Mexico Wires And Cables Market Size

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.