Mexico Pressure Sensor Market - Forecasts from 2022 to 2027

Mexico Pressure Sensor Market is expected to grow at a CAGR of 7.50% during the forecast period to reach US$551.669 million by 2027, from US$364.449 million in 2020.

Introduction

A pressure sensor is a device or an instrument that measures the pressure in gases or liquids. It consists of a pressure-sensitive element that can determine the applied pressure and components to convert the information into an output signal. A pressure sensor will generate a signal based on the measurement of the pressure applied in units such as "Pascal," "Bar," and "PSI."

Market Drivers

The Mexican economy is the second-largest in Latin America and has established trade relations globally. The economy has undergone several changes in the past decades and has shifted to secondary and tertiary production sectors. Mexico is the sixth-largest global passenger vehicle manufacturer, producing approximately three million vehicles annually (source: International Trade Administration, USA). As these numbers from the automotive industry continue to grow, the pressure sensor market is being primarily profited. Moreover, the government launched several policy initiatives to attract manufacturing businesses to the country, benefiting the pressure sensor market. The advent of MEMS and NEMS technologies and their rising eminence in the manufacturing of pressure sensors is another vital driver plying in the country.

By technology, piezoresistive and capacitive sensors dominate the market as they are heavily used in the automotive, medical, petrochemical, oil, and gas industries. By end-user, the automotive segment is presumed to record the highest growth in this market owing to the production and export trends in the country.

Growth Factors

• Growing automotive sector

The automotive sector is one of Mexico's most significant industries, comprising 20 percent of the nation's GDP and employing over one million people nationwide (source: International Trade Administration, USA). The majority of the vehicles manufactured are exported to the United States. Established makers like Audi, Baic Group, BMW, Stellantis, Ford, General Motors, Honda, Kia, Mazda, Nissan, Toyota, and Volkswagen operate their manufacturing plants in the country. Auto parts and OEM technologies are also manufactured in the country. The pressure sensor is a crucial component in these manufacturing plants and is employed to check the pressure of critical fluids, monitor exhaust recirculation, etc. The market is likely to proliferate owing to these applications in the automobile industry.

• Strong presence of manufacturing industries

The Mexican government has adopted several plans and policies to diversify the economy, and as such, the aviation and aerospace, medical device, apparel and textile, and consumer products industries have marked their presence in the economy's GDP. Despite the changes and uncertainty of NAFTA being renegotiated as the new United States-Mexico-Canada Agreement (USMCA), the major manufacturing industries in Mexico are expected to see continual growth in the following years. Other than that, the labor cost is lesser in the country, which is advantageous for the industries.

Pressure sensors play an increasing role in applications such as bottle and equipment leak detection, variable air volume systems, air blades, compressed air pressure monitoring, industrial flow monitoring, filter pressure monitoring, duct airflow, gas detection, mine safety instrumentation, etc. Owing to these many uses in the industry, the market is likely to grow by a large margin in the country.

Restraints

Even though the pressure sensors have a thorough implementation in several industry verticals, there are some disadvantages like material constraints, sensitivity to vibration, and temperature dependence. These cons may act as a limiting factor in the pressure sensor market and restrict the market growth rate. However, recent developments to overcome these limitations are expected to beat the restraints.

Impact of COVID-19 on the Mexico Pressure Sensor Market

The Mexican economy contracted by 8.2 percent due to the pandemic, with a sharp drop in the first half of the year as demand and supply stock profoundly impacted firms, employment, and households (source: World Bank). The growth of the pressure sensor market is highly reliant on the growth of end-user industries, which mainly include automotive, industrial, utility, aviation and aerospace, consumer products, textile, and medical devices. Apart from the health industries, the other industries witnessed a substantial decline during this period. The recovery process in the country is dependent on both external and domestic factors, like the speed of vaccine deliveries, U.S growth dynamics, and private investment.

Competitive Insights

The market leaders for the Mexico Pressure Sensor Market are General Electric Company, Robert Bosch GmbH, ABB Group, Siemens AG, NXP Semiconductors, Rockwell Automation, Inc., Schneider Electric SE, Mitsubishi Heavy Industries, Honeywell International, Inc., Texas Instruments, and PCB Piezotronics. The key players in the market implement growth strategies such as product launches, mergers, acquisitions, etc. to gain a competitive advantage over their competitors. For Instance,

• In 2019, Emerson acquired Intelligent Platforms, a division of General Electric.
• Bosch, in 2021 launched a barometric pressure sensor for wearable fitness trackers. Bosch GmbH invested US$120 million in a new manufacturing plant in Celaya, Guanajuato, in 2018 as part of their expansion drive.
• Honeywell launched MPR pressure sensors for consumer medical applications, ABP2 pressure sensors for clinical applications, and FMA MicroForce sensors in 2020 for the healthcare industry.

Segmentation:

• By Type

Absolute pressure measurement

Differential pressure measurement

Gauge pressure measurement

• By Technology

Piezoresistive Pressure Sensor

Electromagnetic Pressure Sensor

Optical Pressure Sensor

Resonant Solid State Pressure Sensor

Capacitive Pressure Sensor

• By End-User

Energy and Power

Oil and Gas

Healthcare

Manufacturing

Consumer Electronics

Automotive

Others