The growing partnerships and collaborations between logistics providers and vehicle manufacturers is key factor propelling the Automotive Logistics Market forward.
Covid-19 Impact & Market Status
The COVID-19 epidemic has wreaked havoc on the automotive supply chain and manufacturers. Lockdown scenarios as a result of the crisis have prompted specialists in the automotive sector to estimate that the industry would experience at least a quarter of a lag in the supply chain of automotive equipment. The analyst's continual research adds to their research framework, ensuring that underlying COVID-19 concerns and potential solutions are included. COVID-19 is being explored in light of shifts in consumer demand, consumer behaviour, as well as supply chain re-routing, purchasing power, government involvement, and market dynamics. COVID-19's impact on the market is considered in this updated study, which contains analyses, estimates, insights, and predictions.
The Transportation Segment will occupy the Majority of the Market Share in the Coming Future
The transportation segment currently dominates the market and is expected to do so during the projected period. Transportation is one of the most significant services in the car manufacturing sector. This is because automakers buy parts from a variety of industries all over the world and then sell the finished vehicle in a different country. Furthermore, manufacturing techniques such as just-in-sequence (JIS) and just-in-time can assist logistics service providers.
The Inbound Segment will occupy the Majority of the Market Share in the Coming Future
In the previous years, the inbound logistics solution category dominated the market, accounting for the most part of global revenue, and it is predicted to increase at the quickest rate throughout the forecast period. During the projection period, the inbound logistics segment is likely to be driven by a growing emphasis on creating a logistics infrastructure and a public-private partnership model to make the transit from manufacturers to local warehouses easier.
The Domestic Segment will occupy the Majority of the Market Share in the Coming Future
In the past, the domestic segment had the maximum market revenue and is likely to expand at the highest CAGR in the predicted period. This expansion might be ascribed to government policies in nations like China, India, and Brazil that subsidize manufacturing. Technology transfer, job creation, and GDP contribution are the main reasons for pursuing this method.
Asia Pacific Market is projected to be a Maximum Growth Rate in the Future
Earlier, Asia Pacific accounted for more than 30.0 percent of total revenue, and it is predicted to expand at the quickest rate throughout the projection period. China's and India's economic expansion is boosting the regional market growth. In India and China, key factors such as increased e-commerce penetration and economic resurgence are contributing to the industry's growth. In addition, rising continuous investments in airways, highways, railroads, and marine commerce across growing nations like China, India, and Japan are likely to boost logistics and storage demand throughout the projection period.
The demand for electric vehicles and plug-in vehicles is growing, which is helping to fuel the expansion of the Automotive Logistics Market
To maintain a continuous flow of operations, automotive logistics provides seamless warehousing services and transportation of spare parts, production material, and finished automobiles. The market is expected to rise due to factors such as the introduction of logistics services, technological improvements, and increased outsourcing around the world.
Automotive logistics used to be a fragmented activity of transportation and warehousing, but it has transformed into integrated logistics management, which is expected to boost market growth throughout the forecast period. The global automotive logistics market is anticipated to reach over USD 473 billion at a CAGR rate of 8% during the prediction period.
In addition, the adoption of electric vehicles is likely to boost the worldwide automotive logistics business. OEMs, as well as Tier I and Tier II component makers, can benefit from the logistics industry's storage and inventory management services. The demand for these services is determined by the number of vehicles produced.
The expansion of the market is heavily reliant on the demand produced by the vehicle sector. Because of increased purchasing capacity and improving living standards throughout the world, the vehicle industry is likely to develop significantly in the future. This shift in lifestyle has resulted in a rise in vehicle sales in emerging nations, which is likely to drive market growth over the next several years. Furthermore, the need for vehicle spare parts in the aftermarket for a large on-the-road current automobile fleet is likely to boost the market throughout the forecast period.
The market is very competitive with a few dominant companies. Technology-driven services such as real-time cargo tracking and route optimization are being offered by businesses. In order to get a larger market share, prominent industry players are forming alliances and acquiring other automobile logistics firms through mergers and acquisitions. In addition, market participants are concentrating on enhancing automation technologies in order to get a competitive advantage among end-users. DHL International GmbH, KUEHNE + NAGEL, Penske, BLG LOGISTICS GROUP AG & Co. KG, SNCF, XPO Logistics, Inc., Penske Automotive Group, Inc., DACHSER, GEFCO, SCHNELLECKE GROUP AG & CO. KG, Neovia Logistics Services, LLC., Ryder System, Inc., and DB SCHENKER are just a few of the industry's major competitors Financial overviews, company goals, corporate biographies, and current events were used to identify market participants.
Latest Innovations in the Global Automotive Logistics Market: a Snapshot
- In June 2021, JLR (Jaguar Land Rover) inked a five-year agreement with Unipart Distribution to manage its worldwide parts logistics center in Appleby Magna, England. The 270,000-square-meter plant is set to open in 2022 and will distribute aftermarket products. Unipart will be in charge of distribution, parts packaging, branded products operations, and customer service.
- Hyundai Glovis will use the port of Bremerhaven in Germany as its center for cars in transit from Asia to Europe beginning in January 2022, according to a new agreement with BLG Logistics. Glovis, the world's largest ro-ro operator, will use BLG AutoTerminal Bremerhaven to import Hyundai and Kia vehicles, as well as other automobile brands.
The global market research study's purpose is to give detailed information on the global Automotive Logistics market. The research analyses the market's growth potential, demographics, and capacity during the predicted period. This component contributes to the calculation of market size as well as a forecast of how the market will expand during the assessment period.
Automotive Logistics Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 473 billion|
|Growth Rate||CAGR of 8% during 2021-2028|
|Segment Covered||Activity, Logistics Services, Mode of Transport, Distribution, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, The Middle East and South Africa|
|Key Players Profiled||DHL International GmbH, KUEHNE + NAGEL, Penske, BLG LOGISTICS GROUP AG & Co. KG, SNCF, XPO Logistics, Inc., Penske Automotive Group, Inc., DACHSER, GEFCO, SCHNELLECKE GROUP AG & CO. KG, Neovia Logistics Services, LLC., Ryder System, Inc., and DB SCHENKER|
Key Segments of the Global Automotive Logistics Market
Activity Overview, 2018-2028 (USD Billion)
Logistics Services Overview, 2018-2028 (USD Billion)
Mode of Transport Overview, 2018-2028 (USD Billion)
Distribution Overview, 2018-2028 (USD Billion)
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
The Middle East and South Africa