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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.
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
Figure: List of Free Trade Agreements (FTA)
Agreements | Countries Involved | Description |
USMCA | USA, Mexico, and Canada |
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Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) | Mexico, Canada, Australia, New Zealand, Brunei, Singapore, Malaysia, Japan, Vietnam, Chile, Peru |
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EU-Mexico Association Agreement | Countries of European Union and Mexico |
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The European Free Trade Association (EFTA) | Mexico, Iceland, Norway Switzerland, Lichtenstein |
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Japan-Mexico Bilateral Agreement | Japan and Mexico |
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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 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.
“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.
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'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.
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 Service |
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Breakup by End Use |
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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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*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Market Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
7 Opportunities and Challenges in the Market
8 Latin America 3PL Market Overview
8.1 Key Industry Highlights
8.2 Latin America 3PL Historical Market (2018-2023)
8.3 Latin America 3PL Market Forecast (2024-2032)
8.4 Latin America 3PL Market Share by Country
8.4.1 Brazil
8.4.2 Mexico
8.4.3 Argentina
8.4.4 Others
9 Mexico 3PL Market Overview
9.1 Key Industry Highlights
9.2 Mexico 3PL Historical Market (2018-2023)
9.3 Mexico 3PL Market Forecast (2024-2032)
10 Mexico 3PL Market by Service
10.1 Domestic Transportation Management
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 International Transportation Management
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 Value-added Warehousing and Distribution
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
11 Mexico 3PL Market by End Use
11.1 Food and Beverage
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Automotive
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 Consumer and Retail
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
11.4 IT Hardware and Telecom
11.4.1 Historical Trend (2018-2023)
11.4.2 Forecast Trend (2024-2032)
11.5 Healthcare
11.5.1 Historical Trend (2018-2023)
11.5.2 Forecast Trend (2024-2032)
11.6 Energy
11.6.1 Historical Trend (2018-2023)
11.6.2 Forecast Trend (2024-2032)
11.7 Others
12 Mexico 3PL Market by Region
12.1 Baja California
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Northern Mexico
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 The Bajío
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Central Mexico
12.4.1 Historical Trend (2018-2023)
12.4.2 Forecast Trend (2024-2032)
12.5 Pacific Coast
12.5.1 Historical Trend (2018-2023)
12.5.2 Forecast Trend (2024-2032)
12.6 Yucatan Peninsula
12.6.1 Historical Trend (2018-2023)
12.6.2 Forecast Trend (2024-2032)
13 Market Dynamics
13.1 SWOT Analysis
13.1.1 Strengths
13.1.2 Weaknesses
13.1.3 Opportunities
13.1.4 Threats
13.2 Porter’s Five Forces Analysis
13.2.1 Supplier’s Power
13.2.2 Buyers Powers
13.2.3 Threat of New Entrants
13.2.4 Degree of Rivalry
13.2.5 Threat of Substitutes
13.3 Key Indicators for Demand
13.4 Key Indicators for Price
14 Competitive Landscape
14.1 Market Structure
14.2 Company Profiles
14.2.1 Deutsche Post AG
14.2.1.1 Company Overview
14.2.1.2 Product Portfolio
14.2.1.3 Demographic Reach and Achievements
14.2.1.4 Certifications
14.2.2 Grupo Traxión, SAB de CV
14.2.2.1 Company Overview
14.2.2.2 Product Portfolio
14.2.2.3 Demographic Reach and Achievements
14.2.2.4 Certifications
14.2.3 Schneider National, Inc.
14.2.3.1 Company Overview
14.2.3.2 Product Portfolio
14.2.3.3 Demographic Reach and Achievements
14.2.3.4 Certifications
14.2.4 Kuehne + Nagel International AG
14.2.4.1 Company Overview
14.2.4.2 Product Portfolio
14.2.4.3 Demographic Reach and Achievements
14.2.4.4 Certifications
14.2.5 Ryder System, Inc
14.2.5.1 Company Overview
14.2.5.2 Product Portfolio
14.2.5.3 Demographic Reach and Achievements
14.2.5.4 Certifications
14.2.6 Penske Truck Leasing Co., L.P
14.2.6.1 Company Overview
14.2.6.2 Product Portfolio
14.2.6.3 Demographic Reach and Achievements
14.2.6.4 Certifications
14.2.7 CEVA Logistics SA
14.2.7.1 Company Overview
14.2.7.2 Product Portfolio
14.2.7.3 Demographic Reach and Achievements
14.2.7.4 Certifications
14.2.8 WH Forwarding SA de CV
14.2.8.1 Company Overview
14.2.8.2 Product Portfolio
14.2.8.3 Demographic Reach and Achievements
14.2.8.4 Certifications
14.2.9 GXO Logistics, Inc.
14.2.9.1 Company Overview
14.2.9.2 Product Portfolio
14.2.9.3 Demographic Reach and Achievements
14.2.9.4 Certifications
14.2.10 Others
15 Key Trends and Developments in the Market
List of Key Figures and Tables
1. Latin America 3PL Market: Key Industry Highlights, 2018 and 2032
2. Mexico 3PL Market: Key Industry Highlights, 2018 and 2032
3. Mexico 3PL Historical Market: Breakup by Service (USD Billion), 2018-2023
4. Mexico 3PL Market Forecast: Breakup by Service (USD Billion), 2024-2032
5. Mexico 3PL Historical Market: Breakup by End Use (USD Billion), 2018-2023
6. Mexico 3PL Market Forecast: Breakup by End Use (USD Billion), 2024-2032
7. Mexico 3PL Historical Market: Breakup by Region (USD Billion), 2018-2023
8. Mexico 3PL Market Forecast: Breakup by Region (USD Billion), 2024-2032
9. Mexico 3PL Market Structure
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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