The Mexico logistics market size is projected to reach US$ 224.83 million by 2031 from US$ 135.98 million in 2023. The market is expected to register a CAGR of 6.5% during 2023–2031. The implementation of software solutions and adoption of Big Data analytics would continue to bring key trends in the market in the coming years.
Technological advancements constitute one of the prime factors supporting the logistics market in Mexico. Advanced technologies such as automated guided vehicles (AGVs), artificial intelligence, and cloud technology help logistics companies improve their overall accuracy and efficiency. Advanced technology offers in-depth reporting and analytic capabilities, which can boost the confidence of companies in their logistics supplier partners as well as reduce the overall production and distribution costs drastically. Moving ahead in a customer-centric business, employing skilled workforces, and offering the highest level of services is crucial for logistics providers to gain success while staying competitive in the market they serve.
Mexico is an open market economy, and it is considered an emerging economy worldwide. It has 14 Free Trade Agreements (FTA) that involve more than 50 countries, including the US and the EU. Additionally, Mexico is among the only 3 countries (Colombia and Chile being the other 2 participants) from the Latin America region that are members of the OECD, which bolsters its trade activities. Further, the cross-border trade between the US and Mexico is another major factor pushing the growth of freight transportation across their boundaries. Nearshoring holds a promising opportunity for the flourishment of its logistics sector that can lead to greater integration of supply chains and increased trade with the US and Canada. Moreover, more than 490 companies are expected to enter the Mexican market during 2024–2025, which is expected to generate new opportunities for logistics vendors in the coming years as well.
According to the Bureau of Transportation Statistics, the freight value between the US and Mexico rose by ~2.5% from 2022 to 2023, reaching US$ 798.8 billion. The overall trade values across US–Mexico routes for the past 4 years have been mentioned in the table below, showing moderate growth over the years.
2020
2021
2022
2023
US–Mexico Freight (US$ Billion)
538.07
661.16
779.31
798.83
Source: Bureau of Transportation Statistics
Transportation statistics between the US and Mexico in 2023 for different types of transportation are as follows:
Type
2023 (US$ Million)
Truck Transportation
Rail Transportation
Air Transportation
Water Transportation
Source: Bureau of Transportation Statistics
Thus, the rising flow of transportation of goods and service offerings via routes connecting the US to Mexico is one of the major factors driving the growth of the Mexico logistics market
Businesses in Mexico tend to outsource the overall supply chain operations to third-, fourth-, and fifth-party logistics (3PL, 4PL, and 5PL, respectively) vendors, which generates new opportunities for the Mexico logistics market players. Mexico serves as an ideal destination for North American businesses, specifically the companies headquartered in the US, seeking to expand their operations. The infrastructure development plans of the Mexican government, which include extensive road networks and modernized ports, are likely to support the efficient flow of goods across US–Mexico borders. Investments in the national infrastructure of Mexico from the government and private companies are likely to boost the country's capacity to handle more international trade in the coming years.
Key segments that contributed to the derivation of the Mexico logistics market analysis are model, model of transportation, and end user.
The geographic scope of the Mexico logistics market report offers a detailed country analysis. Mexico's proximity to the US and Canada is one of the significant factors for its logistics growth. The country has emerged as one of the largest automotive manufacturing hubs globally, standing at the seventh position. In addition, with more than 2,500 enterprises specializing in the production of medical devices, Mexico is one of the leading exporters of medical equipment and devices to the US; it ranks eighth among the largest manufacturers of medical devices globally. Increased manufacturing activities in the country offer more significant opportunities for logistics service providers. As a result, many 3PL companies have started their business expansion. For instance, in May 2023, Redwood Logistics, a Chicago-based company, announced the expansion of its operations in Mexico. Such developments have been fueling the growth of the Mexico logistics market.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 135.98 Million |
| Market Size by 2031 | US$ 224.83 Million |
| Global CAGR (2023 - 2031) | 6.5% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Model
|
| Regions and Countries Covered | Mexico
|
| Market leaders and key company profiles |
The Mexico logistics market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Mexico logistics market are listed below:
The "Mexico Logistics Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The List of Companies - Mexico Logistics Market
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