Mexico Road Freight Transport - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2016 - 2029

Mexico Road Freight Transport - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2016 - 2029

The Mexico Road Freight Transport Market size is estimated at USD 43.13 billion in 2024, and is expected to reach USD 56.35 billion by 2029, growing at a CAGR of 5.49% during the forecast period (2024-2029).

Key Highlights

• Largest Segment by Distance - Long Haul : Long-haul trucking services dominate the short-haul trucking industry as Mexico's road transport, which accounts for more than 85% of the country's total freight transport, involves import, export, and national distribution of products to their destinations.
• Largest Segment by Product Type - Solid Goods : Solid goods dominate the product type segment over liquid goods in Mexico as industries such as construction, textile and apparel, machinery and equipment, electronics, automobiles, and others that contribute a majority share in trucking services are included in the solid goods category.
• Largest Segment by End User - Manufacturing : The manufacturing sector captures more than half of the road freight market in Mexico, supported by the textile and apparel industry with a 20% Y-o-Y growth in contribution share of the manufacturing sector.
• Fastest Growing Segment by TruckLoad Specification - Less than Truckload : As the fastest-growing e-commerce market in North America with a CAGR (2016-2021) of around 44.26%, e-commerce is significantly boosting the expansion of Mexico's less-than-truckload road freight business, making it the fastest-growing sector.

Mexico Road Freight Transport Market Trends

Manufacturing is the largest segment by End User.

• Manufacturers making a move from China to Mexico continue to be on the rise due to supply chain interruptions between the United States and China. With China being at the center of the pandemic in 2020, freight costs increased and shipments were delayed or canceled due to the global shutdown and a weakened supply chain. Although, as of 2019, Mexico had already surpassed China as the top trading partner to the United States, with the trend continuing into 2021 and beyond. In 2020, around 15.64% of the total value added to Mexico's gross domestic product (GDP) was generated by the manufacturing sector. In 2021, the contribution further increased to 16.20%.
• For many, the “Made in Mexico” mentality has begun to replace the benefits of Chinese manufacturing that were once in much higher demand. The US foreign direct investment (FDI) in Mexico increased substantially over the past two decades. The FDI began at USD 37.2 billion in 1999 and has grown incrementally to approximately USD 114.9 billion as of 2018. Though the rise of manufacturers moving their operations from China to Mexico increased due to COVID-19, this concept and strategy have been applied across all sectors for years.
• The wholesale and retail trade sector is the second sector with the most volume to be transported via road freight in Mexico. In 2020, around 17.26% of the total value added to Mexico's gross domestic product (GDP) was generated by the wholesale and retail trade sectors. In 2021, the contribution further increased to 18.17%. The sector is further experiencing growth in 2022. For instance, Mexico's retail sales grew by 4.9% YoY in May 2022, compared with a 4.3% increase in April 2022.

Mexico Road Freight Transport Industry Overview

The Mexico Road Freight Transport Market is fragmented, with the top five companies occupying 9.07%. The major players in this market are Deutsche Post DHL Group, Knight-Swift Transportation, Landstar System Inc., Transportes Marva and Werner Enterprises Inc. (sorted alphabetically).

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