Increased Investment In Infrastructure Will Result In Steady Growth Of The Diesel Genset Market In Mexico Through 2019
Investment in infrastructure development has spurred growth in the diesel genset market in Mexico, which is expected to post a CAGR of 10.98% from 2015-2019, says research firm Technavio.
To make Mexico a favorite destination for investment and improve its global competitiveness, the government of Mexico has raised the country’s infrastructure budget. This increased investment has propelled demand for diesel gensets during infrastructure development, and also for providing power backup for established infrastructure.
A new Technavio report draws attention towards an increase in the number of manufacturing facilities in Mexico. The availability of abundant oil, minerals and low-cost labor have led to a growing number of manufacturing facilities throughout the country.
“Increased foreign direct investment across various industries and more infrastructure investment are some of the major factors for the overall increased investment in Mexico,” says Faisal Ghaus, Vice President of Technavio.
“Recovery in the market in the US has also led to increased imports from Mexico, thus resulting in greater production activity.”
Furthermore, the market is witnessing an increase in the demand for hybrid generators that run on both gas and diesel, which is also expected to boost market projections.