wire & Tube Mexico 2025: Increasing demand for wire and tubular products

Mexico with nearly 130 million inhabitants is after Brazil the second largest economy in Latin America and an important production location due to the United States-Mexico-Canada Agreement (USMCA), the EU-Mexico trade agreement and a skilled workforce. Mexico is the largest trading partner to the USA and an attractive hub for global automakers and suppliers. The OECD expects that Mexico’s GDP will grow at 1.2% in 2025.

Since products made from wires and tubes are needed virtually everywhere, Mexico is a large market for the wires and cables, the wire processing and the tubes and pipes industries and their suppliers. Therefore, the market is looking eagerly towards the country and the trade fairs wire Mexico and Tube Mexico, which will take place parallel to Expo Manufactura in Monterrey from February 11 to 13, 2025. 

wires and cables 
wires and cables are indispensable for the transmission of electric power and electronic data. Therefore, the demand for them is correspondingly very high.

The market research company Mordor Intelligence estimates Mexico’s wires and cables market size at US$3.5 bn in 2024 and expects it to reach more than US$5 bn by 2029, growing at an average annual growth rate (CAGR) of 7.54% during the period from 2024 to 2029. Three exemplary application areas for wires, cables and other wire products such as fasteners and technical springs are the electricity, the infrastructure and the automotive sectors.

Electricity and infrastructure
According to the energy research company Enerdata, Mexico’s electricity consumption has been increasing since 2013 by around 3% a year on average and reached 324 TWh in 2023 (Fig. 1). Industry and commerce consumed 64% of it in 2023, followed by households (24%) and services (7%). About 99% of the population is connected to the grid. Mexico has a total electricity generation capacity of more than 90 GW and plans to invest more than US$23 bn into its electricity sector until 2030. A sum of US$12.3 bn is foreseen for new generation projects (13 MW), furthermore, US$7.5 bn are planned for the modernization and expansion of the transmission infrastructure and US$3.6 bn for the distribution grid. Additionally, at the end of 2024 a huge number of statal infrastructure projects were under development (Fig. 2).

Automotive sector
According to the market research and industry news company MexicoSMT, the country produced 3.9 million light vehicles in 2024, 6.8% more than in 2023 and nearing the 2017 peak of 3.93 million. Exports exceeded 2.96 million units between January and October 2024, with the USA consuming 72% and Canada 8% of these vehicles. SUVs and pickups played a crucial role in this success, while the nation expanded its electric vehicle (EV) offerings to capture a share of the growing global EV market. Recently, the Mexican government has unveiled the creation of the first national assembly plant for electric mini vehicles designed by Mexican engineers. The project is aimed to revolutionize urban mobility.

The Backbone of Mexico’s industry is the production of auto parts. In 2024, the countries auto parts production reached a value of US$126 bn – a 4.9% year-over-year increase. Over 90% of these exports were destined for the USA and Canada, driven by demand for components like electrical harnesses, engines, and transmissions.

Tubes and pipes
Tubes and pipes have also an important economic weight as they are needed for the transit of liquids, gases and free-flowing substances or as mechanical structures. According to statal statistics, the total trade exchange of steel tubes and other ferrous tubular products in Mexico was US$2.1 bn in 2023. The main export countries were the USA (US$573 mn), Canada (US$119 mn), Saudi Arabia (US$93.2 mn), Colombia (US$81.6 mn), and Guyana (US$78.6 mn). On the other hand, Mexico imported ferrous tubular products from China (US$145 mn), the USA (US$131 mn), Brazil (US$64 mn), Romania (US$39.9 mn), and Japan (US$26 mn).

Mexico has emerged as a critical player in the manufacturing and distribution of PVC conduit pipes. According to the market research company Mobility Foresights, this market is projected to grow from US$653.5 mn in 2024 to US$863 mn by 2032, exhibiting a CAGR of 3.5% during this period. PVC pipes offer advantageous characteristics such as durability, corrosion resistance, lightweight, and ease of installation, making them a preferred choice for various applications. The growing construction sector is a major driver of PVC pipe demand. Government initiatives to improve water supply, sanitation, and transportation infrastructure are boosting demand for PVC pipes. 

Outlook
In view of in increasingly challenging market, Mexican manufacturers of wire and tubular products need cutting-edge processing equipment to remain competitive. The wire Mexico and Tube Mexico trade fairs provide an ideal opportunity for equipment manufacturers to present their products and services.