Mexico Construction Surges Since 2023, Driven by New Tech

The construction sector in Mexico has demonstrated a robust recovery since 2023, establishing itself as a cornerstone of the country's economic and social growth. The adoption of emerging technologies, such as IoT and augmented reality, is positioned as one of the multiple factors supporting this growth trend, projected to range between 3% and 5% by the end of 2024.

According to the Mexican Chamber of the Construction Industry (CMIC) National Construction Sector Report 2024, the sector saw a 15.6% growth in 2023, significantly surpassing the national economy's growth rate of 3.2%. The National Institute of Statistics and Geography (INEGI) reported a 13.7% increase in the Gross Domestic Product (GDP) related to construction during the first three quarters of 2023 compared to the same period the previous year.

CMIC attributes this recovery to the sector’s ability to adapt and overcome challenges post-pandemic, positioning itself as a vital component of the country’s sustained growth. This dynamism has positively impacted infrastructure development, job creation, and market revitalization.

“The adoption and development of new technologies have been fundamental to the recovery and growth of the construction sector,” notes America Retail. “Industry 4.0 is transforming businesses by automating processes and providing strategic information in real time, allowing personnel to focus on critical aspects of projects”.

According to Cradlepoint’s report State of Connectivity: Mexico 2024, indicates that 70% of technology decision-makers in Mexico view the adoption of 5G technology as a strategic priority. Additionally, 67% of Mexican companies believe that next-generation connectivity, automation, and IoT devices will positively impact their processes.

Construction Key Technologies 

• 3D Printing: 3D printing in construction enables fast and accurate manufacturing of buildings or components, reducing waste and offering complex designs in various sectors.

• Prefabrication: Prefabrication involves the production of components in factories before assembly on site, optimizing the construction process and facilitating transportation and assembly.

• Drones: Drones revolutionize construction by providing daily images for monitoring, safety, and Big Data generation, improving logistics and real-time supervision.

• Robotics: Robotics in construction, with examples such as the SAM100 masonry robot, improves productivity, accuracy, safety, and speed, automating traditional tasks.

• Building information modeling platforms: BIM is a collaborative platform that centralizes building project information, improving design, project management, and operation throughout the life cycle of buildings.

• IoT: The Internet of Things transforms both the construction and operation of buildings, integrating technologies such as BIM and intelligent project management for a more connected and efficient environment.

• Augmented reality: Augmented reality enables visualization and modification of building projects prior to their physical existence, improving planning, efficiency and design collaboration.

• Sustainable materials: Sustainable construction focuses on using materials that reduce environmental impact, such as green asphalt, recycled plastic, wood, and self-repairing concrete, promoting greener buildings.

• Self-repairing concrete: This innovative material repairs itself only when cracks occur, prolonging the life of structures and reducing environmental impact.

• Big Data: Big Data in construction is used for predictive analytics, improving early decision making and optimizing planning based on weather patterns and environmental conditions.

CMIC forecasts sector growth of 3% to 5% by the end of 2024, outpacing the expected national economic growth of 2.2%. The adoption of new technologies is critical to maintaining this positive trend.

Carlos Perea, Vice President for Latin America, Cradlepoint, emphasizes that construction companies integrating technologies such as IoT and cloud computing will optimize operational efficiency, resulting in cost and time savings and improving market competitiveness.

The Monthly Industrial Activity Indicator (IMAI) reported a 17.9% growth in the sector during the first quarter of 2024. CMIC projects the sector’s value to reach US$175.9 billion by the end of the year. Additionally, the nearshoring trend is drawing significant investment to Mexico, offering further opportunities for the sector.