Mexico Factory Automation & ICS Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 5.47 Billion |
| Market Size (2029) | USD 7.97 Billion |
| CAGR (2024 - 2029) | 7.80 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mexico Factory Automation & ICS Market Analysis
The Mexico Factory Automation And ICS Market size is estimated at USD 5.47 billion in 2024, and is expected to reach USD 7.97 billion by 2029, at a CAGR of 7.80% during the forecast period (2024-2029).
- Technological advancements, notably the Internet of Things (IoT), artificial intelligence (AI), and robotics, are propelling the adoption of automation solutions. These technologies boost operational efficiency, enhance data collection, and enable real-time monitoring, making them appealing to Mexican manufacturers aiming to modernize. The rising use of IoT and machine-to-machine technologies in Mexico is expected to bolster demand in the studied market.
- Mexico's strategic positioning and its involvement in international trade agreements, like the United States-Mexico-Canada Agreement (USMCA), have woven it into global supply chains. This integration demands sophisticated automation solutions to navigate intricate supply chain dynamics, ensuring prompt production and delivery.
- With intensifying global market competition, the appetite for high-quality products has escalated. Automation and control systems empower manufacturers to attain heightened precision and consistency, aligning with rigorous quality standards and customer demands.
- Moreover, the Mexican government is championing manufacturing and technological innovation through various initiatives. These programs, designed to boost competitiveness and attract foreign direct investment (FDI), frequently emphasize technology adoption, fueling the market for factory automation and industrial controls.
- Safety remains a top priority in manufacturing. Automation solutions can alleviate risks by minimizing human involvement in dangerous tasks and offering real-time operational monitoring. This emphasis on safety propels the uptake of industrial controls and automation technologies.
- Nonetheless, the steep initial costs of automation technologies present a significant hurdle, particularly for small and medium-sized enterprises (SMEs). Operating on tight budgets, these firms often struggle to invest in advanced machinery, which can dissuade them from embracing automation.
- Additionally, a notable concern is the shortage of a skilled workforce adept at managing automated systems. While Mexico boasts a burgeoning engineering talent pool, there's a pronounced skills gap in niche areas like robotics, programming, and system integration. This deficiency can hinder swift automation adoption and inflate operational costs, as firms might need to invest in training or recruit foreign specialists.
- Despite the robust growth of Mexico's automotive sector, fueled by foreign direct investment, trade agreements like the USMCA, and a proficient labor force, macroeconomic challenges such as inflation and volatile exchange rates can sway production costs and consumer demand. For instance, a dip in inflation might lower raw material prices, boosting profit margins for manufacturers. Yet, with its closeness to the US market and competitive labor costs, Mexico stands out as a prime manufacturing hub for leading automotive firms.
Mexico Factory Automation & ICS Market Trends
Machine Vision Field Devices Product Segment is Expected to Hold Significant Market Share
- Machine vision refers to the technologies and procedures that enable automatic inspection and analysis through imaging. These technologies are commonly applied in automated inspections, process controls, and robot guidance, especially in industrial environments. By adopting machine vision solutions, businesses in the country are markedly boosting the efficiency and value of their robotic systems. Much like a human arm, these robots are equipped with a camera at their "hand," acting as the "eyes" to guide them in executing their tasks.
- The growth of machine vision devices is primarily driven by the manufacturing industry's demand for improved product inspection and quality control, alongside a rising need for advanced collaborative robots in manufacturing and warehousing. Additionally, automation and machine vision technologies lead to heightened operational efficiency, increased productivity, reduced production costs, and enhanced worker capabilities.
- As machine vision technologies advance, becoming more compact and efficient, their applications are expanding into new automation sectors. Notable areas of growth include autonomous vehicles, advanced inspection systems, and bin picking in warehouses. Manufacturers in the country highlight several advantages of integrating machine vision into their workflows, such as improved speed, consistency, and the ability to run production lines longer, all contributing to heightened productivity.
- Implementing these technologies not only boosts operational efficiency but also sharpens human critical thinking, allowing individuals to focus on skills that add significant business value. With a labor shortage anticipated to last at least two more years and possibly worsen before any improvement, the urgency for companies to adopt technology becomes paramount. This adoption is essential not just for maintaining operations but also for meeting customer expectations. Beyond merely establishing smart factories, organizations can progress by acknowledging the changing landscape of manufacturing roles and crafting strategies for the adoption, training, reskilling, and enhancement of these roles.
- The surge in industrial automation and the growing embrace of the Internet of Things (IoT) in Mexico are key drivers fueling the rise of machine vision devices. By integrating IoT with machine vision cameras, users can achieve real-time connectivity, optimize processes to eliminate waste, enhance flexibility, and notably reduce both time-to-market and inventory levels. This synergy between IoT and machine vision devices is expected to bring substantial cost savings and heightened efficiency to manufacturing operations.
- The Mexican manufacturing landscape has seen robust growth, especially in sectors like automotive, aerospace, electronics, and pharmaceuticals. For example, data from the National Institute of Statistics and Geography (INEGI) indicates that revenue from electronic component manufacturing in Mexico is set to reach around USD 1.3 billion by 2024, up from USD 1.1 billion in 2022. As these companies broaden their production horizons, there's a marked shift towards automation and industrial controls, aiming to streamline operations, cut costs, and elevate quality.
Automotive Segment to Hold Significant Market Growth
- The increasing automotive production in Mexico is anticipated to offer lucrative opportunities for the growth of the studied market. For instance, according to the International Organization of Motor Vehicle Manufacturers (OICA), about 3.1 million commercial vehicles were produced in Mexico throughout 2023, up from around 2.85 million units produced during the previous year.
- The smart factory concept provides the automotive sector in the country with the ability to respond more swiftly to market demands, improve supply chain efficiency, minimize manufacturing downtimes, and boost overall productivity. As a key industry, the automotive sector is characterized by its extensive use of automated manufacturing systems.
- Consequently, the production facilities of numerous automotive manufacturers are equipped with automation technologies to ensure precision and operational efficiency. Additionally, the growing shift from traditional vehicles to electric vehicles (EVs) is anticipated to increase demand within the automotive industry further.
- Mexico is solidifying its position as a pivotal player in the global automotive manufacturing landscape. With its skilled workforce, advantageous geographic location, and well-established supply chain infrastructure, Mexico draws record investments from global car manufacturers. This momentum is poised to intensify as Mexico emerges as a hub for producing components for electric vehicles (EVs) and autonomous vehicles (AVs), aligning with the worldwide pivot towards sustainable transportation.
- Furthermore, Mexico represents a substantial market for American passenger vehicles, light vehicles, trucks, automotive components, supplies, and technologies essential for electric vehicles, which also act as a major growth driver for the studied market. According to ITA, the automotive industry is one of the most vital sectors in Mexico, accounting for 3.6% of the country's Gross Domestic Product (GDP) and 18% of the manufacturing GDP.
Mexico Factory Automation & ICS Industry Overview
The Mexico factory automation and industrial controls market is a moderately fragmented market with the presence of several prominent players like Rockwell Automation Inc., Honeywell International Inc., ABB Ltd., Emerson Electric Co., Omron Corporation, Mitsubishi Electric Corporation, Siemens AG, etc. These companies are striving to gain a competitive advantage by constantly developing their product portfolios and expertise. The level of market penetration is relatively high, with tight control on distribution. For instance, ABB is a significant player in the market in end-user industries like electric power generation and also has a significant presence in oil & gas. Honeywell also has a large installed base of process automation systems.
The market players are launching various innovative products that cater to consumers’ evolving requirements. Further, the market has been registering significant collaborations and partnerships. Expansions and acquisitions among the market players to expand their presence in addressing the increasing demand for factory automation and industrial controls would fuel future market growth.
Mexico Factory Automation & ICS Market Leaders
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Rockwell Automation Inc.
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Honeywell International Inc.
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ABB Ltd.
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Emerson Electric Company
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Omron Corporation
*Disclaimer: Major Players sorted in no particular order
Mexico Factory Automation & ICS Market News
- October 2024: Rockwell Automation announced the advancement of the FactoryTalk Optix portfolio through DataReady smart machines. This update to the FactoryTalk Optix portfolio enables contextualized machine data that’s ready to deliver operational value. The FactoryTalk Optix platform value extends beyond HMI to support edge data collection and exchange with enterprise applications such as analytics to optimize production and connectivity with operations management applications such as DataMosaix, the Plex Smart Manufacturing Platform, and Fiix maintenance software to accelerate digital transformation.
- June 2024: ABB Robotics launched OmniCore, an intelligent automation platform that is faster, more precise, and more sustainable, empowering, enhancing, and future-proof businesses. The OmniCore platform, the result of more than USD 170 million of investment in next-generation robotics, is a significant change to a modular and future-proof control architecture that will enable the full integration of AI, sensor, cloud, and edge computing systems to create the most advanced and autonomous robotic applications.
Mexico Factory Automation and Industrial Controls Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness Porters Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
4.5 Technplogy Snapshot
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Adoption of Internet of Things (IoT) and Machine-to-machine Technologies
5.1.2 Emphasis on Cost Cutting and Business Process Improvement
5.1.3 Increasing Investment in Manufacturing Sector
5.2 Market Restraints
5.2.1 High Installation Costs and Lack of Skilled Workforce Preventing Enterprises from Full-scale Adoption of Factory Automation
5.2.2 Cultural Resistance to Change and Regulatory Issues
6. MARKET SEGMENTATION
6.1 By Product
6.1.1 Field Devices
6.1.1.1 Machine Vision
6.1.1.2 Robotics
6.1.1.3 Sensors and Transmitters
6.1.1.4 Motors and Drives
6.1.1.5 Other Field Devices
6.1.2 Industrial Control Systems
6.1.2.1 Supervisory Control and Data Acquisition (SCADA)
6.1.2.2 Distributed Control Systems (DCS)
6.1.2.3 Programmable Logic Controllers (PLC)
6.1.2.4 Manufacturing Execution System (MES)
6.1.2.5 Product Lifecycle Management (PLM)
6.1.2.6 Enterprise Resource Planning (ERP)
6.1.2.7 Human Machine Interface (HMI)
6.1.2.8 Other Control Systems
6.2 By End-user Industry
6.2.1 Automotive
6.2.2 Chemical and Petrochemical
6.2.3 Utility
6.2.4 Pharmaceutical
6.2.5 Food and Beverage
6.2.6 Oil and Gas
6.2.7 Other End-user Industries
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Rockwell Automation Inc.
7.1.2 Honeywell International Inc.
7.1.3 ABB Ltd.
7.1.4 Emerson Electric Company
7.1.5 Omron Corporation
7.1.6 Mitsubishi Electric Corporation
7.1.7 Siemens AG
7.1.8 Robert Bosch GmbH
7.1.9 Texas Instruments Inc.
7.1.10 Yokogawa Electric Corporation
7.1.11 Schneider Electric SE
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Mexico Factory Automation & ICS Industry Segmentation
Factory automation employs control systems, including computers and robots, to oversee and streamline industrial processes within manufacturing settings. This broad field integrates diverse technologies—ranging from machinery and processes to information systems—all designed to boost production efficiency, improve accuracy, and lessen the need for human intervention in repetitive tasks. With the adoption of automated systems, factories can not only elevate their productivity and consistency but also enhance safety and cut down on operational costs.
Industrial controls form the cornerstone of factory automation, enabling the monitoring and management of production equipment and processes. These controls encompass a variety of types, including programmable logic controllers (PLCs), distributed control systems (DCS), and supervisory control data acquisition (SCADA) systems, among others. Each type is pivotal in ensuring the smooth and efficient operation of industrial activities.
The market is defined by the revenue generated from the sale of different types of factory automation and industrial control systems products and solutions offered by different market players across Mexico.
The Mexico factory automation and industrial controls market report is segmented by product (field devices [machine vision, robotics, sensors and transmitters, motors and drives, and other field devices], industrial control systems [supervisory control and data acquisition (SCADA), distributed control systems (DCS), programmable logic controllers (PLC), manufacturing execution system (MES), product lifecycle management (PLM), enterprise resource planning (ERP) human-machine interface (HMI), and other control systems]), by end-user industry (automotive, chemical and petrochemical, utility, pharmaceutical, food and beverage, oil and gas, other end-user industries). The report offers market forecasts and size in value (USD) for all the above segments.
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| By End-user Industry | |
| Automotive | |
| Chemical and Petrochemical | |
| Utility | |
| Pharmaceutical | |
| Food and Beverage | |
| Oil and Gas | |
| Other End-user Industries |
Mexico Factory Automation and Industrial Controls Market Research FAQs
How big is the Mexico Factory Automation And ICS Market?
The Mexico Factory Automation And ICS Market size is expected to reach USD 5.47 billion in 2024 and grow at a CAGR of 7.80% to reach USD 7.97 billion by 2029.
What is the current Mexico Factory Automation And ICS Market size?
In 2024, the Mexico Factory Automation And ICS Market size is expected to reach USD 5.47 billion.
Who are the key players in Mexico Factory Automation And ICS Market?
Rockwell Automation Inc., Honeywell International Inc., ABB Ltd., Emerson Electric Company and Omron Corporation are the major companies operating in the Mexico Factory Automation And ICS Market.
What years does this Mexico Factory Automation And ICS Market cover, and what was the market size in 2023?
In 2023, the Mexico Factory Automation And ICS Market size was estimated at USD 5.04 billion. The report covers the Mexico Factory Automation And ICS Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Factory Automation And ICS Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexico Factory Automation and Industrial Controls Industry Report
Statistics for the 2024 Mexico Factory Automation and ICS market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico Factory Automation and ICS analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
