Mexico Wires and Cables Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.51 Billion |
| Market Size (2029) | USD 5.05 Billion |
| CAGR (2024 - 2029) | 7.54 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Mexico Wires and Cables Market Analysis
The Mexico Wires And Cables Market size is estimated at USD 3.51 billion in 2024, and is expected to reach USD 5.05 billion by 2029, growing at a CAGR of 7.54% during the forecast period (2024-2029).
- The country is experiencing significant growth in the studied market due to considerable investments in the automotive and manufacturing industries. According to the World Bank, the value added to Mexico's gross domestic product (GDP) by the manufacturing sector increased by USD 14 billion (+5.21%) in 2022. With USD 265.74 billion, the value added reached its highest value in the observed period. Also, in 2023, Mexico’s GDP amounted to approximately USD 1.79 trillion, an increase of USD 0.38 trillion from 2022, which was USD 1.41 trillion.
- Additionally, the increasing use of IT and telecommunications drives the demand for wires and cables in the country. Concerns about electrical supply failures, health risks, fires, and other operational hazards contribute to the expansion of the market. Increased investments in extending electrical networks to isolated and rural areas are expected to significantly support the country’s wire and cable growth.
- According to Mexico’s National Power System Development Program (Programa de Desarrollo del Sistema Eléctrico Nacional (PRODESEN)), the electricity consumption of the National Electricity System was 333,662 GWh in 2022, which represented an annual increase of 3.4%. This increase is attributed to the recovery of all productive sectors of the economy after 2020 due to major inflation. It is estimated that consumption will increase an average of 2.5% annually between 2023 and 2037.
- The country's growing demand for electric vehicle charging infrastructure is further attributed to the enactment of stringent emission and fuel economy norms, government incentives, and increasing sales of electric cars, generating demand for charging stations. Some prominent players are also investing in developing electric vehicle charging stations.
- Mexican customers are buying more electric and hybrid vehicles, which typically emit no pollutants. The Mexican government has announced its intention to outlaw internal combustion engines and sell only electric cars starting in 2035, encouraging automakers to start EV passenger car production for continued sales. According to INEGI, in June 2023, nearly 1,200 battery-electric vehicles were sold in Mexico. Around 1.4 million light and heavy vehicles were sold in Mexico in 2023. Of these, 19,487 were EVs (up 94% YoY). Such expansion in the automotive sector may further propel the market’s growth.
Mexico Wires and Cables Market Trends
Rapid Infrastructure Development and Continuing Smart City Projects
- Mexico has experienced remarkable growth in infrastructure development, encompassing significant initiatives in electricity transmission and distribution, telecommunications, transportation, and building. These initiatives have increased demand for a wide range of wire and cable products, including power cables, communication cables, and building wires.
- Public infrastructure investments remained robust in 2023 and 2024, as the federal government directed considerable funding toward priority projects to complete them before the end of the López Obrador government’s term in December 2024. Mexico's 2023 budget brings a substantial surge in infrastructure funding, with federal investment set to increase by more than 20% year-on-year. Many of these resources are earmarked for a select few large-scale ongoing infrastructure projects.
- The most significant of these initiatives regarding capital investment is the TrenMaya (Mayan Train) project. Launched in 2019, this endeavor entails the development of an expansive rail network spanning over 1,500 kilometers across the southern states of Chiapas, Tabasco, Campeche, Yucatan, and Quintana Roo.
- In Mexico, the smart cities market is rapidly growing, focusing on integrating technology to improve transportation and energy efficiency. Considering the recent focus of federal investment in railway and airport infrastructure, private investment and state governments have been pivotal in developing highway infrastructure, a trend that is expected to continue in the coming years. In the fall of 2020, the Mexican Business Federation Consejo Coordinador Empresarial (CCE) launched two packages that include 43 road projects for a combined capex of USD 11.8 billion. These projects include extensions of existing concessions and new public-private partnerships.
- Mexican EPC (Engineering, Procurement, and Construction) firms account for around 45% of all construction roles in major projects in the country, with transportation traditionally being a domestically-driven segment. This is well below European levels but slightly above the Latin American mean of 43%. On the other hand, the presence of international firms is strongest in power and utility projects, in which they claim 70% of major construction roles. This is a consequence of the 2013-2014 energy reforms that saw the sector's liberalization and opened up contracting opportunities for construction firms.
- As per Mexico’s Energy Transition Law (Ley de Transición Energética) and General Climate Change Law (Ley General de Cambio Climático), Mexico aims to produce 35% of its electricity from clean energy sources by 2024. This goal includes power regeneration from renewable and non-renewable sources such as nuclear and efficient cogeneration. Mexico’s large and diverse renewable energy resource base could support significant growth in clean generation capacity. Such a trend would lead to major demand for solar cables during the forecast period.
Fiber Optic Cable to Witness Major Growth
- A fiber optic cable is composed of strands of glass fibers covered by an insulated casing. Primarily used as a network cable, these cables are designed for high-performance, long-distance data networking and telecommunications. Fiber optic cables transmit data faster over longer distances and provide higher bandwidth than wired cables. Fiber optic cables support cable television, the internet, and telephones. Thus, the fiber optic cable market in Mexico presents significant opportunities, majorly driven by the increasing demand for high-speed internet, government initiatives, and the growing needs of various sectors.
- The implementation and growth of 5G technology are anticipated to influence the fiber market in Mexico. To accommodate the substantial surge in data traffic, 5G networks necessitate a strong and high-capacity infrastructure. Fiber optic cables are crucial in providing the fast and reliable connectivity that 5G networks require. The adoption of 5G technologies is generating a need for fiber optic cables in Mexico, as they are vital for connecting various network elements such as base stations and data centers.
- In February 2024, AT&T and Ericsson revealed Mexico's inaugural private 5G network. This network is operational at the business and technological development center (CEDETEC) of Tecnológico de Monterrey University, a prominent educational institution in Mexico. Ericsson, a Swedish vendor, supplied the equipment for this project, which also received backing from partnerships with Instituto Tecnológico y de Estudios Superiores de Monterrey and local startup hub Endeavor. The primary aim of this private network is to facilitate a range of new applications, from AI and blockchain technologies to enhanced IoT devices and tailored industrial solutions. These projects are driving the demand for fiber optic cable in the country.
- The rise in data center construction in Mexico, driven by increased data consumption and cloud service adoption, creates a demand for high-capacity fiber optic networks. For instance, increasing the number of data centers may also offer massive opportunities for the company to expand its scope for new applications. According to Cloudscene, as of March 2024, there were 219 data centers in Mexico, the most of any country in Latin America.
- Moreover, in Industry 4.0, the fiber optic cable network enables the upgrade of telecom networks, industrial data communication, and real-time monitoring in traditional industries with high-speed M2M/M2S networks. Thus, manufacturers of optical fiber cable focus on improving production to keep up with the growing demand for fiber-to-the-home (FTTH) broadband and power 5G services in the Mexico market.
Mexico Wires and Cables Industry Overview
- The Mexican wire and cable market is very competitive. Some of the significant players in the market are Nexans, LS Cable & System Limited, Prysmian SpA, Southwire Company LLC, Fujikura Limited, Furukawa Electric Co. Ltd, Leoni, Belden Incorporated, TE Connectivity, and Wilms Group. Companies are increasing their market share by forming multiple partnerships and investing in introducing new products, earning a competitive edge during the forecast period.
- In June 2024, Hradil, a cable engineering firm, introduced a shielded High-Performance CAN-Bus cable designed for the engine and exhaust control systems of heavy-duty 12-cylinder diesel engines. This cable meets the stringent criteria established by the Society of Automotive Engineers, adhering to standards SAE 1939-11, SAE J1939-14, and SAE J1128.
- In January 2024, Amphenol Corporation, one of the prominent players in high-technology interconnect, antenna, and sensor solutions, acquired TPC Wire and Cable. TPC Wire and Cable specializes in ruggedized electrical cabling solutions tailored for harsh industrial environments. Now rebranded as “Amphenol TPC Wire & Cable (Amphenol TPC),” the company functions as a standalone unit within Amphenol, maintaining its headquarters in Macedonia, Ohio. Amphenol TPC joins the Amphenol Harsh Environment Solutions Division, integrating with several other industrial businesses. With this strategic move, Amphenol TPC aims to leverage the existing organization's strengths to boost the value of critical industrial applications in the market.
Mexico Wires and Cables Market Leaders
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Condumex, Inc.
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Southwire Company, LLC
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Furukawa Electric Mexico
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Fujikura Ltd.
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TE Connectivity
*Disclaimer: Major Players sorted in no particular order
Mexico Wires and Cables Market News
- June 2024: RR Kabel Ltd, a manufacturer of wires and cables, announced the introduction of the Firex LS0H-EBXL in the electrical wiring segment. The company stated that this product will establish a 'new safety standard in both residential and commercial settings.' “Firex LS0H-EBXL (Low Smoke Zero Halogen) –EBXL (Electron Beam Cross Linked) signifies a major advancement in electrical safety. It employs an electron beam cross-linked compound that is entirely halogen-free and can endure temperatures up to 900°C.”
- May 2024: AZ Wire & Cable, a redistributor specializing in industrial, commercial, and specialty wire and cable, announces the acquisition of Gen-Pro, a company known for its generator-related products, including generator installation cables. This acquisition strengthens AZ Wire & Cable’s position as a comprehensive solution for all electrical distribution requirements.
Mexico Wires and Cables Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
3.1 Executive Summary and Key Findings
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness Porters Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Ecosystem Analysis
4.4 An Assessment of the Impact of Key Macroeconomic Trends
4.5 Current Trade Scenario in Mexico Analysis of the major Imports-Exports based on the underlying HS codes, such as 8544, etc.
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapid Infrastructure Development and Continuing Smart City Projects
5.1.2 Continuous Expansion in the Telecommunications Industry
5.2 Market Restraints
5.2.1 High Cost of Installation and Associated Complexities
5.3 Overview of Pricing Models and Pricings of Wires
6. MEXICO WIRE AND CABLE MARKET SEGMENTATION
6.1 By Cable Type
6.1.1 Fiber Optic Cable
6.1.2 Signal & Control Cable
6.1.3 Power Cable (including LV, MV, HV, UHV)
6.1.4 Other Cable Types
6.2 By End-user Vertical
6.2.1 Construction (Residential & Commercial)
6.2.2 Telecommunications (IT & Telecom)
6.2.3 Power Infrastructure (Energy and Power, Automotive)
6.2.4 Other End-user Verticals
7. COMPETITIVE LANDSCAPE
7.1 Key Company Profiles*
7.1.1 Condumex, Inc.
7.1.2 Southwire Company, LLC
7.1.3 Furukawa Electric Mexico
7.1.4 Fujikura Ltd.
7.1.5 TE Connectivity
7.1.6 Belden Inc.
7.1.7 LS Cables & System Ltd
7.1.8 Leviton Manufacturing Co., Inc.
7.1.9 Leoni AG
7.1.10 Sumitomo Electric Industries, Ltd
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Mexico Wires and Cables Industry Segmentation
Cables, composed of multiple insulated wires encased in a single jacket, enable collective functionality, whereas a wire denotes a singular conductor. This study covers a range of wire and cable installations across pivotal sectors such as telecommunications, construction, and power infrastructure.
The market is segmented by cable type (low-voltage energy cables, power cables, fiber optic cables, and signal and control cables) and end-user verticals (construction, telecommunications, power infrastructure, and other end-user verticals). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Cable Type | |
| Fiber Optic Cable | |
| Signal & Control Cable | |
| Power Cable (including LV, MV, HV, UHV) | |
| Other Cable Types |
| By End-user Vertical | |
| Construction (Residential & Commercial) | |
| Telecommunications (IT & Telecom) | |
| Power Infrastructure (Energy and Power, Automotive) | |
| Other End-user Verticals |
Mexico Wires and Cables Market Research FAQs
How big is the Mexico Wires And Cables Market?
The Mexico Wires And Cables Market size is expected to reach USD 3.51 billion in 2024 and grow at a CAGR of 7.54% to reach USD 5.05 billion by 2029.
What is the current Mexico Wires And Cables Market size?
In 2024, the Mexico Wires And Cables Market size is expected to reach USD 3.51 billion.
Who are the key players in Mexico Wires And Cables Market?
Condumex, Inc., Southwire Company, LLC, Furukawa Electric Mexico, Fujikura Ltd. and TE Connectivity are the major companies operating in the Mexico Wires And Cables Market.
What years does this Mexico Wires And Cables Market cover, and what was the market size in 2023?
In 2023, the Mexico Wires And Cables Market size was estimated at USD 3.25 billion. The report covers the Mexico Wires And Cables Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Mexico Wires And Cables Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Mexico Wires and Cables Industry Report
Statistics for the 2024 Mexico Wires And Cables market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Mexico Wires And Cables analysis includes a market forecast outlook for 2024 to 2029) and historical overview. Get a sample of this industry analysis as a free report PDF download.
