Infrastructure market in Mexico

Canada and Mexico are strategic trade and investment partners:

Mexico is Canada’s third-largest merchandise trading partner after the United States and China, and its top export destination in Latin America.
In terms of bilateral trade, Mexico and Canada are each other’s third largest trading partners in the world, with two-way merchandise trade valued at CAD 56 billion in 2024.
Canada is the third largest investor in Mexico, with more than MX 59 billion invested historically (1999-2024) according to data from Mexico’s Secretariat of Economy.

Key opportunities for Canadian infrastructure companies in Mexico

Canada and Mexico have entered a Comprehensive Strategic Partnership (2025–2028), aimed at deepening cooperation in trade, investment, infrastructure, energy, and sustainability. This partnership offers a solid base for Canadian businesses to grow their presence in Mexico’s infrastructure sector. Key infrastructure areas for Canadian companies include:

Transportation and logistics: Roads, railways, and ports are central to Mexico’s infrastructure modernization plans. Canadian firms with expertise in engineering, project management, and smart mobility solutions are well-positioned to support the expansion of intermodal transport corridors the development of urban transit systems and upgrades to freight and logistics hubs.

Industry highlights

CAD 8.7 billion in Canadian exports to Mexico in 2024.

8.42 million jobs in Mexican infrastructure sector.

7% contribution from the infrastructure sector to Mexico’s GDP.

CAD 38.8 billion in expected investment in infrastructure in 2025.

Energy infrastructure: Canadian companies can contribute with renewable energy engineering, grid modernization, energy storage solutions, and hydrogen technologies.
Urban development and smart cities: Rapid urbanization in Mexico creates demand for:
- affordable housing
- smart infrastructure
- green building technologies
- prefabricated construction
- sustainable urban planning
- digital infrastructure solutions

Public-private partnerships (P3) are central to the Plan México strategy. The strategy aims to increase investment to 28% of GDP by 2030, create 1.5 million jobs, and enhance national content in strategic sectors. Canada’s successful experience in developing P3 projects as an asset that can help foster collaboration and business opportunities with Mexico. It is viewed as a strategic tool to address infrastructure gaps, stimulate investment, and promote sustainable development.

Notable challenges for Canadian infrastructure companies in Mexico

Mexico is a price sensitive market.
Investors have flagged regulatory uncertainty, rule of law, and organized crime and security related risks as challenges that considerably affect investor confidence and project viability.
Macroeconomic headwinds: A 5.9% real-term decline is expected in 2025 due to strained U.S.-Mexico relations, reduced public stimulus, and rising material costs from U.S. tariffs on steel and aluminum.

Mexican business landscape

The construction sector remains a vital component of Mexico’s economy. In 2024, it contributed an estimated 7% of the national GDP, consistent with historical averages. The market size in Mexico in 2025 is estimated at USD 392.09 billion, up from USD 341.44 billion in 2024. This growth is driven by public infrastructure projects, residential development, and industrial expansion related to nearshoring.

President Claudia Sheinbaum has launched the ambitious National Infrastructure Plan 2025, allocating USD 43.35 billion to transform Mexico’s transportation, logistics, energy, and urban development landscape. The plan is a key part of a broader economic strategy, Plan México, which aims to position Mexico among the world’s top 10 economies by 2030.

Key infrastructure priorities

Rail development: Over 3,000 km of new passenger rail lines planned and key projects like the:
- Felipe Angeles Airport (AIFA)–Pachuca
- Mexico City–Querétaro corridors
- expansion of the Maya Train to Puerto Progreso
- integration of freight operations into the Interoceanic Corridor (CIIT)
- Querétaro–Irapuato and Saltillo–Nuevo Laredo railways (research underway)
Highway modernization: USD 8.4 billion allocated for upgrades across 4,000 km of highways, with a focus on vulnerable regions to improve connectivity and economic inclusion.
Ports: Modernization of the ports of Coatzacoalcos, Salina Cruz, Dos Bocas, Puerto Chiapas.
Airport upgrades:
- Loreto
- Colima
- Tepic
- Ciudad Obregón
- Puerto Escondido
- Mexico City International Airport (AICM)
Urban and housing development: Construction of 1.7 million homes over six years. Development of Wellbeing Development Hubs and 100 industrial parks to attract investment and support regional growth.
Energy and water infrastructure: Expansion of the National Electricity System with 158 transmission projects. This includes investment in hydroelectric, solar, and wind energy, as well as water infrastructure (wastewater treatment, desalination, and irrigation modernization).

Summary

Mexico is a natural and strategic market for Canadian companies. Canadian infrastructure companies have a unique chance to support Mexico’s development goals while growing their footprint in the country. Strategic alignment, innovation, and collaboration are key to success.

Business opportunities for Canadian suppliers are mainly related to innovation and the use of advanced technologies and materials in infrastructure projects. This includes smart transportation systems, smart buildings with features such as energy-efficient materials, security systems, telecommunications channels, and emergency systems.

One of the best ways to achieve success in Mexico is through partnering with a reliable local partner who can help assess clients’ specific needs and provide access to the traditionally closed supply networks of the industry. The Trade Commissioner Service in Mexico will be ready to work with you and support your company’s business development efforts in the Mexican market.

For more information on infrastructure in the Mexican market please contact Miguel Gonzalez (miguel.gonzalez@international.gc.ca), Trade Commissioner for infrastructure, oil and gas, and electricity.

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