Market Size of south america freight and logistics Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 231.2 Billion |
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Market Size (2030) | USD 311.7 Billion |
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Largest Share by Logistics Function | Freight Transport |
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CAGR (2024 - 2030) | 5.10 % |
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Largest Share by Country | Brazil |
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Market Concentration | Low |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
South America Freight And Logistics Market Analysis
The South America Freight And Logistics Market size is estimated at 231.2 billion USD in 2024, and is expected to reach 311.7 billion USD by 2030, growing at a CAGR of 5.10% during the forecast period (2024-2030).
231.2 Billion
Market Size in 2024 (USD)
311.7 Billion
Market Size in 2030 (USD)
3.73 %
CAGR (2017-2023)
5.10 %
CAGR (2024-2030)
Fastest Growing Market by Mode of Transport
5.64 %
Projected CAGR, Sea and Inland Waterways, 2024-2030
Maritime infrastructure development is being adopted rapidly in all the countries in the region to facilitate economic recovery and boost sea freight cargo capacity.
Largest CEP Market by Destination
64.72 %
value share, Domestic, 2023
E-commerce has been the key catalyst for the growth of the domestic CEP segment. The e-commerce market in the region grew by 12.7% YoY and reached USD 58.4 billion in 2023.
Largest Country
45.77 %
value share, Brazil, 2023
Brazil is aiming to attract USD 36.6 billion in private investments for new railway projects until 2026. The goal is to enhance the rail network to transport 40% of exports by 2035, up from the current 17%.
Largest Market by End User Industry
40.85 %
value share, Wholesale and Retail Trade, 2023
The Brazilian retail sector managed to open more brick-and-mortar and online stores in 2023. There was a more accelerated recovery in the e-commerce performance in 2023, compared to physical retail.
Fastest Growing Warehousing Market by Temperature Control
4.89 %
Projected CAGR, Temperature Controlled, 2024-2030
In the past decade, Chile has emerged as a major player in exports, driving the growth of its cold storage services. The pharmaceutical market is driving the growth of temperature-controlled warehouses.
E-commerce industry and infrastructure investments, developing the freight transport market in the region
- Brazil has set a target of attracting around BRL 180 billion (USD 34.03 billion) in private investments for new rail and highway projects from 2024 to 2026. This move is part of Brazil's broader efforts to modernize and expand its road infrastructure, which would bolster its long-haul trucking capabilities. In a notable development, the Inter-American Development Bank (IDB) sanctioned a USD 480 million loan in 2023 for the State of São Paulo Highway Investment Program. The initiative aims to enhance the state's production chains, improve production capacity, and foster regional integration. Brazil has set its sights on securing USD 62 billion in highway investments by 2026.
- The shipping and trucking sectors in Brazil have witnessed a surge in investments, attracting new entrants. These newcomers, leveraging the advantages of digitization, are poised to intensify market competition. Between 2018 and 2022, Brazil led the region with an average annual infrastructure investment of USD 36.3 billion, followed by Chile at approximately USD 17 billion.
- The rapid growth of e-commerce in South America is fueling the demand for transportation services. In 2023, the region's e-commerce sector generated revenues of USD 58.38 billion, marking a significant increase from USD 51.79 billion in 2022. Projections indicate a CAGR of 13.50% from 2023 to 2027, with revenues expected to reach USD 96.87 billion by 2027. The user base is also set to expand, with estimates pegging it at 244.1 million by 2025. In 2022, the user penetration rate stood at 54.0%, and it is projected to rise to 58.7% by 2025.
Understand The Key Trends Shaping This Market
Growth and transition in South America's freight and logistics
- Brazil is one of the major economies in the region, along with Argentina, Chile, Colombia, and Peru. Brazil is working toward sustainable transport and adopting clean technologies for truck fleets. For instance, Ambev, a Brazilian brewing company owned by Anheuser-Busch InBev, collaborated with electric truck supplier FNM to receive around 1,000 electric trucks by the end of 2023. Brazil witnessed the adoption of electric trucks in mining. For instance, in October 2022, Vale announced testing 72-tonne off-highway trucks at Água Limpa in Minas Gerais. These significant technological innovations and growing demand for freight transport across several sectors.
- The e-commerce sector in the region has experienced a surge, fueled by the COVID-19 pandemic, and is expected to continue growing. Brazil saw a 12.59% YoY increase in e-commerce in Q1 2022, while Chile experienced a 23% YoY growth. This boom is driving demand for warehouse logistics, with the region having an average vacancy rate below 6% in Q2 2022. Warehouse space availability remains a major challenge. Additionally, Argentina's pharmaceutical market, valued at USD 8,329 million in 2021, is driving demand for temperature-controlled warehousing.
- In Argentina, in September 2023, DHL Express launched new freighter flights between Miami and Buenos Aires to improve delivery efficiency. These flights, managed by DHL Aero Expreso in Panama, use a B767-300 freighter with a 52-ton capacity. Operating six times weekly, the service goes from Miami International Airport (MIA) to Buenos Aires (EZE) via Santiago, Chile (SCL), and back. This initiative aims to speed up customs clearance in Argentina by 10% on the same day as arrival and increase same-day deliveries by 50%.
South America Freight And Logistics Industry Segmentation
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function. Argentina, Brazil, Chile are covered as segments by Country.
- Brazil has set a target of attracting around BRL 180 billion (USD 34.03 billion) in private investments for new rail and highway projects from 2024 to 2026. This move is part of Brazil's broader efforts to modernize and expand its road infrastructure, which would bolster its long-haul trucking capabilities. In a notable development, the Inter-American Development Bank (IDB) sanctioned a USD 480 million loan in 2023 for the State of São Paulo Highway Investment Program. The initiative aims to enhance the state's production chains, improve production capacity, and foster regional integration. Brazil has set its sights on securing USD 62 billion in highway investments by 2026.
- The shipping and trucking sectors in Brazil have witnessed a surge in investments, attracting new entrants. These newcomers, leveraging the advantages of digitization, are poised to intensify market competition. Between 2018 and 2022, Brazil led the region with an average annual infrastructure investment of USD 36.3 billion, followed by Chile at approximately USD 17 billion.
- The rapid growth of e-commerce in South America is fueling the demand for transportation services. In 2023, the region's e-commerce sector generated revenues of USD 58.38 billion, marking a significant increase from USD 51.79 billion in 2022. Projections indicate a CAGR of 13.50% from 2023 to 2027, with revenues expected to reach USD 96.87 billion by 2027. The user base is also set to expand, with estimates pegging it at 244.1 million by 2025. In 2022, the user penetration rate stood at 54.0%, and it is projected to rise to 58.7% by 2025.
| End User Industry | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Manufacturing | |
| Oil and Gas, Mining and Quarrying | |
| Wholesale and Retail Trade | |
| Others |
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| Other Services |
| Country | |
| Argentina | |
| Brazil | |
| Chile | |
| Rest of South America |
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South America Freight And Logistics Market Size Summary
The South America Freight and Logistics Market is poised for significant growth, driven by substantial investments in infrastructure and the burgeoning e-commerce sector. Brazil, as a key player, is actively modernizing its transportation networks with ambitious projects aimed at enhancing its road and rail systems. This includes attracting private investments and securing loans for highway improvements, which are expected to bolster long-haul trucking capabilities. The region's e-commerce boom, accelerated by the COVID-19 pandemic, is further fueling demand for transportation services, with Brazil and Chile leading in infrastructure investments. The adoption of digital technologies by new market entrants is intensifying competition, while sustainable transport initiatives, such as the introduction of electric trucks, are gaining traction.
The market landscape is characterized by a fragmented structure with major players like CMA CGM Group, DHL Group, DP World, DSV A/S, and Kuehne + Nagel holding a small share collectively. These companies are investing in innovative logistics solutions and sustainable practices to enhance their operations in the region. Argentina's logistics sector is also evolving, with initiatives like new freighter flights to improve delivery efficiency. However, challenges such as high logistics costs due to inadequate infrastructure and fluctuating fuel prices, influenced by international demand and geopolitical factors, continue to impact the market. Despite these challenges, the region presents substantial investment opportunities, with numerous projects planned in transportation and telecommunications, underscoring the market's growth potential.
South America Freight And Logistics Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3.Forecasts up to 2029 and analysis of growth prospects)
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1.1 End User Industry
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1.1.1 Agriculture, Fishing, and Forestry
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1.1.2 Construction
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1.1.3 Manufacturing
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1.1.4 Oil and Gas, Mining and Quarrying
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1.1.5 Wholesale and Retail Trade
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1.1.6 Others
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1.2 Logistics Function
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1.2.1 Courier, Express, and Parcel (CEP)
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1.2.1.1 By Destination Type
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1.2.1.1.1 Domestic
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1.2.1.1.2 International
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1.2.2 Freight Forwarding
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1.2.2.1 By Mode Of Transport
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1.2.2.1.1 Air
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1.2.2.1.2 Sea and Inland Waterways
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1.2.2.1.3 Others
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1.2.3 Freight Transport
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1.2.3.1 By Mode Of Transport
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1.2.3.1.1 Air
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1.2.3.1.2 Pipelines
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1.2.3.1.3 Rail
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1.2.3.1.4 Road
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1.2.3.1.5 Sea and Inland Waterways
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1.2.4 Warehousing and Storage
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1.2.4.1 By Temperature Control
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1.2.4.1.1 Non-Temperature Controlled
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1.2.4.1.2 Temperature Controlled
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1.2.5 Other Services
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1.3 Country
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1.3.1 Argentina
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1.3.2 Brazil
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1.3.3 Chile
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1.3.4 Rest of South America
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South America Freight And Logistics Market Size FAQs
How big is the South America Freight And Logistics Market?
The South America Freight And Logistics Market size is expected to reach USD 231.21 billion in 2024 and grow at a CAGR of 5.10% to reach USD 311.70 billion by 2030.
What is the current South America Freight And Logistics Market size?
In 2024, the South America Freight And Logistics Market size is expected to reach USD 231.21 billion.
