South America E-commerce Logistics Market Outlook, 2029

From 2020, the COVID-19 outbreak has encouraged growth in the digital industry across the world, with e-commerce being at the centre. As for the South American region, this growth is measured in exponential amounts. The increasing growth of internet shopping throughout South America, with some emerging countries reporting significant increases in online purchases, is one of the primary drivers of the market. The massive demand for home deliveries for food and beverages in the South American region has already been gaining greater popularity in recent years. Also, due to the COVID-19 pandemic, the digitalization of shopping has boosted the demand for e-commerce, which will in turn propel the demand for essential logistic services. From the obtained data, it has been found that eight out of ten South Americans have continued shopping online after the pandemic. The South American e-commerce boom is expected to be permanent based on the research. Also, last-mile delivery solutions are becoming more adaptable across the region.

According to the research report “South America E-commerce Logistics Market Outlook, 2029," published by Bonafide Research, The market is projected to reach market size USD 20.41 Billion by 2029. The Ecommerce Logistics market in the South American region is driven by a multitude of factors, each playing a crucial role in the industry's growth and development. Firstly, the rapid expansion of online retail platforms across the continent has fuelled the demand for efficient and reliable logistics solutions, as consumers increasingly turn to the convenience of e-commerce for their shopping needs. Additionally, the rising disposable incomes and growing middle-class populations in many South American countries have led to a surge in consumer spending, further boosting the demand for seamless delivery services. Moreover, the region's diverse geographical landscape and infrastructure challenges have necessitated the development of innovative logistics strategies, tailored to overcome obstacles such as remote locations and limited transportation networks. Furthermore, the increasing adoption of advanced technologies, including automation, real-time tracking, and data analytics, has enabled logistics providers to optimize their operations, enhance delivery times, and improve customer satisfaction.

According to the report, South America's e-commerce logistics market is segmented into various services including transportation, warehousing, return and inventory management. Among these types, the transportation segment is expected to occupy a larger market share by 2029. As transportation is the essential component of logistic services, it is expected to witness significant market growth in the upcoming timeframe. Further, the market is segregated into four transportation modes, including road, rail, air, and sea. Among these types, road transportation is dominating the market in 2023. As domestic e-commerce is growing at an exponential rate in South America, it creates higher demands for road transportation between various economies. Furthermore, the market is divided into product categories such as electronics, apparel and accessories, home furnishings, health, personal care and beauty, autos and parts, baby products, books, and others (food and beverages, toys and hobbies, office equipment, sports and leisure, and so on).Among these types, the electronics segment is expected to acquire more than 20% market share by 2029.

In the South America e-commerce logistics market, the segmentation by product type highlights a dynamic and evolving landscape, with electronics and apparel and accessories emerging as the leading categories. The electronics segment is driven by a surge in consumer interest in technology products, including smartphones, laptops, and smart home devices, which require efficient logistics solutions to ensure timely and secure delivery. As consumers increasingly rely on online platforms for their tech purchases, logistics providers are adapting by enhancing their warehousing capabilities and implementing advanced tracking systems to meet customer expectations for fast and reliable service. Meanwhile, the apparel and accessories segment has gained significant traction, fuelled by a shift in shopping habits that favour online fashion retail. This category not only offers a wide variety of styles and brands but also caters to the growing demand for convenience in shopping. However, the apparel sector presents unique challenges, such as managing returns and handling diverse sizing options, prompting logistics companies to develop robust return policies and efficient inventory management systems. Other segments, including home furnishing products, health, personal care and beauty items, auto parts, baby products, books, and miscellaneous categories, also play a role in the South American e-commerce landscape, yet they do not rival the prominence of electronics and apparel.

In the South American e-commerce logistics sector, the analysis of operational areas and transportation modes reveals clear trends, with domestic logistics and road transport taking the lead. The domestic logistics segment is essential for the e-commerce framework, as it ensures rapid and effective delivery of goods within countries, catering to the rising consumer expectation for quick shipping solutions. With the surge in online shopping, logistics providers are concentrating on refining their domestic networks to guarantee prompt deliveries, which are vital for enhancing customer satisfaction and fostering loyalty. This commitment to domestic logistics is further reinforced by a growing infrastructure that includes upgraded road systems and strategically located distribution centers serving both urban and rural populations. When it comes to transportation modes, road logistics is the preferred method for many e-commerce businesses in South America. Its adaptability and ease of access make it perfect for last-mile delivery, enabling logistics firms to navigate various terrains and reach customers directly. Although other transportation methods like rail, air, and sea are important for specific or bulk shipping requirements, road transport is fundamental to the daily operations of e-commerce companies, ensuring the quick movement of packages and boosting overall logistics performance.



Brazil holds the vast potential for e-commerce in South America. There are currently 66.4 million e-commerce consumers in Brazil, with an additional 28.2 million doing online shopping by the end of the year. There is a swing in the e-commerce market in Brazil after 2013 with the government's involvement to regularise the e-commerce segment, which has gained popularity in recent years. The government of Brazil approved Decree No 7962. This clause normalises the purchase of goods and services through the online medium. With the growing popularity and awareness of internet aids, more people are opting for smartphones, which allow internet access. Also, the rising internet penetration has given birth to online banking, which has created space for the online retail market.

COVID-19 Impact:
The COVID-19 pandemic has affected various industries across the world. It has led to either the closure or suspension of their production activities in most of the industrial units across the world. The outbreak of the COVID-19 pandemic is having an enormous impact on industries such as aviation, automotive, manufacturing, and food & beverages, which in turn, significantly affects the logistics industry as well. Disruption in the supply chain for logistic services was witnessed in 2020. However, for the e-commerce industry, the scenario is a bit different. Staying at home and social distancing norms have boosted the demand for online shopping in various economies.

Major Companies present in the market:
FedEx Corporation, Deutsche Post AG, SF Express Co. Limited, United Parcel Service, Inc., Aramex International, XPO Logistics, Inc., Deutsche Bahn AG, Nippon Express Co., Limited, Kerry Logistics Network Limited, Rhenus Group, Clipper Logistics plc, Gati Limited, Kenco Group, Inc., ZTO Express

Considered in this report
• Geography: South America
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• South America E-Commerce Logistics market with its value and forecast along with its segments
• Country-wise e-commerce logistics market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report
• Brazil
• Argentina
• Colombia

By service type in the report:
• Warehousing
• Transportation
• Other Service (Return, Inventory management)

By operational area in the report:
• International
• Domestics

By transportation mode in the report:
• Road
• Rail
• Air
• Sea

By product type in the report:
• Electronics
• Apparel and Accessories
• Home Furnishing Products
• Health, Personal Care and Beauty
• Auto and Parts
• Baby Products
• Books
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.