Mexico Road Freight Transport Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Mexico road freight transport market is segmented by Destination (Domestic, International) By End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade, Other End Users (Telecommunication and Pharmaceuticals)). The report offers market and forecasts for Mexico Road Freight Transport Market in Value (USD Billion) for all above segments.

Market Snapshot

mexico road shot
Study Period: 2018-2027
Base Year: 2021
CAGR: 9.91 %

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Market Overview

The Mexican road freight market was valued at USD 81.99 billion in 2021, and it is expected to be worth USD 131.61 billion by 2027, registering a CAGR of 9.91% during the forecast period.

The COVID-19 pandemic brought demand and supply shocks to the Mexican economy with deep impacts on firms, employment, and households. The combination of the global recession (including a drop in the United States output, Mexico’s main trading partner), disruptions in global and domestic supply chains, measures to flatten the contagion curve, financial disruptions, and investment risk aversion, among others, are likely to take a heavy toll on the key components of aggregate demand. The country’s debt-to-GDP ratio increased to 65.5% in 2020 and is expected to remain stable in the upcoming years. Inflation has been above target since 2017, however, it slowed down to 3.4% in 2020. Mexico's unemployment rate increased to 5.2% in 2020, mainly due to the negative economic impact of the COVID-19 pandemic.

By mode of transport, it was observed that road freight transport contributed USD 107.757 million during Q1 2021, which was the result of USD 65.724 million from exports and USD 42.033 million from imports. In this way, motor transport increased by 4.1% its volume of goods transported in the first quarter of 2021 (1Q21), compared to the same period in 2020.

Post pandemic Mexico is focusing on improving the road network across the country. A range of different road projects include major maintenance of 10 concessioned highways, finishing 22 freeways under construction, the upgrade and modernization of another 86 freeways, and other minor maintenance programs that will improve connectivity between central Mexico and the rest of the country.

The main freeways for these improvements are Arriaga-Tapachula (Chiapas), Coatzacoalcos-Villahermosa (Veracruz and Tabasco), San Luis Potosi-Matehuala (San Luis Potosi), and Tampico-Ciudad Victoria (Tamaulipas).

In 2020, Mexico had more than 990,000 heavy vehicles for general cargo transportation and nearly 153,500 vehicles dedicated to specialized cargo transportation.

In 2020, Mexico had 124,164 heavy vehicles specialized in the transportation of hazardous materials and a total of 17,133 bulky vehicles. Furthermore, the North American country registered that year over 1.1 million cargo transportation vehicles.

Scope of the Report

Road Freight is the physical process of transporting cargo by road using motor vehicles. The Mexico road freight transport market is segmented by Destination (Domestic, International) By End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade, Other End Users (Telecommunication and Pharmaceuticals)). The report offers market and forecasts for Mexico Road Freight Transport Market in Value (USD Billion) for all above segments.

By Destination
Domestic
International
By End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Construction
Distributive Trade
Other End Users (Telecommunication and Pharmaceuticals)

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Key Market Trends

Rapid Growth of E-Commerce in the country

E-commerce is providing a major impetus for growth in the road freight market in Mexico, which is the second largest e-commerce market in Latin America, following Brazil

E-commerce relies heavily on the trucking industry in the form of long-haul transport, then regional and urban transfers, and then finally “the last mile,” which is usually completed with vans and app-based delivery services. The dramatic expansion of e-commerce, and with it, distribution and last-mile logistics

The rapid penetration of the internet, fueled by the COVID-19 pandemic and an expansion in the region’s middle class has significantly contributed to the growth of the e-commerce industry

According to industry sources, the e-commerce market in Mexico USD 40.3 billion in 2021 and is expected to reach USD 74.1 billion by 2025. As of 2021, There were nearly 57.5 million Mexican eCommerce users, a 9% increase over 2019. This number is expected to grow to 77.9 million users by 2025

In 2020, food delivery led online purchases, followed by fashion and beauty items. Online pharmacy and supermarket purchases increased by 41 and 40%, respectively

Mexico road freight transport trend1

Rise in Trade

Owing to the rise in globalization over the last several years, various activities related to trade have been witnessed to increase. Growing globalization has led to an increase in manufacturing and trade activities in the country

Growing trade activities require efficient transportation solutions for goods transportation, which boosts the growth of the road freight transportation market in Mexico

In 2020, the EU was Mexico's 3rd trading partner, after the United States (USD 506.9 billion) and China (USD 81.5 billion), accounting for 7.8% of the country's total trade. Mexico, in turn, is the EU's 11th trading partner, accounting for 1.5% of its foreign trade

Two-way trade in goods and services between the United States and Mexico totaled USD 582.4 billion in 2020, positioning Mexico as the third-largest overall U.S. trading partner. During this period U.S. exports to Mexico totaled USD 235 billion and imports totaled USD 347.4 billion

Mexico has 13 Free Trade Agreements (FTAs) with 50 countries—including USMCA and FTAs with the European Union, European Free Trade Area, Japan, Israel, 10 countries in Latin America, and the 11-country Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Mexico road freight transport trend2

Competitive Landscape

Mexican road freight market houses many larger companies with greater access to capital to buy new trucks, communication equipment, and managerial sources, charge higher rates, and do not contend with the same level of competition as smaller operators.

The major players operating in the country are Alianza Trayecto, Grupo Traxión, Autotransportes de Carga Tresguerras and Transportes Castores de Baja California among others.

The strategic alliances of 3PL service providers in the market are expected to set the tone for exchanging innovations in supply chains to improve the services provided and adopt and integrate the latest technological solutions.

Recent Development

In March 2021, Traxion, a leader with solutions throughout the entire supply chain, presented its Logistics and Technology business division, differentiating it from its other two segments, focusing on the asset-light model to attack the market that came with the expansion of e-commerce. This new channel brings together 3PL storage services, last mile, e-commerce, forwarding, parcel, and messaging.

In Oct 2021, Transport Marva once again chose FRUEHAUF as a Business partner. On this occasion, it involved 300 towing equipment, 200 container chassis, and 100 dollies made of high-strength steel. With this investment, the fleet expects to continue growing in the containerized cargo industry.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. OVERVIEW OF MEXICO FREIGHT AND LOGISTICS MARKET

    1. 4.1 Freight Transport

    2. 4.2 Freight Forwarding

    3. 4.3 Warehousing

    4. 4.4 Value-added Services

  5. 5. MEXICO ROAD FREIGHT TRANSPORT MARKET - MARKET INSIGHTS

    1. 5.1 Market Overview

    2. 5.2 Demand and Supply Analysis

    3. 5.3 Spotlight on Freight Rates

    4. 5.4 Insights on Operating Costs

    5. 5.5 Insights on Fuel Costs

    6. 5.6 Insights on In-use Tractor Trailers

    7. 5.7 Impact of COVID-19 on the Market

  6. 6. MEXICO ROAD FREIGHT TRANSPORT MARKET - MARKET DYNAMICS

    1. 6.1 Drivers

    2. 6.2 Restraints

    3. 6.3 Opportunities

  7. 7. MARKET SEGMENTATION

    1. 7.1 By Destination

      1. 7.1.1 Domestic

      2. 7.1.2 International

    2. 7.2 By End User

      1. 7.2.1 Manufacturing and Automotive

      2. 7.2.2 Oil and Gas, Mining, and Quarrying

      3. 7.2.3 Agriculture, Fishing, and Forestry

      4. 7.2.4 Construction

      5. 7.2.5 Distributive Trade

      6. 7.2.6 Other End Users (Telecommunication and Pharmaceuticals)

  8. 8. COMPETITIVE LANDSCAPE

    1. 8.1 Overview (Market Concentration and Major Players)

    2. 8.2 Company Profiles

      1. 8.2.1 Alianza Trayecto

      2. 8.2.2 Grupo Traxion

      3. 8.2.3 Autotransportes de Carga Tresguerras

      4. 8.2.4 Transportes Castores de Baja California

      5. 8.2.5 Transportes Marva

      6. 8.2.6 Fletes Mexico

      7. 8.2.7 Grupo TUM

      8. 8.2.8 Transportes Monroy Schiavon (TMS)

      9. 8.2.9 Grupo Nor y Caribe

      10. 8.2.10 Transportes de Carga FEMA SA de CV

      11. 8.2.11 Transportes Orta SA de CV

      12. 8.2.12 Landstar System Inc.

      13. 8.2.13 Ryder System Inc.

      14. 8.2.14 DB Schenker

      15. 8.2.15 C. H. Robinson*

    3. *List Not Exhaustive
    4. 8.3 Other Companies

  9. 9. FUTURE OF THE MARKET

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Frequently Asked Questions

The Mexico Road Freight Transport Market market is studied from 2018 - 2027.

The Mexico Road Freight Transport Market is growing at a CAGR of 9.91% over the next 5 years.

The Mexico Road Freight Transport Market is valued at 74 Billion USD in 2018.

Alianza Trayecto, Grupo Traxión, Autotransportes de Carga Tresguerras, Fletes México, Grupo TUM are the major companies operating in Mexico Road Freight Transport Market.

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