Market Size of Mexico 3PL Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 25.94 Billion |
Market Size (2029) | USD 35.96 Billion |
CAGR (2024 - 2029) | 6.75 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Mexico 3PL Market Analysis
The Mexico 3PL Market size is estimated at USD 24.30 billion in 2023, and is expected to reach USD 33.69 billion by 2028, growing at a CAGR of 6.75% during the forecast period (2023-2028).
• The 3PL market in Mexico has evolved gradually over the past five years. According to industrial sources, services such as national and international transportation, warehousing, and customs brokerage are predominantly outsourced activities in the country.
• The geographic location and the advantages of NAFTA/USMCA play an important role, especially for companies involved in manufacturing. The government of Mexico is making efforts to improve the infrastructure of the country's roads and communications, including some structural reforms, such as energy. These improvements are expected to benefit logistics companies through cost reductions in the long term.
• Mexico, one of the largest trading partners of the United States, is a preferred location and is considered the most cost-effective alternative. For example, according to an estimate, running distribution, warehousing, and labeling services under one supplier in Mexico can cost a company up to 15% and 18% less compared to the United States. Utilizing the 3PL services in Mexico increases the business's scalability and offers more flexibility.
• In December 2022, BIG Logistics, a SecurCapital Corp company, a third-party logistics provider (3PL) and technology-enabled warehouse management IT platform with warehouses throughout Texas and along the Mexican border, announced the acquisitions of privately owned Xcell Logistic Services, Inc., and Xcell Logistics Corporation in Mexico.
Mexico 3PL Industry Segmentation
Third-party logistics companies provide a number of services that have to do with the logistics of the supply chain. This includes transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging, and freight forwarding.
A complete background analysis of the 3PL Mexico Industry market, which includes an assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles, are covered in the report. The impact of COVID-19 has also been incorporated and considered during the study.
The 3PL Mexico Market is Segmented by Services (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution) and End Users (Automotive, Consumer and Retail, Energy, Healthcare, Industrial and Aerospace, Technology, and Other End Users). The report offers market sizes and forecasts in value (USD) for all the above segments.
By Services | |
Domestic Transportation Management | |
International Transportation Management | |
Value-added Warehousing and Distribution |
By End User | |
Automotive | |
Consumer and Retail | |
Energy | |
Healthcare | |
Industrial and Aerospace | |
Technology | |
Other End Users |
Mexico 3PL Market Size Summary
The 3PL market in Mexico has experienced gradual growth over the past five years, driven by the outsourcing of services such as transportation, warehousing, and customs brokerage. The strategic geographic location of Mexico, coupled with the benefits of trade agreements like NAFTA/USMCA, has made it an attractive hub for manufacturing and logistics. The Mexican government's efforts to enhance infrastructure, including roads and communication systems, are expected to further reduce costs for logistics companies in the long term. As one of the largest trading partners of the United States, Mexico offers a cost-effective alternative for distribution, warehousing, and labeling services, providing businesses with increased scalability and flexibility. The domestic transportation management segment, supported by the rise of e-commerce and nearshoring trends, is the largest service type in the market, with significant investments from manufacturers aiming to streamline access to the US market.
The Mexico 3PL market is characterized by a fragmented landscape with numerous players, including major companies like DHL Supply Chain, Traxion, Schneider, Ceva Logistics, and Accel Logistics. These providers are focusing on strategic alliances to enhance supply chain innovations and integrate advanced technological solutions. The market is witnessing increased activity in e-commerce, with last-mile solutions and online retail startups expanding their operations. Despite challenges such as cybersecurity risks in e-commerce, the retail and consumer sector shows potential for significant growth. Recent developments include investments by DHL Supply Chain in Latin America and Toyota's expansion in Mexico, highlighting the region's strategic importance. The market's growth is further supported by the increasing demand for efficient logistics solutions and the adoption of technologies that offer real-time visibility of goods in transit.
Mexico 3PL Market Size - Table of Contents
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1. MARKET INSIGHTS AND DYNAMICS
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1.1 Current Market Scenario
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1.2 Market Overview
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1.3 Market Dynamics
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1.3.1 Drivers
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1.3.1.1 Increase in fragmented and decentralized trade flows
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1.3.1.2 Rise in investment from international pharmaceutical companies
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1.3.2 Restraints
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1.3.2.1 Poor infrastructure and higher logistics costs
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1.3.3 Opportunities
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1.3.3.1 Surge in use of IT solutions and software
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1.4 Value Chain / Supply Chain Analysis
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1.5 Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Industry Policies and Regulations
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1.7 General Trends in the Warehousing Market
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1.8 Demand from Other Segments, such as CEP, Last Mile Delivery, and Cold Chain Logistics
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1.9 Technological Developments in the Logistics Sector
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1.10 Impact of the COVID-19 Pandemic on the Market
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2. MARKET SEGMENTATION
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2.1 By Services
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2.1.1 Domestic Transportation Management
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2.1.2 International Transportation Management
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2.1.3 Value-added Warehousing and Distribution
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2.2 By End User
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2.2.1 Automotive
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2.2.2 Consumer and Retail
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2.2.3 Energy
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2.2.4 Healthcare
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2.2.5 Industrial and Aerospace
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2.2.6 Technology
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2.2.7 Other End Users
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Mexico 3PL Market Size FAQs
How big is the Mexico 3PL Market?
The Mexico 3PL Market size is expected to reach USD 25.94 billion in 2024 and grow at a CAGR of 6.75% to reach USD 35.96 billion by 2029.
What is the current Mexico 3PL Market size?
In 2024, the Mexico 3PL Market size is expected to reach USD 25.94 billion.