Aerospace Market Size in Mexico is set to grow by USD 15.61 billion from 2024-2028, Favorable regulatory environment boost the market, Technavio

NEW YORK, July 5, 2024 /PRNewswire/ — The aerospace market size in Mexico is estimated to grow by USD 15.61 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  25.2%  during the forecast period. Favorable regulatory environment is driving market growth, with a trend towards growing aerospace export. However, downgrading of mexican aviation regulatory  poses a challenge. Key market players include Airbus SE, BASF SE, Bombardier Inc., DAHER, Dassault Aviation SA, Ducommun Inc., General Dynamics Corp., General Electric Co., GKN Aerospace Services Ltd., Honeywell International Inc., Mitsubishi Heavy Industries Ltd., Parker Hannifin Corp., RTX Corp., Safran SA, Textron Inc., Thales Group, and The Boeing Co..

Get a detailed analysis on regions, market segments, customer landscape, and companies- View the snapshot of this report

Market Driver

The Mexican aerospace industry has seen consistent growth in exports, averaging 14% annual increase from 2004 to 2019. This success can be attributed to favorable export programs like the Maquiladora Export Program, enabling duty-free imports for assembling aerospace products for export. However, the industry faced a significant setback with over 20% export decline in 2020 due to the COVID-19 pandemic. Despite this, the Mexican government’s support is expected to boost the export sector’s recovery. Additionally, the emergence of small vendors and major OEMs, coupled with a cost-effective manufacturing ecosystem, will contribute to the industry’s growth and market expansion during the forecast period. 

The Aerospace market in Mexico is experiencing significant growth, particularly in the aircraft sector. There’s a rising demand for more efficient and sustainable aviation, leading to increased focus on electric propulsion and eVTOL aircraft. Autonomous technology is also trending, with autonomous systems being integrated into both manual and autonomous aircraft. Defense spending remains a key driver, making Mexico a significant defense exporter and a hub for defense contractors and space agencies. Military spending on weapon systems, fire control systems, and satellite communication continues to fuel innovation. The space exploration field is gaining momentum, with initiatives in materials, propulsion systems, and satellite communication. Passenger travel, commercial airlines, and space tourism are also growing sectors. IoT technology, 3D printing, and UAM are other emerging trends. Geopolitical instability underscores the importance of aerospace support. 

Discover 360° analysis of this market. For complete information, schedule your consultation – Book Here!

Market Challenges

• The Mexican aerospace market faced challenges in 2021 when the Mexican aviation regulatory was downgraded from Category 1 to Category 2 by the US Federal Aviation Administration (FAA). Consequently, new routes and aircraft changes were denied for Mexican carriers. Additionally, US airlines ceased sharing codes to sell tickets on Mexican carriers. However, Mexican carriers were still permitted to sell tickets for service on US carriers within the US. These issues are anticipated to impede the expansion of the Mexican aerospace market during the forecast period.
• The Mexican aerospace market presents significant opportunities for growth, with key players including aerospace manufacturers, defense contractors, and space agencies. Challenges include sourcing advanced materials and propulsion systems for satellite communication, space exploration initiatives, and passenger travel. Defense needs in the military aerospace sector require continuous modernization, driving demand for new aircraft like narrow-body and wide-body commercial planes, eVTOL aircraft, and autonomous air taxis. Sustainable aviation and space tourism are emerging areas, with electric propulsion and IoT technology playing crucial roles. Geopolitical instability and UAM regulations pose challenges, but opportunities exist in areas like 3D printing, commercial airlines, and space tourism companies. National security and defense industry priorities require advanced technology and military capabilities in the aerospace sector. Overall, the Mexican aerospace market offers vast potential for civilian uses and air travel demand, as well as military applications.

For more insights on driver and challenges – Request a sample report!

Segment Overview 

This aerospace market in Mexico report extensively covers market segmentation by  

1. End-user 

• 1.1 Government
• 1.2 Private sector

Revenue Stream

• 2.1 Manufacturing
• 2.2 Engineering and design
• 2.3 Maintenace
• 2.4 Repair and Overhaul

Geography 

• 3.1 North America

1.1 Government-  The Mexican aerospace market in 2023 was led by the government segment, which is projected to continue dominating the market during the forecast period. This is primarily due to the government’s control over a significant number of airports. For instance, Aeropuertos y Servicios Auxiliares (ASA), a Mexican aerospace agency, manages 19 airports, along with five cooperated additional airports, including Toluca, Queretaro, Cuernavaca, Palenque, and Tuxtla Gutierrez. Benito Juarez International Airport, a major airport in Mexico, is operated by Grupo Aeroportuario de la Ciudad de Mexico, S.A. De C.V., and saw over 30 million passengers in 2021. Moreover, the government’s plans to establish a state-owned, army-run airline and allocate a defense budget of approximately USD1.9 billion to the Mexican Air Force for ten leased airplanes and experimental training airplanes in 2022 are expected to further boost the growth of the government segment, thereby driving the expansion of the aerospace market in Mexico.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2017-2021) – Download a Sample Report

Research Analysis

The Aerospace market in Mexico is a significant and growing sector, encompassing airplanes, spacecraft, missiles, military systems, and various technologies. This industry plays a crucial role in both civilian uses and defense needs, with a focus on national security and military capabilities. The aerospace sector in Mexico includes aircraft manufacturers, defense contractors, space agencies, and material and propulsion system suppliers. Air travel demand continues to rise, driving growth in the civilian aviation sector. Meanwhile, Mexico’s space activities are expanding, with initiatives in satellite communication, space exploration, and remote sensing. The defense industry is a key contributor to the aerospace market, with a focus on developing advanced military systems and technologies. Overall, the Mexican aerospace market offers opportunities for innovation and growth in various areas, from passenger travel to defense needs and space exploration.

Market Research Overview

The Aerospace market in Mexico is a significant and growing sector, encompassing airplanes, spacecraft, missiles, and military systems. Technology plays a crucial role, with advancements in autonomous systems, materials, propulsion systems, and satellite communication driving innovation. National security and defense industry requirements fuel military modernization and spending, while civilian uses, including air travel demand and space activities, expand the market’s reach. New aircraft, such as eVTOL aircraft and autonomous air taxis, are poised to revolutionize passenger travel. Sustainable aviation and space tourism are also emerging areas of interest. Defense agencies and aerospace manufacturers collaborate on defense needs and space exploration initiatives, with Mexico’s defense spending and status as a defense exporter bolstering the sector. Geopolitical instability and UAM are additional factors shaping the market’s future.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• End-user
• Government
• Private Sector
• Revenue Stream
• Manufacturing
• Engineering And Design
• Maintenace
• Repair And Overhaul
• Geography
• North America

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research

Jesse Maida

Media & Marketing Executive

US: +1 844 364 1100

UK: +44 203 893 3200

Email: [email protected]

Website: www.technavio.com/

SOURCE Technavio

Go to Source