Mexico is the largest market for mobile applications in Latin America

Mexico is the largest market for mobile applications in Latin America, highlighted the U.S. Department of Commerce, referring to a study published by the marketing consultancy AppsFlye.

In that nation, app downloads grew 30% during 2021, compared to the previous year.

Mexican users spent $500 million in app stores during the first quarter of 2021.

The software and IT services segments are Mexico is positioning itself as a developer of high-quality software for the manufacturing, aerospace and financial industries.

There are 38 IT clusters across the country offering software development, call centers, high-tech manufacturing and engineering services.

Mexico is following the global trend towards a service-centric IT industry, where most technologies are offered under a service contract or lease, leading to opportunities in Software as a Service (SaaS), Infrastructure as a Service (IaaS) and Platforms as a Service (PaaS).

According to the Department of Commerce, the market is expected to grow driven by the adoption of cloud software and infrastructure in the country.

Mobile applications

Some international companies have announced new data storage facilities in Mexico during 2022.

Spending on Infrastructure as a Service (IaaS), cybersecurity solutions, mobile applications and fintech solutions is also expected to grow.

Austerity measures by the administration of President Andrés Manuel López Obrador have impacted public spending on technology.

Local media report that as of May 2022, the federal government has spent only 10% of the annual budget allocated to IT.

The National Office of Digital Strategy coordinates all federal public procurement of IT products and services, and has published a guide for the use of IT in public administration that prioritizes in-country data localization for government procurement processes.

Mexico’s federal budget imposes a value-added tax (VAT) withholding on non-resident digital service providers in Mexico and provides for an enforcement mechanism to ensure compliance.

All non-resident digital service providers operating in Mexico are required to obtain a tax identification number, register with the Tax Administration Service (SAT), and collect and collect VAT from customers.