DUBLIN--(BUSINESS WIRE)--The "Mexico Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The Mexico freight and logistics market is expected to witness a CAGR of 10.53% during the forecast period.
In Mexico, as in many other countries, the road network is the most widely used transport infrastructure, given the flexibility it gives the movers load and its large size, allowing services door-to-door delivery. The national road network in Mexico had a total length of around 408 thousand kilometers, from which approximately 178 thousand kilometers were rural roads and 133.7 kilometers were state roads. It has integrated freeways, highways, roads, and trails that allow connectivity between almost all locations in the country.
In 2019, Mexico had more than 954,000 heavy vehicles for general cargo transportation and nearly 145,000 vehicles dedicated to specialized cargo transportation. In the first four months of 2019, the number of freight transportation companies in Mexico increased 4.7% compared to the same period the previous year, according to the data from Mexico's Ministry of Communications and Transportation (SCT) given the conducive environment of increasing U.S.A. Mexico trade relations
Healthy Trade Relations between US and Mexico
U.S. goods and services trade with Mexico totaled an estimated US 677.3 billion dollars in 2019. Exports were US 289.5 billion dollars and imports were US 387.8 billion dollars. Mexico is currently the U.S.A's one of largest goods trading partners with US 614.5 billion in total (two way) goods trade during 2019. In 2020, Mexico was the United States' second-largest merchandise trade partner, after China. It also ranks second, after China, among suppliers of U.S. imports.
The United States is by far Mexico's most important export market for goods, with 80% of Mexican exports destined for the United States. Merchandise trade between the two countries increased exponentially since NAFTA (North American Free Trade Agreement) entered into force. Agricultural trade between the United States and Mexico is a significant sector of each country's export markets that will need to be preserved and strengthened under the Biden administration. The United States is Mexico's single largest agricultural trading partner purchasing 78% of Mexican agricultural exports.
Ecommerce Sector Developing in the Country
Mexico has a population of over 130 million, and the marketplace industry is booming, offering online marketplaces an incredible opportunity to expand its business in the country with the second-largest population in Latin America. Mexico is the second largest e-commerce market in Latin America, after Brazil.
The Mexican internet and e-commerce landscape already counts tens of millions of users, but it is still far from being mature. With 88 million internet users, Mexican internet users are still only 67% of the total population. User penetration, otherwise known as the number of users expanding into a market, was 47.2% in 2019 and is expected to hit 52.7% by 2023. Mexico is a medium-income country, and Mexicans are relatively accustomed to e-commerce and its convenience. They often use mobile devices to access the internet and shop online for several goods and services, making Mexico a maturing e-commerce market.
The e-commerce segment is expected to see a double-digit boost in Latin America within the next couple of years, with Mexico and Brazil being the top performers in the region. The research carried out by DHL also suggests that e-commerce will grow by 25% in Mexico.
Competitive Landscape
The Mexico freight and logistics market is highly fragmented with the presence of a large number of international players operating in the country. In recent years there has been a shift from services to price-based competition.
The major international players operating in the country are DHL, DB Schenker, and Penske Logistics, while the domestic players are Solistica, Grupo TMM, and Grupo SID, among others.
Companies Mentioned
- Deutsche Post DHL Group
- DB Schenker
- Ryder System Inc.
- Penske Logistics
- FedEx
- Grupo Transportes Monterrey (GTM)
- Aeromexico Cargo
- CEVA Logistics
- Agility Logistics
- Accel Logistics
- Traxion
- Solistica
- Hellmann Worldwide Logistics
- SEKO Logistics
- Nippon Express
- Grupo Mexico Ferromex
- Grupo TMM
- Grupo SID
For more information about this report visit https://www.researchandmarkets.com/r/ilwgqo
