Published Date : 16 May 2022
The global automotive logistics market size is predicted to worth around USD 264.68 billion by 2030 from valued at USD 160.69 billion in 2021, with a CAGR of 5.7% from 2021 to 2030.
For the total administration of resource procurement, storage, and movement to other sites, the automotive sector needs logistics services. To achieve a cost-effective logistics approach, automobile vendors are collaborating with a variety of logistics providers. The growing demand for automotive logistics services for the delivery of automotive components, spare parts, and finished vehicles is driving the growth of the automotive logistics industry.
The automotive logistics market is expected to rise due to factors such as the increased outsourcing around the globe, the emergence of logistics services, and technological improvements.
The automotive logistics’ future tendency is to strengthen the division of labor. Manufacturing enterprises will be separated from functions such as distribution and component production. Furthermore, to reduce investment and operational expenses, a portion of logistical management responsibilities will be delegated to third-party logistics. Companies can acquire more market knowledge, expand operations to all corners of the globe without having to invest in assets, and access international markets more quickly by using third-party logistics. As a result, the 3PL model will become the dominant logistics model in the automotive industry.
Asia-Pacific is the largest segment for automotive logistics market in terms of region. China and India’s economic growth is boosting regional market expansion. In India and China, key factors include increased e-commerce penetration and economic resurgence are boosting industrial growth.
Europe region is the fastest growing region in the automotive logistics market. In the market, Europe is predicted to grow at a fast pace. Factors such as the growing e-commerce industry, regional original equipment manufacturers (OEMs’) focus on reorganizing supply chains to prevent reliance on a single location, and rising demand for electric vehicles will all contribute to the market’s expansion across Europe.
Scope of the Report
|Market Size in 2021||USD 160.69 Billion|
|Revenue Forecast by 2029||USD 250 Billion|
|CAGR||5.7% from 2021 to 2030|
|Forecast Data||2021 to 2030|
Surge in automotive sales and demand
Despite certain hurdles, the global automotive industry appears to be on the rising trend. The global light vehicle production unit sales have been spectacular, according to industry professionals, and are continuing to expand. Asia-Pacific is predicted to grow the fastest, followed by the North America. Moreover, the manufacturing and sales of electric vehicles are rising at a rapid pace, necessitating automotive logistics. As a result, the surge in automotive sales and demand is propelling the growth of automotive logistics market during the forecast period.
Shortage of truck drivers
Over the last few years, freight prices have risen substantially. The shortage of truck drivers is one of the main reasons for the increased expenses. During the projected period, the trend of decreasing driver supply and increasing transportation demand from manufacturers is expected to continue. Thus, the shortage of truck drivers is hindering the growth of the automotive logistics market.
Growth in domestic logistics
Domestic logistics refers to the services needed to transport vehicles and goods inside a country or region. A passenger vehicle made in China and exported to India, for example, would be included in domestic logistics market. The logistics services needed to transport automobiles from one region to another are included in the international logistics market of a region. Thus, the growth in domestic logistics is paving new way to the growth of automotive logistics market during the forecast period.
Digitalization of operations
Automakers’ increasing use of software-based tools to handle logistical procedures has yielded significant benefits, such as increased supply chain transparency and operational efficiency. Thus, the digitalization of operations is creating lucrative opportunities for the growth of automotive logistics market during the forecast period.
High cost of automotive logistics
The automotive logistics require ample number of resources. These resources cost differ region to region and place to place. The cost includes transportation and warehousing. As a result, the high cost of automotive logistics is a huge challenge for the growth of market during the forecast period.
Buy this premium research report - https://www.precedenceresearch.com/checkout/1105
Any question regarding this study, please feel free to contact at firstname.lastname@example.org