Technology Sector in Mexico in 2025

The technology development of Mexico has been nothing short of stunning – its IT market value grew from $11.6 billion in 2020 to $17.3 billion in 2023. In 2024, the capital, Mexico City, became the #1 market for digital talent in LATAM. With 90% of tech leaders struggling while recruiting and retaining talent, such rapid development of technology from Mexico is a silver lining.

I’m David Gomez, Alcor’s Lead IT Recruiter in Latin America. We provide software engineering staffing in Mexico as part of our software R&D services for US and European tech companies, helping them scale abroad by hiring 10 to 100 Silicon Valley-caliber engineers within a year.

In this article, you’ll delve deeply into the technology industry in Mexico, beginning with a market overview, tech trends, and IT sectors, and then exploring the major tech hubs of Mexico and notable companies. And the best part? You’ll discover how to maximize the benefits of this thriving nearshoring destination without relying on Mexican IT outsourcing. Let’s jump right in!

Key Takeaways

• Nearshore software development drives Mexico’s IT growth, offering 41-59% cost savings, access to a talent pool of 800,000 software developers, proximity to the US, and favorable business conditions.
• Mexico’s tech future is shaped by a strengthening cybersecurity market ($4.85 billion by 2030), a rapid rollout of 5G, the expansion of smart cities, and government efforts to bridge regional tech gaps through foreign investment.
• Mexico’s IT sector is growing, with $81.4 billion in high-tech exports, a top-5 global rank in AI patents, and 803 fintech startups driving 60% of VC funding.
• Mexico’s major tech hubs are Mexico City, Monterrey, Guadalajara, and Tijuana.
• Alcor’s all-in-one software R&D solution lets you skip legal entity setup in Mexico, access top talent at competitive salaries, and scale to 30+ senior engineers in 3 months without hidden costs.

Mexican IT Industry Overview

Mexico’s IT industry is experiencing rapid growth, becoming the second-largest technology market in Latin America. With a projected market value of $20.04 billion by 2030, IT outsourcing is a significant contributor to the market. Mexico’s robust tech ecosystem, comprising government initiatives, tech parks, and startup investments, contributes significantly to the country’s economic development and GDP growth. With 38 IT clusters, 12,900 companies, and 1,137 startups, Mexico has a large tech workforce of 800,000.

And now let’s go into detail.

The race for digital transformation has propelled the IT industry in Mexico to remarkable heights, making it the second-largest technology market in the Latin American region. The IT sector in Mexico is on the fast track to success, driven by a shift towards service-centric offerings. By 2030, it’s projected to reach a staggering $20.04 billion in market value, with a significant portion of that pie belonging to IT outsourcing. It has been growing at an average annual rate of 4.40%, contributing to the number of Mexican IT companies, which now totals 12,900. Thus, the tech market in Mexico is already contributing to the country’s economic development and GDP.

Mexico’s robust and innovative tech ecosystem, which encompasses government initiatives, tech parks, and startup investments, is largely responsible for Mexico’s tech development. For now, it numbers at:

• 38 IT clusters, 12,900 Mexican tech companies, and 1,137 startups.
• Three prominent tech hubs in Mexico are Mexico City, Guadalajara, and Monterrey.
• 371,000 of the active tech workforce in 2025, on top of its large talent pool.

IT Services Market in Mexico

The IT services market in Mexico is expected to grow by 18% by 2030, reaching $20.04 billion. IT outsourcing dominates this sector, accounting for up to $6.05 billion. SaaS is expected to become Mexico’s top tech product and service segment. Nearshore software development is the main growth driver, attracting North American tech companies due to its skilled workforce, low labor costs, and favorable business conditions.

Let’s look at this more thoroughly.

In 2030, Mexico’s IT services market is forecasted to grow by over 18 percent, resulting in $20.04 billion. One-fourth of the market is dominated by IT outsourcing, accounting for up to $6.05 billion. The largest revenue share in the Mexican technology industry comes from enterprise software, with a forecasted value exceeding $2.5 billion by 2030. SaaS is expected to become Mexico’s top tech product and service segment over the next five years.

The main growth driver of the Mexican IT sector is nearshore software development in Mexico. Here are a few reasons why North American tech companies opt for it:

• 800,000 software developers who rank 3rd in Central America for technology skills;
• Moderate labor costs, which are about 41-59% lower than in the USA;
• Geographic proximity and overlapping time zones facilitate efficient and fruitful cooperation;
• Favorable business conditions, ranking 10th in Kearney’s Global Services Location Index for financial attractiveness, people skills, and a business-friendly environment;
• The availability of the USMCA, which establishes free trade relations, facilitates foreign investment, and enhances the protection of intellectual property rights.

Technology Trends in Mexico for 2024-2030

Mexico’s cybersecurity market is projected to grow significantly, reaching $4.85 billion by 2030. The country is also deploying 5G technology, which is expected to contribute to digitization, domestic enterprise growth, and attract foreign investments. Mexico’s National Digital Strategy aims to create smart cities, with cities like Monterrey, Guadalajara, Mexico City, Querétaro, Tequila, and Puebla developing robust digital infrastructure. The government aims to bridge tech gaps, with Oaxaca becoming a beacon of international trade and attracting FDI.

Now, let’s dig deeper.

Cybersecurity. The rapid proliferation of information technology in Mexico, combined with a surge in data processing, has made the country increasingly susceptible to cyberattacks. This vulnerability became evident during the pandemic, with a staggering 66% of all cyberattacks in Latin America targeting the Mexican IT industry. According to the Global Cybersecurity Index 2024, Mexico is in the 2nd advancing tier, sharing the category with Austria, Poland, Slovakia, Ireland, and other European countries.

To fortify Mexico’s cybersecurity defense and attract more international companies to the market, the Mexican government has introduced a comprehensive national cybersecurity strategy, recognizing both AI and cloud technologies as potent tools to combat and mitigate cyber threats. These proactive steps have already set Mexico’s cybersecurity market in motion, projected to expand substantially and reach an estimated value of $4.85 billion by 2030.

Learn more about IT outsourcing in Latin America and software development outsourcing in Mexico!

5G technology. A notable trend within the Mexican technology industry is the deployment of 5G infrastructure. This advancement promises not only faster and more reliable internet connectivity but also contributes to digitization, bolsters the growth of domestic enterprises, and attracts foreign investments, paving the way for new applications and services. On a longer-term horizon, by the year 2030, the integration of 5G technology into Mexico’s digital landscape is forecasted to yield a substantial economic and social impact, amounting to an impressive $13 billion across various sectors.

Smart cities. Mexico’s National Digital Strategy serves as a blueprint for the nation’s commitment to ushering in the era of smart cities. Underpinned by digital technologies and data-driven solutions, Monterrey, Guadalajara, Mexico City, Querétaro, Tequila, and Puebla have already begun their journey. Their shared focus is on developing robust digital infrastructure featuring fiber-optic networks, smart mobility systems, public Wi-Fi networks, innovative waste management solutions, and energy-efficient technologies.

Bridging tech gaps. The Mexican government aims to provide all states with equal opportunities for technical development. In terms of technological advances, Oaxaca is a case in point. It was once an economically underdeveloped state, largely due to its rugged terrain, which made it challenging for the population to find employment. Thanks to the investment in its manufacturing facilities, Oaxaca has become a beacon of international trade: in 2024, its main international sales reached $11.2 million. Naturally, this brings in foreign direct investment (FDI). In 2024, it reached $91.1 million, positioning Oaxaca for further tech growth.

State of Different IT Sectors in Mexico

Mexico’s IT sector is thriving across multiple areas.

• High-tech exports reached $81.4 billion in 2023, accounting for 14.2% of the country’s total exports and positioning it among the top 10 globally.
• In AI, Mexico was the first in Latin America to adopt a national strategy and now ranks fifth worldwide for AI patents, attracting investments such as Microsoft’s $1.3 billion plan and Ascendion’s $100 million GenAI center.
• The fintech ecosystem leads the region, with 803 startups capturing 60% of VC funding. Insurtech has expanded fivefold since 2018.
• Healthtech nearly doubled to a $2.41 billion market.
• Telecom reforms have cut mobile costs by 42%, and crypto adoption is booming, forecasted to reach $1.3 billion by 2025.

Hi-tech

The high-technology sector sets the scene for developing the most cutting-edge tech, including AI-based products and hardware, such as computers, electrical machinery, and scientific instruments, as well as semiconductor manufacturing, which plays a significant role in software development in Aguascalientes. In 2023, Mexico’s high-technology exports totaled $81.4 billion. According to UNESCO, these represent 14.2% of total national exports, taking Mexico to the global top 10. As testified in the sectors below, such well-established trade sets the scene for further innovation.

Artificial Intelligence

Since 2018, Mexico has embraced the development of artificial intelligence (AI), unveiling its National AI Strategy. In doing so, it became the 10th country in the world and the first in Latin America to regulate the use of AI in the public sector.

According to the Latin American Artificial Intelligence Index, Mexico’s AI landscape ranks fifth globally in terms of registering AI-related patents. The comparative findings indicate that the country also excels in research, development, and adoption.

This rapid AI advancement is accelerated by the exceptional skills of Mexican software engineers who are the regionʼs experts in data analytics, management, and visualization. They have exciting opportunities to work at groundbreaking Mexican AI startups, such as Yaydoo, VR3io, FoodBot AI, and Omica.bio.

Mexico’s potential in AI technologies has not gone unnoticed by foreign IT companies. For example, US-based software engineering company Ascendion is set to establish a center for Generative AI skills in Monterrey. This initiative is expected to inject at least $100 million into the country’s economy, underlining the immense promise of AI for the future of Mexican IT. Microsoft is not missing out: the tech giant plans to invest $1.3 billion to ramp up its Mexican AI and cloud computing infrastructure over the next three years.

Fintech

The tech industry in Mexico boasts the second-largest fintech ecosystem in Latin America. At the same time, it leads in venture capital reports, accounting for 60% of the country’s VC funding between 2022 and 2024. The number of fintech startups in Mexico increased to a remarkable 803 in 2025. Among them are such stars as Bitso, Clip, Konfio, Kueski, Stori, and Clara. These companies specialize in payments and remittances, personal financial management, crowdfunding, and lending.

Due to the rapid evolution of the fintech industry in Mexico, the government introduced the Fintech Law, positioning Mexico at the forefront of regulatory issues. The law aims to provide a framework that makes finance more inclusive, offering greater clarity for users of fintech services, and fostering a vibrant spirit of competition within the market.

Insurtech

Together with Brazil, Mexico boasts the largest number of insurtech companies. Now reaching 118, it has increased more than fivefold from 2018, when only 19 registered insurtech firms were showcased. The reason for such rapid growth? Mexico’s insurtech venture ecosystem. Not only did it command a 21% regional funding share in 2023, but it also has a 26% attraction rate, becoming a magnet for global VC players. MAPFRE reports that Mexico draws in 31% of foreign investors. Given that 21% of insurtech startups embrace novel business models, there’s yet more to witness in this sector.

Healthtech

For quite some time, Latin American countries, including Mexico, have been struggling with a lagging healthcare system. Limited access to quality medical services and resources, plus the need to modernize administrative processes, served as driving forces for change.

The HolonIQ LATAM Health Tech 50 report analyzed the healthtech sector in South American countries, where Mexico accounts for 38% of the total startup share. One exciting development is the Mexican startup Prosit, which secured a significant $100,000 in funding from Google in 2023. This investment will supercharge Prosit’s focus on health innovation, harnessing the power of AI and LLM technologies.

In the broader context, the digital health market in Mexico has experienced explosive growth, nearly doubling in size since 2018, and is now estimated at a staggering $2.41 billion. This rapid expansion has been most evident in the areas of mental health, telemedicine, health insurance, and dental solutions.

Learn how to perform company incorporation in Mexico and explore how the EOR solution can free you of its burdens!

Telecommunication

Recognizing the pivotal role of the telecommunications sector in driving digital transformation, Mexico initiated a bold telecommunications reform. By amending the Mexican Constitution, the country’s government imposed tariffs on companies that threatened to monopolize the market. Additionally, it established the Federal Telecommunications Institute to oversee competition in telecommunications and broadcasting.

Since 2013, it has yielded remarkable results, such as:

• 42% reduction in the costs of mobile services;
• Mexico’s 2nd regional position in the telecom market, trailing only behind Brazil.
• $28.8 billion in revenue in 2024;
• The number of 5G mobile connections is about to grow by 400%, reaching 87 million by 2030.

Cryptocurrency & blockchain

Although the crypto economy is smaller in Latin America than in other regions, it’s thriving due to solid grassroots adoption. Notably, four countries have made their mark in the top 20 of the Global Crypto Adoption Index: Brazil (ranked 10), Venezuela (ranked 13), Mexico (ranked 14), and Argentina (ranked 15).

Mexico’s crypto segment is on a remarkable trajectory, expected to reach $1.3 billion in revenue by the end of 2025, with a robust compound annual growth rate (CAGR) of 79.76%. A pivotal moment occurred in June 2022 when Bitso, a leading Mexican cryptocurrency exchange, successfully processed $1 billion in crypto remittances between the US and Mexico. This milestone garnered global attention, highlighting Mexico’s rapid progress in the cryptocurrency world.

In the realm of blockchain technology, Mexico’s blockchain market is forecast to grow at a 90.5% CAGR between 2022 and 2030, ultimately hitting $36.5 million. Moreover, 3.1 million Mexicans are investing in cryptocurrency, resulting in one of LATAM’s highest cryptocurrency adoption rates.

Curious about other LATAM markets? Unlock the trends and nearshoring benefits of the IT sector in Colombia!

IT in Mexico vs the USA

The US tech industry, a major contributor to the US economy, is facing a talent shortage due to increasing competition for qualified developers. The demand for software engineers is projected to increase by 17% between 2022 and 2030, resulting in higher salaries. In contrast, Mexico offers skilled senior tech talent with lower wages, making nearshoring technology an ideal solution for US tech businesses to bridge the talent gap while maintaining engineering quality.

Want more insights? Read further!

Like IT in Mexico, the US tech industry is a superpower actively embracing AI, ML, robotic automation, and 5G technologies. In the US, the IT services market collectively adds a substantial $563.9 billion in revenue to the national economy.

However, the growing number of tech product companies competing for qualified developers has created a burning issue: a talent shortage in the USA. According to the US Bureau of Labor Statistics, the demand for software engineers is projected to surge by a significant 17% between 2022 and 2030. Consequently, the competition for IT experts in the US drives up annual salaries, which currently average $105K, more than double the median wage of all other occupations in the US labor market.

In stark contrast, the technology sector in Mexico offers a wealth of skilled senior tech talent with annual compensation ranging from $37,380 to $81,495, depending on the level of expertise. For example, an average senior software engineer’s salary in Mexico City is around $69,510 – over 44% less than in California. As a result, nearshoring technology in Mexico has emerged as an optimal solution for US tech businesses seeking to bridge the talent gap while maintaining cost-effectiveness.

Major Tech Hubs of Mexico

Mexico City is the leading tech hub in Mexico, hosting 553 startups and accounting for 48% of the country’s startups. It attracts $10.79 billion in VC funding and is home to the National Autonomous University of Mexico and the National Polytechnic Institute. Monterrey is the second-largest Mexican tech hub, with 123 startups, focusing on EdTech and transportation. Guadalajara leads the fintech scene with 111 startups and is a promising tech city with $2.4 million in VC funding. Tijuana, while smaller, is emerging with $2.4 million in VC funding and a growing base of software, transport, and FinTech companies.

Mexico City

The leader among Mexican tech hubs, Mexico City, hosts 553 startups and accounts for 48% of the country’s startups. Here’s more:

• Over the past decade, it attracted $10.79 billion in VC funding.
• Notable industries include e-commerce, automotive, retail, and fintech.
• It’s home to the National Autonomous University of Mexico and the National Polytechnic Institute, which ensures a stable influx of graduates.

Monterrey

Monterrey is the 2nd Mexican tech hub by the number of startups, which has reached 123. Moreover, the city boasts:

• 100+ innovation parks
• Well-established startups in EdTech and transportation, such as Nowports, Vinco, Robin Academy, and others.
• Innovative education, such as an AI-powered learning ecosystem, has recently been pioneered by the Tecnológico de Monterrey.

Curious about nearshoring to Monterrey? Discover everything you need to know in our latest article!

Guadalajara

Although ranked as the 3rd tech hub in Mexico, Guadalajara holds the title of local Silicon Valley. Indeed, it’s a gem among tech cities in Mexico, and here’s why:

• In 2024, it climbed three spots higher in the Startup Ecosystem Index.
• With 111+ startups, Guadalajara leads the scene in fintech.
• It makes waves in AI, developing the first GenAI lab with Wizeline.

Tijuana

Tijuana is an understated Mexican tech city, but it is well poised to become a burgeoning tech hub. Take the stats:

• Crunchbase reports $2.4 million of VC funding in Tijuana, supporting 62 founders on pre-seed and seed rounds.
• According to StartupBlink, successful startups abound in software & data, transportation, and fintech.

Mexican Tech Companies to Watch in 2025

Mexico’s top tech companies include Kavak, a used car buying and selling platform, Clip, a digital payment platform, and Nowports, a logistics platform. As well as Kueski, a leading BNPL provider, and Alibre.io, a social savings network startup in Tijuana.

Read ahead for detailed insights.

Kavak, Mexico City. An online platform for buying and selling used cars, Kavak became Mexico’s 1st unicorn in 2023. Now it continues to expand into other regional markets, standing out as an icon in the automotive industry.

Clip, Mexico City. This digital payment platform was at the root of Mexico’s fintech performance. As of now, it has reached a valuation of $2 billion and continues to secure investments. In June 2024, another $100 million fueled its future advancements.

Nowports, Monterrey. Positioning itself as an all-in-one logistics platform, this Mexican unicorn aims to optimize supply chain operations. Now, at a $1.1 billion valuation, it achieved $397.7 million in revenue and 40 logistics customers by 2025. More to go in 2026!

Kueski, Guadalajara. Mexico’s leading BNPL provider enables unbanked Mexicans to purchase in-store and offers personal loans. In 2024, the platform reached 20 million disbursed loans and was recognized as one of the top 5 ethical companies in Mexico.

Alibre.io, Tijuana. This company is a testament to Tijuana’s potential. Aiming to build a Social Savings Network, the startup has already been funded by Plug and Play and is expected to launch soon.

Expand Your Tech Business to Mexico Hassle-Free

US tech product companies can expand abroad by using a full-cycle tech R&D center solution. Alcor offers an all-in-one solution, including EOR for technology in Mexico, Argentina, Colombia, and Eastern Europe, as well as full-cycle tech recruitment, operational support, and office leasing. With an 80% CV pass rate, 2-6 weeks to fill a position, and 2.5 years of average hire tenure, Alcor can help companies build a remote team of Silicon Valley-caliber programmers in a chosen location. With 98.6% of candidates successfully passing their probation period, Alcor is committed to helping companies succeed in their tech R&D journey.

Read on for a more detailed overview.

If your US-based tech product company is struggling to find the right local tech professionals and is unwilling to outsource, expanding abroad could be the solution you’re looking for. The BOT model in the IT industry could be your next strategic move. Alternatively, you can opt for something even better, such as our full-cycle R&D center solution.

Dotmatics, for example, was once in the same situation. They had a vision to develop scientific software for biologists, but needed help hiring experts. That’s where Alcor came in as their trusted partner. With our comprehensive assistance, Dotmatics successfully entered a new IT market and established a dedicated team of over 30 software engineers within a year.

Building a dedicated offshore team in Eastern Europe helped Dotmatics maintain its internal workflows and achieve key milestones, including its $5.1 billion acquisition by Siemens in July 2025. Notably, the engineers also received stock options, highlighting the real value of offering this benefit.

You can also achieve the same results with Alcor! We offer an all-in-one tech R&D center solution with Employer of Record in Mexico, Colombia, and Eastern Europe.

It includes:

• EOR for technology – your way to delegate legal, payroll, accounting, and remuneration to Alcor and employ a team without establishing a legal entity overseas. Bonus: We also handle onboarding & offboarding, as well as manage benefits upon request, just as we assisted with stock options for ThredUP & Sift.
• Full-cycle tech recruitment with an 80% CV pass rate, 2-6 weeks to fill a position, and 2.5 years of average hire tenure. Our secret? A database of 253,000+ verified candidates and a team of 40 expert tech recruiters ready to match you with high-performing engineers who deliver fast and drive real progress. Thus, you can reach your next product milestones sooner.
• Operational support covering an office lease, equipment procurement, tech support, employer branding, HR services, and more.

You can rely on the efficiency and quality of our services, as we’re committed to building you a remote team of Silicon Valley-caliber programmers in a chosen location. Imagine getting a team of 30+ developers, fully compliant with local labor laws, within just three months. Moreover, 98.6% of our candidates successfully pass their probation period.

Sounds interesting? Get in touch with us to embark on your exciting R&D journey!