South & Central America Third Party Logistics Market

The South & Central America third party logistics market was valued at US$ 55.13 billion in 2022 and is expected to reach US$ 79.10 billion by 2030; it is estimated to register a CAGR of 4.6% from 2022 to 2030.

Increasing Trends of Sustainability Fuel South & Central America Third Party Logistics Market

Many large and medium-sized organizations are taking initiatives to optimize their business processes to reduce carbon footprints. The transportation and logistics sector is among the major contributors to carbon emissions, accounting for approximately 27% of the total emissions. Many third-party logistics firms are helping shippers improve mobility by planning more effective routes, using environmentally friendly modes of transportation, and occupying key places. Third-party logistics providers such as Borderline help reduce carbon emissions during the transportation stage of distribution by raising the fill rate per transport unit per tank of fuel, using higher-capacity vehicles, and performing routine maintenance of transport vehicles. While historically, the engineering of packing technologies has prioritized economic effectiveness and secure shipping over sustainability, many third-party logistics providers are rapidly moving to eco-friendly packaging to reduce their environmental impact. As recycled waste is used in the creation of eco-friendly packaging, fewer harmful resources are used, which lowers overall carbon emissions. Initiatives like these that focus on reducing carbon footprints are aligning with organizations' business strategy, ultimately driving the third-party logistics industry. In addition, governments of developed nations are compelling organizations to adopt greener practices. As a result, many manufacturing companies are searching for third-party logistics providers that have introduced eco-friendly efforts in light of this trend. Some of the practices involve minimizing waste production, lowering the carbon footprint of transportation, and adopting recyclable or environmentally friendly packaging.

South & Central America Third Party Logistics Market Overview

The third-party logistics market in South & Central America is growing steadily. Constant growth in the automotive, steel, and petrochemicals sectors and investments and expansion of the global players in Asia Pacific are a few major factors for the 3PL market's growth in the region. In July 2023, DHL Group announced an investment of US$ 500 million in its Latin American division to expand its supply chain. Further, the Development Bank of Latin America and Caribbean Economic System (SELA) signed a contract to develop the national port sector as part of enhancing their logistics sector. The overall growth of Brazil in the 3PL and logistic sector is steady. The government is now increasing its investments in the transportation and logistics infrastructure. According to government estimates, public investment in logistics infrastructure jumped 50% year-on-year to 3.88 billion reais (i.e., US$ 816 million) in January-May 2023. Road investments increased by 54.5% to 3.54 billion reais (i.e US$ 747 million) in the first five months of 2023. Most of the players operating in the market are expanding and investing in the economy, ultimately driving the 3PL market. For instance, in 2023, Logistics Plus Inc., one of the leading players in logistics, announced the opening of its office in Brazil.

South & Central America Third Party Logistics Market Revenue and Forecast to 2030 (US$ Billion)

South & Central America Third Party Logistics Strategic Insights

Strategic insights for the South & Central America Third Party Logistics provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

South & Central America Third Party Logistics Report Scope

South & Central America Third Party Logistics Regional Insights

The geographic scope of the South & Central America Third Party Logistics refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.

South & Central America Third Party Logistics Market Segmentation

The South & Central America third party logistics market is categorized into mode of transports, services, end user, and country.

Based on mode of transports, the South & Central America third party logistics market is segmented into roadways, railways, waterways, and airways. The roadways segment held the largest market share in 2022.

In terms of services, the South & Central America third party logistics market is segmented into international transportation, warehousing, domestic transportation, inventory management, and others. The domestic transportation segment held the largest market share in 2022.

Based on end user, the South & Central America third party logistics market is segmented into automotive, healthcare, retail, consumer goods, and others. The others segment held the largest market share in 2022.

By country, the South & Central America third party logistics market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America third party logistics market share in 2022.

C H Robinson Worldwide Inc, DB Schenker, DSV AS, GEODIS SA , Kuehne + Nagel International AG, Nippon Express Co Ltd, Sinotrans Ltd, and United Parcel Service Inc are among the leading companies operating in the South & Central America third party logistics market.