WIRE & TUBE MEXICO 2025: INCREASING DEMAND FOR WIRE & TUBE PRODUCTS

Specialist Article

WIRE & TUBE MEXICO 2025: INCREASING DEMAND FOR WIRE & TUBE PRODUCTS

With almost 130 million inhabitants, Mexico is the second largest economy in Latin America after Brazil and an important production location due to the United States-Mexico-Canada Agreement (USMCA), the EU-Mexico trade agreement and a skilled workforce. Mexico is the largest trading partner to the U.S. and an attractive hub for global automakers and suppliers. The OECD expects that Mexico’s GDP will grow at 1.2% in 2025.

Since wire and tube products are needed practically everywhere, Mexico is a large market for the wire and cable, wire processing and tube industries and their suppliers. The market is therefore looking eagerly towards the country, where the wire Mexico and Tube Mexico trade fairs will be held as part of Expo Manufactura in Monterrey from February 11 - 13, 2025.

wires and cables
wires and cables are indispensable for the transmission of electric power and electronic data. Therefore, the demand for them is correspondingly very high. 
The market research company Mordor Intelligence estimates Mexico’s wires and cables market size at $3.5 billion in 2024 and expects it to reach more than $5 billion by 2029, growing at an average annual growth rate (CAGR) of 7.54% during the period from 2024 to 2029. Three exemplary application areas for wires, cables and other wire products such as fasteners and technical springs are the electricity, the infrastructure and the automotive sectors.

Electricity and infrastructure 
According to the energy research company Enerdata, Mexico’s electricity consumption has been increasing since 2013 by around 3% a year on average and reached 324 TWh in 2023 (Fig. 1). Industry and commerce consumed 64% of it in 2023, followed by households (24%) and services (7%). About 99% of the population is connected to the grid. Mexico has a total electricity generation capacity of more than 90 GW and plans to invest more than $23 billion into its electricity sector until 2030. US$12.3 billion is earmarked for new generation projects (13 MW),  $7.5 billion are planned for the modernization and expansion of the transmission infrastructure and $3.6 billion for the distribution grid. Additionally, at the end of 2024 a huge number of state infrastructure projects were under development (Fig. 2).

Automotive sector
According to market research and industry news company MexicoSMT, the country produced 3.9 million light vehicles in 2024, 6.8% more than in 2023 and nearing the 2017 peak of 3.93 million. Exports exceeded 2.96 million vehicles between January and October 2024, with 72% to the  U.S and 8% to Canada. SUVs and pickups played a crucial role in this success, while the nation expanded its electric vehicle (EV) offerings to capture a share of the growing global EV market. Recently, the Mexican government announced the construction of the first domestic assembly plant for small electric vehicles designed by Mexican engineers. This project is expected to help revolutionize mobility in cities.

The Backbone of Mexico’s industry is the production of automotive parts. In 2024, the countries auto parts production reached a value of $126 billion – an increase of 4.9% compared to the previous year. Over 90% of these exports were destined for the U.S. and Canada, driven by demand for components such as wiring systems, engines, and transmissions.

Tubes and pipes 
Tubes and pipes are also of great economic importance, as they are needed for the transportation of liquids, gases and free-flowing substances or as mechanical structures. According to statistics, the total trade exchange of steel pipes and other ferrous tube products in Mexico was $2.1 billion in 2023. The main export countries were the U.S. ($573 million), Canada ($119 million), Saudi Arabia ($93.2 million), Colombia ($81.6 million), and Guyana ($78.6 million). On the other hand, Mexico imported steel pipes from China ($145 million, the U.S. ($131 million), Brazil ($64 million), Romania ($39.9 million), and Japan ($26 million).

Mexico has developed into an important player in the manufacturing and distribution of PVC conduit pipes. According to the market research company Mobility Foresights, this market is projected to grow from $653.5 million in 2024 to $863 million by 2032, at a CAGR of 3.5% during this period. PVC pipes offer favorable characteristics such as durability, corrosion resistance, light weight and ease of installation, making them a preferred choice for various applications. The growing construction sector is a major driver of PVC pipe demand. Government initiatives to improve water supply, sanitation and transportation infrastructure are boosting demand for PVC pipes.

Outlook
In view of in increasingly challenging market, Mexican manufacturers of wire and tube products need cutting-edge processing equipment to remain competitive. The wire Mexico and Tube Mexico trade fairs will provide an ideal opportunity for equipment manufacturers to present their products and services.

  For information about wire and Tube Mexico 2025, contact Messe Düsseldorf North America; Telephone: (312) 781-5180; E-mail: info@mdna.com; Visit https://wire-tube-mexico.com/  and www.mdna.com. Follow us on https://www.linkedin.com/company/mdnachicago/