Summary

The Mexican Factory Automation and Industrial Controls Market was valued register a CAGR of approximately 8.5% over the forecast period (2021-2026). Attributed to the outbreak of coronavirus, the region witnessed supply chain disruption due to imposed global lockdown. On the other hand, there was an increase in demand for factory automation by various industry verticals including manufacturing to ensure efficient operation of facilities and maintain employee and worker's health.

Key Highlights
Also, the recent new coronavirus outbreak has impacted negatively on the Mexican economy, radically altering how numerous industries work on a daily basis. With work-from-home procedures in place and shelter-in-place orders on the rise, allied market players re-evaluated and changed their cyber-preparedness and reaction tactics. This is especially true for companies that have implemented industrial control systems (ICS) to monitor and control critical equipment and processes (DCS, SCADA, or PLS).
The country is witnessing a significant boost in the automotive manufacturing industry, with Nissan, Honda, and Mazda, opening new high-volume facilities in the country, and a national vehicle production growth of over 7.5%. The exponential growth in the country’s manufacturing sector is the major driver for market growth.
In 2020, nearly 17.2% of the country’s GDP came from manufacturing. Companies have witnessed a rise in the demand for catering to the manufacturing sector in the country, with the other countries in the region, like Brazil recovering from the economic crisis.
The lower labor costs in the country are resulting in the rapid expansion of other industrial sectors, like consumer electronics manufacturing, pharmaceutical manufacturing, and metallurgical industries, which is expected to boost the Mexican fully automation and industrial controls market.
The growing emphasis on energy conservation and efficiency is driving the Mexico Factory Automation and Machine Vision Market. The factory automation system's breadth is expanding due to the Internet of Things and the promising trend of cloud-based technologies and services. The number of people using the internet has risen dramatically in the last decade, nearly doubling in the last eight years.


Key Market Trends

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.


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.


Competitive Landscape

The Mexican factory automation and industrial controls market is moving towards fragmentation and consists of several major players. In terms of market share, few of the major players currently dominate the market. However, with innovative and sustainable products and solutions, many of the companies are increasing their market presence by securing new contracts and by tapping into new markets.


March 2021 - Enhancements to GE Digital's CIMPLICITY and Tracker software provide important decision support for operators, allowing them to be more productive. CIMPLICITY HMI/SCADA is a high-performance automation platform that uses client-server visualization to precisely monitor and control activities.
December 2020 - Omron has developed the 1S series AC servo system, which includes Ple/SIL3 safety features. This system included One Cable technology, which allows power, encoder, and brake to be combined into a single pre-assembled cable.


Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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