Cleantech market in Mexico

Mexico has a growing population of 126 million people, a thriving open economy which is among the largest in the world, numerous Free Trade Agreements covering over 42 countries and a strategic position connecting the U.S., Canada, South America, and Asia.

The size, complexity, and state of development of the Mexican market presents opportunities for technologies and state-of-the-art solutions to meet the pressing energy, environmental and urban growth challenges.

Mexico's cleantech market value reached approximately USD $14.05 billion in 2020 and had a compound annual growth rate (CAGR) of 1.99% for the period 2012-2020.

Key opportunities for Canadian cleantech companies in Mexico:

• Energy efficiency
• Water technologies
• Professional services
• Green mining

Notable challenges for Canadian cleantech companies in Mexico:

• Electricity Industry Bill/Reform
• Strong competition from foreign companies
• Challenges from the lack of local presence and language barriers

Mexico business landscape:

• Mexico has almost 2,000,000 square km and a coast of 9,330 km. Mexico shares borders with the United States (5,000 km) and Guatemala (871 km).
• In 2015, the population in Mexico was 126,014,024 (48.8% men and 51.2% women), which is an increase of 12.2% from 2010.
• Gross Domestic Product (GDP) per capita: 10,400 US dollars.
• International purchases of Mexico in 2020 were US$381B (-15.9% less than the previous year). The products with the highest level of international purchases in 2020 were parts and accessories of motor vehicles, electronic integrated circuits, and oils derived from petroleum or bituminous minerals.
• In the second quarter of 2021, the economically active population of Mexico was 57.7M people. The workforce reached 55.2M people (39.3% women and 60.7% men) with an average monthly salary of $4.82k MX.
• Mexico has an unemployment rate of 4.27% (55.8 % of the population works in the informal market).  
• In 2020, 4.35% of the population in México had no access to sewage systems, 3.36% did not have a water supply network, 2.23% did not have a bathroom and 0.88% did not have electricity.

Upcoming events

• The Green Expo : September 6th to 8th, 2022 in Mexico City
• ECOMONDO México July 12th to 14th, 2022 in León, Guanajuato

Summary

Mexico is the country with the greatest economic potential in Latin America, and one of the top 5 developing countries worldwide. Regarding opportunities for cleantech products and services, the country has enormous potential in terms of resources which require high investments in infrastructure, renewable energies, energy efficiency, water treatment and of course sustainable mining projects.

There is a lag in the country in terms of innovation and development of new technologies. To a great extent, Mexico depends on foreign technologies; however, it has a wide infrastructure of highly specialized services in which the companies carrying technologies are supported, generating synergies throughout the country and along the complete value chain.

Mexico is a very attractive market for international companies looking to do business in the cleantech sector due to its:

• strong manufacturing base
• qualified personnel
• strategic geographic position
• commercial agreements signed with more than 42 countries

Despite the burden of economic inequality, insecurity and corruption, Mexico has been one of the countries that has managed to implement one of the healthiest economies in the world. This is proof that the COVID-19 crisis has not impacted the domestic economy as in other countries, and its debt levels did not skyrocket as a result of the pandemic.

The richness of its resources, the population bonus, and its integration to the most powerful and dynamic economic regions in the world make it an economy of opportunity for companies that decide to face the challenges of entering this market.

For more information on Cleantech in the Mexico's market please contact MXICOInfoCentre@international.gc.ca