 2021. Due to which – Mexican companies that wish to use these technology – will have to rely on imports (USD 157 million in 2021). The United States contributed about 10% of this total that is indicating potential for expansion.

Product Insights

Mexico is accelerating its automation, rising to 15th globally in robot density. The automotive industry is leading adoption. Industrial 3D printing use is rising over 20% annually as companies introduce customization and innovative designs.

Demand is growing for lighter, higher-performance materials for aerospace, autos and medical devices. Investment is focused on composites and nanomaterials. Virtual modeling, digital twins and simulation tools are being deployed to optimize production and associated processes like warehousing and logistics.

Networked sensors, connectors and data analytics tools are enabling predictive maintenance, asset tracking and operational visibility. Sustainability is also posing as a new initiative within Mexico and is at the forefront of industrial manufacturing trends with Mexico leading the way in eco-friendly initiatives.

Manufacturers in Mexico are gradually embracing renewable energy sources, waste reduction initiatives and the implementation of circular economy practices to alleviate their environmental footprint. Financing in energy-efficient technologies helps to reduce operational costs and position Mexican manufacturers as leaders in sustainable production.

Key companies

Some major players within this vast domain of industry are:

• Grupo Bimbo
• Nemak
• Alfa
• Vitro
• CEMEX
• Grupo Mexico
• Industrias Peñoles
• Sigma Alimentos

Country Analysis

Baja California leads in medical device and electronics production, home to over 90 companies. It also has an emerging biotech cluster. Chihuahua stands out in IT and electronics manufacturing, with firms like Foxconn, Lexmark, and Honeywell.

Nuevo Leon has a strong automotive and aerospace presence, home to manufacturers like Boeing, Kia, and BMW. Querétaro focuses on aerospace and defense, with over 200 companies including Bombardier and Airbus.

Guanajuato specializes in automotive and agribusiness manufacturing. Major plants include Mazda, Honda, and Nestlé.

Supply chain disruptions during the pandemic highlighted the need for diversification, local sourcing and resilient inventory management. Local storekeeping of items in supply chains became a priority for many manufacturing companies. Mexico’s proximity to the U.S. makes it an attractive nearshoring destination, reducing lead times and mitigating risks associated with distant supply chains.

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 Mexico’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.