South & Central America Last Mile Delivery Market Outlook (2021-2031)

The South & Central America Last Mile Delivery Market is projected to reach a value of USD 36,431.20 million by 2031, increasing from USD 21,345.50 million in 2024. The market is estimated to grow at a compound annual growth rate (CAGR) of 8.1% from 2025 to 2031.

Market Analysis:

The last mile delivery market in South America is experiencing significant growth, driven by the rise of e-commerce, urbanization, technological advancements, and changing consumer expectations. This diverse region, which includes countries such as Brazil, Argentina, Chile, Colombia, and Peru, faces various economic conditions, infrastructure challenges, and logistics issues. However, the increasing middle class, higher internet penetration, and rapid adoption of digital commerce are fueling demand for more efficient, cost-effective, and reliable last mile delivery solutions.

Segmentation Analysis

Key segments analyzed in the last mile delivery market include type, vehicle type, and end use. By type, the market is divided into Business-to-Business (B2B) and Business-to-Consumer (B2C) segments, with the B2C segment holding a larger share in 2024. In terms of vehicle type, the market is segmented into motorcycles, commercial vehicles, drones, autonomous ground vehicles, and others, with commercial vehicles holding the largest share in 2024. Regarding end users, the market encompasses groceries, home essentials/houseware and furnishings, restaurant meals, clothing and apparel, consumer electronics, toys/hobbies/sporting goods, mass merchants, jewelry, specialty items, automotive parts and accessories, and more, with the mass merchant segment holding the largest share in 2024.

Market Outlook:

Governments in South America are increasingly recognizing the importance of enhancing logistics infrastructure to support economic growth, reduce inefficiencies, and promote e-commerce activities. For example, the Brazilian government has made significant investments in upgrading transportation networks, ports, and logistics hubs to improve overall efficiency and shorten delivery times.

Additionally, several South American governments are endorsing sustainable logistics solutions, including the adoption of electric vehicles (EVs) and green technologies in the transportation sector. Brazil and Chile are developing policies and incentives to support clean energy and low-emission delivery solutions, expected to significantly impact last mile delivery practices.

Country Insights:

Geographically, the South & Central America Last Mile Delivery Market includes Brazil, Argentina, Chile, Peru, Colombia, and the rest of the region. Brazil held the largest market share in 2024.

Urbanization trends in South America are also driving the demand for last mile delivery solutions. Major cities are experiencing rapid growth, which raises challenges in moving goods efficiently through congested urban areas. The concentration of businesses and consumers in these regions necessitates highly efficient delivery networks capable of managing traffic congestion while optimizing delivery times. The expanding middle class in countries like Brazil further contributes to the growing demand for consumer goods, creating opportunities for last mile delivery service providers.

Key Players

Key players in the market include Amazon Logistics, UPS, FedEx, DHL, Postmates (Uber Eats), XPO Logistics, Instacart, Geodis, Gati Ltd, and Deliveroo, among others. These companies are adopting various strategies, including expansion, product innovation, and mergers and acquisitions, to offer innovative products to consumers and increase their market share. Show more