Global Automotive Logistics Market by Activity (Transportation, Warehousing) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global automotive logistics market was valued at USD 140 billion in 2019. It is expected to grow at a compound annual rate (CAGR of 5.8%) between 2020 and 2027. The warehousing, transportation and storage of finished vehicles as well as their components and systems within the automotive supply chain is called automotive logistics. To ensure smooth operations, automotive logistics provides seamless warehousing and transportation of spare parts and production material. The market is growing due to technological advances, the rise of logistics services and the increasing global outsourcing. The market has seen a shift from being a fragmented operation of transportation and warehouse management to integrated logistics management. This will support the growth in the coming years.

A customized, efficient logistic service that meets the needs of the automotive industry is becoming a key factor in their competitiveness. To improve their supply-chain management, key automotive logistics service providers are making strategic use of Big Data and connected ship technologies. These technologies reduce labor costs through predictive analysis of routing. This eliminates delays in shipping.

Market growth is heavily dependent on the amount of demand for automobiles. Due to rising living standards and increased spending power around the world, the automobile industry will experience significant growth. This has resulted in an increase in automobile sales in emerging economies. This will boost market growth over the forecast period. The market will be driven by the demand for spare parts for large, on-road automobile fleets in the aftermarket.

Automobile manufacturers had to pay higher inventory costs earlier due to the long-term storage of components and systems. Automobile manufacturers used strategies like Just in Time (JIT) or world-class quality to overcome this problem. This makes automotive logistics an integral part the production process. JIT eliminates all costs, unneeded inventory, and scrap production. JIT can only be implemented with a well-organized supply chain and a reliable logistics system. World-class quality also places more emphasis on the quality and service of products. The implementation of Just-in-Time and world class quality has greatly boosted the automotive logistics market in recent years. It is expected to continue driving the market during the forecast period.

Activity Insights

With a revenue share at 82.2%, the transportation segment was the dominant market. It is expected to continue its dominance over the forecast period. Transport services are a critical service in automobile manufacturing. Automobile manufacturers can source parts from various companies around the world and then sell the finished vehicle in another country. Logistics service providers have many options, including just-in time (JIS), and just-in sequence (JIS).

The highest revenue CAGR is expected to be seen in warehousing services over the forecast period. This is due to an increasing demand for warehouses and storage space expansion. The warehouse segment is expected to grow by 2027 due to increasing automobile demand and the need for efficient storage and material handling. The segment will also benefit from an increase in awareness about how to maximize space throughout supply channels such as stockyards and storage utilities.

Distribution Insights

In 2019, the domestic segment held the largest percentage of 62.2% and is expected expand at the fastest CAGR during the forecast period. This is due to the support of government policies to subsidize manufacturing in countries like Brazil, India, China and China. Technology transfer, employment creation, and a contribution to the GDP are the key reasons for implementing this strategy. The direct injection of cash into the economy and creation of new jobs for local suppliers for automotive spare parts and accessories was another benefit.

The domestic automotive logistics market is expected to grow due to the shift in preference by automobile manufacturers to local manufacturing of automobiles and parts. This helps to reduce operational costs. In addition, increasing logistics costs, inventory cost and fierce competition have forced automobile manufacturers to move their manufacturing/ assembly plants to a local area. The domestic logistics sector is also growing due to the relaxation of import duties and taxes, as well as the flexible cost structures for transportation services. The segment's growth is expected to be further fueled by increased demand for logistics services and large trucking networks.

Type Insights

The market for automotive logistics can be divided by type into finished vehicles and parts. The market's largest segment, the automobile parts segment, accounted for 76% of global revenue in 2019. The revenue from the distribution of spare parts from the manufacturer and aftermarket is included in the automotive parts segment. Stringent government regulations regarding carbon emissions have led to the demand for standard aftermarket parts that can be used in the existing vehicle fleet. This has supported the segment's growth. A rise in e-commerce has boosted air transport capacity, and driven the growth in automotive logistics across different countries. This has fueled the demand for logistic services in the automotive industry.

The revenue from logistics of the finished vehicle is included in the finished vehicle segment. Due to rising demand for electric and low-emission vehicles, the finished vehicle segment will grow at a 7.0% CAGR over the forecast period. This is due to the availability of tax credit and favorable government incentives. The forecast period will see a rise in demand for electric cars, which is expected to increase the growth of the finished vehicle segment.

Logistics Solution Insights

With a share of 66.8% of global revenue in 2019, the inbound logistics solution segment led this market. It is expected to experience the fastest growth during the forecast period. The inbound logistics segment will see a significant increase in investment in logistics infrastructure and a public/private partnership model that facilitates transportation from manufacturers to local warehouses. Inbound logistics includes storage, transportation, dissemination, and dissemination automobile and spare part to local warehouses. The outbound segment is revenue from transportation of automobile or spare parts from warehouse to end user.

Suppliers are increasingly adopting roadways transport modes due to increasing government investments and increased initiatives to improve freight forwarding. Inbound logistics is booming because of the constant objective to improve logistics infrastructures. The high cost of transport via roads due to road permits and taxes is expected to limit the growth of inbound logistic through roads. The adoption of a centralized taxation policy such as GST India is expected to lower the tax burden on logistic service providers.

Regional Insights

Asia Pacific accounted for more than 30% of total revenue in 2019, and will continue to grow the most over the forecast period. Regional market growth is being boosted by China's and India's economic growth. Rising e-commerce penetration, economic revival and key factors are driving the growth of the Indian and Chinese industry. Over the forecast period, logistics and warehousing will be boosted by ongoing investments in roads, railways and airways across emerging countries like China, India and Japan. The steady growth of the region's market has been adversely affected by the recent spread of the COVID-19 pandemic in Asia Pacific countries, particularly China. However, China is nearing its recovery phase and it is expected that the pandemic's impact on China's market growth will be less in the next year.

Europe will experience slower growth than Asia Pacific in the coming years due to continued concerns about talent management and labor shortage. The sector will be revived due to substantial investment and tenant demand from the regional automotive logistics industry. Over the next few years, industry growth will be positively impacted by the restructuring of supply chains and the expansion of the ecommerce sector. The COVID-19 pandemic that recently spread to Europe, including Italy, Spain, Germany and the U.K., is likely to have a negative impact on regional market growth.

Market Share Insights & Key Companies

This market is dominated and oligopolistic by major players. Technology-driven services are offered by companies, such as route optimization and real-time tracking of shipment movements. To increase their market share, market leaders are also entering into partnerships and acquiring other companies in the automotive logistics industry. To gain a competitive advantage among end-users, market players are also focusing on the improvement of automation technology. The following are some of the most prominent players in the global auto logistics market:

• BLG LOGISTICS GROUP AG & Company KG

• CEVA Logistics

• GEFCO

• Hellmann Worldwide Logistics

• Penske Automotive Group, Inc.

• CFR Rinkens

• Expeditors International of Washington, Inc.

• Imperial Logistics

• Kerry Logistics Network

• Nippon Express Co. Ltd.

• Ryder System, Inc.

• Schnellecke group ag & co. Kg

Up Market Research published a new report titled “Automotive Logistics Market research report which is segmented by Activity (Transportation, Warehousing), By Players/Companies BLG LOGISTICS GROUP AG & Co KG, CEVA Logistics, CFR Rinkens, GEFCO, Ryder System Inc, Nippon Express Co Ltd , Schnellecke group ag & co Kg, Imperial Logistics, Hellmann Worldwide Logistics, Penske Automotive Group Inc, Expeditors International of Washington Inc , Kerry Logistics Network”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Automotive Logistics Market Report Segments:

The market is segmented by Activity (Transportation, Warehousing).

Automotive Logistics Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Automotive Logistics Market

Overview of the regional outlook of the Automotive Logistics Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Automotive Logistics Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Automotive Logistics Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Transportation

                2. Warehousing

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Automotive Logistics Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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Reasons to Purchase the Automotive Logistics Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.