Why this is important to Wisconsin businesses: Wisconsin’s expertise in advanced manufacturing could provide opportunities for the Mexican market.
According to the Organization for Economic Cooperation and Development, about 8 million objects in Mexico are connected through sensors and technology—known as the Internet of Things (IoT). That translates to 6.3% of Mexico’s population equipped with the advanced technology, or ranked 18th in a survey of 24 countries.
Mexico’s investment in IoT is well below that of the U.S. or China. According to estimates, about 30% of companies in Mexico have adopted the advanced technology that’s seen as a way to view real-time production data, improve efficiency, and create new business models.
However, a study by EAE Business School shows Mexico’s investment in technology is second among the Latin American countries, behind only Argentina, according to an article by the MexicoNow business magazine. It says during 2021, the number of IoT connections throughout Latin America reached 791 million, and that’s expected to jump to 1.2 billion by 2025. The study also predicts that smart homes alone will generate more than 100 million new connections in Latin America by 2025.
The Frost and Sullivan market research firm says Mexico’s industrial IoT market revenue is projected to jump from $1.13 billion in 2016 to $3.96 billion by 2022, with a compound annual growth rate of 23.2%. Expansion of internet bandwidth capacity to 5G is expected to facilitate the increase.
Wisconsin companies with industrial or consumer technology related to the Internet of Things could find market opportunities in Mexico as these technologies further penetrate the economy there.
