South America E-commerce Logistics Market Outlook, 2027

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 report titled, "South America E-Commerce Logistics Market Outlook, 2027," published by Bonafide research, the market is anticipated to have a more than USD 16 billion market size during the forecast period. As has happened everywhere in the world, shopping and buying habits in South America have been intensely affected by the still ongoing COVID-19 Outbreak. Once a laggard in e-commerce, it is now the fastest-growing regional e-commerce market in the world. South America is home to about 625 million people, about 1 in 10 of the world's population, which has attracted the attention of e-commerce marketers from all over the world. The South American e-commerce logistics market is segmented into three prominent countries, including Brazil, Argentina, and Colombia. Among these countries, Brazil is expected to dominate the market during the forecast period.

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 2021. 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.

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 2027. 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 2021. 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 2027.

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: 2016
• Base year: 2021
• Estimated year: 2022
• Forecast year: 2027

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.

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