Mexico’s ICT Industry Grows 4.6%

The Mexican information and communications technology industry grew by 4.6% annually during the second quarter of this year, contributing twice as much as the 2.1% growth in gross domestic product. This result is attributed to an increase in equipment and components, according to Select,a leading Mexican analysis and consulting firm for the ICT markets.

 Mexican exports of data-processing machinery grew 117.57% in the first half of the year, accounting for 76.75% of the increase in total exports, according to an analysis by Banco BASE, based on figures from the Bank of Mexico and INEGI.

The percentages have shed light on the various markets, as Select is responsible for calculating the nominal revenue of the ICT ecosystem that meets demand within Mexico, including transactions that occur repeatedly throughout the chain.

Customs statistics accurately track goods crossing the border, which are predominantly assembled equipment for U.S. data centers; furthermore, the consulting firm does not typically publish the weighting of these two categories.

While the available sources do not allow us to attribute a 4.6% share of the sector to exports, the quantifiable contribution to foreign trade is therefore equivalent to nearly US$77 for every additional US$100 exported in May.

“In the second quarter, it grew 4.6% compared to the same period last year. This time, we’re seeing that this growth is driven more by price increases than by actual activity. Some people we’ve spoken with in the sector have told us that there are increases of more than 30% in some cases. The excitement surrounding AI, at least in Mexico, is still reflected very little in the revenue of local suppliers—1 or 2% in some cases,” said Alejandro Vargas, director of Select.

The gap between revenue and units sold is evident among wholesalers. During the first half of the year, revenue by value grew 4.3%, compared to 3.3% in volume. Server sales rose 15%, driven largely by prices. Network equipment sales fell 2%, while public cloud services—distributed through this channel—saw no growth, as the large contracts signed the previous year were not replaced.