The Mexico power tools market size is expected to grow at a CAGR of 5.10% between 2025 and 2034. The market is being driven by the surge in construction activities, rapid urbanisation, and increasing availability of a variety of power tools.

In 2020, the Mexican power tools market size was estimated at ***** million U.S. dollars. By 2027, the power tools market in this country is forecasted to exceed *** billion U.S. dollars.

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In 2024, the Mexican power tool market decreased by -14.9% to $800M, falling for the second consecutive year after four years of growth. Overall, consumption, however, showed a relatively flat trend pattern. Power tool consumption peaked at $1.2B in 2017; however, from 2018 to 2024, consumption remained at a lower figure.

The Mexico metal cutting machine tools market was valued at USD 1547.50 Million in 2024. The industry is expected to grow at a CAGR of 4.50% during the forecast period of 2025-2034 to reach a value of USD 2403.22 Million by 2034. The rapid adoption of digitalisation through IoT-enabled cutting systems heightens product demand in the Mexican market.

The market is principally driven by the burgeoning near-shoring trend, reshaping North American manufacturing networks. In the first quarter of 2024, Mexico attracted over USD 30 billion in foreign direct investment within advanced manufacturing sectors, bolstering demand for precision metal-cutting tools. This surge is further supported by the expansion of high-tech industrial parks, strategic trade agreements under USMCA, and increasing relocation of aerospace and automotive supply chains from Asia, accelerating the adoption of multi-axis CNC systems and automation-ready cutting technologies across key manufacturing hubs in the country, boosting the Mexico metal cutting machine tools market growth.

Another notable growth catalyst is the digital transformation facilitated by the Mexican Ministry of Economy’s “Industry 4.0 Programme,” which grants considerable incentives to MSMEs to integrate smart-laser cutting systems and IoT-enabled tool-monitoring platforms. According to the Mexico metal cutting machine tools market analysis, metal products and machinery exports totalled USD 307 billion in 2023, fuelled by advanced machining capacities. This momentum is reinforced by targeted workforce training, wider adoption of predictive maintenance software, and collaborative projects between research institutions and manufacturers, enabling SMEs to transition toward high-value, export-ready production capabilities while meeting stringent global quality standards across aerospace, automotive, and specialised industrial equipment supply chains in the country.

The industry has shown steady growth over the past five years. Companies across the industry benefited from consistent demand in construction, manufacturing and home improvement, which supported revenue expansion. Shifts in consumer preferences toward cordless and battery-powered tools influenced product lines and encouraged innovation. Expansion in the housing and commercial construction markets boosted downstream demand for power tools and related machinery. Growing infrastructure initiatives also contributed to stable orders for machinery manufacturers. International demand remained healthy, particularly from emerging markets importing US-made equipment. Low interest rates early in the period provided a foundation for equipment purchases in construction and industrial markets. Labor shortages in manual trades prompted a shift toward more automated and advanced machinery among contractors and businesses. Fluctuations in raw material prices affected profit for many companies, but continued investment in manufacturing technology helped manage costs. Over the past five years, larger companies have invested in robotics and automation, expanding product offerings to appeal to professionals and consumers seeking higher efficiency and safety. Fluctuating steel and electronic component prices created challenges for cost management, but companies improved operational efficiencies with leaner manufacturing practices and digital supply chain management, boosting profit. The industry continued to benefit from favorable trade conditions with Canada and Mexico under the United States-Mexico-Canada Agreement signed in 2020, supporting machinery exports. Competitive pricing pressures influenced market share among established brands and smaller manufacturers as both segments responded with expanded warranty options and customer support. Companies that diversified their product lines and regions of operation tended to secure more stable revenue streams, mitigating the risk associated with reliance on single markets. Power Tools and Other General Purpose Machinery Manufacturing industry revenue has been expanding at a CAGR of 2.0% over the past five years and is expected to total $62.5 billion in 2025, when revenue will jump by an estimated 1.5%. Over the next five years, industry performance will align closely with broader US construction and manufacturing trends. Federal and state infrastructure investment expansion will spur demand for general-purpose and specialized machinery. Ongoing urbanization and population growth in key regions will translate to a greater need for new housing and commercial buildings. Digital integration in machinery will become more widespread, with sensor-based monitoring and remote diagnostics moving to the forefront of new product releases. Although uncertainties in international trade policy may lead to changes in export demand, favorable currency movements could help maintain competitiveness abroad. Persistent labor shortages in construction and skilled trades will push end-users toward automated and labor-saving machinery options. Growth in e-commerce channels will expand market reach, allowing manufacturers to connect directly with contractors and consumers. Larger companies will strengthen their positions by leveraging new manufacturing processes, improving distribution networks and capitalizing on advanced features in machinery design to increase market share. Power Tools and Other General Purpose Machinery Manufacturing industry revenue is expected to expand at a CAGR of 2.0% to $69.0 billion over the five years to 2030.

Access North America DIY Power Tools Industry Overview which includes North America country analysis of (United States, Canada, Mexico), market split by Type, End-User, Product, Sales Channel

Power Tool exports reached their highest point in August 2023, with a value of $131M.

Mexico Solar Power Equipment Market is expected to grow during 2025-2031

During the period analyzed, Power Tool exports reached a record high of 2.8M units in August 2023, but slightly decreased from September to December 2023. In terms of value, exports of Power Tools saw a modest growth, totaling $100M in December 2023.

Power tool manufacturers have faced a rollercoaster of economic conditions in recent years. The initial boost from low interest rates in 2020 and 2021 spurred residential construction and a surge in DIY projects. This environment offered a lifeline when other construction markets lagged. However, the tide turned in 2022 and 2023 when interest rate hikes chilled the market, hitting consumer confidence and slowing sales. Despite signs of recovery as of late 2024, persistent challenges like high input costs and increasing tariffs have continued to weigh heavily, creating an uncertain landscape as manufacturers navigate volatile market conditions. Despite volatility in residential construction, infrastructure and industrial construction activity have boosted power tool sales, offering some reprieve. Industry revenue has been decreasing at a CAGR of 0.4% over the past five years to total an estimated $4.2 billion in 2025, including an estimated increase of 1.8% in 2025. Manufacturers have continued to endure stiff competition from imports, particularly from China and Vietnam. Tariffs will potentially offer domestic manufacturers some relief as tariffs on these countries are higher than the broad 10.0% tariffs as of July 2nd, 2025. Supply chain woes have hindered profit growth for manufacturers as the price of key inputs has climbed. These supply chain woes have led some companies, like Stanley Black & Decker, to streamline operations to benefit profit, with the company closing various manufacturing and distribution facilities over the past five years, with new closure announcements as recently as 2025. Looking ahead, power tool manufacturers will likely enjoy growth. With sluggish new residential construction early as rates remain high, private spending on home improvements may boost sales to both consumers and professionals working on projects. Tariffs will likely continue to lead to volatility in the prices of steel and aluminum. Manufacturers will likely raise prices to maintain profitability, potentially leading to price-based gains but also potentially disincentivizing downstream demand. Still, higher tariffs on Chinese and Vietnamese goods may take pressure off import penetration. Tariffs may also lead companies to reshore or nearshore operations to Mexico to align with USMCA agreements. Furthermore, a shift toward digital and connected tools presents a chance for manufacturers to capitalize on emerging technological trends. Industry revenue is forecast to climb at a CAGR of 1.9% to total an estimated $4.7 billion through the end of 2030.

In Mexico Wind Power Equipment Market, grow from 7.5 gigawatt in 2024 to 11.82 gigawatt by 2030, at a CAGR of 1.6% during the forecast period (2024-2030).

This statistic shows the revenue of the industry “Welding and soldering equipment manufacturing“ in Mexico from 2012 to 2018, with a forecast to 2024. It is projected that the revenue of Welding and soldering equipment manufacturing in Mexico will amount to approximately ***** million U.S. Dollars by 2024.

Imports of electromechanical hand tools operated without an external source of power in Mexico stood at X units in 2017, falling by -X% against the previous year. Overall, imports of electromechanical hand tools operated without an external source of power continue to indicate an abrupt slump. The most prominent rate of growth was recorded in 2011, when the imports increased by X% y-o-y.

In Mexico Multi-Tasking Machine Tools Market is projected to grow from USD 12.8 billion in 2025 to USD 21.6 billion by 2031, at a CAGR of 9.2%.

For the fourth year in a row, the Mexican machine-tool for working metal market recorded growth in sales value, which increased by 1% to $222M in 2024. In general, consumption recorded a abrupt decline. As a result, consumption reached the peak level of $5.9B. From 2014 to 2024, the growth of the market failed to regain momentum.

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Machine Tools Market Size 2025-2029

The machine tools market size is forecast to increase by USD 11.1 billion at a CAGR of 2.1% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the rising industrialization in developing countries. This trend is leading to increased demand for machine tools as these economies expand their manufacturing sectors. Another key driver is the adoption of 3D printing technology, which is revolutionizing the production process for certain machine tools and enabling the creation of complex parts that were previously difficult or impossible to manufacture. However, the market also faces challenges, most notably the high initial investment and operational costs associated with the production of machine tools. These expenses can make it difficult for smaller companies to enter the market and may limit the growth potential for some existing players.
To capitalize on market opportunities and navigate these challenges effectively, companies should focus on cost reduction strategies, such as optimizing production processes and exploring partnerships with suppliers and customers. Additionally, investing in research and development to stay abreast of technological advancements and market trends is essential for long-term success.

What will be the Size of the Machine Tools Market during the forecast period?

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The market continues to evolve, driven by advancements in technology and its applications across various sectors. Computer-aided manufacturing (CAM) software streamlines the manufacturing process, enabling efficient process planning and optimizing feed rates. Tool wear is mitigated through predictive maintenance and advanced tooling materials. CNC machining benefits from high-speed cutting and cutting fluids, while smart manufacturing integrates machine monitoring and machine vision for enhanced quality control. Tooling materials, such as ceramics and advanced alloys, improve part accuracy and surface finish in precision machining. Machining centers and turning centers leverage digital twins and virtual machining for improved efficiency and reduced power consumption.
Machine control systems and CAD software facilitate multi-axis machining and 3D printing. Advanced manufacturing techniques, including additive manufacturing and high-speed machining, expand the capabilities of machine tools. Chip removal and material handling are optimized through machining software and human-machine interface (HMI) design. Spindle speed and machine control systems ensure precise machining and process optimization. The ongoing dynamism of the market is reflected in the integration of machine tools with advanced technologies, such as machine vision, predictive maintenance, and digital twins. The evolving nature of manufacturing continues to drive innovation and growth in this sector.

How is this Machine Tools Industry segmented?

The machine tools industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Automotive
  Industrial machinery
  Precision engineering
  Transportation
  Others


Application

  High-volume production
  Precision and custom machining
  Multi-axis and complex machining
  Prototyping and low-volume production


Product Types

  CNC Machines
  Lathes
  Milling Machines
  Grinding Machines


Tool Type

  Metal Cutting
  Metal Forming
  Accessories


Geography

  North America

    US
    Canada
    Mexico


  Europe

    France
    Germany
    Italy
    Spain
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By End-user Insights

The automotive segment is estimated to witness significant growth during the forecast period.

The market experiences significant activity, particularly in the automotive sector, which holds the largest revenue share. The increasing adoption of advanced machine tools is driven by the growing complexity of automobile manufacturing, necessitating high-precision solutions for producing intricate vehicle components. CNC milling machines and cutting tools are extensively utilized in this segment for manufacturing components such as transmission cases, engine cylinder heads, flywheels, wheels, pistons, and gearboxes. Machine monitoring, predictive maintenance, and smart manufacturing are key trends shaping the market. Machine monitoring systems enable real-time analysis of machine performance, optimizing production efficiency and reducing downtime. Predictive maintenance, utilizing machine learning algorithms and data analytics, allows for the identification and resolution of potential issues before they cause significant

Mexico Machine Tool Market centers on the design, manufacturing, and application of machine tools—devices that cut, shape, or form materials through various mechanical processes.

Mexico has solidified itself as a leading producer and exporter of electrical equipment and component manufacturing over the five years to 2019. Often, large multinational corporations form joint ventures or acquire manufacturers in Mexico to vertically integrate with upstream suppliers or to capitalize on competitive labor costs. The Other Electrical Equipment and Component Manufacturing industry in Mexico, which includes the production of battery manufacturing, communication and energy wire and cable manufacturing, wiring device manufacturing and all other electrical equipment and component manufacturing, is expected to expand over the five years to 2019 due to rising demand, both in Mexico and abroad. The industry's profit margins, measured as earnings before interest and taxes, have also risen during the period, as merger activity has enabled operators to capitalize on economies of scale.

In 2017, the amount of arbors, collets and sleeves for machine-tools and hand tools imported into Mexico amounted to X units, growing by X% against the previous year. In general, imports of arbors, collets and sleeves for machine-tools and hand tools continue to indicate a precipitous setback. The growth pace was the most rapid in 2013, when the imports increased by X% from the previous year.