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The Latin America logistics market value was valued at USD 633.81 billion in 2023. The market is further projected to grow at a CAGR of 6.0% between 2024 and 2032, reaching a value of USD 1,074.84 billion by 2032. This growth is being driven by the expanding e-commerce sector, increasing trade within the region, infrastructure development, and improved cross-border transport networks.
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The Latin America logistics market demand is growing significantly, due to increasing volumes of trade, government initiatives to build better infrastructure and the ever-increasing influence of digital platforms in the management of supply chains. Brazil, Mexico, and Argentina are key players that benefit through their strategic location as well as large domestic markets.
The Latin America logistic industry is also growing due to the expanding e-commerce sector in Latin America. Online retailing is one of the most significant factors behind the growth of the logistics market. Players like Mercado Libre and Amazon continue to push the envelope for quicker delivery timelines, prompting the need to innovate and seek investments in last-mile delivery solutions and warehousing facilities, especially in urban centers.
Such a surge in e-commerce across the region has altered consumer behaviors and there is now a greater demand for faster logistics and fulfilment services. This trend alone has called for investments into warehouse automation, last-mile delivery solutions, and better freight services, hence helping the market extend very rapidly in the logistics industry of the region. The cross-border trade between Mexico and the U.S. has shown an increase. In 2023, it grew by 10%, and U.S. land imports from Mexico are expected to stay strong. Thus, these factors are driving the Latin America logistics market value.
The Latin America logistics market dynamic and trends are influenced by several factors. Its strategic location between North America and Europe is advantageous, and its trend toward intra-regional trade has made it a significant market for international companies. Improvements in road, rail, and port infrastructure improve the efficiency and cost-effectiveness of logistics services, further adding to the region's competitiveness in the global arena.
Additionally, there has been increased penetration of digital technologies, artificial intelligence and big data analytics, and the Internet of Things to handle bulk cargos remotely and track its transportation status, leading to an upsurge in the Latin America logistics industry value. These technologies have enhanced real-time tracking capabilities, maximised routing routes, and improved inventory management, through a reduced level of operational cost and improvement in customer satisfaction levels.
Logistics companies are also of great interest in sustainability. Most firms are adopting environmental-friendly practices; hence, they use electric vehicles for deliveries, green warehousing solutions, and alternative fuels for freight transportation. Latin American countries aim at aligning their logistics systems with global standards of environmental excellence that has become a critical factor in winning international business partnerships. Overall, these drives and trends are expected to boost the Latin America logistic market value in the coming years.
Several macroeconomic and geopolitical factors influence the outlook of the Latin American logistics industry. Investments in infrastructures are crucial to the growth of this market. Some examples include vast projects undertaken by Brazil to renew its road, rail, and seaport infrastructures with an aim at reducing transportation cost and transit time. Between January and June of 2023, cargo transport through inland routes in Brazil reached 66.46 million tonnes, setting a record for this period compared to previous years. This is a robust increase of 13.3%, as compared to last year's volume during the same period. Furthermore, geography and integration into the North American supply chain, especially under USMCA with the United States, Mexico is strategically located even closer to its northern region and has increased importance as a strategic logistics node.
Policies of trade liberalisation and regional trade agreements such as the Pacific Alliance (Chile, Colombia, Mexico, and Peru) also established expansion in the sector of logistics by elevating cross-border flows of trade. The higher levels of cross-border trade are experienced in this region because it continues to open its borders and establish strong economic ties. Consequently, demand in the supply chain services will be experienced. However, the growth will be impacted by countries with difficult customs procedures, incoherent regulations, and politically unsecure environments. Nevertheless, the region is well positioned as urbanization, changes in consumption patterns, and expansion of international trade make it progressively poised to offer sustained demand for logistics services. Hence, globalization and political trade relations with neighbouring countries are expected to influence the demand of the Latin America logistics market.
Latin America's investment in transportation infrastructure has seen healthy inflows: programs in upgrading road networks, port expansion, and air freight capabilities. Such investments are evident in Brazil's logistics ahead of the Olympics and Mexico's ongoing improvements in airport and port infrastructure. These investments are likely to create more opportunities for the Latin America Logistics market.
The Latin America logistics industry has greatly benefitted from advanced digital technologies. Big data analytics is now facilitating AI and machine learning in logistics. These technologies further refine the smoothness of operations, optimize the routing in transportation, manage the fuel effectively, and deploy the warehouse management systems.
Moreover, the surging interest in sustainability has forced logistics companies to take up the green logistics practice in turn-that includes the application of renewable energy in warehousing and the use of electric vehicles for transportation. This change is part of a worldwide move towards reducing carbon emissions and increasing environmental responsibility.
Nearshoring or the shift in manufacturing closer to the markets where the products are being consumed has further fueled the logistics market in Mexico. Companies are increasingly looking for ways to reduce their dependence on Asia-based manufacturing centers and shifting production bases to Latin America because of geographical proximity, labor costs, and trade agreements. Mexico has seen some encouraging results with nearshoring. In 2023, foreign direct investment (FDI) related to nearshoring surged by 93% compared to 2022, especially in sectors like automotive production, and semiconductors.
However, the demand growth of Latin America logistics market is also faced by various challenges. Each country has its unique legislation regarding logistics and trade, thus limiting the business operations of companies in various countries. Unfavorable conditions in customs procedures and undifferentiated environments between countries of Latin America make cross border logistics challenging.
This jeopardizes logistics operations in several countries of Latin America, particularly Venezuela and parts of Central America, due to the political and economic instabilities prevailing. Policy changes arise suddenly, coupled with currency devaluation and inflation that derails the supply chain and deters foreign investment in the markets.
Large segments of the region lack solid investment in infrastructure, particularly in rural areas. Poor road networks, congested ports, and, in some cases, limited rail connectivity result in higher transportation costs and slower delivery times.
As the Latin America logistics industry becomes more digitised, the opportunities for companies providing technology solutions ranging from TMS, WMS, and real-time tracking platforms can be very viable. Digital logistics would best help the sector achieve the goals of improved operational efficiency as well as customer service. This segment, indeed, is in rapid growth with increased demand for pharmaceuticals, fresh produce, and other perishable items. Such growth has led countries like Brazil and Mexico to invest in refrigerated warehousing and transport solutions, opening opportunities for companies specializing in temperature-controlled logistics.
FedEX Corporation
United Parcel Service, Inc.
Deutsche Post AG
Nippon Express Co., Ltd.
“Latin America Logistics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
Market Breakup by Model Type
Market Breakup by Transportation Mode
Market Breakup by End User
Market Breakup by Region
Brazil holds a major share in Latin America logistics market.
Brazil holds a dominant position in the Latin America logistics market demand.
Brazil’s strategic location has helped it in making it a leading region in Latin America logistics market. The country has access to the Atlantic Ocean and major rivers such as River Parana to ease the entry of both internal and external shipping routes. Brazil therefore offers a critical role as a logistics hub for trade within Latin America and throughout the world. Hence, Brazil’s large infrastructure; significant trade volume; strategic geographic location is making it a key logistics hub in Latin America.
Market players are focused on achieving their sustainability targets by adding electric fleet for delivering goods, enhancing transport networks, and using technological advancements.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2023, the Latin America logistics market value was 633.81 billion.
The market is projected to grow at a CAGR of 6.0% between 2024 and 2032.
The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach about USD 1,074.84 billion by 2032.
The growth in the automotive sector, the growing e-commerce market, and the need for faster deliveries and lower costs has led to a surge in demand for streamlined logistics and supply chain management solutions.
Key trends aiding the market expansion include the growth of e-commerce, the increasing reliance on 3PLs, integration of technology in freight fleet and services, and a shift towards customer-centric logistics.
Based on region, the market is broken down into Brazil, Mexico and Argentina and others.
Based on end-use, the market is divided into manufacturing, consumer goods and retail, food and beverages, IT hardware and telecom, healthcare, chemicals, construction, automotive, oil and gas, and others.
Based on model type, the market is broken down into 1 PL, 2 PL, 3 PL and others.
The competitive landscape consists of FedEx Corporation, United Parcel Service, Inc., Schenker AG, C.H. Robinson Worldwide Inc., Deutsche Post AG, DSV A/S, CMA CGM Group (CEVA Logistics SA), Kuehne + Nagel International AG, Nippon Express Co., Ltd., Expeditors International of Washington, Inc., Kintetsu World Express Inc., A.P. Møller – Mærsk A/S among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
REPORT FEATURES | DETAILS |
Base Year | 2023 |
Historical Period | 2018-2023 |
Forecast Period | 2024-2032 |
Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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Breakup by Model Type |
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Breakup by Transportation Mode |
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Breakup by End User |
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Breakup by Region |
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Market Dynamics |
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Competitive Landscape |
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Companies Covered |
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-858-608-1494
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124
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