Higher Technology Investment and Digital Accessibility to Position Mexico as an Innovation Hub by 2025

The country is expected to have 3.5 connected devices per person,finds Frost & Sullivan

SANTA CLARA,California,Jan. 28,2020 -- Mexicois emerging an attractive innovation hub with high growth in areas such as venture capitalist (VC) investments and government and external R&D funding. By 2025,the country is expected to have 3.5 connected devices per person,which will create huge demand for innovative digital products,services and business models. Mexico will have the second-highest mobile adoption rate in Latin America.

Mexico's Technology Investment

"Mexico's focus on education to create a talent pipeline for researchers and attract foreign investment,and growing start-up business support mechanisms are fostering a culture of innovation," said Malabika Mandal,Visionary Innovation Industry Analyst at Frost & Sullivan. "The country has been rapidly rising in the Innovation Index due to steady reforms and dynamic policies. Higher technology investment by the government and pro-private investment schemes will position Mexico as a viable innovation hub for emerging technologies such as Artificial Intelligence (AI),Internet of Things (IoT),and cybersecurity."

Frost & Sullivan's recent analysis,Future of Mexico—Global Hub for Innovation and Investment,Forecast to 2025,analyzes the social,technological,and economic factors influencing a culture of innovation in the country.

For further information on this analysis,please visit: http://frost.ly/3yu

"The growth of emerging technologies is prompting traditional industries to reinvent themselves," noted Mandal. "Mexico has the ability to be the regional innovation leader in emerging industries,4G/5G telecommunications rollout,and affordable,smart,and green housing,as well as in more established areas like tourism and medical devices."

Key findings presenting growth opportunities for Mexico include:

Through greater investment in R&D and education,and by encouraging a tech-enabled society,Mexico's economy stands to gain more than $245 billion in cumulative GDP growth from 2018 to 2025.

Gen Y (millennial) and Gen Z cohorts will make up 45% of the total population by 2025. More than 90% of Mexican Gen Z will use the internet by 2025,generating a significant surge in technology development.

By 2030,the middle-class population will reach 95 million. Mexico will enter the top 10 countries with the highest shares of global middle-class consumption,surpassing Brazil,the United Kingdom,and France.

Mexico's working-age population is expected to peak at approximately 68% in 2033,surpassing the working-age share of total population for all other LATAM countries.

The Mexican IIoT market is predicted to grow from $1.6 billion in 2018 to $4.0 billion in 2022,at an approximate CAGR of 25.6%. The services and software segments will hold the highest CAGRs at 26% and 25%,respectively.

In the next decade,the EV,telecommunications,and medical devices industries will show increased revenue as well as high investment values.

Future of Mexico—Global Hub for Innovation and Investment,Forecast to 2025is part of Frost & Sullivan's global Visionary Innovation (Mega Trends) Growth Partnership Service program.

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Future of Mexico—Global Hub for Innovation and Investment,Forecast to 2025

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