Boston, MA -- (SBWIRE) -- 03/06/2014 -- Mexico stands out as the second largest IT market in Latin America behind Brazil. Its proximity to the US is a big advantage, ensuring consumers and businesses gain access to the latest services and products. We estimate the size of the market exceeded MXN210bn in 2013 and that it will rise to MXN274bn by 2018, owing to a CAGR of 5.4%. Government projects such as the new National Digital Strategy will underpin market growth, while emerging trends such as cloud computing will also provide a strong impetus. The IT services segment will be supported by IT outsourcing demand from the US and from key industries such as telecoms and financial services.
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Headline Expenditure Projections
- Computer hardware sales: MXN102.8bn in 2014 to MXN123.9bn in 2018, increasing 28.1% over the period. Migrations to Windows 8 should provide a boost to hardware upgrades in the short term, given that a significant proportion of Windows users have yet to migrate to Windows XP.
- Software sales: This is forecast to be the fastest growing segment of the market, increasing from MXN42.8bn in 2014 to MXN52.8bn in 2018, an increase of 32.7%. This outlook could, however, be hit by illegal software use, which is still well above OECD levels.
- IT services sales: This will edge up from 35.4% of the market to 35.6% between 2014-2018, reaching a turnover of MXN97.8bn (+31.6%) by the end of our five-year forecast period to 2018. Driving growth will be sectors such as government, telecoms and financial services.
Risk/Rewards Ratings: Mexico's score is 57.3 out of 100.0. Mexico ranks sixth in the Americas region in our latest RRR table.
Key Trends And Developments
- In November 2013, President Enrique Pena Nieto announced that the country's National Digital Strategy, which aims to increase the level of digital inclusion in Mexico. The strategy rests on improvements in a number of key areas: connectivity, inclusion and digital skills, interoperability, legal framework and open data. BMI believes there are a number of opportunities for the ICT and telecoms sectors in light of these goals.
- By developing these aspects of the ICT sector, the strategy hopes to promote the move into the digital age, increasing the interaction between government and citizens, as well as contributions to the overall economy. The digital strategy also aims to foster e-government, digital economy, higher education, telecare and public safety, through transparency and promotion of the greater use of ICT.
- In announcing the new strategy, Pena Nieto noted that Mexico had scored particularly poorly among OECD countries and the rest of Latin America in certain IT reports, dating back to 2011. The goal of the National Digital Strategy therefore aims to increase its scores, placing it at about average for the OECD and among the leaders in Latin America.
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