Mexico Factory Automation and ICS Market Size

Mexico Factory Automation & ICS Market Analysis

The Mexico factory automation and industrial controls market was valued at USD 240.85 billion the previous year and is expected to register a CAGR of 9.00% during the forecast period to become USD 403.93 billion in the next five years. Rising energy prices, several environmental regulations, and the general trend toward sustainable manufacturing are expected to increase the adoption rate of products like machine vision systems, robots, and others, increasing market demand for smart factories. The region is experiencing growth in factory automation owing to Mexico’s manufacturing economy, which gives rise to automation and is primed for inward industrial investment. For instance, recently, Bosch invested EUR 100 million (USD 120 million) in a smart factory for automotive parts in Celaya, Mexico, creating 1,200 additional jobs.

• The country is noticing a significant boost in the automotive manufacturing industry, with Nissan, Honda, and Mazda opening new high-volume establishments in the country, where the exponential growth in the country's manufacturing sector is the immediate driver of market growth. Additionally, Audi opened a 400-acre, USD 1.3 billion-worth smart factory in Mexico to produce the next-generation Audi Q5 for the world market. The plant has an annual exhibition capacity of 150,000 of these premium SUVs, and it will manufacture cars for consumers that are "tailor-made to their tastes." It is considered one of the most state-of-the-art factories on the North American continent. Audi's smart factory was put into operation 30% faster than usual.
• Further, the lower labor costs in the country are resulting in the fast expansion of other industrial sectors, like consumer electronics manufacturing, pharmaceutical manufacturing, and metallurgical industries, which is anticipated to boost the full Mexican automation and industrial controls market. According to OECD, the value added to gross domestic product by the manufacturing sector in Mexico increased by USD 11 billion (+5.21% ) in 2022. Therefore, the value added in Mexico peaked in 2022 at USD 222.19 billion.
• Tremendous shifts in manufacturing due to Industry 4.0 and the approval of IoT require enterprises to adopt agile, smarter, and creative ways to advance production with technologies that complement and augment human labor with automation and reduce industrial accidents caused by process failure. With the increased rate of adoption of connected devices and sensors and the fostering of M2M communication, there has been a surge in the data points developed in the manufacturing industry.
• According to Zebra's Manufacturing Vision Study, smart asset tracking solutions based on IoT and RFID are expected to overtake traditional, spreadsheet-based methods by 2022. Maryville University calculates that by 2025, over 180 trillion gigabytes of data will be assembled worldwide yearly. IIoT-enabled industries will generate a large portion of this.
• The growing emphasis on energy saving and efficiency drives the Mexico Factory Automation and Machine Vision Market. The factory automation system's range is growing due to the Internet of Things and the favorable trend of cloud-based technologies and services. Internet use has risen dramatically in the last decade, nearly doubling over the previous eight years.
• However, adopting industrial control system (ICS) solutions augments the demand for security. An exponential rise in cyber-attacks and network security threats and considerable investments in smart technologies make ICS vulnerable to security threats. Nevertheless, the industrial control systems' capability of providing security to the infrastructure against any attack in a very efficient and precise way is attracting the attention of investors in this market.
• Furthermore, the recent new coronavirus outbreak has impacted negatively on the Mexican economy, radically altering how numerous industries work daily. With work-from-home approaches in place and shelter-in-place orders on the rise, allied market players re-evaluated and modified their cyber-preparedness and reaction tactics, which are especially true for companies implementing industrial control systems (ICS) to monitor and control critical equipment and processes (DCS, SCADA, or PLS).
• Moreover, the ongoing conflict between Russia and Ukraine will significantly impact the electronics industry. The conflict has already exacerbated the semiconductor supply chain issues and the chip shortage that have affected the industry for some time. The disruption may result in volatile pricing for critical raw materials such as nickel, palladium, copper, titanium, aluminum, and iron ore, resulting in material shortages. This would obstruct the manufacturing of semiconductors, thereby restraining the supply of industrial robots. The war between Russia and Ukraine has significantly influenced the industrial robot industry. For example, the production of neon, a critical gas in advanced semiconductor manufacturing, has been affected due to the conflict.