Mexico Power Market

The Mexico power market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of 5% during 2023–2031. Growth of the market is attributed to increasing energy consumption, rapid industrialization, growing demand for electricity, and developed electricity transmission infrastructure.

The Mexico electricity sector is federally owned, commission federal de electrical  is controlling the power sector through specific service contracts the foreign companies & private participation are allowed to operate in the country only. In Mexico, efforts to development of power sector have faced social & political resistance.

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The covid-19 outbreak was not able to affect the Mexico power energy corporations. The Mexico power market players faced several problems varying from getting component require to develop electricity and providing end products to attracting workers from quarantines. The coronavirus-driven confinement places a brake on the element and device production, which increased product costs and reduced the market demand. However, the power trade is returning to traditional and witnessing the increasing energy demand, particularly from the commercial sectors.

Mexico Power Market Trends, Drivers, Restraints, and Opportunities

• Increasing consumer purchasing capacity and continually growing population is projected to boost the market in the coming years.

• Rapid development in industrial and residential sector is major factor fuelling the market during the forecast period.

• Development of renewable energy is not on high priority of the Mexico government are anticipated to hamper market growth.

• Increasing economic crisis is projected to hamper the market growth in the coming years.

• R&D investment and technological advancement in power sector is projected to create lucrative opportunities for the market players.

Scope of Mexico Power Market Report

The report on the Mexico power market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Mexico Power Market Segment Insights

Industrial segment accounts for key share of the market

Based on end-users, the Mexico power market is divided into industrial, residential, commercial, and others. The industrial segment accounts for a key share of the market. Growth of the market is attributed to rapid innovations in power sector and presence of major market players. The residential segment is anticipated to expand at a rapid pace during the forecast period due to factors such as rapid urbanization, government policies, increasing population, and rapid development in commercial sector.

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The thermal power segment is anticipated to dominate the market during the forecast period

Based on power sectors, the Mexico power market is fragmented into generation hydropower, non-hydroelectric renewables, thermal, and nuclear, transmission and distribution (T&D). The thermal power segment is anticipated to dominate the market. Growth of the market is attributed to rapid economic growth in country, rapid development in transmission & distribution infrastructure, and rising disposable income. However, the hydropower segment is anticipated to expand at a rapid pace during the forecast period due to factors such as increasing energy consumption, rapid industrialization, and growing demand for electricity.

Geographical outlook

The thermal power held a major market share in the Mexico power market. The 75% energy comes from thermal power in the Mexico, the 19% comes from hydropower, and remaining 6% comes from other power sources. The Mexico power market is third major power market in North America. The Mexico and the US officials signed a contract to work jointly to increase the power infrastructure in both countries. The Mexico and United States officials have decided to change present fossil fuel of power plants to combined-cycle natural gas technology to create and expand electricity generation from natural gas. In Mexico there are new thermal power plants in developing stage. Growth of the market is attributed to increasing energy consumption, continually growing population, rapid industrialization, and developed electricity transmission infrastructure.

Segments

The Mexico power market has been segmented on the basis of

Power Sectors

• Generation
  • Hydropower
  • Non-hydroelectric Renewables
  • Thermal
  • Nuclear
• Transmission and Distribution [T&D]

End-users

• Industrial
• Residential
• Commercial
• Others

Country

• Mexico

Key Players

• Siemens Gamesa Renewable Energy SA
• Schneider Electric SE
• Acciona SA
• Comision Mexicanas [PEMEX]
• Enel SpA
• Iberdrola SA
• Sempra Energy
• Sojitz Corp.
• Trina Solar Ltd.
• Jinko Solar Corp.
• General Electric Company
• Vestas Wind Systems
• EDF Renewables Inc.

Competitive Landscape

Key players competing in the Mexico power market includes Siemens Gamesa Renewable Energy SA; Schneider Electric SE; Acciona SA; Comision Mexicanas [PEMEX]; Enel SpA; Iberdrola SA; Sempra Energy; Sojitz Corp.; Trina Solar Ltd.; Jinko Solar Corp.; General Electric Company; Vestas Wind Systems; and EDF Renewables Inc.

Some of these players are using several market strategies such as acquisitions, merger, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares and raise their production line of the business in the coming years.