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

Summary of Manufacturing

Manufacturing plays a major economic role in Mexico, accounting for over 20% of GDP. Mexican factories employ millions across industries from automotive and electronics to medical devices and aerospace components. Mexico has strengthened its position as a key export hub targeting the U.S. and Latin American markets.

In the manufacturing sector – there were 9.67 million workers in the second quarter of 2023 – including 59.2 percent men and 40.8 percent women. Furthermore– the mean monthly income disclosed was $5.98k MX. In the second quarter of 2023 – the average age of Manufacturing workers was 38.3 years old displaying the prominence of the “manufacturing” sector. The industry size of manufacturing market of Mexico is estimated to reach $187.92 billion by 2029 from $166.32 billion in 2023 with a CAGR of 3.10%. it accounts for about 4% of the market size within this region.

Recent years have seen ongoing investment and expansion of manufacturing capacity in Mexico. Low-cost skilled labor, duty-free access under USMCA and over 120 free trade agreements boost Mexico’s competitiveness. Automakers like GM and Volkswagen have significantly scaled up Mexican operations. Electronics giants like Samsung, LG and Foxconn also operate large-scale plants.

The North American region has considered that the manufacturing sector is an essential part of its economy. And leads to innovation, productivity and displays an increased rate of employment. Nevertheless – the manufacturing industry in North America faces several challenges and opportunities in the 21st century – such as: global competition, technological change, environmental regulations, trade policies and labor issues. Based on our estimates, we can say that Mexico’s regional manufacturing industry is forecasted to be a $199.45 billion industry in 2029 from $166.32 billion in 2023 with a CAGR of 3.10 %.

Recent Trends and Insights

Manufacturing is an essential pillar of the Mexican economy. The sector represents 18.5% of the economy and is the main attraction of FDI, corresponding to 47.9% of the investment in the last few years.

Adoption of Industry 4.0 technologies like robotics, 3D printing, IoT sensors and predictive maintenance systems is gaining momentum across sectors. This enhances productivity, quality control and supply chain visibility. Sustainability has also risen up the agenda– with initiatives to reduce water usage and carbon footprints.

Skilled talent development remains a priority given the manufacturing industry’s needs. Apprenticeship programs in partnership with technical schools help address this. Ongoing infrastructure projects also strengthen Mexico’s position as a logistics hub connecting North America.

Going forward – reshoring trends, renewable energy integration and strengthening the aerospace supply chain are seen as opportunities. However– rising wages and global economic uncertainties present challenges. With a pro-business environment and diversifying export markets, Mexican manufacturing is well-positioned for continued growth.

Product insights

Industries like food and beverage are powering plants with solar, wind and other renewables to slash energy costs and carbon footprints. Electric vehicle manufacturers are also prioritizing renewable components.

Companies explore new revenue streams through product recycling, refurbishment and reuse to reduce waste. For example – consumer electronics brands now offer trade-in programs for older devices.

In order to diversify the supply chain management – plenty of outsourcing needed to be done. Due to the popularity of this industry– a new scenario challenges the existing strategies that have fueled sourcing and production decisions for more than two decades. Pivoting production to Mexico – for example – could yield further 23% cuts in operating costs.

The Industrial Internet of Things connects machines to analyze production data and enable predictive maintenance. Meanwhile– augmented and virtual reality tools are helping address skills gaps through new training methods.

Key companies

Some major players within this vast domain of industry are:

• General Motors
• Nissan
• Volkswagen
• BMW
• Honeywell
• LG
• Cemex
• Samsung
• Foxconn

Country Analysis

Northern Mexico has emerged as a major manufacturing powerhouse, centered around key regions like Baja California, Sonora and Chihuahua. This corridor accounts for over 40% of Mexican exports and hosts operations for companies like Samsung, LG and General Motors.

Central Mexico encompasses states like – the State of Mexico, Querétaro and Guanajuato. Cities here like Toluca and Querétaro have diversified into aerospace, automotive and medical device production clusters.

Southern Mexico focuses on industries like petrochemicals, steel and auto parts. Veracruz is a leader in industrial development zones attracting foreign investment. Yucatan has also seen growth in sectors like electronics and medical equipment.

Each region offers competitive advantages through their industrial infrastructure, skilled workforce training programs and economic development incentives to attract manufacturing. Overall– Mexico’s manufacturing base continues expanding to serve both domestic consumption and export markets.

Market Segmentation

By Industry Verticals:

• Passenger vehicles
• Commercial vehicles
• Electric vehicles
• Aircraft manufacturing
• Defense equipment
• Space exploration
• Consumer electronics
• Semiconductor manufacturing
• Industrial automation

By Production Processes:

• 3D printing
• Rapid prototyping
• Assembly line manufacturing
• Continuous process manufacturing
• Build-to-order
• Engineer-to-order

By End User:

• Supply chain and industrial equipment
• Components for other industries
• Consumer goods production
• Personal electronics manufacturing

Our Methodology

We have offered a well-founded review of Mexico’s 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.