Mexico's IT Investment to Rise 8% in 2024, Driven by AI and PaaS

By 2024, information technology (IT) investment in Mexico is projected to grow by 8%, driven by nearshoring and economic development in North America, according to IDC Mexico. The private sector is expected to see sustained growth of 11% per year between 2025 and 2027, with artificial intelligence and platforms as a service leading the investment- Key sectors benefiting from this expansion will include banking, telecommunications, and the federal government.

The projected growth will be largely driven by the adoption of advanced technologies, with AI accounting for 47% of the increase in IT investments. Platforms as a service will contribute 31.9%, and infrastructure as a service will add 20%. 

This investment dynamism is anticipated to continue, particularly in key sectors such as banking, which is expected to lead with an estimated investment of just over US$3 billion in 2025. Telecommunications will follow with US$1.4 billion, and the federal government will invest US$1.1 billion.

Alejandro Florean, general manager, IDC Mexico, emphasized the potential benefits of nearshoring for Mexico, given its strategic position. This opportunity extends beyond technological transformation to secondary benefits from global investments exceeding US$1.7 trillion between 2025 and 2028.

"There are several industries that, beyond the political-economic position, are going to continue investing and will need on-site technology, reduce different communications issues or regulatory issues, then the whole context of technological adoption is going to be quite very important and more so now with some concepts that, hopefully, will occur in our country, such as nearshoring," Florean stated at the AWS Summit 2024 in Mexico City.

IDC noted that despite the economic and geopolitical challenges, the outlook for technology adoption in Mexico remains robust. IDC's projections indicate that overall IT expansion in Mexico will reach 3% by the end of 2024, with an anticipated increase of 6% per year through 2027. 

Floran also highlighted that process automation has become one of the top three business priorities for Mexican corporations, leading to increased IT investments. According to the study, top priorities include improving customer acquisition and retention, enhancing organizational productivity, leveraging data for new digital revenue streams, developing better products and services, and balancing the digital and physical mix.