Latin America Contract Logistics Market Projected to Hit USD 36.30 Billion by 2033 Amid Supply Chain Regionalization

Market Overview

The Latin America contract logistics market size reached USD 20.25 Billion in 2024. It is projected to grow at a CAGR of 6.40% during the forecast period from 2025 to 2033, reaching an estimated market size of USD 36.30 Billion by 2033. Growth is driven by factors such as last-mile delivery solutions, expansion in healthcare and pharmaceuticals, increasing foreign direct investment, technological advancements in fleet management, rising third-party logistics services, and a growing focus on sustainability.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Latin America Contract Logistics Market Key Takeaways

• The Latin America contract logistics market size was USD 20.25 Billion in 2024.
• The market is expected to grow at a CAGR of 6.40% during 2025-2033.
• The forecast period for the market is 2025-2033.
• The market is fueled by the increasing demand for last-mile delivery solutions.
• Expansion of the healthcare and pharmaceutical industry significantly supports market growth.
• Foreign direct investment (FDI) growth enhances the logistics sector modernization.
• Adoption of advanced technologies like automated storage and retrieval systems and GPS systems boosts efficiency.
• Growing emphasis on sustainability and green logistics practices contributes to market development.

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Market Growth Factors

The Latin America contract logistics market growth is significantly driven by the rising focus on last-mile delivery solutions. Increasing demand for fast deliveries such as same-day or next-day deliveries inspires contract logistics providers to invest more in technology. Automated storage and retrieval systems and GPS-enabled tracking solutions are being increasingly adopted to meet customer expectations in the region, particularly for efficient stock management and distribution. This enhances the overall agility and responsiveness of logistics networks, stimulating greater market demand.

Foreign direct investment (FDI) growth in Latin America serves as another key factor bolstering the contract logistics market. It promotes logistical infrastructure development and modernization, supported by strong regulatory frameworks. Countries such as Brazil, Mexico, and Argentina experience increased capital influx, fostering expansion in sectors like healthcare and pharmaceuticals, which rely heavily on streamlined logistics services. These investments help companies improve supply chain efficiency and competitiveness.

Moreover, the continuous technological advancements in fleet management improve operational efficiency and cost-effectiveness in logistics. The rising need for third-party logistics (3PL) services reflects businesses' focus on outsourcing logistics functions to specialized providers for optimized operations. Additionally, the growing emphasis on sustainability and green logistics practices across Latin America encourages eco-friendly solutions, driving the adoption of cleaner transportation modes and sustainable supply chain management techniques, further propelling market growth.

Market Segmentation

Type Insights:

• Insourced: The market includes services managed internally by companies, focusing on maintaining control over supply chains.
• Outsourced: Contract logistics services provided by third-party specialists, offering scalability and operational efficiencies for businesses.

End User Insights:

• Automotive: Logistics solutions tailored for the automotive sector, supporting supply chain complexities and just-in-time deliveries.
• Consumer and Retail: Handling inventory management and distribution for consumer goods and retail industries.
• Energy: Specialized logistics for energy sector requirements, including supply and distribution.
• Hi-Tech and Healthcare: Focused logistics services catering to the delicate needs of the hi-tech and healthcare industries.
• Industrial and Aerospace: Supporting industrial operations and aerospace supply demands with efficient logistics.
• Technology: Logistics management for technology sector components and products.
• Others: Including miscellaneous industries requiring contract logistics support.

Country Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

Regional Insights

Brazil, Mexico, and Argentina emerge as dominant markets within Latin America, benefiting from rapid digital advancements and growing e-commerce penetration. The region hosts an estimated 300 million digital shoppers, with online retail sales valued at approximately USD 272 billion in 2023. The market is forecasted to grow robustly, supported by a 5% year-on-year export growth in the Latin America and Caribbean region during H1 2024, enhancing trade dynamics and logistics demand.

Recent Developments & News

On September 25, 2024, Scan Global Logistics (SGL) enhanced its presence in Latin America through multiple initiatives. The company opened new offices in Argentina and Colombia and strengthened operations in Chile, Peru, and Mexico. Additionally, SGL finalized the acquisition of BLU Logistics, a major Brazilian freight forwarder. This move enhances SGL's expertise in trade lanes between China, Southeast Asia, and Latin America, strengthening their regional and global logistics capabilities.

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Key Players

• Scan Global Logistics (SGL)
• BLU Logistics

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