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, Calif., Jan. 27, 2020 /PRNewswire/ -- Mexico is 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 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 2025 is 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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SOURCE Frost & Sullivan