The third-party logistics (3PL) market in Brazil is expected to grow by USD 5.22 bn from 2020 to 2025. The growth momentum of the market will progress at a CAGR of 5% during the forecast period.
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Third-Party Logistics (3PL) Market in Brazil: Driver
The soaring e-commerce sector in Brazil is one of the key factors driving the growth of the third-party logistics (3PL) market in Brazil. E-commerce companies prefer 3PL to efficiently manage their supply chain by reaching end-users across various regions. They are experiencing high demand uncertainties, which is compelling them to use 3PL rather than having their own logistics. Therefore, the growth of the e-commerce sector will positively impact the 3PL market in Brazil. The country is witnessing rapid growth in the e-commerce sector. The e-commerce market in Brazil grew by almost 56%, reaching nearly USD 20 billion in sales revenue in 2020. Such growth will increase the demand for 3PL for both long-distance transportation and last-mile delivery across the country and will drive the 3PL market in Brazil in terms of revenue.
Third-Party Logistics (3PL) Market in Brazil: Challenge
The rise in cargo theft will challenge the third-party logistics (3PL) market in Brazil. This has propelled the need for precautionary safety requirements, such as insurance, which increases the overall cost of the service. A majority of the goods and freight transport in Brazil is through roads. 3PL service providers and companies are opting for logistics services to secure their merchandise from cargo theft. Companies have increased their spending on insuring their merchandise, which drives the demand for various insurance plans. This increases the insurance premium cost, which further increases the operating cost for 3PL service providers. Hence, companies operating in Brazilian states are reluctant to expand their presence despite the increase in demand. Such factors reduce the demand for 3PL in Brazil.
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Third-Party Logistics (3PL) Market In Brazil: Some Key Vendors and their Offerings
C.H. Robinson Worldwide Inc. – The company offers freight transportation, transportation management, brokerage, and warehousing.
CEVA Logistics AG – The company offers air freight, ground freight, and other logistics services.
DHL International GmbH – The company offers land freight, ocean freight, air freight, contract logistics, lead logistics, and other logistics services.
DSV Panalpina AS – The company offers various third party logistics solutions such as transport, warehousing, and freight management.
Kintetsu World Express Inc. – The company offers integrated warehousing and distribution on a global scale.
Third-Party Logistics (3PL) Market In Brazil: Segmentation Analysis
This report segments the third-party logistics (3PL) market in Brazil by end-user (consumer goods, manufacturing, automotive, and others) and service (warehousing and distribution, transportation, and others).
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