Mexico Logistics Market is expected to reach US$ 224.83 Million by 2031

Surge in Demand for Different Commodities Bolsters Mexico Logistics Market Growth

According to our latest study on "Mexico Logistics Market Analysis to 2031 – Country Analysis – by Model, Model of Transportation, and End User," the market was valued at US$ 135.98 million in 2023 and is projected to reach US$ 224.83 million by 2031; it is anticipated to record a CAGR of 6.5% from 2023 to 2031. The report includes growth prospects owing to the current Mexico logistics market trends and their foreseeable impact during the forecast period.

Mexico is one of the major export markets for various countries. The country procures numerous product commodities manufactured in other countries via international routes. An upsurge in the value of the transportation of different commodities such as vehicles/parts, electrical machinery, computers, oil/petroleum/fuel, and plastics drives the growth of the Mexico logistics market size. A few of the top commodities imported by Mexico from the US are mentioned in the table below:

Source: Bureau of Transportation Statistics

The above numbers illustrate strong demand for commodities such as vehicles and parts, electrical machinery, and electronics and their parts in Mexico. Thus, a surge in demand for different commodities bolsters the growth of the Mexico logistics market size. Logistics is a complex process that involves the flow of multiple goods and the handling of information across a network of suppliers, carriers, and warehouses. Its complexity can be handled using software systems, which allow the analysis of real-time and real-world data. The implementation of software systems improves lead times, reduces excess inventory levels, helps resolve warehousing issues, and decreases inventory costs. Increased competitiveness in the logistics industry is a major factor driving investments in automation and digitization. In the coming years, logistics firms are expected to shift toward mobile technology to reduce paper records. The adoption of RFID-enabled devices is expected to enable the storage of data for easy transport, subsequently simplifying the tracking and identification of products.

Mexico Logistics Market Share — by Country, 2023

Source: The Insight Partners Analysis

Software related to transportation management systems will reduce inefficiency and costs. The usage of speech recognition software in warehouse management system communications will help with order turnaround and inventory records while lowering employee training needs. Along with this, cloud-based technology implemented in logistics organizations would respond to demands by recognizing the need for client access, allowing them to address seasonal trends better. Big Data is another technology that is notably transforming the logistics industry. By analyzing financial and operational KPIs (i.e., key performance indicators) and providing the best shipping experience, a data-driven strategy aids logistics service providers in maintaining flexibility. They can also turn data into insightful knowledge by developing data science technologies and other resources; this also benefits them through end-to-end supply chain visibility, improved resource planning, and cost reduction. Thus, advancements in logistics operations with the integration of IT solutions, supply chain software, mobile technology, Big Data, and cloud-based systems will bring new trends for the Mexico logistics market growth in the coming years.

Based on model, the Mexico logistics market is segmented into 1PL, 2PL, 3PL, 4PL, and 5PL. The 3PL segment held the largest Mexico logistics market share in 2023. Growth of the e-commerce industry with significant investments in warehousing has created a massive demand for 3PL logistics services. According to the Online Sales Association of Mexico, the e-commerce market in Mexico was valued at US$ 26.2 billion in 2022, recording a rise of 23% compared to 2021. Mexico is one of the top 5 countries in terms of growth in the e-commerce retail sector, owing to an increase in online e-commerce users across the country. There were nearly 63 million e-commerce users in the country in 2022, indicating an upsurge of 5.5 million over the number recorded in 2021. In March 2024, MercadoLibre Inc, one of Latin America's e-commerce companies, invested ~US$ 2.5 billion in the country to enhance its logistics sector, expand warehouse space, and boost overall logistics networks. Such an increase in the e-commerce industry and growing investment in warehousing across the country have created a massive demand for 3PL logistics.

The Mexico logistics market report emphasizes the key factors driving the market and showcases the developments of prominent players. The Mexican logistics sector is driven by rapid growth in the e-commerce industry with significant sales of retail products. In 2022, in Mexico, the top five product categories mostly purchased by consumers include electronics, household appliances, games, fashion, and home furnishings. The sales of beauty and personal care products are increasing through online e-commerce portals. The market for cosmetics and personal care products in Mexico was valued at US$ 7.24 million in 2022, owing to the surged demand from consumers through online e-commerce portals in Mexico.

Further, Mexico is the fifth manufacturer of heavy-duty cargo vehicles around the globe, with the presence of the largest 14 manufacturers and assemblers of trucks, buses, and tractor trucks. These manufacturers have 11 plants that support over 28,000 jobs nationwide. Mexico is the largest exporter of tractor trucks, with 95.1% destined for the US. Further, it is the fourth-largest exporter of heavy-duty vehicles for cargo and the second-largest exporter of medium and heavy-duty trucks for the US. Top truck manufacturers operating in Mexico include Cummins, Inc; Freightliner-Daimler; Detroit Diesel Allison; Mack Trucks de México; Kenworth Mexicana; International-Navistar; Scania; Dina; VW; Volvo; Mercedes-Benz; Hino Motors; Man Truck & Bus; and Isuzu Motors.

Mexico has major highway and transportation networks that connect to the US ports. Mexico's highway connectivity directly supplies goods to major US transportation arterial roads that make cross-border logistics. Tijuana and the?Otay Mesa?Commercial borders are located near the south of San Diego, California, and provide commercial transportation access to all major North American trade centers. The country has four regional logistics hubs with infrastructure that supports the warehousing and distribution of products from various industries. These logistics hubs are found in Guanajuato, Tijuana, Ciudad Juarez, and Queretaro. These logistics hubs were developed to handle merchandise for Mexico's major industries, such as medical devices, automotive, and electronic manufacturing.

One of the largest logistics hubs is the Cuautitlan-Tultitlan-Tepotzotlan (CTT) logistics corridor located in the Valley of Mexico in Mexico State. It has 20% of the country's population residing in the surrounding metropolitan area. Logistic firms such as Mercado Libre, Amazon, DHL, and Estafeta are functional around this area.

C H Robinson Worldwide Inc, DB Schenker, CEVA Logistics AG, XPO Inc, Expeditors International of Washington Inc, Grupo Mexico SAB de CV, Rhenus Group, Mexicom Logistics, J B Hunt Transport Services Inc, Penske Automotive Group Inc, Búho Logistics Inc, ICS VMI GROUP, WeFreight International Logistics FZCO, Omni Logistics LLC, and Deutsche Post AG are among the key players profiled in the Mexico logistics market report. Companies operating in the Mexico logistics market mainly focus on product and service enhancements by integrating advanced features and technologies into their offerings.

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