Mexico Factory Automation and Industrial Controls Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

This Mexico Factory Automation and Industrial Controls Market is segmented by Product (Field Devices and Industrial Control Systems) and End-user Industry (Automotive, Chemical & Petrochemical, Utility, Pharmaceutical, Food & Beverage, and Oil & Gas).

Market Snapshot

mexico factory
Study Period: 2018- 2026
Base Year: 2020
CAGR: 8.5 %

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Market Overview

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.

  • 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.

Scope of the Report

The evolution of technological advancements and innovations across various manufacturing units have encouraged the adoption of automation technologies across the Mexican region. The study covers the products including field devices & industrial control systems and end-users such as automotive, chemical and petrochemical, utility, pharmaceutical, food & beverage, and oil & gas among others. The scope of the study is limited to the Mexican region.

By Product
Field Devices
Machine Vision
Robotics
Sensors
Motors and Drives
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)
Other Control Systems
By End-user Industry
Automotive
Chemical and Petrochemical
Utility
Pharmaceutical
Food and Beverage
Oil and Gas
Other End-user Industries

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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.
Mexico 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.
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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.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness – Porter’s Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Competitive Rivalry in the Industry

    4. 4.4 Market Drivers

      1. 4.4.1 Increased Adoption of Internet of Things (IoT) and Machine-to-machine Technologies

      2. 4.4.2 Emphasis on Cost Cutting and Business Process Improvement

    5. 4.5 Market Restraints

      1. 4.5.1 High Installation Costs and Lack of Skilled Workforce Preventing Enterprises from Full-scale Adoption of Factory Automation

  5. 5. TECHNOLOGY SNAPSHOT

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Product

      1. 6.1.1 Field Devices

        1. 6.1.1.1 Machine Vision

        2. 6.1.1.2 Robotics

        3. 6.1.1.3 Sensors

        4. 6.1.1.4 Motors and Drives

        5. 6.1.1.5 Other Field Devices

      2. 6.1.2 Industrial Control Systems

        1. 6.1.2.1 Supervisory Control and Data Acquisition (SCADA)

        2. 6.1.2.2 Distributed Control Systems (DCS)

        3. 6.1.2.3 Programmable Logic Controllers (PLC)

        4. 6.1.2.4 Manufacturing Execution System (MES)

        5. 6.1.2.5 Product Lifecycle Management (PLM)

        6. 6.1.2.6 Enterprise Resource Planning (ERP)

        7. 6.1.2.7 Human Machine Interface (HMI)

        8. 6.1.2.8 Other Control Systems

    2. 6.2 By End-user Industry

      1. 6.2.1 Automotive

      2. 6.2.2 Chemical and Petrochemical

      3. 6.2.3 Utility

      4. 6.2.4 Pharmaceutical

      5. 6.2.5 Food and Beverage

      6. 6.2.6 Oil and Gas

      7. 6.2.7 Other End-user Industries

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Rockwell Automation Inc.

      2. 7.1.2 Honeywell International Inc.

      3. 7.1.3 ABB Ltd.

      4. 7.1.4 Emerson Electric Company

      5. 7.1.5 Omron Corporation

      6. 7.1.6 Mitsubishi Electric Corporation

      7. 7.1.7 Siemens AG

      8. 7.1.8 Robert Bosch GmbH

      9. 7.1.9 Texas Instruments Inc.

      10. 7.1.10 Yokogawa Electric Corporation

      11. 7.1.11 Schneider Electric SE

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability

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Frequently Asked Questions

The Mexico Factory Automation and ICS Market market is studied from 2018 - 2026.

The Mexico Factory Automation and ICS Market is growing at a CAGR of 8.5% over the next 5 years.

Honeywell International Inc., General Electric Co., ABB Ltd., Emerson Electric Company, Siemens AG are the major companies operating in Mexico Factory Automation and ICS Market.

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