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The Mexico Aerospace Market is estimated to grow by USD 15.61 billion, at a CAGR of 25.2% between 2023 and 2028. The market's growth hinges on several key factors, notably the favourable regulatory environment conducive to business operations. Additionally, the increasing presence of manufacturing firms plays a pivotal role in driving market expansion. These firms contribute to the market's growth through innovation, production efficiency, and meeting consumer demands. Moreover, the proliferation of manufacturing enterprises fosters healthy competition, stimulating market dynamics and enhancing product offerings. As more firms enter the sector, there's a corresponding rise in production capacity and technological advancements, further propelling market growth. This trend underscores the importance of a supportive regulatory framework and a robust ecosystem of manufacturing firms in sustaining the market's upward trajectory. Together, these factors create a conducive environment for industry development and economic advancement.
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The market is robust and diverse, encompassing a wide array of industries and applications. With a strong presence in the aerospace and defense industries, Mexico plays a significant role in spacecraft, missiles, and military systems manufacturing. The country's aerospace sector supports both national security and civilian uses, contributing to defense industry capabilities and meeting commercial aviation demands. Aerospace manufacturers in Mexico are pivotal in producing materials, propulsion systems, and satellites communication technologies. Moreover, Mexico actively participates in space exploration initiatives, leveraging its strategic location and skilled workforce. The market here thrives on technological advancements, supporting space activities and passenger travel needs. As Mexico continues to expand its capabilities in the aerospace and defense fields, it solidifies its position as a key player in the global aerospace industry. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
A favorable regulatory environment is a key factor in the development of the market. In the focal market, there was harmony according to established regulatory standards. The 2012 Bilateral Aviation Safety Agreement (BASA) provided mutual recognition of aerospace standards between the United States and Mexico, such as the National Aerospace and Defense Contractors Accreditation Program (NADCAP) and the AS9100 aerospace quality management system, as well as certifications from the US Federal Aviation Administration (FAA) and its Mexican counterpart, the Federal Agency of Civil Aviation (Agencia Federal de Aviacion Civil or AFAC). These developments facilitated the growth of manufacturing operations in the aerospace industry.
Growing aerospace export is one of the major market trends. The Mexican aerospace industry federation experienced a 14% average annual export growth from 2004-2019, due to favorable export programs like the Maquiladora Export Program, which allowed duty-free imports to assemble products for export in the market. Furthermore, the emergence of small-scale companies and major aircraft OEMs and suppliers, along with a low-cost manufacturing ecosystem, is expected to contribute to the growth in exports from the country during the forecast period, which in turn, will propel the growth of the market in focus.
Downgrading Mexican aviation regulations is a major challenge to the market growth in Mexico. The Mexican aviation regulatory was downgraded from Category 1 to Category 2 by the US FAA in 2021. This had a two-fold impact. The first is the denial of new routes and aircraft changes. Second, US airlines would not share codes to sell tickets on Mexican carriers. However, Mexican carriers can sell tickets for service on US carriers to the US. Such issues are expected to hinder the market growth and trends in focus during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market analysis and report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Bombardier- The company offers aerospace products such as aircraft equipment.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the government segment will be significant during the forecast period. The government segment by end user dominated the market in 2022. This is due to government control over a large number of airports. For instance, Aeropuertos y Servicios Auxiliares (ASA), a Mexican aerospace agency, operates 19 airports apart from 5 co-operated additional airports, including Toluca, Queretaro, Cuernavaca, Palenque, and Tuxtla Gutierrez. It supplies fuel to 63 airports with an estimated passenger handling capacity of 2.7 million passengers in 2021.
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The government segment was the largest and was valued at USD 2.70 billion in 2018. In addition, the government is also focusing on creating a state-owned, army-run airline that would fly ten leased airplanes. Also, defense budget allocation to the Air Force of about USD 1.9 billion in 2022 for two-seater airplanes and experimental training airplanes is propelling the growth of the government segment, which in turn, will propel the growth of the market in focus during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is thriving with a dynamic blend of technological advancements and strategic capabilities. The country's aerospace sector spans military capabilities, air travel demand, and military modernization efforts, contributing significantly to defense funding and Safety and security protocols. With advancements in autonomous systems and Unmanned aerial vehicles (UAV), Mexico is at the forefront of aerospace innovation, bolstering defense needs and space exploration initiatives. The market also supports sustainable aviation practices, including electric propulsion and urban air mobility (UAM) solutions like eVTOL aircraft and autonomous air taxis. Commercially, Mexico plays a crucial role in aerospace support, offering predictive maintenance solutions, IoT technology integration, and 3D printing capabilities for aircraft manufacturing. Amid geopolitical dynamics, Mexico remains a key player in both commercial aircraft and private space exploration ventures, enhancing its aerospace foothold globally.
In addition, the country is increasingly becoming a hub for aerospace manufacturing and innovation, supported by favorable factors such as new aircraft developments, advancements in autonomous technology, and proactive maintenance strategies. With a focus on safety protocols and adherence to international standards set by bodies like the International Civil Aviation Organization (ICAO), Mexico is also enhancing its capabilities in defense exports and military spending. Moreover, the aerospace sector in Mexico is exploring opportunities in space tourism and satellite communication, alongside developments in air traffic management systems amidst geopolitical dynamics. This diverse landscape positions Mexico as a key player in the global aerospace industry, leveraging both its geographical advantages and technological advancements.
Market Scope |
|
Report Coverage |
Details |
Page number |
133 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.2% |
Market Growth 2024-2028 |
USD 15.61 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.78 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Revenue Stream
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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