Argentina Road Freight Transport - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Argentina Road Freight Transport Market size is estimated at USD 64.80 billion in 2024, and is expected to reach USD 95.30 billion by 2029, growing at a CAGR of 8.02% during the forecast period (2024-2029).
Key Highlights
Due to the government's declaration that road delivery of products was crucial during the pandemic, trucks were, in theory, permitted to move freely across the nation. In reality, things were extremely different, with local regulations severely impeding the movement of products. The large variety of provincial policies severely impacted driver conditions.
When officials sealed windows and doors to prevent drivers from leaving their vehicles while in the province, some drivers were compelled to remain in their cabs; in other cases, despite having a negative COVID-19 test, they were required to spend 15 days in quarantine at provincial borders, where conditions were appalling.
Argentina is one of the major exporters of food items. During the previous 20 years, the agricultural sector has had a very rapid expansion, resulting in annual grain production of more than 100 million tonnes, up from about 60 million tonnes 15 years ago.
The agricultural frontier has expanded in tandem with this increase in production, resulting in longer average trips to transport the grain to ports for processing and export. Additionally, it has accelerated growth in other related industries through investments in modernizing machinery and boosting productivity in the supply chain upstream in the form of seeds, fertilizer, and agricultural equipment, as well as downstream in the form of crushers, storage, and ports.
The road freight transport sector, which transfers more than 90% of the nation's agricultural products, has benefited greatly from this boom. This increase is described as scattered, with a high degree of non-compliance with regulations and using a large proportion of old vehicles which implies negative externalities regarding the environment and human health.
Argentina Road Freight Transport Market Trends
Growing e-commerce in Argentina
The development of technology in the e-commerce sector and the advent of the digital era have triggered changes in delivery logistics. Over the years, there has been a significant transformation in the Internet sales business.
E-commerce logistics is the logistics of online sales that entails putting in place particular procedures to react to certain flow management. It is accompanied by e-commerce shipping, which necessitates a different setup for retail shipping. It assumes control of a variety of supply chain operations, including order pickup, offering transportation services, delivering goods to customers, providing storage, and other services. Real-time package tracking is now possible thanks to IoT, which is now required to prevent delivery issues or loss.
With a forecasted revenue of USD 8,890.4 million by 2023, Argentina will surpass Peru to take the 35th-largest spot in the eCommerce market rankings. By 2027, the market volume is anticipated to reach USD 15,349.8 million, with revenue predicted to expand at 14.6%.
The Argentine eCommerce market contributed to the global growth rate of 17.0% in 2023, with an anticipated increase of 23.9%. Global eCommerce sales are anticipated to grow over the coming years, just like they did in Argentina.
Within the Argentinian eCommerce market, e-commerce takes into account five markets. The largest market in Argentina and the source of 24.5% of all eCommerce sales is furniture and appliances. Following it are Electronics & Media (22.3%), Fashion (21.1%), Toys, Hobby & DIY (16.8%), Fashion (15.3%), and Food & Personal Care.
Developing transportation infrastructure boosting the market
In comparison to other Latin American countries, Argentina has an excellent infrastructure system, yet many places still require major upgrading. Only 63,553 kilometers (39,492 miles) of the country's 215,434 kilometers (133,870 miles) of roads are paved. This includes 734 kilometers (456 miles) of motorways or highways.
Several aid packages to upgrade the infrastructure of Argentina have been given to the country. For instance, the World Bank contributed USD 450 million, while the United States gave USD 7 million for the construction of highways. Argentina has a vast rail network that covers a distance of 38,326 kilometers (23,816 miles), carrying both passengers and freight.
There are 10,950 km (6,804 miles) of navigable waterways in Argentina. However, the majority of the nation's major ports are found near the Atlantic coast, and only a small amount of freight is moved by inland rivers.
The nation's principal ports are located on the Atlantic Coast and include Bahia Blanca, Buenos Aires, Comodoro Rivadavia, La Plata, and Mar La Plata. Rosario and Santa Fe are inland river ports, whereas Ushuaia is situated at Cape Horn at the country's furthest southernmost point, where the Atlantic and Pacific Oceans converge. 26 ships totaling more than 1,000 tonnes in gross weight make up Argentina's modest merchant marine. This number includes 11 oil tankers.
There is a large pipeline network that transports resources to ports for export and supplies fuel to inland communities. There are pipelines for crude oil of 4,090 kilometers (2,542 miles), other petroleum products of 2,900 kilometers (1,802 miles), and natural gas of 9,918 kilometers (6,163 miles).
Argentina Road Freight Transport Industry Overview
The Argentina road freight transport market is quite fragmented due to the presence of several local players such as Logistica Urbana S.A, Tasa Logistica, Andreani Logistica S.A, Organizaicon Coordinadora Argentina S.R.L, as well as other international companies.
A startup, Avancargo, provides an online marketplace to connect shippers and carriers. Shippers can use the application to request a truck with an idle capacity near the customer's location. It claims to provide verified carriers on the platform with real-time tracking. Avancargo has provided services in Argentina since January 2017.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
Due to the government's declaration that road delivery of products was crucial during the pandemic, trucks were, in theory, permitted to move freely across the nation. In reality, things were extremely different, with local regulations severely impeding the movement of products. The large variety of provincial policies severely impacted driver conditions.
When officials sealed windows and doors to prevent drivers from leaving their vehicles while in the province, some drivers were compelled to remain in their cabs; in other cases, despite having a negative COVID-19 test, they were required to spend 15 days in quarantine at provincial borders, where conditions were appalling.
Argentina is one of the major exporters of food items. During the previous 20 years, the agricultural sector has had a very rapid expansion, resulting in annual grain production of more than 100 million tonnes, up from about 60 million tonnes 15 years ago.
The agricultural frontier has expanded in tandem with this increase in production, resulting in longer average trips to transport the grain to ports for processing and export. Additionally, it has accelerated growth in other related industries through investments in modernizing machinery and boosting productivity in the supply chain upstream in the form of seeds, fertilizer, and agricultural equipment, as well as downstream in the form of crushers, storage, and ports.
The road freight transport sector, which transfers more than 90% of the nation's agricultural products, has benefited greatly from this boom. This increase is described as scattered, with a high degree of non-compliance with regulations and using a large proportion of old vehicles which implies negative externalities regarding the environment and human health.
Argentina Road Freight Transport Market Trends
Growing e-commerce in Argentina
The development of technology in the e-commerce sector and the advent of the digital era have triggered changes in delivery logistics. Over the years, there has been a significant transformation in the Internet sales business.
E-commerce logistics is the logistics of online sales that entails putting in place particular procedures to react to certain flow management. It is accompanied by e-commerce shipping, which necessitates a different setup for retail shipping. It assumes control of a variety of supply chain operations, including order pickup, offering transportation services, delivering goods to customers, providing storage, and other services. Real-time package tracking is now possible thanks to IoT, which is now required to prevent delivery issues or loss.
With a forecasted revenue of USD 8,890.4 million by 2023, Argentina will surpass Peru to take the 35th-largest spot in the eCommerce market rankings. By 2027, the market volume is anticipated to reach USD 15,349.8 million, with revenue predicted to expand at 14.6%.
The Argentine eCommerce market contributed to the global growth rate of 17.0% in 2023, with an anticipated increase of 23.9%. Global eCommerce sales are anticipated to grow over the coming years, just like they did in Argentina.
Within the Argentinian eCommerce market, e-commerce takes into account five markets. The largest market in Argentina and the source of 24.5% of all eCommerce sales is furniture and appliances. Following it are Electronics & Media (22.3%), Fashion (21.1%), Toys, Hobby & DIY (16.8%), Fashion (15.3%), and Food & Personal Care.
Developing transportation infrastructure boosting the market
In comparison to other Latin American countries, Argentina has an excellent infrastructure system, yet many places still require major upgrading. Only 63,553 kilometers (39,492 miles) of the country's 215,434 kilometers (133,870 miles) of roads are paved. This includes 734 kilometers (456 miles) of motorways or highways.
Several aid packages to upgrade the infrastructure of Argentina have been given to the country. For instance, the World Bank contributed USD 450 million, while the United States gave USD 7 million for the construction of highways. Argentina has a vast rail network that covers a distance of 38,326 kilometers (23,816 miles), carrying both passengers and freight.
There are 10,950 km (6,804 miles) of navigable waterways in Argentina. However, the majority of the nation's major ports are found near the Atlantic coast, and only a small amount of freight is moved by inland rivers.
The nation's principal ports are located on the Atlantic Coast and include Bahia Blanca, Buenos Aires, Comodoro Rivadavia, La Plata, and Mar La Plata. Rosario and Santa Fe are inland river ports, whereas Ushuaia is situated at Cape Horn at the country's furthest southernmost point, where the Atlantic and Pacific Oceans converge. 26 ships totaling more than 1,000 tonnes in gross weight make up Argentina's modest merchant marine. This number includes 11 oil tankers.
There is a large pipeline network that transports resources to ports for export and supplies fuel to inland communities. There are pipelines for crude oil of 4,090 kilometers (2,542 miles), other petroleum products of 2,900 kilometers (1,802 miles), and natural gas of 9,918 kilometers (6,163 miles).
Argentina Road Freight Transport Industry Overview
The Argentina road freight transport market is quite fragmented due to the presence of several local players such as Logistica Urbana S.A, Tasa Logistica, Andreani Logistica S.A, Organizaicon Coordinadora Argentina S.R.L, as well as other international companies.
A startup, Avancargo, provides an online marketplace to connect shippers and carriers. Shippers can use the application to request a truck with an idle capacity near the customer's location. It claims to provide verified carriers on the platform with real-time tracking. Avancargo has provided services in Argentina since January 2017.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Government Regulations
4.4 Value Chain / Supply Chain Analysis
4.5 Overview of Road Freight Transport Market in Argentina
4.6 Brief on Freight Rates
4.7 Impact of COVID-19 on Argentina road freight transport market
4.8 Future of the Market
5 MARKET DYNAMICS
5.1 Drivers
5.1.1 Increasing international trade
5.1.2 Expansion of logistics industry in the country
5.2 Restraints
5.2.1 The limited presence of an integrated IT system
5.2.2 Fragmented Warehousing is affecting the market
5.3 Opportunities
5.3.1 Demand in International Trade
5.3.2 Increasing Investments in Road Infrastructure
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitutes
5.4.5 Intensity of Competitive Rivalry
6 MARKET SEGMENTATION
6.1 By Destination
6.1.1 Domestic
6.1.2 Cross Border/ International
6.2 By End User
6.2.1 Manufacturing
6.2.2 Food and Beverages
6.2.3 Automotive
6.2.4 Healthcare
6.2.5 Distributive Trade (wholesale and retail trade)
6.2.6 Others (Chemical products, fertilizers, Rubber and plastic products etc)
7 COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Logistica Urbana S.A
7.2.2 Tasa Logistica
7.2.3 Andreani Logistica S.A
7.2.4 Organizaicon Coordinadora Argentina S.R.L
7.2.5 Rivas
7.2.6 Americana
7.2.7 Clover Logistics
7.2.8 Sea Side
7.2.9 Servicargo Internacional
7.2.10 Transfarmaco S.A*
8 FUTURE OF THE MARKET
9 APPENDIX
9.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport and Storage Sector to economy)
9.2 Insights on Capital Flows (investments in Transport and Storage Sector)
9.3 E-commerce and Consumer Spending-related Statistics
9.4 External Trade Statistics - Export and Import, by Product and by Country
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Technological Trends
4.3 Government Regulations
4.4 Value Chain / Supply Chain Analysis
4.5 Overview of Road Freight Transport Market in Argentina
4.6 Brief on Freight Rates
4.7 Impact of COVID-19 on Argentina road freight transport market
4.8 Future of the Market
5 MARKET DYNAMICS
5.1 Drivers
5.1.1 Increasing international trade
5.1.2 Expansion of logistics industry in the country
5.2 Restraints
5.2.1 The limited presence of an integrated IT system
5.2.2 Fragmented Warehousing is affecting the market
5.3 Opportunities
5.3.1 Demand in International Trade
5.3.2 Increasing Investments in Road Infrastructure
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitutes
5.4.5 Intensity of Competitive Rivalry
6 MARKET SEGMENTATION
6.1 By Destination
6.1.1 Domestic
6.1.2 Cross Border/ International
6.2 By End User
6.2.1 Manufacturing
6.2.2 Food and Beverages
6.2.3 Automotive
6.2.4 Healthcare
6.2.5 Distributive Trade (wholesale and retail trade)
6.2.6 Others (Chemical products, fertilizers, Rubber and plastic products etc)
7 COMPETITIVE LANDSCAPE
7.1 Market Concentration Overview
7.2 Company Profiles
7.2.1 Logistica Urbana S.A
7.2.2 Tasa Logistica
7.2.3 Andreani Logistica S.A
7.2.4 Organizaicon Coordinadora Argentina S.R.L
7.2.5 Rivas
7.2.6 Americana
7.2.7 Clover Logistics
7.2.8 Sea Side
7.2.9 Servicargo Internacional
7.2.10 Transfarmaco S.A*
8 FUTURE OF THE MARKET
9 APPENDIX
9.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport and Storage Sector to economy)
9.2 Insights on Capital Flows (investments in Transport and Storage Sector)
9.3 E-commerce and Consumer Spending-related Statistics
9.4 External Trade Statistics - Export and Import, by Product and by Country
