Logistics - Industry - South America Market, Share and Trends 2023-2028

Summary of Logistics

Logistics – understood as the set of planning – implementation and control processes that ensure an efficient flow of goods, services and information throughout the supply chain, plays a key role in the economy. Given that inputs – production nodes and consumer markets are distributed in space – logistics allows overcoming the friction of distance and creating spatial convergence between supply and demand. Logistics influences the level of competitiveness and productivity of a country, while providing employment opportunities and access to goods and services for its inhabitants.

E-commerce and the online food delivery market are driving the domestic segment’s growth. Brazil is the largest market for online food delivery, with a revenue of USD 3.17 billion in 2022. Based on our estimates, we can say that south america’s regional logistics industry is forecasted to be a $664.8 billion industry in 2029 from $506 billion in 2023 with a CAGR of 4.65%.

South America’s logistics industry is poised for substantial growth as the region pursues greater integration through trade agreements like Mercosur. Modernized infrastructure networks and adoption of advanced technologies are enhancing connectivity between major economies and global markets. This presents an opportunity for logistics operators and real estate developers to support South America’s rising industries and e-commerce sectors through specialized transportation and warehousing solutions.

With continued GDP growth and trade liberalization – South America’s logistics industry is projected to exceed $600B by 2030. Forward-thinking operators should explore opportunities in specialized warehousing, cold chain transportation and TMS/WMS solutions tailored for the region’s needs. Strategic investments now can position companies for decades of growth alongside South America’s rising industries and consumers.

Recent Trends and Insights

The infrastructure expansion across Brazil, Chile, Peru and Colombia is strengthening corridors between population centers and ports– with over $100 billion being invested through 2025. This investment is expected to enhance the transportation and logistics capabilities in the region, supporting the movement of goods and fostering economic growth.

Growing intra-regional trade under Mercosur is increasing cargo volumes traversing the Argentina-Brazil border and along the Pacific coast. Additionally– e-commerce is booming in major markets like Brazil, fueling demand for fulfillment centers and last-mile delivery capabilities. This growth in trade and e-commerce is driving the need for efficient and advanced logistics solutions to support the movement of goods within and across these countries.

Technology adoption is improving supply chain visibility and automation in the region. This includes the adoption of Internet of Things (IoT) solutions in logistics, which is gradually gaining traction and driving the modernization of the logistics industry in the region.

These insights highlight the significant developments and trends in the logistics and transportation sector across the Latin American region– emphasizing the need for advanced infrastructure, efficient trade corridors and technology-driven logistics solutions to support the growing trade and e-commerce activities in the region.

Product Insights

E-commerce is booming in major markets like Brazil, fueling demand for fulfillment centers and last-mile delivery capabilities. This growth in e-commerce is driving the need for efficient and advanced logistics solutions to support the movement of goods within and across these countries.

Technology adoption is improving supply chain visibility and automation in the region. This includes the adoption of big data management and electronic data interchange – which lowers costs – speeds fulfillment and improves accuracy in the logistics sector

Infrastructure expansion across South America – including the strengthening of corridors between population centers and ports – is creating opportunities for logistics players to position their warehousing closer to city centers. This expansion is expected to enhance the transportation and logistics capabilities in the region, supporting the movement of goods and fostering economic growth.

The Latin America Cold Chain Logistics Market is expected to reach USD 4.78 billion in 2023 and grow at a CAGR of 11.60% to reach USD 8.27 billion by 2028. This growth is driven by the increasing demand for temperature-controlled logistics services particularly– in the food, pharmaceutical, and healthcare sectors.

Key Companies

Some major players within this vast domain of industry are

• Deutsche Post DHL Group
• DP World
• DSV A/S.
• Kuehne + Nagel
• SAAM
• CMA CGM
• DB Schenker
• Agunsa Logistics
• Alonso Group
• Americold

Regional Analysis

The market has been observing increasing investments in the shipping and trucking sectors. Many new players have entered the market and with the competitive advantage of digitization– the new players are expected to increase market competitiveness. In the past decade, the average annual infrastructure investment in Brazil amounted to USD 36.3 billion – followed by Chile – with an average annual infrastructure investment of around USD 17 billion.

E-commerce is a major factor in the increased demand for transportation services. Revenue in the e-commerce market in South America is expected to reach USD 77.42 billion in 2023. Revenue is expected to register a CAGR of 14.76% during 2023-2027– reaching a value of USD 134.27 billion by 2027. In the e-commerce market – the number of users is expected to reach 244.1 million by 2025.

Brazil is by far the largest market for commercial vehicle sales in South America. Argentina was second in the region, with approximately 126.4 thousand commercial vehicles sold that year. Sales increased in 2021 after an initial decrease in 2020 due to COVID-19. The CEP players have since then captured significant market share. In 2021 – FedEx (including TNT), United Parcel Service (UPS) and Deutsche Post DHL held 44%, 33% and 20%, respectively, of the market for express and courier services in the Americas, the same as the previous four years.

Market Segmentation

By Type:

• Transportation management systems
• Warehouse management systems
• Fleet management solutions
• Asset tracking technologies
• Order management software

By End user:

• Third-party logistics providers
• Manufacturers
• E-commerce retailers
• Wholesalers

By Enterprise Size:

• Large logistics companies
• Small parcel and LTL carriers
• Startups innovating new solutions

By Countries:

• Brazil
• Argentina
• Columbia

Our Methodology

We have offered a well-founded review of South America’s regional logistics market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.