Mexico Factory Automation and Industrial Controls Market - Growth, Trends, Forecast (2019 - 2024)

Market Overview

The Mexican factory automation and industrial controls market was valued at USD 1,289.2 million in 2018, and it is expected to register a CAGR of 8.5% over the forecast period (2019-2024). The country is witnessing a rapid adoption of factory automation and industrial control systems in Latin America, owing to the growing adoption of automation technologies, coupled with the advent of Industry 4.0 norms among expanding manufacturing sectors in the country.

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 2017, nearly 16% 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. For instance, Rockwell Automation’s sales growth in 2017, in Latin America, was mixed, with growth led by Mexico and partially offset by decline across the rest of the LATAM region.

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.

Scope of the Report

The evolution of technological advancements and innovations across various manufacturing units have encouraged the adoption of automation technologies. Digitization and Industry 4.0 revolution have significantly stimulated the growth of automation among industries, by necessitating the use of smarter and automated solutions, such as robotics and control systems, to improve production processes.

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. It produced more than 4.1 million units in 2017 or about 4.2% of the global production of 95.3 million units.

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.

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. Since the country deregulated its power sector in 2014, it opened doors to a lot of private investment into the sector. Following the deregulation, many multinational power companies have invested in the country’s power sector. For example, recently, in March 2018, ATCO, a prominent Canadian holding company, along with Mexico-based RANMAN Energy, announced an investment of CAD 70 million to build a new 26-megawatt (MW) cogeneration plant, which is expected to be operational by the end of 2019. 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.

Competitive Landscape

The Mexican factory automation and industrial controls market is highly competitive 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. For instance, in Feb 2018, Honeywell announced a new solution for real-time safety monitoring of workers in plant and remote operations.

The solution’s wearable gas detectors monitor gas, radiation, and dust, and are tightly integrated with Honeywell’s distributed control system, Experion Process Knowledge System (PKS). Furthermore, in Oct 2018, GE launched the next phase of Industrial Internet Control System (IICS). Built on the capabilities of its IICS, Intelligent Platforms introduced PACSystems RX3i CPL410, the first-ever outcome optimizing open controller, remote monitoring as a service platform, both designed to harness the combined power of edge controls and analytics to deliver actionable intelligence across the industrial ecosystem.

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1 INTRODUCTION

1.1 Scope of the Study

1.2 Study Assumptions

1.3 Study Deliverables

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

4.1 Market Overview

4.2 Industry Value Chain Analysis

4.3 Industry Attractiveness of Porter’s Five Forces Analysis

4.3.1 Bargaining Power of Suppliers

4.3.2 Bargaining Power of Consumers

4.3.3 Threat of New Entrants

4.3.4 Threat of Substitute Products or Services

4.3.5 Competitive Rivalry in the Industry

4.4 Introduction to Market Drivers and Restraints

4.5 Market Drivers

4.5.1 Increased Adoption of Internet of Things (IoT) and Machine-to-machine Technologies

4.5.2 Emphasis on Cost Cutting and Business Process Improvement

4.6 Market Restraints

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

5 TECHNOLOGY SNAPSHOT

6 MARKET SEGMENTATION

6.1 By Product

6.1.1 Field Devices

6.1.1.1 Machine Vision

6.1.1.2 Robotics

6.1.1.3 Sensors

6.1.1.4 Motors and Drives

6.1.1.5 Other Field Devices

6.1.2 Industrial Control Systems

6.1.2.1 Supervisory Control and Data Acquisition (SCADA)

6.1.2.2 Distributed Control Systems (DCS)

6.1.2.3 Programmable Logic Controllers (PLC)

6.1.2.4 Manufacturing Execution System (MES)

6.1.2.5 Product Lifecycle Management (PLM)

6.1.2.6 Enterprise Resource Planning (ERP)

6.1.2.7 Human Machine Interface (HMI)

6.1.2.8 Other Control Systems

6.2 By End-user Industry

6.2.1 Automotive

6.2.2 Chemical and Petrochemical

6.2.3 Utility

6.2.4 Pharmaceutical

6.2.5 Food and Beverage

6.2.6 Oil and Gas

6.2.7 Other End-user Industries

7 COMPETITIVE LANDSCAPE

7.1 Company Profiles

7.1.1 Rockwell Automation Inc.

7.1.2 Honeywell International Inc.

7.1.3 General Electric Company

7.1.4 ABB Ltd

7.1.5 Emerson Electric Company

7.1.6 Omron Corporation

7.1.7 Autodesk Inc.

7.1.8 Mitsubishi Electric Corporation

7.1.9 Siemens AG

7.1.10 Aspen Technology Inc.

7.1.11 Robert Bosch GmbH

7.1.12 Texas Instruments Inc.

7.1.13 Yokogawa Electric Corporation

7.1.14 Schneider Electric SE

8 INVESTMENT ANALYSIS

9 MARKET OPPORTUNITIES AND FUTURE TRENDS

MARKET SEGMENTATION

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