The Mexican factory automation and industrial controls market was valued at USD 1400.2 million in 2020, and it is expected to reach USD 2378.78 million by 2026, and register a CAGR of 8.5% over the forecast period (2021-2026). The country is witnessing a rapid adoption of factory automation and industrial control systems in Latin America, owing to the growing adoption of automation technologies, coupled with the advent of Industry 4.0 norms among expanding manufacturing sectors in the country.

- 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 2017, nearly 16% 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. For instance, Rockwell Automation’s sales growth in 2017, in Latin America, was mixed, with growth led by Mexico and partially offset by decline across the rest of the LATAM region.

- 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.

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. It produced more than 4.1 million units in 2017 or about 4.2% of the global production of 95.3 million units.

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

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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. Since the country deregulated its power sector in 2014, it opened doors to a lot of private investment into the sector.

Following the deregulation, many multinational power companies have invested in the country’s power sector. For example, recently, in March 2018, ATCO, a prominent Canadian holding company, along with Mexico-based RANMAN Energy, announced an investment of CAD 70 million to build a new 26-megawatt (MW) cogeneration plant, which is expected to be operational by the end of 2019. 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 highly competitive 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. For instance, in Feb 2018, Honeywell announced a new solution for real-time safety monitoring of workers in the plant and remote operations.

The solution’s wearable gas detectors monitor gas, radiation, and dust, and are tightly integrated with Honeywell’s distributed control system, Experion Process Knowledge System (PKS). Furthermore, in Oct 2018, GE launched the next phase of the Industrial Internet Control System (IICS). Built on the capabilities of its IICS, Intelligent Platforms introduced PACSystems RX3i CPL410, the first-ever outcome optimizing open controller, remote monitoring as a service platform, both designed to harness the combined power of edge controls and analytics to deliver actionable intelligence across the industrial ecosystem.

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