MEXICO 3PL MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Mexican 3PL Market is Segmented by Type (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution) and End User.

Market Snapshot

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Study Period: 2016 - 2026
Base Year: 2021
CAGR: >7 %

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Market Overview

The Mexican 3PL market is expected to register a CAGR of over 7% during the forecast period (2020-2025). The growth in the market is driven by the increasing trade flows, which are not only from one region to another but more decentralized and fragmented. This factor is expected to intensify the complexity of logistics activities in the coming years. The evolution of supply chains is also subject to changes in consumer habits, driven further by the emergence and increasing acceptance of e-commerce leading the supply chains, which are more flexible and adapt to the demands of the new consumers.

The approval of the United States-Mexico-Canada Agreement (USMCA) may bring about changes in Mexico, in terms of globalization and logistics integration, as well as in the role of logistics operators, in the near future.

Scope of the Report

A comprehensive background analysis of the Mexican 3PL market, covering the current market trends, restraints, technological updates, and detailed information on various segments and competitive landscape of the industry.

By Services
Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
By End User
Automobile
Energy
Manufacturing
Life Science and Healthcare
Retail
Technology
Other End Users

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Key Market Trends

Effects of USMCA

According to industry experts, the provisions of this agreement go further than any other free trade agreement, allowing the use of only one data set to ship goods across all three countries. The agreement focuses on increasing efficiency in cross-border freight, removing all restrictions from the Mexican custom brokers and creating a streamlined process. The US-Mexico-Canada Agreement (USMCA) involves several updates for the automobile industry, in terms of the production of cars and its parts. USMCA mandates the automobile industry to source 70% of the steel and aluminum used in vehicle manufacturing from North American suppliers. Along with the composition, the Agreement states that 40-45% of these vehicles should be produced by workers earning more than USD 16 per hour. After the agreement, the minimum wages in the country are expected to increase exponentially, thus, increasing the overall cost of production of cars in the country.

Along with these challenges, the Agreement requires the 3PL service providers to collaborate and increase their connectivity within the country, as well as in North America, for the ease of trade. In response to this, DB Schenker and AirBridge Cargo teamed up to improve digital connectivity for air cargo. Ryder, the leading provider of 3PL solutions in Mexico, announced an expansion of four centres that may fucntion as the operating premises located in key points of the national territory of Mexico, as part of its growth plans and in response to the demand for logistics services from different sectors.

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Developments in the Logistics Sector

The escalating digital accessibility and growing start-up business support mechanisms advocate Mexico's expanding culture of innovation in the logistics sector. Increase in technology investment by the Mexican government, combined with pro-private investment schemes, is encouraging the multinationals to view Mexico as a viable setting for centers focused on emerging technologies, such as blockchain, artificial intelligence (AI), Internet of Things (IoT), automated warehousing, investments in WMS, and digital transformation (warehouse digital twin). Due to emerging technologies, traditional industries are reinventing themselves. The Y-o-Y growth rate of e-commerce and increasing consumer demand are leading the logistics companies to adapt the technological improvements to provide a seamless service, thus, helping them gain a competitive advantage over other companies. Mercado Libre, in competition with Amazon, is aggressively focusing on expanding its integrated warehousing capacity, along with its 3PL partners DHL, FedEx Express, Estafeta, and 99 minutes, which may not only increase its storage space but also be helpful in last-mile logistics and one-day deliveries.

Along with the development of the helicopter freight service, DB Schenker Mexico is now focusing on its end-to-end logistics solution and going beyond offering shipments only from Point A to Point B. With an increase in the volume of automotive exports and imports, the company is also developing programs to address the automotive industry’s reverse logistics and contract logistics needs.

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Competitive Landscape

The market is fragmented with the presence of a large number of players, including DHL Supply Chain, Traxion, Schneider, Solistica, and Accel. The strategic alliances of 3PL service providers in the market are expected to set the tone for the exchange of innovations in supply chains, in order to improve the services provided and adopt and integrate the latest technological solutions. The total visibility of goods in transit, a trend that plans production and distribution according to real demand, is likely to make operations more efficient and profitable.

Major Players

  1. DHL International GmbH.

  2. TRAXION

  3. Schneider

  4. Solistics

  5. Logistica Accel

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain/Supply Chain Analysis

    4. 4.4 Industry Policies and Regulations

    5. 4.5 General Trends in Warehousing Market

    6. 4.6 Demand from Other Segments, such as CEP, Last Mile Delivery, and Cold Chain Logistics

    7. 4.7 Technological Developments in the Logistics Sector

    8. 4.8 Industry Attractiveness - Porter's Five Forces Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Services

      1. 5.1.1 Domestic Transportation Management

      2. 5.1.2 International Transportation Management

      3. 5.1.3 Value-added Warehousing and Distribution

    2. 5.2 By End User

      1. 5.2.1 Automobile

      2. 5.2.2 Energy

      3. 5.2.3 Manufacturing

      4. 5.2.4 Life Science and Healthcare

      5. 5.2.5 Retail

      6. 5.2.6 Technology

      7. 5.2.7 Other End Users

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Logistica Accel

      2. 6.2.2 CEVA Logistics

      3. 6.2.3 DHL Supply Chain

      4. 6.2.4 Kuehne Nagel

      5. 6.2.5 Penske

      6. 6.2.6 Ryder

      7. 6.2.7 Schneider

      8. 6.2.8 Solistica

      9. 6.2.9 Traxion

      10. 6.2.10 XPO Logistics*

    3. *List Not Exhaustive
  7. 7. INVESTMENT ANALYSIS

    1. 7.1 Recent Mergers and Acquisitions

  8. 8. FUTURE OF MEXICO 3PL MARKET

  9. 9. DISCLAIMER

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Frequently Asked Questions

The Mexico 3PL Market market is studied from 2016 - 2026.

The Mexico 3PL Market is growing at a CAGR of >7% over the next 5 years.

DHL International GmbH., TRAXION, Schneider, Solistics, Logistica Accel are the major companies operating in Mexico 3PL Market.

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