Smart Manufacturing in Mexico Could Reach US$10.9 Billion by 2033

Manufacturing remains a cornerstone of Latin America’s economy, and in Mexico the sector is accelerating its shift toward digitalization as smart manufacturing gains momentum. The country’s manufacturing GDP reached MX$6.58 trillion in 2Q24, reflecting the sector’s growing weight in the national economy. Looking ahead, the smart manufacturing market in Mexico is projected to reach US$10.9 billion by 2033, driven by increased adoption of digital technologies and artificial intelligence, according to estimates by IMARC Group.

Technology adoption has moved from an option to a necessity, industry leaders say, as manufacturers seek to stabilize growth and remain competitive in global supply chains. Digital factories and advanced measurement systems are playing a central role in this transformation.

“The driving force behind this projection is industrial digitalization and AI,” said Arturo Zavala, Director, ZEISS Industrial Quality Solutions Mexico. Zavala noted that 95% of manufacturers that have already integrated AI into their processes report direct improvements in efficiency and financial performance.

In this environment, metrology has become a critical link in Industry 4.0, Zavala said. Measurement technologies convert a product’s physical characteristics into digital data that can be used for real-time decision-making.

Quality management is no longer limited to individual measurement equipment. Instead, manufacturers are increasingly relying on software platforms that centralize data, correlate information and generate insights in real time, helping reduce scrap and optimize production processes and supplier management.

Despite these opportunities, uneven digital maturity across industries could limit Mexico’s competitiveness. While the automotive sector is highly advanced and receptive to new technologies, other key industries remain in earlier stages of digital transformation. In the plastics sector, for example, companies often absorb the cost of scrap rather than invest in advanced quality technologies, while the medical and aerospace industries face strict regulatory environments that slow innovation in approved processes.

Electronics manufacturing has emerged as one of Mexico’s fastest-growing sectors. In Jalisco, exports from the electronics industry rose 64.7% in the first half of 2025, underscoring the need for advanced technologies and electronic components to support continued growth.

Industry leaders say talent development is the sector’s most pressing challenge. Companies increasingly agree that training and professional development are essential for retaining skilled workers, and that standardizing software across technologies can help reduce training barriers.

From ZEISS IQS’ perspective, innovation driven by skilled talent is essential to strengthening supply chain resilience. That resilience is achieved when quality is built into product design, rather than addressed only at the end of the production process. Shorter innovation cycles, Zavala said, are key to competing with global manufacturing leaders.

“The only way for Latin America to break through the ceiling of lag and consolidate its position as a global manufacturing leader is through knowledge transfer and community building,” Zavala said.

High-level industry events such as ZEISS Quality Innovations Worldwide Mexico Edition, which took place in late November, play a key role in spreading technological knowledge across the manufacturing sector. Aimed at decision-makers, the event brought together leaders from the automotive, aerospace, plastics, and medical industries to examine the challenges posed by industrial digitalization and the application of artificial intelligence in manufacturing processes.

“ZEISS Quality Innovations Worldwide challenged the limits of human imagination so that the opportunities Latin American manufacturing has today can be transformed into a sustained competitive advantage for the region,” Zavala said.