Mexico Logistics Market Growth and Analysis by 2031

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.

Mexico Logistics Market Analysis

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 Logistics Market Overview

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.

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Mexico Logistics Market: Strategic Insights

Mexico Logistics Market

• Market Size 2023
  US$ 135.98 Million
• Market Size 2031
  US$ 224.83 Million

Market Dynamics

GROWTH DRIVERS

• Increasing Logistics Flow in the US-Mexico Routes

FUTURE TRENDS

• Implementation of Software Solutions and Adoption of Big Data Analytics

OPPORTUNITIES

• Rising number of Industrial Houses

Regional Overview

• Mexico

Market Segmentation

Model

• 1PL
• 2PL
• 3PL
• 4PL
• 5PL

Mode Of Transportation

• Railways
• Airways
• Roadways
• Waterways

End-User

• Healthcare
• Automotive
• Energy & Utilities
• Aerospace
• Retail

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Mexico Logistics Market Drivers and Opportunities

Increasing Logistics Flow in US–Mexico Routes Propels Mexico Logistics Market

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.

Source: Bureau of Transportation Statistics

Transportation statistics between the US and Mexico in 2023 for different types of transportation are as follows:

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

Adoption of Supply Chain Outsourcing Practices to Generate Significant Market Opportunities in Future

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.

Mexico Logistics Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Mexico logistics market analysis are model, model of transportation, and end user.

• Based on model, the Mexico logistics market is categorized into 1PL, 2PL, 3PL, 4PL, and 5PL. The 3PL segment held the largest market share in 2023.
• In terms of mode of transportation, the Mexico logistics market is divided into railways, airways, roadways, and waterways. The roadways segment dominated the market in 2023.
• In terms of end user, the Mexico logistics market is divided into healthcare, automotive, energy & utilities, aerospace, retail, and others. The others segment dominated the market in 2023.

Mexico Logistics Market Share Analysis

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.

Mexico Logistics Market Report Scope

Mexico Logistics Market News and Recent Developments

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:

• C.H. Robinson announced the opening of a new facility to speed up trade across the Mexican borders amid the growing number of global shippers nearshoring to diversify and fortify their supply chains. This facility is one of the largest cross-docks in Laredo, the nation's No. 1 inland port, where the logistics company has been facilitating global business for more than 30 years. (Source: C.H. Robinson, Press Release, September 2023)

Mexico Logistics Market Report Coverage and Deliverables

The "Mexico Logistics Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Mexico logistics market size and forecast for all the key market segments covered under the scope
• Mexico logistics market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Mexico logistics market analysis covering key market trends, country framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Mexico logistics market
• Detailed company profiles