MEXICO WAREHOUSING MARKET

KEY FINDINGS

• The Mexico Freight and Logistics Market size is estimated at 117 billion USD in 2024, and is expected to reach 162.2 billion USD by 2030, growing at a CAGR of 5.59% during the forecast period (2024-2030).
• The rapid rise of e-commerce has fueled a surge in demand for warehousing space to store and distribute products efficiently.
• E-commerce often requires smaller, more localized warehouses to facilitate quick delivery times to customers.
• Companies are shifting their manufacturing operations closer to the U.S. market (nearshoring) or returning them from overseas (reshoring). This has created a need for additional warehousing space to support these operations.
• The adoption of automation and robotics technologies is improving efficiency and reducing labor costs in warehousing operations.
• Advanced technologies are enabling better inventory management and supply chain optimization.
• Investments in transportation infrastructure, including roads, railways, and ports, are enhancing connectivity and accessibility to warehousing facilities.
• Government initiatives aimed at promoting economic development and attracting foreign investment are creating favorable conditions for the warehousing market.

MEXICO WAREHOUSING MARKET DYNAMICS

Mexico’s warehousing market is characterized by a dynamic interplay of various factors such as: 

• Growing Demand: The increasing demand for warehousing space is driven by factors such as e-commerce, nearshoring, and reshoring.
• Limited Supply: In some regions, limited availability of suitable land and infrastructure can constrain the supply of warehousing facilities.
• Rising Land Costs: Increasing land prices in prime locations can make it challenging to develop new warehouses or expand existing ones.
• Automation and Robotics: The adoption of automation and robotics technologies is improving efficiency, reducing labor costs, and enhancing accuracy in warehousing operations.
• Supply Chain Optimization: Advanced technologies are enabling better inventory management, demand forecasting, and supply chain visibility.
• Economic Development Initiatives: Government policies aimed at promoting economic development and attracting foreign investment are creating favorable conditions for the warehousing market.
• Infrastructure Investments: Investments in transportation infrastructure, such as roads, railways, and ports, are improving connectivity and accessibility to warehousing facilities.
• Regulatory Framework: The regulatory environment, including zoning laws, building codes, and environmental regulations, can impact the development and operation of warehouses.
• Economic Growth: The overall economic health of Mexico, including GDP growth and consumer spending, influences the demand for warehousing space.
• Sustainable Warehousing Practices: There is a growing emphasis on sustainable warehousing practices, including energy efficiency, waste reduction, and environmental responsibility.

INTRODUCTION TO MEXICO WAREHOUSING MARKET

Mexico’s economy, valued at USD 1.3 trillion, is the second-largest economy in Latin America and the 15th-largest in the world. In 2022, the transportation and storage sector experienced a substantial 18.97% YoY growth from the previous year, driven by increased investments, exports, and the overall expansion of the economy. There are 102 ports along Mexico’s 7,145-mile coastline and 15 out-of-port terminals. The Mexican Government is working to modernize the railroad of the Isthmus of Tehuantepec, expand cargo handling and storage capacity at the ports of Coatzacoalcos, Veracruz, and Salina Cruz, Oaxaca, and expand the trans-isthmus highway from two to four lanes.

The warehousing sector had a GDP of MXN 1.84 trillion (USD 0.094 trillion) in the third quarter of 2022, an increase of 0.62% from the previous quarter and a 21.3% increase from the same period in the previous year. The Infrastructure, Communications, and Transport Ministry and the public and private sectors invested around MXN 768 billion (USD 39.38 billion) in road and rail infrastructure in 2022 to build and modernize railways, highways, and bridges, as well as improve road safety measures in Mexico improving the warehouse connectivity.

MEXICO WAREHOUSING MARKET TRENDS 

Mexico’s warehousing market is experiencing several significant trends driven by factors such as e-commerce, nearshoring, technological advancements, and changing consumer preferences:

E-commerce-Driven Growth:

• Increased Demand: The rapid growth of e-commerce has fueled a surge in demand for warehousing space to store and distribute products efficiently.
• Smaller Warehouses: E-commerce often requires smaller, more localized warehouses to facilitate quick delivery times to customers.

Nearshoring and Reshoring:

• Manufacturing Shift: Companies are shifting their manufacturing operations closer to the U.S. (nearshoring) or returning them from overseas (reshoring). This has created a need for additional warehousing space to support these operations.

Technological Advancements:

• Automation and Robotics: The adoption of automation and robotics technologies is improving efficiency, reducing labor costs, and enhancing accuracy in warehousing operations.
• Supply Chain Optimization: Advanced technologies are enabling better inventory management, demand forecasting, and supply chain visibility.

Specialized Warehouses:

• Temperature-Controlled Facilities: There is a growing demand for warehouses with temperature control for perishable goods, pharmaceuticals, and other temperature-sensitive products.
• Hazardous Materials Storage: Warehouses equipped to handle hazardous materials are also in high demand.

Sustainability Focus:

• Green Warehouses: Businesses are increasingly seeking warehousing facilities that incorporate sustainable practices, such as energy efficiency, waste reduction, and environmental responsibility.
• Green Certifications: Obtaining green certifications can enhance the marketability of warehousing facilities and attract environmentally conscious tenants.

Consolidation and Foreign Investment:

• Mergers and Acquisitions: Consolidation among warehousing providers and logistics companies is taking place, leading to larger, more efficient operations.
• Foreign Investment: Foreign investors are entering the Mexican market, seeking to capitalize on the growth opportunities and expanding their warehousing networks.

NEW DEVELOPMENT IN MEXICO WAREHOUSING MARKET

February 2024: C.H. Robinson has developed a new technology that creates a major efficiency in freight shipping: removing the work of scheduling an appointment at the place where a load needs to be picked up and scheduling another appointment where the load needs to be delivered. The technology also uses artificial intelligence to determine the optimal appointment, based on transit-time data from C.H. Robinson’s millions of shipments across 300,000 shipping lanes.

January 2024: Kuehne + Nagel has announced its Book & Claim insetting solution for electric vehicles, to improve its decarbonization solutions. Developing Book & Claim insetting solutions for road freight was a strategic priority for Kuehne + Nagel. Customers who use Kuehne + Nagel’s road transport services can now claim the carbon reductions of electric trucks when it is not possible to physically move their goods on these vehicles.

November 2023: DB Schenker, in partnership with American Airlines Cargo, announces an advancement in airfreight operations. The introduction of an API (Application Programming Interface) connection, introduced on November 14th, 2023, marks the next step in digitizing and streamlining airfreight booking processes.

MEXICO WAREHOUSING MARKET SEGMENTATION

By Geographic Segmentation:

• Northern Mexico
• Central Mexico
• Southern Mexico

By Size Segmentation:

• Small Warehouses
• Medium Warehouses
• Large Warehouses

By Specialization Segmentation:

• General-Purpose Warehouses
• Temperature-Controlled Warehouses
• Hazardous Materials Warehouses
• Cross-Dock Warehouses

By Ownership Segmentation:

• Private Warehouses
• Public Warehouses
• Government Warehouses

KEY PLAYERS IN MEXICO WAREHOUSING MARKET

• DHL Group
• FedEx
• Grupo México
• Penske Logistics
• Traxion

THIS MEXICO WAREHOUSING MARKET REPORT WILL ANSWER FOLLOWING QUESTIONS

1. What is the current size and growth rate of the Mexico Warehousing Market?
2. What are the major drivers and challenges influencing the market’s growth?
3. What are the key trends shaping the market, such as sustainability and technology?
4. What are the key regulations and standards governing the Mexico Warehousing Market?
5. What are the emerging trends in usage of Warehouse that are impacting the market?
6. What are the latest technological advancements used in the Warehouse?
7. How are the technological advancements impacting the market, in terms of cost, storage, and customization?
8. What are the environmental concerns associated with Warehouse, and how are owners addressing these concerns?
9. What are the trends in the use for sustainability aligned with Warehouse?
10. What are the key opportunities and challenges for the Mexico Warehousing Market in the coming years?
11. How will the market evolve in response to changing usages, technological advancements, and regulatory developments?
12. What are the potential growth areas and emerging markets within the region?