Mexico Power EPC - Market Share, Industry Trends, Statistics, And Growth Forecasts, 2026-2031 CFE Grid Upgrades And Renewables Fuel A USD 8.74 Billion Opportunity
Dublin, Oct. 30, 2026 (GLOBE NEWSWIRE) -- "Mexico Power EPC - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
Mexico Power EPC Market to Reach USD 8.74 Billion by 2031 as Grid Modernization and Renewable Energy Investment Accelerate
The Mexico power EPC market is projected to grow from USD 6.33 billion in 2025 and USD 6.69 billion in 2026 to USD 8.74 billion by 2031. The market is expected to register a CAGR of 5.49% from 2026 to 2031, supported by major investments in power generation, transmission infrastructure, renewable energy, energy storage, and industrial captive power projects.
Accelerated CFE-Led Grid Modernization Tenders
Mexico's power engineering, procurement, and construction activity is set to benefit from Comision Federal de Electricidad's planned USD 23.4 billion investment in new generation capacity and electricity network upgrades. Announced in August 2025, the program represents the largest single investment window in the utility's history and includes 13,024 MW of new generation capacity and 6,261 circuit-kilometers of high-voltage transmission lines. Project awards are expected to begin in 2026.
Domestic-content requirements of up to 60% are encouraging international EPC companies to establish fabrication joint ventures in Nuevo Leon and Estado de Mexico. These partnerships are expected to improve access to local supply chains while helping contractors protect project margins. The grid-stress episode recorded in May 2024 also reinforced the urgency of electricity infrastructure improvements, bringing several bidding schedules forward by nearly two years. Faster procurement and award cycles are likely to support sustained growth in the Mexico power EPC market.
Nearshoring-Driven Industrial Power Demand
Mexico's emergence as the United States' largest trading partner in 2023 has accelerated manufacturing investment, with foreign direct investment expanding at an average annual rate of approximately 20% through 2025. Automotive, electronics, and data-center developments in Nuevo Leon, Guanajuato, and Baja California are increasing demand for reliable captive power systems, upgraded substations, and medium-voltage distribution lines.
Industrial electricity tariffs of approximately USD 0.18 per kilowatt-hour are strengthening the financial case for on-site solar-plus-storage installations. Projects within the new 0.7-20 MW self-generation bracket are gaining momentum as industrial users seek greater control over energy costs and reliability. Distributed renewable energy systems and microgrids are therefore becoming an important opportunity within Mexico's power EPC sector.
Private Power Investment Faces Regulatory Changes
The March 2025 energy reform requires CFE to retain at least 54% of electricity generation, limiting opportunities for fully merchant power projects. Independent power producers are increasingly expected to co-invest with the state utility through mixed-producer structures. This change may lengthen contract negotiations and increase exposure to CFE's credit profile while new investment and contracting models are established.
Additional factors influencing the market include fast-track permitting for renewable energy parks of at least 1 GW, renewed interest in combined-cycle retrofits designed to reduce CO? emissions, and persistent MXN-USD foreign exchange volatility.
Renewable Energy Leads Mexico Power Generation EPC Activity
Renewables accounted for 75.2% of power generation EPC value and are forecast to record a 9.8% CAGR through 2031. Growth is being supported by CFE's invitation for 34 solar and wind projects with a combined capacity of approximately 6 GW. Requirements to pair solar facilities with battery storage are increasing the value and technical scope of individual contracts.
The renewable segment of the Mexico power generation EPC market is expected to reach USD 4.35 billion by 2031, representing approximately half of total generation expenditure. Solar, wind, and battery storage projects will remain central to market expansion as Mexico works to increase capacity and improve grid reliability.
Thermal power EPC will also retain an important role. Siemens Energy's 4 GW program and Mitsubishi Power's combined 1.5 GW projects demonstrate continued demand for natural gas generation as a balancing resource. Hydrogen-ready turbines and small electrolyzer additions could create future retrofit opportunities. Nuclear EPC activity remains limited, with no major new announcements since the expansion of the Laguna Verde facility in the 1990s.
Hybrid power portfolios combining solar generation, battery storage, and gas-fired capacity are emerging as a preferred approach to reliability. Together with grid modernization and industrial nearshoring, these investments are expected to provide a stable pipeline of opportunities across the Mexico power EPC market through 2031.
Key Topics Covered:
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Installed Capacity Outlook
4.3 Primary-Energy Consumption Snapshot
4.4 Market Drivers
4.4.1 Accelerated CFE-led grid-modernization tenders (2025-27)
4.4.2 Near-shoring-driven industrial power demand clusters
4.4.3 Fast-track permitting for?1 GW renewable parks
4.4.4 Rediscovery of combined-cycle retro-fits for CO? cuts
4.4.5 Mainstream adoption of digital EPC tool-chains (BIM-5D)
4.4.6 Novel green-bond structures lowering EPC financing costs
4.5 Market Restraints
4.5.1 Shifting political stance on private PPAs post-2024
4.5.2 Persistent MXN-USD FX volatility inflating imported kits
4.5.3 Execution-stage bottlenecks in Federal ROW clearances
4.5.4 Chronic transmission congestion in Isthmus-Bajio corridor
4.6 Supply-Chain Analysis
4.7 Regulatory Landscape
4.8 Technological Outlook
4.9 Porter's Five Forces
4.9.1 Threat of New Entrants
4.9.2 Bargaining Power of Suppliers
4.9.3 Bargaining Power of Buyers
4.9.4 Threat of Substitutes
4.9.5 Competitive Rivalry
4.10 PESTLE Analysis
5 Market Size & Growth Forecasts
5.1 Power Generation EPC
5.1.1 By Technology
5.1.1.1 Thermal
5.1.1.2 Nuclear
5.1.1.3 Renewables
5.1.2 By Capacity Band
5.1.2.1 Up to 100 MW (DER, micro-grid)
5.1.2.2 100 to 499 MW
5.1.2.3 Above 500 MW
5.1.3 By End-User
5.1.3.1 Regulated Utilities
5.1.3.2 Independent Power Producers
5.1.3.3 Industrial Captive Power
5.1.3.4 Public Sector and SOE
5.2 Power Transmission and Distribution (T&D) EPC
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves (M&A, Partnerships, PPAs)
6.3 Market Share Analysis (Market Rank/Share for key companies)
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
6.4.1 ICA Fluor
6.4.2 Techint Ingenieria y Construccion
6.4.3 Abengoa Mexico
6.4.4 Elecnor Mexico
6.4.5 Sener Ingenieria y Sistemas
6.4.6 Acciona Infraestructuras
6.4.7 Siemens Energy Mexico
6.4.8 Iberdrola Ingenieria
6.4.9 Cobra Instalaciones y Servicios
6.4.10 Invenergy Services Mexico
6.4.11 Enel Green Power Mexico
6.4.12 Rengen Energy Solutions
6.4.13 Fortius Electromecanica
6.4.14 Arendal S. de RL
6.4.15 Tecnicas Reunidas
6.4.16 Sumitomo Corporation Mexico
6.4.17 Larsen & Toubro Power T&D
6.4.18 Jinko Solar Constructora
6.4.19 GE Vernova Mexico
6.4.20 Vestas Construction Services
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-need Assessment
For more information about this report visit
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment