3PL in Chile Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 4.28 Billion |
| Market Size (2029) | USD 5.60 Billion |
| CAGR (2024 - 2029) | 5.89 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Chile 3PL Market Analysis
The Chile Third-party Logistics Market size is estimated at USD 4.28 billion in 2024, and is expected to reach USD 5.60 billion by 2029, growing at a CAGR of 5.89% during the forecast period (2024-2029).
- The Chilean third-party logistics (3PL) sector has witnessed robust growth, driven by businesses increasingly outsourcing for transportation, warehousing, and freight forwarding functions. This trend is particularly pronounced as Chile's e-commerce landscape expands, necessitating 3PL providers to manage last-mile deliveries and online retailers' inventories.
- Industry data reveals that in 2022, 64.8% of Chileans made online purchases, a figure projected to rise annually, hitting 69.4% by 2027, buoyed by the country's high 91% internet penetration. The primary e-commerce demographic in Chile falls between 26 and 40 years old (33%), closely followed by the 41-55 age group (29%). About 36% of buyers boast high household incomes, splitting the remaining almost evenly between low and middle-income brackets. The top categories for online purchases in Chile include clothing (50%), shoes (41%), food and beverages (30%), cosmetics (26%), and consumer electronics (25%).
- 3PL providers in Chile increasingly turn to technology, such as tracking systems, warehouse management software, and analytics, to boost operational efficiency and elevate customer service standards. For instance, warehouse automation streamlines operations enhances speed, and increases productivity by reducing human interventions.
- Technologies like automated guided vehicles (AGVs), robotic picking, automated storage and retrieval systems (ASRS), and put-wall picking, all falling under the umbrella of pick-and-place technologies, not only slash error rates but also significantly amplify warehouse productivity. To rein in operational logistics costs, Chile warehouses recognize the necessity of a well-thought-out integration of these efficient automation technologies. In a recent development, in April 2024, US-based GXO Logistics partnered with AR Racking, a prominent industrial racking specialist, in response to escalating demands to expand the storage capacity of one of its Chilean warehouses.
- The Chilean 3PL sector is ripe with opportunities for providers to introduce innovative solutions, enhancing supply chain efficiency and catering to the evolving needs of businesses in this burgeoning economy.
3PL in Chile Market Trends
Infrastructure Development Projects Underway Supporting the Chile 3PL Sector
- Chile is gearing up for a substantial infrastructure push, with tenders valued at approximately USD 2.3 billion in 2023. The Ministry of Public Works (MOP), renowned for its meticulous planning and transparent bidding, fosters a collaborative environment between government bodies and private enterprises.
- Chile's unveiling of its 2024 bidding plan, featuring a staggering 680 projects, underscores its unwavering commitment to driving economic growth through strategic infrastructure investments. These projects span various sectors, from airport and architectural advancements to hydraulic engineering, port expansions, and rural healthcare facilities.
- Over the next 18 months, the Chilean government plans to roll out tenders for 11 infrastructure projects, collectively valued at USD 7.5 billion. Luis Felipe Elton Sanfuentes, head of project development and tenders at the MOP, revealed this ambitious portfolio at the PPP Americas forum in Panama City.
- These projects include crucial segments of the Pan-American highway, like Santiago-Los Vilos, Temuco-Río Bueno, and Iquique-Antofagasta, among others. Additionally, projects like the Valdivia access road and the Pie del Monte highway are on the agenda.
- Chile's new road expansion initiative is poised to enhance freight transport by bolstering connectivity and slashing travel times. The maritime sector, especially at the Port of San Antonio, is set to witness a surge in demand for freight transport, buoyed by concurrent road infrastructure enhancements.
Chile's Trade Expansion Drives Growth in the 3PL Market
- In its pursuit of bolstering international trade, Chile has not only deepened ties with various nations but also broadened its export horizons. This strategic push has significantly upped the ante for efficient logistics services, benefiting the 3PL sector.
- As Chile's trade landscape expands, so does the volume of goods crossing its borders. In 2023 alone, Chile witnessed imports valued at USD 80.49 billion and exports totaling USD 100.29 billion. With this surge in trade, the demand for robust logistics and supply chain services has soared, presenting 3PL providers with a ripe opportunity to offer tailored solutions.
- Chile's proactive stance in forging trade pacts has not gone unnoticed. These agreements have not only birthed new trade avenues but have also ramped up cross-border activities. Chile's trade diplomacy shines through its 26 negotiated agreements, now operational in 25 instances. These pacts span a vast landscape, covering 65 markets and representing 88% of the global GDP.
- These agreements are diverse, including 17 FTAs with nations like the United States, Canada, Mexico, Korea, and many others, alongside three Economic Association Agreements with entities such as the European Union and Japan.
- Further solidifying its trade network, Chile has inked six Economic Cooperation Agreements, notably with Bolivia and Peru, and holds a Partial Association Agreement with India, complemented by a Commercial Protocol within the Pacific Alliance. These strategic moves have smoothed the flow of goods across borders and positioned 3PL providers to capitalize on this robust infrastructure, tailoring services to meet evolving business demands.
3PL in Chile Industry Overview
The Chilean third-party logistics (3PL) market is competitive and fragmented. The market has grown robustly, buoyed by the nation's strategic positioning, economic stability, and business-friendly climate. This allure has enticed international logistics giants and fostered a competitive landscape, with global and local players vying for dominance and pushing the boundaries of service innovation.
Standing out in this competitive arena is DHL, a global powerhouse. Leveraging its expansive network, DHL has cemented its position as a premier logistics provider in Chile, offering diverse services from warehousing to transportation tailored for sectors like retail, automotive, and healthcare.
3PL in Chile Market Leaders
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Agunsa
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Deutsche Post DHL
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Andes Logistics
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Agility Logistics
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Noatum Logistics
*Disclaimer: Major Players sorted in no particular order
3PL in Chile Market News
- February 2024: H.I.G. Capital LLC (H.I.G.), a prominent global alternative investment firm managing USD 60 billion, announced that its portfolio company, Grupo Ransa (Ransa), successfully acquired Loginsa. Ransa, a significant player in third-party logistics (3PL) in Latin America, boasts a presence in 11 countries and operates from 72 locations. This strategic move cemented Ransa's position as a key player and significantly expanded its reach along the Pacific Coast of Latin America, now spanning 12 countries from Mexico to Chile. The acquisition is poised to bolster Ransa's service portfolio, offering enhanced value to its regional clientele. Ransa's operational footprint expanded to 95 locations post-acquisition, encompassing a vast infrastructure of over 4,250,000 sq.m.
- February 2024: AGS (AGUNSA), a key player in logistics headquartered in Chile, made significant investments in Omni Transloading & Logistics and Omni Bulk Services. This move cemented a strategic partnership, underlining AGS's commitment to enhancing client value and driving growth and innovation in transportation and logistics. AGS and its partners are set to chart a path of success and prosperity in the ever-evolving logistics landscape by pooling their expertise and resources.
3PL in Chile Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Economic and 3PL Market Scenario
4.2 Brief on Key Logistics Hubs in Chile
4.3 Industry Policies and Regulations
4.4 General Trends in Warehousing Market
4.5 Demand from other Segments, such as CEP, Last Mile Delivery, and Cold Chain Logistics
4.6 Insights into the E-commerce Business
4.7 Technological Developments in the Logistics Sector
4.8 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Infrastructure Development Projects Underway Supporting the Chile 3PL Sector
5.1.2 E-commerce Growth Fueling Chile 3PL Industry
5.1.3 Chile's Trade Expansion Drives Growth in the 3PL Market
5.2 Market Restraints
5.2.1 Poor Port Logistics and Regulatory Complexities
5.2.2 Economic and Political Uncertainty
5.3 Market Opportunities
5.3.1 The Pooled Warehouse Trend Presents a Significant Opportunity for the Chilean 3PL Market
5.3.2 Technological Innovations are Pivotal for Driving Growth and Expansion in the Chilean 3PL Market
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
5.5 Value Chain/ Supply Chain Analysis
6. MARKET SEGMENTATION
6.1 By Service
6.1.1 Domestic Transportation Management
6.1.2 International Transportation Management
6.1.3 Value-added Warehousing and Distribution
6.2 By End User
6.2.1 Automotive and Manufacturing
6.2.2 Oil and Gas
6.2.3 Chemicals
6.2.4 Distributive Trade (Wholesale and Retail Trade, including E-commerce)
6.2.5 Pharmaceutical and Healthcare
6.2.6 Construction
6.2.7 Other End Users
7. COMPETITIVE LANDSCAPE
7.1 Market Concentration Analysis
7.2 Company Profiles
7.2.1 Agunsa
7.2.2 Latam Logistics
7.2.3 DHL
7.2.4 Andes Logistics
7.2.5 ChileTrans Logistics
7.2.6 DSV SA (Including Agility Logistics)
7.2.7 Sitrans Servicios Integrados de Transportes Limitada
7.2.8 Megalogistica SA
7.2.9 DB Schenker
7.2.10 Loginsa
7.2.11 Noatum Logistics
7.2.12 CEVA Logistics
7.2.13 Blue Express
7.2.14 Mercado Libre*
- *List Not Exhaustive
7.3 Other Companies
8. FUTURE OF THE MARKET
9. APPENDIX
Chile 3PL Market in Segmentation
Third-party logistics companies supply various 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 3PL (third-party logistics) provider delivers outsourced logistics services, encompassing anything that involves managing one or more facets of procurement and fulfillment activities. 3PL applies to any service contract that involves storing or shipping items. A 3PL service may be a single provider, such as transportation or warehouse storage, or a systemwide bundle of services capable of handling supply chain management.
The Chilean 3PL market is segmented by service (domestic transportation management, international transportation management, and value-added warehousing and distribution) and end-user (automotive and manufacturing, oil and gas, chemicals, distributive trade (wholesale and retail trade, including e-commerce), pharmaceutical and healthcare, construction, and other end users). The report offers the market size in value terms in USD for all the abovementioned segments.
| By Service | |
| Domestic Transportation Management | |
| International Transportation Management | |
| Value-added Warehousing and Distribution |
| By End User | |
| Automotive and Manufacturing | |
| Oil and Gas | |
| Chemicals | |
| Distributive Trade (Wholesale and Retail Trade, including E-commerce) | |
| Pharmaceutical and Healthcare | |
| Construction | |
| Other End Users |
3PL in Chile Market Research FAQs
How big is the Chile Third-party Logistics Market?
The Chile Third-party Logistics Market size is expected to reach USD 4.28 billion in 2024 and grow at a CAGR of 5.89% to reach USD 5.60 billion by 2029.
What is the current Chile Third-party Logistics Market size?
In 2024, the Chile Third-party Logistics Market size is expected to reach USD 4.28 billion.
Who are the key players in Chile Third-party Logistics Market?
Agunsa, Deutsche Post DHL, Andes Logistics, Agility Logistics and Noatum Logistics are the major companies operating in the Chile Third-party Logistics Market.
What years does this Chile Third-party Logistics Market cover, and what was the market size in 2023?
In 2023, the Chile Third-party Logistics Market size was estimated at USD 4.03 billion. The report covers the Chile Third-party Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Chile Third-party Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
3PL in Chile Industry Report
The Chilean 3PL market analysis provides an in-depth industry overview, focusing on various segments such as domestic transportation management, international transportation management, and value-added warehousing and distribution. The report highlights key industry trends and market growth, offering insights into the market size and market share within the region. The industry analysis includes a comprehensive look at the end users, which range from automotive and manufacturing to pharmaceutical and healthcare, as well as the construction sector.
The market outlook and industry outlook are discussed in detail, providing a clear picture of the market forecast and market predictions up to the year 2029. The report also delves into the industry statistics, offering valuable market data and market segmentation information. An industry report example is included for reference, and a report PDF is available for download.
Key market leaders and research companies are identified, providing a better understanding of the competitive landscape. The report also examines the industry growth rate and market value, ensuring a thorough market review. The industry research and industry reports offer a solid foundation for understanding the overall industry size and industry sales.
In summary, this report is an essential resource for anyone looking to gain a comprehensive understanding of the Chilean 3PL market. It covers all the necessary aspects, from market trends and market overview to detailed industry information and market segmentation. The report is designed to provide a complete picture of the market, making it a valuable tool for industry professionals and researchers alike.
