Information Technology

 

 

Snapshots and forecasts in this report were made before the market fall due to the ongoing situation regarding COVI-19. This information is highlighted with an asterisk.
Information Technology refers to the study or use of systems for storing, compiling and sending information
• Worldwide, the industry is currently valued at US$5.2 trillion and is expected to grow 4.8% in 2020 thanks to private investments*
• Cloud services will be the highest growing subsector with a forecast of 24.5% in 2020*

 

 

 

When it comes to IT, Mexico lags. According to World Economic Forum, Mexico ranks 63rd in Technology Adaptation and 102nd in Access to Mobile Network
• It is estimated that if Mexico reaches a higher Digital maturity index, its GDP growth could hit 7.0-15.0% by 2025*
• According to INEGI, only 74.0 million of Mexicans had access to the Internet in 2018
• The main cause for lack of IT services in Mexican households is lack of economic
resources
• The industry has presented an average growth of 10.5% these past five years
• Mexico has little over 4 thousand companies registered in the country
• Annual revenues of the industry were US$23.7 billion in 2019

 

 

Mexico is ranked worst in mobile devices penetration (94.7%) in Latin America
• President Andres Manuel Lopez Obrador, through Internet Para Todos, plans to hit internet coverage to 95% of the population by 2024*. The total budget for the project is US$56.0 million
• It is estimated that low productivity in Micro Companies is highly correlated to the use of technologies. According to Mexico’s National Survey on Productivity and Competitiveness of Micro, Small, and Medium Enterprises (ENAPROCE) only 25.0% of micro companies use computers or the internet in their companies

 

Software refers to the logical support of an informatic system. They are programmed routines that allows a computer to perform tasks. Software also allows the interaction between the user and the physical components of a system

• Mexico’s potential in software Development may be mainly exploited through Development of Digital Government (payments, process, etc.) and Digital Society (e.g. smart cities)

• Platforms such as CoDi (Código Digital) that execute transactions and payments, drive not only the country’s connectivity but also its formalization in the economy and digitalization

XaaS (Everything as a Service) is a software and IT Services trend that refers to the transition from the acquisition of goods and processes to the services executed by a third party, such as cloud storage, instead of physical hard drives. This new type of service offers diverse advantages such as operative efficiency, reduction of administrative costs, and better business adaptability
• XaaS investments in Mexico exceeded US$688.5 million in 2019
• Globally, the XaaS Market value was valued at US$93.8 billion in 2018, with a CAGR of 24.0% until US$344.3 billion in 2024*

 

Hardware refers to the physical support of an information system. Composed of electric, mechanic, and electromechanic components such as motherboards, CPUs, cables, and peripherals (e.g. keyboards)

• Mexican consumer’s tendency since 2015 has been to ditch personal computers in favor of smartphones

 

 

In order to overcome the limitations of current computers and to solve problems that otherwise would take weeks or years to solve, new technologies, such as Quantum Computing, have been developing. This presents us a completely new way of processing data through simultaneous processing instead of sequential, which is currently used. Some areas where this technology will create the most impact are: Cybersecurity, pharma development, financial models, Artificial Intelligence, meteorological models, and energy efficiency.

Refers to a communication system working through electronic or electromagnetic means. They may contain images, sound, or any type of input. They generally include Mobile Phone and Internet Services
• Mexico’s Federal Government announced two big investments for 2020*: Dedicated
telecommunications servers for the corporate sector for US$21.4 million, and mobile and fixed phone investments for US$4.6 million
• It is expected that the government will also invest US$614.0 thousand for mobile
broadband and US$1.1 million in radio*
• These investments help close the technological and communications gap in Mexico, since out of 130.0 million Mexicans, only 83.1 million of own a cellphone and 74.3 million have access to the Internet

5G refers to the fifth generation of mobile networks, and represents a new period in
connectivity and network speed.

• In Mexico, the existing LTE network will ease 5G’s implementation and the arrival of faster mobile services, as well as Artificial Intelligence services, cheapening of cloud-based services, and Internet of Things products and services
• It is forecasted that by 2024*, 2.0 billion people will be subscribed to a 5G network
• 5G will accelerate wireless data transfer speed from 100Mbps to 10Gbps, which would allow for direct competition against Fiber Optic networks
• 5G speeds will allow the growth of Internet of Things market, which is targeted to reach US$4.0 billion in Mexico in 2022* and will allow up to 100 devices to connect per square meter
• It’s expected that the 600-Mhz frequency spectrum auctions to the private sector will take place this year to begin operations in 2021*

  • AMITI
  • Banxico
  • BuiltIn
  • Capital IQ
  • Compti
  • Danthop
  • Deloitte
  • IMARC Group
  • INEGI
  • McKinsey
  • Plan Nacional de Desarrollo
  • ProMexico
  • World Economic Forum