Report

Mexico ICT Market Analysis

Mexico ICT market size in 2026 is estimated at USD 78.69 billion, growing from 2025 value of USD 71.23 billion with 2031 projections showing USD 129.52 billion, growing at 10.48% CAGR over 2026-2031. Mexico's emergence as a preferred near-shoring hub, the convergence of 5G, artificial intelligence, and cloud-first public policy, and the rapid expansion of data-center capacity in the Queretaro-Mexico City corridor combine to propel this growth trajectory. A duopolistic telecommunications backbone coexists with a fragmented services layer, giving rise to consolidation plays even as new entrants target niche managed-service opportunities. Enterprise buyers now emphasize regulatory compliance, cyber-resilience, and operational flexibility, tilting spending toward hybrid architectures that balance sovereignty with scalability. Competitive dynamics are also shaped by foreign operators reassessing strategy amid spectrum policy uncertainty, while hyperscalers deepen local footprints to anchor regional cloud ecosystems.

Mexico ICT Market Trends and Insights



Robust Demand for Telecommunications Services

Mexico's telecommunication networks evolved from consumer-centric builds to enterprise-grade platforms as manufacturers relocating from Asia required guaranteed uptime and low latency. The Queretaro data-center hub amplifies demand because proximity to hyperscale infrastructure now guides site-selection by multinational clients. America Movil reported a 39% profit surge in early 2025 driven by managed network contracts that bundle connectivity with performance-level agreements. Regulated sectors such as finance and healthcare require domestic routing for sensitive data, making local backbone upgrades unavoidable. Each primary connectivity build triggers follow-on spending on cybersecurity and cloud integration, creating a multiplier effect across the Mexico ICT market.

Integration of IoT, Cloud and AI Across Enterprises

Enterprise AI spending is projected to reach USD 450 million in 2025, up from USD 98 million in 2024, reflecting 359% annual growth. Regulatory compliance rather than pure efficiency drives adoption in manufacturing and BFSI, forcing firms to unify IoT sensors, cloud storage, and AI analytics into single procurement cycles. Sixty-two percent of corporations report unstructured-data issues that complicate deployment, pushing demand toward managed-platform vendors. Supply-chain visibility mandated by USMCA embeds IoT devices along production lines, making integrated stacks indispensable.

Regulatory Uncertainty Post-IFT Dissolution

Legislation to dissolve the IFT removes a predictable spectrum-auction framework and proposes state competition in retail telecom. The resulting vacuum forces foreign operators to defer capital plans exceeding USD 1 billion as license terms remain undefined . Cloud providers and data-center investors require multi-decade clarity, so the policy flux lengthens decision cycles and tempers near-term Mexico ICT market expansion. International vendors also face the concern that new rules may favor a future state-owned carrier, skewing competition.

Other drivers and restraints analyzed in the detailed report include:

5G Rollout Accelerating Enterprise DigitalizationNear-shoring-driven ICT Investments from ManufacturersShortage of Advanced Tech and Cyber-security Talent

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

IT Services is growing at a 17.36% CAGR through 2031, redirecting value creation away from asset ownership toward managed models. Enterprises favor pay-as-you-go consulting, infrastructure management, and regulatory-compliance packages that reduce upfront capital. IT Hardware retains a 27.92% share in 2025, underpinned by data-center builds and factory automation upgrades. Yet its growth is subdued as buyers extend depreciation cycles and shift expenditure to cloud subscriptions. Software adoption moves steadily toward SaaS, easing license-management burdens. Hybrid-cloud integration remains a standout niche where service providers orchestrate on-premise servers with public cloud, reinforcing Mexico's ICT market monetization potential. Communication Services gain relevance through private LTE and 5G contracts tied to manufacturing corridors. The Mexico ICT market size for IT Hardware still dominates current spend, but the rise of tier-one service integrators signals a structural pivot. America-based hyperscalers partner with local firms to deliver unified stacks that intertwine networking, security, and analytics. As regulatory complexity escalates, companies rely on external advisors, converting one-off hardware sales into multi-year service contracts. This migration stabilizes revenue streams for vendors while embedding switching costs that heighten customer retention.

Small and Medium Enterprises are advancing at a 15.12% CAGR through 2031, catalyzed by PODEBI fiscal incentives that refund part of digital-tool spending. Cloud marketplaces simplify procurement, letting SMEs subscribe to enterprise-grade ERP and CRM without heavy investment. Large Enterprises held 65.95% of spending in 2025, but their incremental budgets flatten as core systems reach maturity. The Mexico ICT industry therefore, witnesses a democratization of advanced tools formerly reserved for multinational conglomerates. SME momentum also stems from near-shoring supply-chain participation. Tier-2 automotive suppliers embed IoT and analytics to satisfy OEM traceability mandates, expanding addressable demand for managed platforms. Talent scarcity, however, forces many SMEs to outsource cybersecurity, giving rise to bundled offers that blend software licenses with round-the-clock monitoring. Banking partners further accelerate digital uptake by linking loan-approval criteria to technology-driven transparency.

The Mexico ICT Market Report is Segmented by Type (IT Hardware, IT Software, and More), End-User Enterprise Size (Small and Medium Enterprises and Large Enterprises), Deployment Model (On-Premise, and More), and End-User Industry (Government and Public Administration, and More). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

America Movil, S.A.B. de C.V. AT&T Inc. Telefonica Mexico, S.A. de C.V. Grupo Televisa, S.A.B. Megacable Holdings, S.A.B. de C.V. Axtel, S.A.B. de C.V. Totalplay Telecomunicaciones, S.A. de C.V. Telmex, S.A.B. de C.V. Telcel (Radiomovil Dipsa, S.A. de C.V.) Telesites, S.A.B. de C.V. Tata Communications Limited HCL Technologies Limited Infosys Limited Tech Mahindra Limited Wipro Limited Capgemini SE IBM Mexico, S. de R.L. de C.V. Microsoft Mexico, S. de R.L. de C.V. Amazon Web Services Mexico, S. de R.L. de C.V. Google Cloud Mexico, S. de R.L. de C.V. Oracle de Mexico, S.A. de C.V. Cisco Systems Mexico, S.A. de C.V. Intel Corporation (Mexico) KIO Networks, S.A. de C.V. EdgeConneX Mexico CloudHQ Queretaro

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support