Report Overview

2023

Base Year

2018-2023

Historical Year

2024-2032

Forecast Year

Mexico 3PL Market Outlook

The Mexico 3PL market size reached around USD 17.76 billion in 2023. The market is estimated to grow at a CAGR of 5.8% during 2024-2032 to reach a value of USD 29.32 billion by 2032.

Key Takeaways

  • 3PL providers are leveraging Mexico's FTAs and USMCA for efficient cross-border logistics.
  • During January-March 2023, the United States and Mexico traded goods amounting to USD 263 billion, making Mexico the United States’ biggest trading partner.
  • Mexico's strategic location, robust infrastructure, and favourable business environment favour the Mexico 3PL market growth.

Third-party logistics or 3PL service providers offer outsourced logistics services, which include management, storage , and shipping of goods. A 3PL service provider may provide a single service, such as transportation or warehouse storage, or a bundle of services capable of handling supply chain management.

Mexico has 14 free trade agreements (FTAs) with nations including the United States, Canada, Japan, and Australia as well as the EU. The reduced tariffs and taxes on the transport of goods have reduced the transportation and shipping costs for 3PLs.

The surge in nearshoring, fuelled by global supply chain disruptions, U.S.-China tensions, and the USMCA, propels demand, particularly in Monterrey and border markets of Mexico. About 75% of 2022’s manufacturing demand is linked to nearshoring, encompassing Tier 1 and 2 near-shoring representing direct international demand and local supplier demands. The current trend of nearshoring is anticipated to persist and aligns with companies relocating production closer to the U.S. consumers, benefitting the 3PL market in Mexico.

Figure: Nearshoring Demand by Area of Origin; 2023

Mexico 3PL Market

Figure: List of Free Trade Agreements (FTA)

Agreements Countries Involved Description
USMCA USA, Mexico, and Canada
  • Several products including automobiles with at least 75% of their parts made in North America are exempt from tariffs.
  • Duties on electronic transmissions is not permissible.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) Mexico, Canada, Australia, New Zealand, Brunei, Singapore, Malaysia, Japan, Vietnam, Chile, Peru
  • It removes trade barriers and fosters economic growth by eliminating tariffs on products between the 11 member countries.
EU-Mexico Association Agreement Countries of European Union and Mexico
  • With its latest modification in 2020, the EU-Mexico Free Trade Agreement makes 99% of trade between Mexico and EU duty free. The 1% of goods, including dairy, meat, and vehicles with less than 55% of their production occurring in the country of origin are taxed.
The European Free Trade Association (EFTA) Mexico, Iceland, Norway
Switzerland, Lichtenstein
  • With this agreement, tariffs between Mexico and the EFTA states will be gradually eliminated.
Japan-Mexico Bilateral Agreement Japan and Mexico
  • With the removal of numerous trade restrictions, such as taxes and duties, the FTA creates a stronger economic alliance between the two countries.

Key Trends and Developments

Significant transportation infrastructure; presence of trade agreements, growing manufacturing sector; and technological advancements; are positively impacting the Mexico 3PL market growth

Date Company Event
Nov 2023 Penske Penske Truck Leasing marked the official opening of its new facility in Cuautitlán, Mexico, reinforcing its dedication to advancing transportation solutions in the region.
Sep 2022 DHL DHL Supply Chain successfully acquired NTA (New Transport Applications), enhancing its services in the Life Sciences and Healthcare sector in Mexico.
Sep 2023 Supply Chain Solutions LLC Supply Chain Solutions LLC (SCS), a Michigan-based 3PL service provider, strategically expanded its cross-border capabilities through the acquisition of Dallas-based G4 Logistics International.
Aug 2022 Grupo Traxión Grupo Traxión, SAB de CV raised USD 300 million in equity. The funds raised will support Traxión's growth initiatives in nearshoring and other corporate purposes.
Trends Impact
Growth of Mexico’s manufacturing sector The country’s manufacturing sector is expanding due to the availability of low-cost skilled labour, consequently driving up the Mexico 3PL market share. Mexico’s automotive, electronics, and aerospace manufacturing makes it an advantageous location for companies looking to outsource their manufacturing operations.
Mexican 3PL company’s benefit from FTA agreements Mexico’s free trade agreements (FTA) with countries, such as Canada and the European Union enhances its appeal as a manufacturing and logistics hub. The country is the USA’s second-largest trading partner. Both the countries share a border of over 3,000 miles making it easy and cost-effective for companies to transport goods between them.
Robust transportation infrastructure The Mexican government has been investing heavily in its transportation infrastructure, including highways, railroads, and ports. Improvement in Mexico’s transportation infrastructure is making it easier for companies to move goods in and out of the country enhancing the country's appeal as a logistics hub, thus aiding the Mexico 3PL market development.
Technological advancements To stay competitive and agile, Mexico invests in emerging technologies for 3PL providers, including inventory management and delivery tracking. These innovations optimise logistics services, enhancing productivity and minimising costs.

Mexico 3PL Market Trends

Mexico has 14 free trade agreements (FTAs) with countries including the US and Australia, and the reduced tariffs and taxes on the transport of goods have reduced the shipping costs for 3PLs. During January-March 2023, the United States and Mexico traded goods amounting to USD 263 billion, making Mexico the United States’ biggest trading partner.

Mexico’s manufacturing sector draws the highest foreign direct investment (FDI) and accounts for 18.5% of country’s GDP. Its lower labour costs and skilled workforce have strengthened Mexico’s automotive, electronics, and aerospace manufacturing, making it desirable for businesses who want to outsource their manufacturing processes, aiding the demand for 3PL services.

Undergoing a significant expansion, Mexico's ports are expected to increase their annual capacity by 50% through the addition of new container terminals. The upgraded infrastructure is designed to accommodate larger vessels, enhancing overall efficiency in cargo handling. The modernisation initiatives are geared towards transforming Veracruz into a globally recognised logistics hub, incorporating automation systems, expanded storage facilities, and enhanced road and rail connectivity to streamline the movement of cargo.

According to the Secretariat of Economy’s Tariff Information System via the Internet (SIAVI), the market size of Mexico’s medical devices and equipment was USD 28.68 billion in 2022. An expanding medical and pharmaceutical sector in Mexico is raising the cruciality of 3PL firms to provide a range of services to companies, related to supply chain management.

Market Segmentation

“Mexico 3PL Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup Categories
Service Domestic Transportation Management, International Transportation Management, Value-added Warehousing and Distribution.
End-Use Industry Food and Beverage, Automotive, Consumer and Retail, IT Hardware and Telecom, Healthcare, Energy, Others
Region Central Mexico, Northern Mexico, The Bajío, Pacific Coast, Yucatan Peninsula, Baja California

Based on end-use industry, the food and beverage sector dominates the Mexico 3PL market share

Mexico has emerged as a preferred location for global companies looking to establish manufacturing facilities outside Asia. Proximity to markets is a key advantage for the food and beverage industry, allowing businesses to efficiently reach new markets without significant transportation costs. Nearshoring to Mexico can benefit businesses dealing with perishable goods, ensuring quality and freshness.

Mexico's automotive manufacturing sector, hosting major players like Fiat Chrysler, Ford, GM, and Toyota, has been pivotal in its economy. As South America's leading automotive manufacturer, it produces nearly 4 million units annually of which, over 80% is exported.

Companies are capitalising on shelter corporations and the IMMEX Program, allowing duty-free importation of raw materials. The growth in electronic manufacturing is attributed to the rising number of available engineers and design specialists.

Based on service, domestic transportation management holds a significant share in the Mexico 3PL market

Key e-commerce platforms in Mexico, including Mercado Libre, Amazon, and Walmart use 3PL services. The expansion of e-commerce in Mexico provides a boost to value-added warehousing services including packaging, kitting, returns, and warranty management.

Domestic and international transportation management uses sophisticated technology, including predictive data to effectively manage thousands of shipments across different carriers and transportation modes. The use of geolocation technologies allows customers to track merchandise in real-time.

In July 2023, GEODIS unveiled a new multi-user warehouse and distribution centre in Mexico City to support omnichannel operations, including e-commerce, retail, and wholesale. Pallet racking for simple inventory movement, a mezzanine for enhanced capacity and operational flexibility are some of the features of this new omnichannel warehouse.

Competitive Landscape

The market players are competing against each other by strategically offering a variety of services including transportation, warehousing, picking, packing, and inventory forecasting

Company Founded Headquarters Services
Deutsche Post AG 1969 Bonn, Germany Provides logistics and related services under its divisions, namely Express; Global Forwarding, Freight; eCommerce; Post & Parcel Germany; and Supply Chain.
Grupo Traxión, SAB de CV 2011 Mexico City, Mexico Provides logistics services under 8 business areas which are fright, integrated logistics, warehousing, logistics systems, passenger transportation, special services, moving (national and international services), and advertising (encompassing custom transportation services for promotional and marketing campaigns).
Schneider National, Inc. 1935 Wisconsin, United States The company provides logistics solutions, dedicated, bulk, transportation management, long-haul trucking, warehousing, etc.
Kuehne + Nagel International AG 1980 Schindellegi, Switzerland The company provides Sea freight logistics and container shipping solutions, air logistics - air freight shipping services, among others.

Other notable players operating in the Mexico 3PL market include Ryder System, Inc., Penske Truck Leasing Co., L.P., CEVA Logistics SA, WH Forwarding SA de CV, and GXO Logistics, Inc., among others. Manufacturers are upgrading their product portfolios and incorporating the latest capabilities to innovate their offerings and meet the evolving demands of consumers.

Mexico 3PL Market Analysis by Region

Mexico's manufacturing sector continues its dynamic growth, spurred by increased production across various states. In 2021, notable growth rates were observed in states like Oaxaca, Hidalgo, Tabasco, Veracruz, and Tamaulipas, alongside larger producers such as Nuevo Leon, the State of Mexico, and Guanajuato. Economic Census 2019 data reveals Hidalgo's economic landscape, with retail trade, other services excluding government activities, and temporary accommodation and food preparation and drinks leading in economic unit concentration. The growing manufacturing activities and the subsequent demand for efficient storage and logistics services support the Mexico 3PL market expansion.

Mexico benefits from nearshoring through sharing a 2000-mile-long border with the world’s largest economy, the United States, and being a resource-export-oriented economy. Thriving Northern metro regions in Mexico, including Juarez, Hermosillo, Chihuahua, and Monterrey, benefit from excellent infrastructure connecting them within 300 miles to major American cities like San Diego, Los Angeles, Phoenix, Tucson, Albuquerque, El Paso, San Antonio, Austin, Corpus Christi, and Houston.

El Bajio, Mexico's pivotal industrial hub, encompasses Queretaro, Guanajuato, Aguascalientes, and San Luis Potosi, offering manufacturers access to 80% of the Mexican market and 70% of industrial establishments within a 3-hour radius. Focused on automotive, aerospace, defense, and household appliance manufacturing, El Bajio offers a sophisticated transportation network.

Key Highlights of the Report

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:

  • Service
  • End Use
  • Region
Breakup by Service
  • Domestic Transportation Management
  • International Transportation Management
  • Value-added Warehousing and Distribution
Breakup by End Use
  • Food and Beverage
  • Automotive
  • Consumer and Retail
  • IT Hardware and Telecom
  • Healthcare
  • Energy
  • Others
Breakup by Region
  • North America
    • United States of America 
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Australia
    • Others
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • South Africa
    • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Market Structure
  • Company Profiles
    • Company Overview
    • Product Portfolio
    • Demographic Reach and Achievements
    • Certifications
Companies Covered
  • Deutsche Post AG
  • Grupo Traxión, SAB de CV
  • Schneider National, Inc.
  • Kuehne + Nagel International AG
  • Ryder System, Inc
  • Penske Truck Leasing Co., L.P
  • CEVA Logistics SA
  • WH Forwarding SA de CV
  • GXO Logistics, Inc.
  • Others

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Mexico 3PL Market Report Snapshots

Mexico 3PL Market Size

Mexico 3PL Market Trends

Mexico 3PL Market Regional Analysis

Mexico 3PL Companies

*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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Key Questions Answered in the Report

The Mexico 3PL market attained a value of USD 17.76 billion in 2023.

The market is estimated to grow at a CAGR of 5.8% during 2024-2032.

The market is estimated to witness healthy growth in the forecast period of 2024-2032 to reach a value of USD 29.32 billion by 2032.

The market is being driven by the increase in demand by companies to outsource logistics services related to inventory management and product distribution and increasing trade activities between Mexico and the United States.

The key trends aiding the market expansion include the rise in demand for third-party logistics due to an increase in national and international trade and the surging awareness regarding the cost-saving and flexibility benefits of 3PL.

The key Mexican markets for 3PL are the Central Mexico, Northern Mexico, The Bajío, Pacific Coast, Yucatan Peninsula, and Baja California.

The end uses of 3PL are food and beverage, automotive, consumer and retail, IT hardware and telecom, healthcare, energy, and others.

The key players in the market include Deutsche Post AG, Grupo Traxión, SAB de CV, Schneider National, Inc., Kuehne + Nagel International AG, Ryder System, Inc., Penske Truck Leasing Co., L.P., CEVA Logistics SA, WH Forwarding SA de CV, and GXO Logistics, Inc., among others.

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