Market Overview

The Latin America last mile delivery market reached a size of USD 11.85 Billion in 2024. The market is projected to grow at a CAGR of 15.60% during the forecast period 2025-2033, reaching USD 43.66 Billion by 2033. Growth is driven by rising e-commerce, urbanization, demand for rapid and flexible deliveries, advances in logistics technology, expansion of same-day and next-day delivery services, and widespread adoption of digital payment and tracking systems.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Latin America Last Mile Delivery Market Key Takeaways

• Current Market Size: USD 11.85 Billion in 2024
• CAGR: 15.60%
• Forecast Period: 2025-2033
• The market benefits from rapid e-commerce growth and increased urbanization.
• Advancements in logistics technology such as route optimization, automated warehousing, and real-time tracking are key market catalysts.
• Same-day and next-day delivery services are expanding, enhancing consumer convenience.
• Government infrastructure initiatives, including Brazil's Pro Trilhos program, boost transportation efficiency.
• Strategic mergers and investments by companies like Toyota Tsusho Corporation and Chazki are shaping the competitive landscape.

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Market Growth Factors

The Latin America last mile delivery market is dominated by investment in logistics technology solutions. In Brazil, the National Logistics Plan 2035 (NLP) and prior to it, the NLP 2025 roadmap, prioritize improvements in freight transport by land and water. Logistics technologies prioritized include route optimization algorithms. The algorithms identify the fastest delivery routes. The algorithms identify the cheapest delivery routes. Automated warehouses also have priority. Automated warehouses sort packages. Automated warehouses dispatch packages. Because of these technologies, delivery times reduced and reliability increased. Real-time tracking solutions improve transparency and customer trust as well. In sum, these developments allow companies to avoid logistical shortcomings in the region, such as urban congestion and heterogeneous infrastructure.

The Brazilian government also funds a number of infrastructure programs that include the Pro Trilhos program in Brazil with a rail and terminal expansion across 15 states. This program plans to invest R$ 133.24 Billion in 10,000 kilometers of new rail lines throughout Brazil. These investments contribute toward shorter delivery times and lower carbon emissions for the last mile or area surrounding a final destination. More investments in highways, bridges, and rural connections in Mexico and around the world can help cities better connect to surrounding rural villages. This reduces the time and cost of delivering goods. This builds a more reliable logistics network. This makes last mile lines more viable and scalable.

This growth is being supported by consumer demand for faster and more flexible delivery. Growth in the e-commerce market and increasing urbanization and changing consumer lifestyle preferences have increased the demand for same-day and next-day delivery service. As a consequence of the adaptation of digital payment and tracking systems, customer expectations and demand are increasing, so logistics companies are forced to develop and expand technologically and operationally, increasing investments and expanding the fleet and coverage of services. As a result, a CAGR of 15.60% is projected from 2025 to 2033.

Market Segmentation

Delivery Mode:

• Regular Delivery
• Same-Day Delivery or Express Delivery

Delivery mode segments address different service speeds catering to regular and expedited delivery demands.

Application:

• E-Commerce
• Retail and FMCG
• Healthcare
• Mails and Packages
• Others

These application segments represent the major sectors served by last mile delivery services, reflecting diverse goods and consumer needs.

Destination:

• Domestic
• International

The destination segmentation differentiates deliveries within national boundaries and cross-border shipments.

Service Type:

• Business-To-Business (B2B)
• Business-To-Consumer (B2C)
• Customer-To-Customer (C2C)

Service types indicate the parties involved in the delivery transactions, spanning commercial and consumer interactions.

Vehicle Type:

• Motorcycle
• LCV (Light Commercial Vehicle)
• HCV (Heavy Commercial Vehicle)
• Drones

Vehicle types highlight the modes of transport employed, ranging from traditional motorbikes and commercial vehicles to emerging drone technology.

Mode of Operation:

• Non-autonomous
• Autonomous

This segmentation covers operational modalities, distinguishing between manually operated and automated delivery vehicles.

Regional Insights

Brazil emerges as the dominant region within the Latin America last mile delivery market. The Pro Trilhos program significantly enhances Brazil's transport infrastructure, facilitating market growth. Regional analysis includes Brazil, Mexico, Argentina, Colombia, Chile, Peru, and others. Specific regional statistics include Brazil's 27 signed agreements for railway installations and the addition of approximately 10,000 kilometers of rail track, supported by R$ 133.24 Billion investment.

Recent Developments & News

In June 2023, Toyota Tsusho Corporation invested approximately USD 3 Million in MOOVA Inc., leading a USD 5 Million funding round. MOOVA operates a digital platform enhancing last-mile delivery logistics in Latin America.

In July 2024, Chazki, a Peruvian technology company specializing in e-commerce and retail delivery, merged with Lok, a Mexican startup developing a smart locker network across Latin America. This merger aims to position Chazki as the top logistics provider regionally and triple its market share in Mexico within two years.

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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