World Market Projected to Cross $463 Billion by 2032


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Automotive Logistics Market

Automotive Logistics Market

Automotive Logistics Market

Dublin, April 02, 2024 (GLOBE NEWSWIRE) — The “Automotive Logistics Market Report by Type, Activity, Mode of Transport, Logistics Solution, Distribution, and Region 2024-2032” report has been added to ResearchAndMarkets.com’s offering.

The global automotive logistics market reached US$ 283.5 billion in 2023. The market is projected to reach US$ 463.3 billion by 2032, exhibiting a growth rate (CAGR) of 5.6% during 2023-2032.

Rapid growth in the automotive industry is driving the need for robust logistics networks to support the distribution of vehicles and parts to new markets. Additionally, the adoption of advanced manufacturing techniques, such as additive manufacturing, three-dimensional (3D) printing, and modular assembly, is allowing automotive manufacturers to produce components in different locations and assemble them closer to the end markets. Apart from this, the increasing global trade of vehicles and components is catalyzing the demand for efficient logistics solutions to manage cross-border transportation and customs procedures. Moreover, the evolution of trade agreements and changes in tariff regulations is influencing the cross-border movement of vehicles.

Adoption of advanced technologies

The widespread adoption of digital technologies, such as the Internet of Things (IoT) sensors and blockchain to enhance visibility, efficiency, and traceability across the supply chain and reduce lead times. Apart from this, the increasing utilization of big data analytics is enabling better demand forecasting, route optimization, and real-time monitoring of shipments, and leading to improved decision-making. Furthermore, the integration of autonomous vehicles in logistics operations to revolutionize last-mile delivery and warehouse management is strengthening the growth of the market. Moreover, the implementation of robotic process automation in automotive logistics to streamline repetitive tasks like order processing, invoice verification, and documentation is propelling the market growth.

Sustainable practices and environmental concerns

The rising prevalence of various respiratory problems like asthma due to increasing air pollution levels is driving the sales of hybrid and electric vehicles (HEVs). Moreover, various leading companies are increasingly focusing on eco-friendly practices, such as using renewable energy sources and implementing recycling programs, to reduce harmful emissions and promote environmental health. The shift towards electric vehicles is rising the need for new logistics solutions for battery transportation, charging infrastructure development, and recycling processes. Furthermore, governing authorities of various countries are undertaking initiatives to promote the adoption of environment-friendly modes of transport, which is offering a favorable market outlook. They are stringent emission regulations to encourage automotive manufacturers to optimize transportation routes, reduce carbon emissions, and explore alternative fuel options.

Automotive Logistics Industry Segmentation

The report provides an analysis of the key trends in each segment of the global automotive logistics market, along with forecasts at the global, regional and country levels from 2024-2032. The report has categorized the market based on type, activity, mode of transport, logistics solution, and distribution.

Breakup by Type:

  • Finished Vehicles

  • Automotive Parts

According to the report, automotive parts represented the largest segment as they are usually sourced from various suppliers across different geographical regions. This multi-tiered supply chain complexity is driving the need for efficient logistics networks to ensure seamless coordination and timely delivery of components to assembly plants. Additionally, automobile manufacturers are increasingly utilizing just-in-time production methodologies to optimize costs and reduce inventory. Apart from this, the adoption of efficient logistics management to ensure the transportation and storage of vehicle parts in controlled environments and minimize the risk of damage or non-compliance with regulations is favoring the market growth. Furthermore, leading market players are focusing on global sourcing strategies to gain a competitive edge in the market.

Breakup by Activity:

According to the report, transportation and handling hold the largest market share as they facilitate the efficient and timely movement of vehicles and automotive parts. Additionally, the increasing emphasis of automotive manufacturers on just-in-time (JIT) production is offering a favorable market outlook. JIT relies on the prompt and precise delivery of components to assembly lines, which helps minimize inventory stockpiles and associated holding costs. Apart from this, the escalating demand for faster vehicle delivery is encouraging automotive manufacturers to invest in well-optimized transportation networks to ensure vehicles reach dealerships promptly, align with customer expectations, and enhance the overall customer experience. Moreover, the rising complexity of the supply chain of the automotive industry is driving the need for efficient transportation and handling.

Breakup by Mode of Transport:

  • Roadways

  • Airways

  • Maritime

  • Railway

According to the report, railway represents the largest market segment as it excels in transporting large quantities of vehicles or automotive parts over long distances. This bulk transportation capability provides cost-efficiency for manufacturers seeking to move substantial volumes in a single shipment. Additionally, it is integrated with other modes of transportation, such as trucks and ships, forming intermodal connections that allow seamless movement of vehicles and parts across different geographical regions. Apart from this, various railway networks and terminals are generally strategically located near major manufacturing hubs and distribution centers. Furthermore, utilizing railway for long-distance transportation helps alleviate road congestion and offers faster delivery of goods. Moreover, rail cars have ample space to accommodate multiple vehicles and large automotive components.

Breakup by Logistics Solution:

  • Inbound Logistics

  • Outbound Logistics

  • Reverse Logistics

  • Aftermarket Logistics

Breakup by Distribution:

According to the report, domestic accounted for the largest market share as automotive companies need extensive domestic distribution networks to cover vast geographical areas within a country. Additionally, domestic distribution focuses on the final stage of the supply chain, which ensures efficient and timely delivery of vehicles and parts to dealerships and end customers. Apart from this, these distribution networks are established in close proximity to major urban centers and customer bases, which aids in reducing delivery times and enhancing responsiveness to market demands. Furthermore, they support dealerships by maintaining an updated inventory of vehicles and spare parts. Moreover, effective domestic distribution allows manufacturers to synchronize new product launches across different regions.

Breakup by Region:

  • North America

  • Asia-Pacific

  • Europe

  • Latin America

  • Middle East and Africa

According to the report, Asia-Pacific accounted for the largest market share as many international manufacturers have established production facilities in the region, resulting in extensive inbound and outbound logistics activities that drive the demand for logistics services. Additionally, the geographical proximity of Asia-Pacific countries to other major markets facilitates international trade and cross-border logistics, making it an essential node in global automotive logistics networks. Apart from this, governing authorities in the region are continuously investing in improving transportation infrastructure, including ports, railways, and road networks, to enhance the efficiency of logistics operations. Moreover, the adoption of innovative logistics solutions strengthens the position of Asia-Pacific in the global automotive logistics landscape.

Competitive Landscape

Companies are actively engaged in various strategic initiatives to meet the evolving demands of the digital retail landscape. Additionally, they are adopting environment friendly practices by utilizing electric vehicles, optimizing transportation routes to minimize emissions, and implementing eco-friendly packaging. These companies are integrating technology solutions, such as the Internet of Things (IoT) sensors and tracking systems, to provide real-time visibility into shipments, streamline operations, and enhance supply chain efficiency. Moreover, various automotive logistics companies are focusing on the development of supply chains for automotive manufacturers, ensuring a seamless flow of materials, components, and finished vehicles from suppliers to manufacturing plants and then to dealerships or end customers.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

  • BLG Logistics Group AG & Co. KG

  • Bollore Logistics (Bollore SE)

  • C.H. Robinson Worldwide Inc.

  • CEVA Logistics (CMA CGM)

  • CFR Rinkens LLC

  • Dachser Group SE & Co. KG

  • Deutsche Post DHL Group

  • DSV A/S

  • Hellmann Worldwide Logistics SE & Co. KG

  • Kerry Logistics Network Ltd. (SF Express Co. Ltd.)

  • Kuehne + Nagel International AG

  • Neovia Logistics Services LLC

  • Nippon Express Co. Ltd.

  • Penske Logistics Inc. (Penske Truck Leasing Co. L.P.)

  • Ryder System Inc.

Industry Developments:

  • In July 2023, Nippon Express Co. Ltd. launched “e-NX Quote” and “e-NX Visibility” digital forwarding services to enable online quotations and tracking.

  • In September 2021, Ryder System Inc. announced a partnership with autonomous trucking company Embark to create a nationwide network of transfer points.

Key Attributes

Report Attribute

Details

No. of Pages

147

Forecast Period

2023-2032

Estimated Market…



Read More: World Market Projected to Cross $463 Billion by 2032

2024-04-02 16:09:00

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