In an era of constant transformation, innovation has ceased to be an option and has become a requirement for survival.  This is one of the main conclusions of the report ” Innovation Panorama in Mexico and Central America 2025 ,” prepared by KPMG , a professional services firm specializing in auditing, tax, and consulting, based on a survey of more than 100 executives from companies across various sectors.

“The 20th century was the century of innovation, but the 21st century seems to have come to ridicule it. In just 25 years, we have seen technological disruption like never before. Companies understood, especially after the COVID-19 pandemic, that innovation is not just about reacting or surviving, but about staying relevant,” said Ricardo Delfín , leading partner of Clients and Markets for the Mexico and Central America Cluster at KPMG.

According to the report, 71 % of Mexican companies are already undergoing a digital transformation process , while 8% plan to begin it in less than a year.

This level of maturity is also reflected in technological priorities: Artificial Intelligence (AI), omnichannel models, and self-service platforms , which are leading strategies for redesigning products, services, and channels.

“Today, innovation is no longer a question of whether or not to do it, but rather when and how. Innovation cycles have become so short that they now change in a matter of months,” said Diego Bojórquez , Innovation Manager at KPMG Ignition Mexico.

Furthermore, 75 % of companies in Mexico will significantly change their products or services in the next three years , and of these, 72% will do so by incorporating new technologies.

Although Central America shares a similar vision of the importance of innovation, it still faces a slower adoption rate.

Only half of companies in that region are currently undergoing a digital transformation, although 16% plan to begin it soon.

“We recognize significant numerical differences. For example, in Central America, 52% plan to offer self-service platforms and 34% plan to focus on customer-centric models, higher figures than Mexico because they are just beginning this journey,” explained Luis Rivera , Consulting Partner at KPMG Costa Rica.

One of the key findings is the ambivalent role played by innovation culture.  In Mexico, 67% recognize it as a facilitator , but 28% of respondents also see it as a barrier.

In Central America, this contradiction is more pronounced, with 53% viewing it positively, but 44% identifying it as an obstacle.

“For innovation to flourish, employees must feel confident proposing ideas without fear of consequences. A culture of innovation requires committed leadership, adequate incentives, and dedicated spaces for innovation,” said Diego Bojórquez.

AI (generative and analytical), cloud, automation, and low-code are emerging as the most impactful technologies.  However, barriers persist, such as a lack of skills (36%) and limited access to emerging technologies (38%) are identified as the main challenges.

“Many companies fear the arrival of a disruptive technology that will push them out of the market. That’s why innovation becomes part of business DNA, a mechanism not only to grow, but also to avoid disappearing,” warned Ricardo Delfín.

According to KPMG, companies that fail to transform risk being left out of the game.  To achieve this, they must cultivate a strong culture of innovation, invest in emerging technologies, and foster an open mindset toward change.

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