Brazil - Third-Party Logistics (3PL) Market to grow by USD 11.03 billion from 2022 to 2027 | Improving manufacturing sector in Brazil to drive the growth- Technavio

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Oct 18, 2023, 02:15 ET

NEW YORK, Oct. 18, 2023 /PRNewswire/ -- The Brazil - third-party logistics (3pl) market is expected to grow by USD 11.03 billion from 2022 to 2027. However, the growth momentum of the market will progress at a CAGR of 9.51% from the forecast period. The market is segmented by service (transportation, warehousing, and distribution) and end-user (manufacturing, retail, consumer goods, healthcare, and others). The report also covers information on trends and challenges. Explore detailed information by purchasing a report

Technavio has announced its latest market research report titled Third-Party Logistics (3PL) Market in Brazil 2023-2027

Improving manufacturing sector in Brazil is a key factor driving market growth. Brazil's manufacturing sector is growing with the growing demand in the retail and automotive sectors. Decreased exchange rates in Brazil allowed some retailers and automobile companies to increase their export activity, which led to the production of more goods in Brazil. Additionally, growing manufacturing activity in Brazil, especially in the automotive industry, is attracting a number of global 3PL service providers. Furthermore, demand for 3PLs supplying heavy equipment in iron ore, steel, engineering, and other capital-intensive industries is driven by improving production in the manufacturing sector. Hence, these factors are expected to drive market growth during the forecast period. The report analyses the market size and growth and provides accurate predictions on the growth of the market. View Free PDF Sample

Key Highlights:

The report recognizes the following as some of the key players in the third-party logistics (3pl) market in Brazil: BBM Logistica, C H Robinson Worldwide Inc., CMA CGM SA Group, DB Schenker, Deutsche Post AG, DSV AS, FedEx Corp., Fomento Economico Mexicano S.A.B. de C.V, Kintetsu World Express Inc., Kuehne Nagel Management AG, Nippon Express Holdings Inc., Penske Corp., and United Parcel Service Inc.
Third-Party Logistics (3PL) Market in Brazil is concentrated in nature.
Market to observe 9.21% YOY growth in 2023.

Market Dynamics:

Major Trend

The introduction of blockchain technology in the logistics industry is a major trend in the market.
Blockchain technology acts as a digital platform that provides a distributed ledger of transactions, creating a series of cryptographically secure records of transactions between parties involved in the network.
Furthermore, this decentralized system eliminates the need for a central authority to keep transaction records, making it highly secure and transparent.
In supply chain management, especially in the logistics sector, blockchain technology is essential in establishing efficient and cost-effective supply chain processes.

Significant Challenge

Inadequate transport infrastructure in Brazil is a significant challenge restricting market growth.
Brazil's road network is congested and inadequately maintained, leading to delays and long freight transit times.
Poor road conditions not only lead to longer travel times but also increase vehicle maintenance costs, affecting overall transportation profits.
In addition, the country's railway system is underdeveloped and lacks widespread coverage, making it difficult to transport goods over long distances.

Keg Segments:

The transportation segment will account for a major share of the market's growth during the forecast period. Companies are looking to 3PL providers to improve supply chain efficiency and streamline their operations. Growth in the transportation segment is also driving investment in infrastructure development. In addition, the efficiency and effectiveness of freight transport will be enhanced through investment in modern warehouses, distribution centers, and freight transport hubs. Hence, these factors are expected to drive segment growth during the forecast period.

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Related Reports:

The Third-Party Logistics (3PL) Market size is estimated to grow by USD 532.65 billion between 2022 and 2027 accelerating at a compound annual growth rate (CAGR) of 7.87%.

The Connected Logistics Market size is estimated to grow at a CAGR of 23.32% between 2022 and 2027 and the size of the market is forecast to increase by USD 62,287.98 million.

ToC:

Executive Summary

Market Landscape

Market Sizing

Historic Market Sizes

Five Forces Analysis

Market Segmentation by Service

Market Segmentation by End-User

Market Segmentation by Geography

Customer Landscape

Geographic Landscape

Drivers, Challenges, & Trends

Company Landscape

Company Analysis

Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio