Mexico’s Space Industry Is Taking Off: 2025 Market Report & Future Outlook

Rapid Sector Growth: Mexico’s space and satellite sector is expanding from its academic roots into a burgeoning industry. The country has launched multiple satellites (from 1985’s Morelos I to 2020’s AztechSat-1 and upcoming 2025 missions) and is projected to significantly increase its space activities over the next decade ^[1] ^[2].
Government Commitment: The Mexican Space Agency (AEM), established in 2010, coordinates national space policy ^[3]. In 2023–2025 Mexico enacted legal reforms declaring space a national development priority, enabling domestic rocket launches and updating regulations to spur private investment ^[4] ^[5]. A new General Satellite Directorate now integrates AEM and the Mexsat program, reflecting high-level support for space infrastructure and a plan to launch a new communications satellite by 2030 ^[6] ^[7].
Satellite Systems: Mexico operates its own communications satellite network (MEXSAT) for nationwide telecom, including the Morelos-3 and Bicentenario geostationary satellites ^[8] ^[9]. A new geostationary satellite is slated to launch this decade to replace the aging Bicentenario and expand coverage ^[10]. The country is also exploring an Earth observation constellation via a partnership with Satellogic, aiming for frequent multispectral imaging of Mexican territory ^[11] ^[12].
Emerging Private Sector: A wave of Mexican startups and private companies is entering the “New Space” economy. For example, Dereum Labs develops low-cost lunar rovers and has partnered with Airbus and AEM to work on Moon resource extraction technologies ^[13] ^[14]. Space JLTZ, another Mexican firm, collaborates internationally – it has teamed with Russia’s Glavkosmos to offer launch and Earth observation services in Mexico ^[15], and worked with global partners to launch a nanosatellite (D2/Atlacom-1) via SpaceX in 2021 ^[16] ^[17]. Meanwhile, ultra-small femtosatellite developer ThumbSat made history in 2025 when a Chinese commercial rocket carried two of its 100-gram satellites to orbit – the first Mexican-built satellites launched on a Chinese vehicle ^[18] ^[19]. These ventures underscore growing private capabilities in satellite manufacturing, robotics, and launch services.
International Partnerships: Mexico actively collaborates with major space agencies. It joined NASA’s Artemis program for lunar exploration, contributing “Colmena” micro-rovers – a set of five tiny Mexican robots – to Astrobotic’s 2024 Peregrine lunar lander mission ^[20] ^[21]. (Though the lander suffered an anomaly, the effort marked Mexico’s first lunar payload attempt ^[22].) In Earth orbit, Mexico works closely with NASA on the AztechSat Constellation, a multi-nanosatellite project by five Mexican universities to develop marine animal tracking technology; this NASA-AEM initiative builds on the success of AztechSat-1 (deployed from the ISS in 2020) ^[23] ^[24]. Mexico also signed a broad Cooperation Agreement with ESA in 2023 to expand joint projects in areas like Earth observation (e.g. monitoring Sargassum algae) and satellite applications ^[25] ^[26]. Regionally, Mexico and Argentina spearheaded the creation of the Latin American and Caribbean Space Agency (ALCE) in 2021 to coordinate regional space efforts; ALCE, headquartered in Mexico City, now counts about 20 nations working together on peaceful space exploration ^[27] ^[28]. Mexico’s outreach extends to Asia as well – in 2024 the government signed an agreement with South Korea’s KARI to study building a Mexican launch site, leveraging Mexico’s advantageous latitude to enter the global launch market ^[29] ^[30]. These collaborations provide technology transfer, expertise, and mission opportunities that accelerate Mexico’s progress.
Infrastructure & Capabilities: While Mexico does not yet have an orbital launch facility, it has been developing infrastructure on the ground. The country operates satellite control centers (e.g. Mexsat’s ground stations in Hermosillo ^[31]) and satellite image receiving stations like the Chetumal ground station (which downlinks data from programs like Landsat) for environmental monitoring ^[32]. A new Regional Center for Innovation and Space Development is under construction in Atlacomulco, backed by the Defense Ministry, to serve as a hub for satellite technology development and training ^[33]. In launch technology, Mexican researchers have made strides with suborbital rockets: in 2020, a team at the Autonomous University of San Luis Potosí launched the Fénix 1-2 sounding rocket to 28 km altitude as part of a program to build up domestic launch expertise ^[34]. Such university-led projects, along with support from AEM, are laying the groundwork for future domestic launch capabilities. AEM’s director noted Mexico’s geography gives it “a great opportunity” for launch sites and that the nation is working to enable rocket manufacturing and spaceport construction in the coming years ^[35]. Notably, updated legislation is in progress to allow launches from Mexican soil – currently, lack of regulation has been a barrier, something highlighted by Mexico’s first woman in space, Katya Echazarreta, who advocates for swift regulatory reforms to permit local commercial launches and protect national interests ^[36] ^[37].
Key Sectors: Communications, Earth Observation, Education & More: Satellite communications remains the most mature segment of Mexico’s space sector. The government’s Mexsat constellation provides national telephony, broadband, and secure communications (critical for bridging the digital divide in remote areas and for disaster response) ^[38] ^[39]. Private telecom operators also serve Mexico – Satélites Mexicanos (Satmex), once the state-owned satcom provider, was privatized and later acquired by Eutelsat in 2013, reflecting international interest in Mexico’s satellite market ^[40] ^[41]. In Earth observation, Mexico historically relied on foreign data, but this is changing: the AEM has partnered with companies like Satellogic to field observation satellites, aiming to give Mexico autonomous monitoring capacity for agriculture, natural disasters, maritime surveillance, and urban planning ^[42] ^[43]. Domestic Earth-observation micro-satellites are also being developed – for instance, Gxiba-1, a cubesat built by UPAEP University, is scheduled for launch from Japan in late 2025 to monitor volcanic ash from Popocatépetl volcano ^[44] ^[45]. Mexico’s emphasis on education and R&D in space is strong. Numerous universities (UNAM, IPN, UPAEP, Querétaro Aerospace University, etc.) have active aerospace programs, contributing to satellite and rover projects ^[46] ^[47]. These projects serve as training grounds for young engineers – AztechSat-1’s success even drew praise from NASA, comparing the Mexican students’ performance to that of NASA engineers ^[48] ^[49]. To cultivate talent, AEM and the new Satellite Directorate are promoting scholarships, technology transfer, and open dialogue with academia ^[50] ^[51]. This focus is creating a pipeline of skilled professionals. Industry groups like the Mexican Space Cluster are also facilitating the transition “from ideas to scalable products,” helping start-ups and even traditional manufacturers pivot into space technology ^[52] ^[53]. The cluster’s president notes that Mexico’s highly qualified manufacturing workforce (e.g. from the automotive and aeronautical sectors) is a major asset that can be redirected to space endeavors ^[54]. This cross-pollination is already visible as aerospace giants with plants in Mexico (e.g. Airbus, Honeywell, Safran) increasingly consider space-related projects in the country, and as local firms begin producing components for satellites and rockets.
Recent Developments and News: As of 2025, Mexico’s space industry is abuzz with activity. In early 2025, the government restructured its space governance: the Agency for Digital Transformation and Telecommunications (ATDT) created a unified Satellite Directorate to strengthen institutional capacity, shortly after the long-time AEM Director General retired ^[55] ^[56]. This reorganization is aimed at streamlining efforts in satellite operations and development of new systems. In the private sector, August 2025 saw an unprecedented Sino-Mexican space collaboration when China’s CAS Space launched Mexican ThumbSat probes, touted as a milestone in opening the Chinese commercial launch market to North America ^[57] ^[58]. On the social front, Mexico’s space ambitions have captured public imagination: Katya Echazarreta’s 2022 suborbital flight (as the first Mexican-born woman in space) galvanized interest, and she has since been actively campaigning for Mexico to fully embrace the “New Space” era through supportive laws and entrepreneurial spirit ^[59] ^[60]. At the diplomatic level, Mexico’s leadership in CELAC led to 19 countries signing on to ALCE’s charter, underscoring Mexico’s intent to be a regional space hub ^[61] ^[62].
Market Size and Outlook: Although Mexico’s space sector is still emerging, the foundations point to robust growth. Under the previous national space roadmap “Orbital 2.0,” Mexico aspired to capture 1% of the global space economy by 2024 ^[63]. While that ambitious target has not yet been fully realized – Mexico currently lacks large-scale commercial space manufacturers or its own launch providers – the gap is closing. The overall aerospace industry (civil aviation and space combined) in Mexico is sizeable, estimated at around US$11.2 billion in 2024 and projected to double to US$22.7 billion by 2029, with space-related activities accounting for a growing share of that total ^[64]. Global trends are in Mexico’s favor: the global space economy is forecast to balloon from roughly $600 billion in 2024 to nearly $1 trillion by 2033 ^[65], driven by constellations of small satellites (up to 100,000 satellites could be orbiting by the early 2030s) and increased demand for launch and data services ^[66] ^[67]. Mexico is positioning itself to seize a slice of this boom. Experts suggest that with continued government support, regulatory certainty, and international partnerships, Mexico could double or triple its domestic space market size within 5–10 years. The planned new telecom satellite and potential future Earth observation satellites will inject significant capital and create local high-tech jobs. The prospect of a Mexican launch site, if realized, could make Mexico a player in the lucrative launch services market (worth an estimated MX$128 billion globally per year, ~US$6.5 billion ^[68]) – even capturing a small fraction of that would be economically impactful.
Future Missions and Goals: Looking ahead, Mexico’s agenda is packed with projects. In the near term, all eyes are on the Gxiba-1 satellite launch in late 2025 and its one-year mission to gather volcano data ^[69]. By 2026–2027, the country aims to deploy the AztechSat constellation of nanosatellites for environmental and wildlife monitoring, a mission that also serves as a technology demonstrator for lunar exploration instruments in NASA’s Artemis program ^[70] ^[71]. Mexico has also signaled interest in human spaceflight: as a partner in Artemis, it hopes to send its astronauts or researchers to train with international crews (there is speculation that a Mexican astronaut could participate in a future Artemis mission or ISS collaboration). In fact, Mexico’s government announced an intention to lead Latin America’s first space mission by 2027, potentially under President Claudia Sheinbaum’s administration ^[72]. While details remain under wraps, this could entail a regional satellite launch or even sending a Mexican astronaut to a space station with international support.

Overall, Mexico’s space and satellite industry in 2025 is at an inflection point. After decades of gradual groundwork – from the first experimental rockets in the 1950s ^[73], to launching communications satellites in the 1980s, to establishing AEM in 2010 – the country is now leaping forward with a coordinated national strategy. Government programs are aligning with private innovation and academic talent, creating an ecosystem primed for takeoff. The historical constraints (limited funding, fragmented efforts) are giving way to new momentum fueled by ambitious policies and global partnerships. Challenges remain – funding needs to scale up from the modest ~$3 million AEM annual budget of the early 2020s ^[74], and the country must continue building technical infrastructure and a regulatory framework that encourages investment. But the trajectory is unmistakably upward. As one industry leader put it, Mexico has a five-year window to join the top tier of the space industry, and the nation is determined not to miss this opportunity ^[75] ^[76]. If current trends continue, by the early 2030s Mexico will be not just a consumer of space services, but a significant regional provider – launching its own satellites, training a new generation of aerospace engineers, and contributing to humanity’s ventures in space. The sky is no longer the limit for Mexico’s space sector; from communications and Earth observation to lunar exploration, Mexico is boldly forging its path among the stars.

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