Latin America Contract Logistics Market Size, Growth, Trends, and Analysis Report to 2034

Market Overview

The Latin America contract logistics market size reached USD 21.5 Billion in 2025. It is forecasted to grow and reach USD 37.4 Billion by 2034, exhibiting a CAGR of 6.34% during 2026-2034. The market growth is driven by the rising demand for last-mile delivery solutions, expansion of healthcare and pharmaceuticals, growing foreign direct investment, technological advancements in fleet management, increasing requirement for third-party logistics services, and heightened focus on sustainability and green logistics.

Study Assumption Years

• Base Year: 2025
• Historical Years: 2020-2025
• Forecast Period: 2026-2034

Latin America Contract Logistics Market Key Takeaways

• The market size was USD 21.5 Billion in 2025 with a CAGR of 6.34% forecasted for 2026-2034.
• The market is propelled by substantial growth in online retailing and e-commerce, with an estimated 300 million digital shoppers expected to increase by about 44% by 2029.
• Online retail sales in 2023 were approximately USD 272 billion, boosting demand for contract logistics.
• Increasing demand for quick deliveries such as same-day or one-day services is driving investments in advanced technology including automated storage and retrieval systems and GPS.
• Expansion of cross-border trade and complexity in supply chains stimulate outsourcing of logistics to specialized providers.
• Governments are supporting logistics sector modernization with strong regulatory policies.

Market Growth Factors

The rapid growth of online retailing and e-commerce has driven the Latin America contract logistics market. The region is currently home to around 300 million digital consumers with a projected growth of 44% by 2029. Online retail sales reached almost USD 272 billion in 2023, and as a result many e-commerce companies have contracted logistics services providers to manage their inventory, warehousing and distribution. In addition, the growing expectations for same-day and one-day deliveries by consumers have stimulated more investments in automated storage/retrieval technology, as well as global positioning systems (GPS).

The drive for more integrated supply chain management services has been fueled by clients wanting to streamline their supply chain operations and reduce costs. These trends are, in particular, seen in the Latin American market, where the supply chains are complex and cross-border exports have increased 5% year on year in the first half of 2024. Contract logistics providers that combine the services of delivery, inventory management, transport optimization, and warehousing with such technologies as real-time tracking and automation have advanced visibility and control in supply operations, increasing the demand for their services.

The industry continues to be subject to technological advancements and investment from regulators. Fleet management systems also contribute to this industry's expansion. Simultaneously, Latin American governments have enacted progressive regulations for the sector. The growing demand for services from 3PLs, combined with the focus on sustainability and green logistics, has consequently led to logistical development in Latin America, making the services offered in the Latin American contract logistics market more effective and attractive.

Market Segmentation

Type Insights:

• Insourced: Contract logistics services managed internally by companies to control efficiency and flexibility.
• Outsourced: Logistics functions delegated to specialized external providers to optimize costs and enhance operational effectiveness.

End User Insights:

• Automotive: Contract logistics services supporting automotive manufacturing and supply chains.
• Consumer and Retail: Logistics solutions facilitating the distribution and supply management for consumer goods and retail sectors.
• Energy: Logistics services tailored to energy production, storage, and distribution.
• Hi-Tech and Healthcare: Specialized logistics support for technology and healthcare/pharmaceutical industries.
• Industrial and Aerospace: Supply chain and logistics management for industrial and aerospace manufacturing.
• Technology: Logistics services catering to the technology sector’s distribution needs.
• Others: Contract logistics for other miscellaneous end-user industries.

Country Insights:

• Brazil: A major regional market with significant contract logistics activity.
• Mexico: Key market with expanding contract logistics demand.
• Argentina: Important regional player contributing to market growth.
• Colombia: Emerging market with growing logistics infrastructure.
• Chile: Developing contract logistics operations.
• Peru: Increasing participation in contract logistics services.
• Others: Additional countries contributing to the regional market.

Regional Insights

Brazil is a dominant market within Latin America’s contract logistics sector. The region overall is experiencing robust market growth with a CAGR of 6.34% forecast through 2026-2034. Trade expansion exemplified by a 5% year-on-year export growth during H1 2024 supports increased logistics activity, positioning Latin America as a strategic and rapidly evolving market for contract logistics services.

Recent Developments & News

On September 25, 2024, Scan Global Logistics (SGL), a global logistics provider, expanded its Latin American presence by opening new offices in Argentina and Colombia and enhancing services in Chile, Peru, and Mexico. SGL acquired BLU Logistics, a prominent freight forwarder in Brazil, strengthening their expertise particularly in trade lanes linking China and Southeast Asia to Latin America, thereby boosting their global operations.

Key Players

• Scan Global Logistics (SGL)
• BLU Logistics

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