Latin America Contract Logistics Market Size, Share, Trends and Outlook Report 2033

MARKET OVERVIEW

The Latin America contract logistics market size reached USD 20.25 Billion in 2024 and is projected to reach USD 36.30 Billion by 2033, growing at a CAGR of 6.40% during 2025-2033. The market's growth is driven by rising demand for last-mile delivery solutions, foreign direct investment growth, expansion in healthcare and pharmaceuticals, modernization supported by regulations, fleet management technological advances, increasing third-party logistics (3PL) adoption, and emphasis 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

• Current Market Size: USD 20.25 Billion in 2024
• CAGR: 6.40% during 2025-2033
• Forecast Period: 2025-2033
• Expansion of e-commerce and online retail is a key growth factor, with 300 million digital shoppers in the region expected to increase by 44% by 2029.
• Online retail sales reached roughly USD 272 billion in 2023, intensifying demand for contract logistics services.
• Increasing demand for rapid delivery, including same-day and one-day options, is boosting investments in automated storage and GPS technologies.
• Growing complexity of supply chains due to diverse industries and rising cross-border trade increases outsourcing to specialized logistics providers.
• The region experienced a 5% year-on-year export growth in H1 2024 compared to H1 2023, reinforcing logistics demand.

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MARKET GROWTH FACTORS

The Latin America contract logistics market is propelled by the rapid expansion of e-commerce and online retailing. With approximately 300 million digital shoppers in Latin America, this number is predicted to surge by 44% by 2029. The swift digital transformation in countries such as Brazil, Mexico, and Argentina is generating significant contract logistics demand. Online retail sales reached around USD 272 billion in 2023, emphasizing the economic impact. Contract logistics providers address the financial and operational challenges of managing stock, warehousing, and distribution for online sellers by offering adaptable delivery and supply chain solutions.

The demand for prompt deliveries, including same-day and one-day services, further stimulates the contract logistics network in Latin America. Providers are investing heavily in advanced technologies such as automated storage and retrieval systems and GPS systems to meet customer expectations for quick and reliable deliveries. These technological investments help enhance efficiency and customer satisfaction in the logistics sector across the region.

Efficient supply chain management is increasingly critical in Latin America due to diverse industries and growing cross-border trade complexity. Businesses aim to improve operational efficiency and reduce costs by outsourcing logistics functions to specialized providers who offer inventory management, transportation optimization, and warehousing. The Latin America and Caribbean region saw robust trade growth with exports up 5% year-on-year in H1 2024 vs. H1 2023. Contract logistics providers leverage real-time tracking, automation, and predictive analytics to improve supply chain visibility, driving higher adoption of these services among regional companies.

MARKET SEGMENTATION

Type Insights:

• Insourced: Internal logistics operations managed within companies, focusing on self-handling of distribution, warehousing, and transportation functions.
• Outsourced: Logistics services contracted to external providers specializing in supply chain management and distribution.

End User Insights:

• Automotive: Logistics solutions tailored for the automotive sector, including parts distribution and vehicle supply chain services.
• Consumer and Retail: Warehousing and distribution services supporting consumer goods and retail chains.
• Energy: Logistics focused on the energy sector requirements including transportation and storage.
• Hi-Tech and Healthcare: Specialized logistics for technology products, pharmaceuticals, and healthcare equipment.
• Industrial and Aerospace: Contract logistics catering to industrial manufacturing inputs and aerospace component handling.
• Technology: Distribution and supply chain management for technology-driven products and services.
• Others: Various other industries utilizing contract logistics services beyond the listed sectors.

Country Insights:

• Brazil: A major regional market with significant contract logistics activities.
• Mexico: A key country with growing logistics demand.
• Argentina: Important for its developing supply chain infrastructure.
• Colombia: Emerging market with increasing logistics needs.
• Chile: Growing base for contract logistics services.
• Peru: Expanding logistics sector.
• Others: Additional countries contributing to regional market growth.

REGIONAL INSIGHTS

Brazil emerges as a dominant market within Latin America for contract logistics, supported by increasing digital retail and trade. The region overall is projected to grow at a CAGR of 6.40% from 2025 to 2033, with market size expected to nearly double, trending from USD 20.25 Billion in 2024 to USD 36.30 Billion in 2033. This growth is reinforced by strong foreign direct investment and regulatory support fostering logistics modernization.

RECENT DEVELOPMENTS & NEWS

On September 25, 2024, Scan Global Logistics (SGL) announced expansion initiatives in Latin America including opening new offices in Argentina and Colombia and enhancing operations in Chile, Peru and Mexico. Additionally, SGL completed its acquisition of BLU Logistics, a leading freight forwarder in Brazil, strengthening its capabilities particularly for trade routes connecting China and Southeast Asia with Latin America.

KEY PLAYERS

• Scan Global Logistics (SGL)
• BLU Logistics

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