Market Trends of Mexico Pressure Sensor Industry
This section covers the major market trends shaping the Mexico Pressure Sensors Market according to our research experts:
Automotive Industry to Show Significant Growth
- Mexico is the sixth-largest global passenger vehicle manufacturer, producing approximately three million vehicles annually. 89% of vehicles produced in Mexico are exported, with 80% destined for the United States. Established automakers in Mexico include Audi, Baic Group, BMW, Stellantis (made up of FCA and PSA Group), Ford, General Motors, Honda, Kia, Mazda, Nissan, Toyota, and Volkswagen.
- Moreover, Mexico is the sixth-largest manufacturer of heavy-duty vehicles for cargo, with 14 manufacturers and assemblers of buses, trucks, tractor trucks, and engines through 11 manufacturing plants, supporting 18,500 jobs nationwide. Mexico is the leading global exporter of tractor trucks, exporting 94.5% of its production to the United States. Such a manufacturing hub with major export to the United States increases the application of pressure sensors in the country.
- Further, in October 2021, a new rail-linked vehicle distribution center (VDC) was installed in the central Bajío region, which would further benefit the carmakers in Mexico. The terminal’s initial storage capacity will be between 1,000 and 2,000 vehicles but will grow to 10,000 units as the market requires, according to TDG. This would further increase the demand for pressure sensors in the automotive industry.
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Oil and Gas to Hold the Highest Market Share
- Mexico is one of the largest oil producers in the world (1.9 million barrels produced daily in 2020) and the fourth-largest in the Americas after the United States, Canada, and Brazil. In 2020, Mexico ranked 13th globally in crude oil production, 21st in crude oil reserves, 16th in refined capacity, and 5th in logistics infrastructure. This suggests the extensive application of pressure sensors in the region.
- Further, The Mexican Government has repeatedly emphasized its efforts to strengthen Pemex. In February 2021, for example, Mexico granted new fiscal support worth USD 3.5 billion to strengthen the oil company’s finances. Completion of a new USD 8 billion refineries at the Port of Dos Bocas in the State of Tabasco, started in 2019 and upgrading six existing refineries remain top priorities for Pemex and the Mexican Government.
- The opening of the upstream oil and gas market will provide opportunities to sell technology and services to private contractors and Pemex. Equipment and services with greater demand include high pressure/high volume pumps, hydraulic submersible pumps; filter pots; Baur pipe; pressure sensors, and field gathering lines.
