Aerospace Industry In Mexico - Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Insights and Trends of Aerospace Industry In Mexico

Nearshoring Acceleration from USMCA And Supply-Chain Remapping

USMCA regional-value thresholds of 60% have redirected significant tier-one sourcing from Asia to Mexico, protecting a 15-20% landed-cost edge over European production after tariffs. Safran’s new test cell in Querétaro and Diehl Aviation’s 8,200-square-meter interiors plant illustrate capital inflows aligned with the agreement. Mexican suppliers built buffer inventory during pandemic shocks and now report higher readiness for production-rate hikes, indicating resilience to continued demand surges. Although the 2026 USMCA policy review introduces uncertainty on labor and dispute-settlement clauses, Mexico’s Plan México industrial strategy is set to cushion potential shocks by promoting domestic composite material and tooling output. Political stability around these negotiations will influence the aerospace industry in Mexico market trajectory in the medium term.^[1]

Expanding Skilled Aerospace Workforce and Specialized Clusters

Mexico employed 58,000 aerospace workers in 2024, with 35% located in Querétaro. Universities such as UNAQ tailor AS9100-aligned curricula that cut onboarding times for tier-one suppliers by 30%. Honeywell’s Chihuahua site, operating over 1,300 machines under a vertically integrated model, exemplifies the demand for multitasking technicians skilled in CNC programming and composite lay-up. Wage inflation is expected to increase average engineer compensation by 17% by 2030, prompting local firms to consider automation to maintain their margins. The Consejo Mexicano de Educación Aeroespacial forecasts a net requirement for 15,000 additional professionals over the decade, underscoring the need for continuous talent-pipeline expansion and upskilling.

Government BASA And FAA Category 1 Recovery

In September 2023, the reinstatement of Category 1 status paved the way for Mexican carriers to expand their routes into the U.S. and allowed MRO shops to service U.S.-registered aircraft. Following this, Viva Aerobus unveiled plans for a MXN 4 billion wide-body maintenance complex in Querétaro. ^{[2]FAA, “Mexico Regains Category 1 Safety Rating,” faa.gov}Simultaneously, the government allocated MXN 1.5 billion to rejuvenate the erstwhile Mexicana de Aviación hangar. Over 87% of Mexican suppliers have now obtained AS9100 certifications, a move driven by OEM demands for consistent traceability. Furthermore, engaging in FAA joint audits not only slashes recertification costs but also hastens the entry of newcomers into the lucrative aftermarket segment.^{[3]Source: Federal Register, “International Aviation Safety Assessment Program,” federalregister.gov}

Aging North American Fleet Raising Local MRO Demand

Delivery delays have pushed the average global fleet age to 13.4 years, raising airframe and engine maintenance requirements. Mexico’s proximity to operators in the United States and Canada positions its MRO centers to absorb spillover work. Safran’s USD 80 million LEAP engine shop in Querétaro went live in January 2026, offering 350 shop-visits annually by 2030, while GE Aerospace expanded overhaul lines for CFM56 and GE90 engines in Sonora. As predictive-maintenance platforms like Airbus Skywise gain traction, downtime avoidance aligns directly with the growth of local digital service providers.

Global Material and Engine-Parts Shortages Delaying Production

The absence of domestic titanium sponge production forces reliance on foreign inputs at inflated prices, thereby stretching lead times for critical aerostructures. Parallel delays for turbine blades and combustion liners extend aircraft delivery schedules, trimming 2024 supplier revenue. Personnel shortages at machining firms exacerbate the bottleneck, underscoring the need for supply-chain risk diversification strategies and strategic stockholding.

High OEM Power Limits Local Value-Addition Margins

Design authority and intellectual property remain with OEMs, leaving Mexican firms in lower-margin fabrication niches with operating margins around 5%. Take-or-pay clauses and 90-day payment cycles diminish cash flow and deter investments in avionics integration or additive manufacturing. Access to certification data packages often entails fees that absorb a fifth of added revenue, reinforcing the structural profitability ceiling facing domestic suppliers. Bridging this gap requires coordinated policy incentives and collaborative R&D frameworks that involve system integrators.

Segment Analysis

By Industry: MRO Outpaces Manufacturing Growth

Maintenance, repair, and overhaul spending is projected to increase at an annual rate of 8.27% through 2031. The aerospace industry in Mexico market size for this activity benefits from the FAA-restored bilateral approvals, an aging North American fleet, and investments such as Safran’s 14,000-square-meter LEAP engine shop in Querétaro. Viva Aerobus follows suit with a 160-aircraft capacity complex slated for 2027. Manufacturing still accounts for 69.54% of Mexico's aerospace industry market share in 2025, anchored by aerostructure flowlines in Querétaro and Sonora. Near-shoring, USMCA compliance, and automation reinforce manufacturing relevance, yet growth lags MRO given softer rate increases on new aircraft platforms. Engineering and Design remains a small yet strategic slice, gaining interest where composite tooling and jig design are required for next-gen programs.

Future competitiveness will rest on suppliers’ ability to broaden their value proposition. Establishing integrated MRO-plus-parts-manufacturing campuses reduces logistics costs and fosters cross-functional skills. Government incentives that subsidize tooling or AS9100 certification further narrow the gaps with higher-cost jurisdictions, keeping the Mexican aerospace industry market attractive for green-field entrants.

Note: Segment shares of all individual segments available upon report purchase

By Platform Type: Rotary Wing Gains Altitude

Fixed-wing aircraft held 83.42% of 2025 revenue, driven by narrow-body builds for Airbus and Boeing. However, helicopter airframes are poised for 7.4% CAGR growth through 2031 as Bell ramps cabin production and Safran Landing Systems expands landing-gear overhaul capacity. The military procurement of 11 UH-60M and H225M helicopters supports the demand for rotary-wing components and avionics. Space remains nascent but gains visibility after the AztechSat-1 nanosatellite mission and the planned 2027 low-earth-orbit satellite. 

Market participants are collaborating across various platform types to share knowledge of composite fabrication. Fixed-wing suppliers utilize out-of-autoclave technology, which is subsequently applied to helicopter rotor heads and space-capsule structures. This cross-pollination diversifies revenue streams, smoothing cyclicality.

By Component: Engine Components Accelerate

Aerostructures and fuselage captured 47.91% of the aerospace industry's market size in Mexico in 2025, a position secured by high-volume metallic machining and composite lay-up lines concentrated in Querétaro and Sonora. This dominant share reflects two decades of supplier specialization in wing ribs, floor beams, and Section 15 fuselage panels for Airbus A320 and Boeing 737 MAX programs. Engine components, however, are set to narrow the gap, expanding at a 7.56% CAGR through 2031 on the back of Safran’s 14,000 m² LEAP maintenance hub that opened in January 2026 and GE Aerospace’s MXN 550 million upgrade of CFM56 and GE90 overhaul cells in Hermosillo and Saltillo. ETU Aerospace’s titanium and Inconel machining portfolio for Trent XWB and PW1000G programs further diversifies domestic capability, while additive-manufacturing pilots for fuel-nozzle swirlers promise cycle-time cuts of up to 40% and first-pass-yield gains of 15%.

Avionics and space electronics occupy a growing mid-tier, buoyed by Collins Aerospace’s Mexicali lines for SATCOM antennas and the Mexican Space Agency’s export of the SCMI nanosatellite command module in October 2025, the country’s first space-electronics shipment. Interiors retain predictable aftermarket pull as single-aisle cabin retrofits surge; Safran’s Tijuana and Chihuahua complexes supply overhead bins, lavatories, and the world’s largest wiring-harness plant servicing 350 aircraft sets yearly. Landing-gear work remains concentrated in Safran’s Querétaro MRO center. At the same time, new production gear is still sent offshore due to certification hurdles that can add USD 15 million and three years to project timelines. Suppliers able to integrate AI-driven quality-inspection rigs report scrap reductions of nearly 12%, a margin enhancer that encourages reinvestment in higher-value engine casing and hot-section work. Collectively, these shifts signal a gradual re-balancing of the aerospace industry in Mexico's market share away from legacy aerostructures toward digitally enabled, higher-margin propulsion and electronics niches.

Note: Segment shares of all individual segments available upon report purchase

By End User: Military Segment Surges

Commercial operators generated 78.12% of 2025 revenue, anchored by Airbus’s over 50% share of Latin America’s active fleet and Boeing’s extensive narrow-body backlog. Recovery in cross-border travel after the FAA’s 2023 restoration of Category 1 status has reignited narrow-body utilization, feeding continuous demand for Mexican-made interior kits, nacelles, and quick-turn engine overhauls. Low-cost carriers also deepen the pipeline: Viva Aerobus is building a MXN 4 billion (USD 222.482), 160-aircraft MRO complex in Querétaro, which is set to open in 2027, guaranteeing steady shop-visit volumes for domestic suppliers.

The military end user, although smaller, posts the fastest growth at an 8.19% CAGR as the Mexican Air Force modernizes its 325-aircraft inventory, including orders for seven UH-60M Black Hawks and four H225Ms, with delivery scheduled for 2027. Helicopter upgrades trigger ancillary demand for Safran gearbox MRO and Bell cabin spares, while surveillance and disaster-relief missions extend flight hours, lifting parts consumption. Defense outlays reached USD 8.54 billion in 2022 (0.61% of GDP) and remain skewed toward internal security, making multi-role transport aircraft, utility helicopters, and associated support contracts the primary spending targets. As predictive-maintenance suites like Airbus Skywise connect a growing share of military transports, domestic analytics firms are gaining entry into defense workstreams that have historically defaulted to US contractors, cementing a virtuous loop of data-driven upgrades and localized sustainment within the aerospace industry in the Mexican market.

Geography Analysis

The five-cluster structure, Querétaro, Sonora, Chihuahua, Nuevo León, and Baja California, contributes 95% of national employment and value. Querétaro alone houses a third of the workforce as well as marquee investments from Safran, ITP Aero, and Bombardier. Sonora and Chihuahua specialize in engine overhauls and helicopter cabin builds, while Nuevo León leverages Monterrey’s electronics base for avionics and wiring harnesses. Baja California’s Mexicali-Tijuana corridor combines interior and composite expertise with border-crossing efficiency.

Southern diversification is facilitated through the Interoceanic Corridor industrial parks, which offer tax incentives and multimodal freight routes. Airport infrastructure upgrades worth MXN 126.6 billion between 2025 and 2030 expand cargo throughput, facilitating just-in-time delivery of high-value components. Cross-border exports reached USD 10 billion in 2024, with an 80% share destined for US and Canadian OEMs. The target of USD 22.7 billion by 2029 implies a 17.8% export CAGR, well above the domestic consumption rate. Electricity supply remains a longer-term risk, requiring 64,595 MW of incremental capacity to sustain industrial momentum.