Latin America Logistics Market Report and Forecast 2024-2032

Latin America Logistics Market Outlook

The Latin America logistics market size 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 1074.84 billion by 2032.

Key Takeaways

• The growth of the e-commerce industry, rise in reverse logistics operations, and the adoption of tech-driven logistics services and IoT-enabled connected devices are boosting the Latin America logistics market development.

• The growth in the automotive sector is driving the demand for contract logistics players to support the transportation and storage of vehicles and parts to domestic and international markets.

• As per industry reports, prominent players in the market are FedEx Corporation, United Parcel Service, Inc., Deutsche Post AG, CMA CGM Group (CEVA Logistics SA), and Kuehne + Nagel International AG.

In Mexico, the automotive industry has experienced significant growth, with companies like Nissan, General Motors, and Volkswagen operating manufacturing plants in the country. This growth has led to increased demand for logistics services to transport automotive parts and finished vehicles to domestic and international markets, creating opportunities for logistics providers to provide transportation, warehousing, and other logistics services to the automotive industry.

E-commerce giants like MercadoLibre in Brazil and Linio in Mexico are expanding their operations and driving the need for efficient last-mile delivery services. The increasing demand for home delivery and the need to reduce delivery times and costs are driving logistics companies to invest in route optimisation software, delivery drones, and micro-fulfilment centres to reduce delivery times and costs.

The increasing adoption of technology and IoT-enabled connected devices is transforming the logistics industry in Latin America. Logistics companies like Rappi in Colombia are investing in AI, machine learning, and IoT technology to track and monitor their shipments in real-time, optimise their routes, and reduce delivery times.

According to Latin America logistics market analysis, 1 PL is primarily used by large companies with significant logistics needs. The growth in the healthcare and construction industries is driving the demand for 1 PL services in the region. 2 PL is primarily used by small and medium-sized enterprises (SMEs) that require specific logistics services but do not have the resources to manage them in-house. The growing e-commerce market in the region is leading logistics players to focus on warehousing, inventory management, and faster deliveries, which is driving the demand for 2 PL services. 3 PL is primarily used by companies that require end-to-end logistics solutions, such as those in the retail and consumer goods sectors.

Market Segmentation

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

• 1 PL

• 2 PL

• 3 PL

• Others

Market Breakup by Transportation Mode

• Roadways

• Seaways

• Railways

• Airways

Market Breakup by End User

• Manufacturing

• Consumer Goods and Retail

• Food and Beverages

• IT Hardware and Telecom

• Healthcare

• Chemicals

• Construction

• Automotive

• Oil and Gas

• Others

Market Breakup by Country

• Brazil

• Mexico

• Argentina

• Others

Competitive Landscape

Market players are focused on achieving their sustainability targets by adding electric fleet for delivering goods, enhancing transport networks, and using technological advancements.

• 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 

• Others

Key Highlights of the Report