Aerospace Market Size in Mexico to Grow by $8.37 Billion

Caribbean News…
29 March 2024 12:06am

The aerospace market size in Mexico is set for substantial growth, with an estimated increase of USD 8,375.16 million forecasted between 2023 and 2027, at a remarkable CAGR of 18.27%. This surge is underpinned by several factors, including a favorable regulatory environment and an uptick in manufacturing firms.

A favorable regulatory environment, characterized by harmonized standards and agreements such as the 2012 Bilateral Aviation Safety Agreement (BASA), has fueled market expansion. These agreements, like the National Aerospace and Defense Contractors Accreditation Program (NADCAP) and AS9100 aerospace quality management system, facilitate manufacturing operations in the aerospace industry.

Mexico's aerospace export has experienced a substantial average annual growth rate of 14% from 2004-2019, driven by programs like the Maquiladora Export Program. The emergence of small-scale companies and major aircraft OEMs, alongside a low-cost manufacturing ecosystem, further propels export growth.

Despite promising growth, challenges persist. The downgrade of Mexican aviation regulations from Category 1 to Category 2 by the US FAA in 2021 poses obstacles. This downgrade restricts new routes and aircraft changes, impacting market dynamics and hindering potential growth.

The market analysis includes the adoption lifecycle, ranging from innovators to laggards, and emphasizes regional adoption rates. Additionally, key purchase criteria and drivers of price sensitivity are outlined to aid companies in refining growth strategies.

Leading aerospace companies such as Bombardier, Airbus Group SE, and General Electric Co. are driving market growth through strategic initiatives such as partnerships and product launches.

The government segment dominates the market, fueled by control over numerous airports and substantial defense budget allocations. Initiatives like the establishment of a state-owned airline and investments in the air force further boost growth prospects.

Mexico's aerospace market exhibits robust growth, driven by industrial exports and a thriving manufacturing sector. Key players, supported by industry federations, benefit from trade agreements and collaborations with global giants like Boeing and Airbus. Strategic locations and a skilled workforce contribute to market competitiveness.

In conclusion, Mexico's aerospace market presents immense opportunities for growth, supported by favorable regulations, export programs, and strategic partnerships. Despite challenges, the industry's trajectory remains promising, positioning Mexico as a significant player in the global aerospace landscape.

Back to top