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Brazil - Last Mile Delivery market size is estimated to grow at a CAGR of 12.81% between 2022 and 2027. The market size is forecast to increase by USD 2,837.69 million. The growth of the market depends on several factors such as the premiumization of goods and merchandise delivery, the growing e-commerce sector in Brazil, and the growing number of warehouses in Brazil.
This Brazil last mile delivery market report extensively covers market segmentation by service (B2C and B2B) and end-user (e-commerce, food and groceries delivery, pharmaceuticals, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving Brazil last mile delivery market growth is the premiumization of goods and merchandise delivery. The premium prices paid by the customer for faster delivery can be referred to as the premiumization in the logistic services market. There is an increase in focus on premiumization can be reflected in the growing number of last mile/same-day delivery startups, including Dropoff in the US, over the last few years.
Moreover, there is a growing trend of consumers willing to pay additional charges for same-day or instant delivery of purchased goods. As a result, it enables market players to optimize their last-mile logistics more efficiently. Hence, such factors are positively impacting the Brazil - last mile delivery market. Therefore, it is expected to drive Brazil last mile delivery market growth during the forecast period.
A key factor shaping Brazil last mile delivery market growth is the emphasis on offering services to specific end-user segments. There is an increasing adoption of new logistics supply models by several logistics services companies for the medical and pharmaceutical sectors due to the increasing challenges faced by the healthcare industry.
For instance, some of these challenges include the increasing cost pressure on medical devices fuelled by increasing demand from the aging and active population. One of the prominent companies, DHL supply chain arm has launched advanced logistics solutions for the medical industry, which enables bringing together field inventory, valuable medical devices, and quality management systems at one location to maintain improved traceability and control over product delivery. Hence, such models are positively impacting the market which in turn will drive the Brazil last mile delivery market growth during the forecast period.
Risks associated with damage to and theft of packages are one of the key challenges hindering the Brazil last mile delivery market growth. The packages may be prone to various environmental conditions, including rain and heat as most customers are not at home during the last mile deliveries of their packages, resulting in damaging the products inside. Additionally, unattended deliveries can lead to the loss of valuable goods as they can be stolen.
Moreover, these factors can limit the adoption of last-mile delivery options by users. Additionally, there is an increasing re-delivery of these missing packages across various large online retail companies, including Amazon. As a result, it will lead to a significant cost burden for retailers as they have to compensate for the losses. Hence, such factors are negatively impacting the market which, in turn, can hinder the Brazil last mile delivery market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Brazil Last Mile Delivery Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Accenture Plc: The company offers last-mile delivery services that can reduce traffic congestion and air emissions and provide a seamless experience in buying, receiving, paying, and returning.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The B2C segment is estimated to witness significant growth during the forecast period. The delivery of various parcels and goods from adjacent transportation hubs to consumers is referred to as the B2C segment. In this segment, last-mile delivery comprises the direct delivery of goods to the homes of consumers. One of the main factors that has significantly contributed to the growth of this segment is the increase in e-commerce sales.
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The B2C segment was the largest segment and was valued at USD 1,490.12 million in 2017. There is a growing demand for last-mile delivery due to the huge volume of products ordered through these e-commerce channels. Furthermore, due to this growing demand, several market players are introducing new services that are exclusively designed for residential customers. Some of these exclusive services for residential customers include next-day delivery, same-day delivery, and parcel returns. Additionally, this segment offers extra features such as the option of availing of real-time shipment tracking and package delivery status updates. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the Brazil last mile delivery market growth during the forecast period.
Based on end-user, the segment is classified into e-commerce, food and grocery delivery, pharmaceuticals, and others. The e-commerce segment mainly comprises the trading of consumer electronics, cosmetics, books, luxury items, sports items, and other goods. The main factor that is significantly contributing to the growth of the e-commerce segment in Brazil is the increasing penetration of smartphones and the Internet. Additionally, there is an increasing adoption of the e-commerce model by small-scale businesses due to its affordable cost structure. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the Brazil last mile delivery market growth during the forecast period.
The Brazil last mile delivery market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Brazil Last Mile Delivery Market Scope |
|
Report Coverage |
Details |
Page number |
137 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.81% |
Market growth 2023-2027 |
USD 2,837.69 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.11 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Accenture Plc, CMA CGM SA Group, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FarEye Technologies Inc., FedEx Corp., FM LOGISTIC CORP, Honeywell International Inc., Infosys Ltd., J B Hunt Transport Services Inc., Kuehne Nagel Management AG, Mara Labs Inc., Nippon Express Holdings Inc., Royal Mail Plc, Schneider Electric SE, SNCF Group, United Parcel Service Inc., Werner Enterprises Inc., and XPO Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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