Mexico’s Medical Device Industry to Invest US$400 Million: AMID

Mexico’s medical device industry plans up to US$400 million in investments through 2030 under Plan México, aiming to expand manufacturing, research and workforce capabilities ahead of the USMCA review. The strategy positions healthcare manufacturing as a strategic growth pillar amid trade uncertainty, regulatory shifts and supply chain pressures affecting North American integration.

Mexico’s medical device industry is preparing to invest up to US$400 million between 2026 and 2030, aligning with the federal government’s industrial strategy under Plan México. Industry leaders say the capital will support manufacturing expansion, research, logistics platforms, and workforce training. The initiative comes amid trade uncertainty surrounding the 2026 review of the USMCA.

Investment Tied to Industrial Strategy

The Mexican Association of Innovative Medical Device Industries  (AMID) estimates that companies operating in Mexico’s medical device sector could deploy as much as US$400 million over the next five years. The projected investment is framed within the federal government’s Plan México, which seeks to increase national investment to 25% of GDP by 2026 and generate 1.5 million jobs through higher-value manufacturing and regional development poles.

Joao Carapeto, President, AMID, and General Director, Roche Diagnóstica, says the projection reflects a conservative scenario shaped by current trade conditions. “In economic terms, the sector maintains an expectation of growth close to 5% annually, a trend that aligns with global performance,” he said during the presentation of the study Contributions to Mexico’s Health of the Medical Device Sector: A Vision Toward 2030, reports El Heraldo México. 

Carapeto adds that Mexico, the United States, and Canada have jointly expressed their positions to maintain and modernize the USMCA. He describes the agreement as a development tool for North America and notes that medical equipment can cross the Mexico–US border up to five times during production and distribution cycles. Industry comments on the upcoming 2026 review have focused on sanitary regulation, customs procedures, rules of origin, market access, national treatment, and public procurement.

“Three out of four companies in the sector have expressed their intention to invest in Mexico,” Carapeto says, even in an environment marked by tariff measures introduced during the Trump administration and reinforced through sector-specific trade enforcement.

Ana Riquelme, Executive Director, AMID, says the projected investment goes beyond production capacity. “It is not only about expanding manufacturing, but about strengthening the sector through research, creation of centers of excellence, development of logistics platforms, and training programs for healthcare professionals,” she adds.

AMID groups more than 50 global companies dedicated to innovative medical devices and diagnostic systems, representing about 90% of the market’s value.

From Advanced Manufacturing to Centers of Excellence

Mexico leads Latin America in medical device exports, which total about US$22 billion annually, according to AMID. The domestic market is valued at roughly US$8 billion, with 52% acquired by the public sector and 48% by private providers. The industry generates over 175,000 direct jobs.

Industry leaders argue that the next phase should move beyond advanced manufacturing toward the development of centers of excellence serving the North American region. This transition aligns with federal efforts to strengthen local supply chains and expand strategic sectors under Plan México, including pharmaceuticals and medical supplies.

The broader economic context has accelerated that discussion. The automotive industry, long the backbone of Mexico’s export model, faces pressure ahead of the USMCA review. Automotive exports contracted in 2025, while non-automotive manufacturing posted double-digit growth. Analysts cite stricter enforcement of rules of origin and tariff provisions, along with global shifts toward electromobility, as factors reshaping value chains.

Against that backdrop, pharmaceuticals and medical devices have emerged as complementary pillars. Mexico is the largest supplier of medical devices to the United States and among the top exporters globally. The sector benefits from regulatory alignment between Mexico’s health authority and the US Food and Drug Administration (FDA), facilitating cross-border trade.

At the same time, pharmaceutical manufacturing has expanded. Between January and September 2024, pharmaceutical production attracted US$784 million in foreign direct investment, with cumulative inflows exceeding US$15 billion since 1999. Clusters in Mexico City, the State of Mexico, Jalisco, Baja California, and Chihuahua anchor the industry’s footprint.

Federal policy also seeks to reduce medicine prices without imposing administrative caps. President Claudia Sheinbaum says the government is reviewing mechanisms with the ministries of economy and health to promote negotiated agreements with pharmaceutical companies and distributors. The approach emphasizes dialogue and supply chain monitoring rather than direct price controls.

The Ministry of Health has deployed a compliance monitoring platform covering IMSS, ISSSTE, IMSS-Bienestar, BIRMEX, and other institutions to track medicine deliveries and identify supply gaps. In parallel, Mexico signed a five-year agreement with Moderna, BIRMEX, and Laboratorios Liomont to produce messenger RNA vaccines domestically through phased technology transfer.

Regulatory Continuity, Value Models and Capital Dynamics

Despite growth projections, executives have raised concerns about regulatory continuity. Erick Ponce Flores, President, ICAN, describes recent leadership changes at COFEPRIS as a reminder that institutional stability is critical for innovation and compliance. He argues that abrupt shifts in regulatory leadership can affect investor confidence, particularly in highly regulated sectors such as medical devices, pharmaceuticals, and medical cannabis.

For companies considering long-term investments, predictable approval timelines and technical rigor remain key factors. Regulatory bodies, executives say, require institutional memory and expertise to maintain credibility with global partners.

Contributor César Marrón explains that healthcare strategy is moving from a volume-driven model to value-based frameworks. He outlines three priorities for companies operating in Mexico and Latin America: data-driven operational efficiency, integrated solutions rather than standalone products, and governance structures that enable sustainable market access.

“Robust governance and ethical compliance are not brakes on innovation,” he writes. “They are enablers of commercial agility.” In markets with centralized purchasing and strict oversight, companies must demonstrate system-wide value, linking investment to measurable outcomes for patients and payers.

The capital environment also reflects selectivity. According to data compiled by Maca Lara, CEO and Founder, Kipus, Latin American startups raised US$7.74 billion in 2025, with 44% deployed as structured debt rather than equity. Brazil and Mexico captured 81% of total capital, while fintech absorbed 58% of sectoral allocation.

Although healthcare was not the dominant recipient of venture capital, analysts say the financing trends highlight investor preference for operational maturity, predictable cash flows, and regulatory clarity — conditions that medical device and pharmaceutical companies must meet to scale.

For AMID, the projected US$400 million represents a baseline rather than a ceiling. Riquelme says the figure could increase if favorable growth conditions persist. Carapeto stresses that capital must also cover calibration, maintenance, and technical support throughout equipment lifecycles. “Many devices, especially in diagnostics, require constant calibration and technical accompaniment,” he says. “The investment covers those processes that guarantee technology operates efficiently and safely for patients.”

As Mexico approaches the 2026 USMCA review, the medical device sector’s strategy appears twofold: defend its trade integration within North America while expanding domestic capabilities in research, logistics, and training. If executed as planned, industry leaders say, the sector could consolidate its role not only as an export platform but as a regional center of excellence within the North American healthcare market.