The global automotive logistics market was valued at USD 144.9 Billion in 2019 and expected to reach USD 231.9 Billion by 2027 and poised to grow at a compound annual growth rate (CAGR) of 5.6% during the forecast period 2020 to 2027.
Increasing outsourcing of automotive components, emergence of logistics services, and technological advancement are some of the prime factors that drive the market growth. Requirement of an effective and customized logistic service have established a differentiating factor among various logistic service providers and plays a crucial role in maintaining competition in the market. Logistics service providers are also incorporating disruptive technologies such as Big Data, Internet of Things (IoT), and connected ship to enhance their supply chain management system. These technologies aid in reducing the labor cost and also eliminate the delay in shipments. The aforementioned factor propels the demand of automotive logistics significantly over the coming years. Further, increasing sale of automobiles across the globe along with a significant rise in the demand for automotive spare parts positively influence the market growth. Advancement in the distribution channel and rising trend for Do it yourself (DIY) has again prominently boosted the demand for automotive aftermarket, thereby triggers the market growth of automotive logistics.
Based on type, automotive logistics market has been segregated into automobile parts and finished vehicles. Automobile parts encountered the maximum market value share accounted for more than 75% share in the global automotive logistics market in 2019. The segment includes both the revenue generated from the logistics of spare parts from both aftermarket as well as automobile manufacturers. In addition, stringent government norms for carbon emission have triggered the need for upgradation of automotive parts that again flourishes the demand for automobile parts in the coming years.
On the other hand, finished vehicles expected to register the highest growth over the forecast period due to rising demand for electric vehicles and low emission vehicles. Several government initiatives to curb the harmful emission is promoting the sale of electric and battery-powered vehicles across various regions. Additionally, governments of different regions are offering tax credits and other numerous benefits on the purchase of electric cars. Consequently, the above mentioned factors predicted to fuel the growth of finished vehicle segment during the forecast period.
Transportation segment led the global automotive logistics market with significant revenue of nearly 82% in the year 2019 and analyzed to maintain its dominance over the projected years. Transportation is among the critical services in automobile manufacturing. This is mainly because of the automobile manufacturer source various parts and components of the vehicles from different companies, assemble them in their manufacturing plants and sell the finished vehicle across the globe.
Besides this, warehousing projected to exhibit the fastest growth over the analysis period. This is mainly due to increasing demand for capacity expansion in storage centers and warehouses. Furthermore, implementation of various warehouse management systems, effortless material handling, and systematic storage boost the warehouse segment growth in the coming years.
In terms of revenue, the Asia Pacific captured more than 30.0% market value share in the global automotive logistics market and expected to witness the highest growth during the forecast period. Economic growth in India and China has significantly boosted the market growth in the region. Economic revival and rising e-commerce penetration significantly contributes for the industry growth in India and China. Furthermore, increasing investments in railways, roadways, airways, and maritime trade across emerging nations, such as India, China, and Japan, are projected to bolster the demand for warehousing and logistics over the forecast period.
On the other side, Europe analyzed to witness slower growth as compared to the Asia Pacific over the next few years due to concern related to labor shortage and talent management. However, expansion of e-commerce sector and restructuring of supply chain activities is anticipated to positively influence the industry progress during forthcoming years. The region is a home for many automotive manufacturers that again triggers the market growth. In addition to this, rising demand for electric transportation in the region and favorable government initiatives significantly drive the market for automotive logistics over the forecast period.
Key Companies & Market Share Insights
The global automotive logistics market is oligopolistic in nature and dominated by the some of the key players operating in the market. Market players are incorporating advanced technologies for route optimization, real-time tracking of shipments, and also provide technology-driven services to their customers. Collaboration, merger & acquisition of various other automotive logistics companies are the prime strategies adopted by the industry participants to capture maximum revenue share in the market. Furthermore, the market players are also focusing to improve their automation technology to achieve a competitive advantage among different end-users.
Few of the noticeable participants contending in the automotive logistics market arena are as follows:
Segments Covered in the Report
This research study comprises comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative acumens, and forecasts of the market. This report presents breakdown of market into major and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report includes market division and its revenue assessment by categorizing it depending on type, activity, logistics solution, distribution, and region:
By Logistics Solution
By Regional Outlook
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